HRM in Bangladesh

MGT 351 1
Introduction
Human Resource Management (HRM) is a core discipline, which deals with managing the
work force in such a way as to maximize the output of the organization It starts with the
selection and recruitment of employees, its training and de!elopment, maintaining a
consistent compensation package for the employees and to take many other initiati!es to
reduce the a"senteeism and to moti!ate the employees In the early days employees were
treated as simply workers who will a"ide "y the order of the employee ignoring the human
side of the workers #s a result, the outputs of the organization were not maximized $hen
more emphasis is gi!en to impro!e the condition of the workers for moti!ating them
towards work $his work force is treated as asset in today%s organization
&ne of the primary 'o"s of HRM is the formulation of a selection and recruitment policy
commensurate with the organizational policy and mission of the organization Induction of
new employee to an organization is a !ital issue (nder )ualified recruited employees may
'eopardize the o"'ecti!es of the organization If e!erything regarding induction of new
employee is clearly spelt out in the selection and recruitment policy then the chance of
recruiting under )ualified employee is less
#nother ma'or area of HRM is the training and de!elopment of the employees #ctually
training can sharpen the know how of an employee *eed for training may start with the
new recruitment of the employee and continue till the retirement of the employee
+ontinuous training and de!elopment of the employee can help organization to achie!e its
goals

MGT 351 2



Background of H,B+
MGT 351 3
-uring British period.
HRM in Bangladesh dates "ack to the Report of the Royal +ommission on /a"or (also
known as 0hitely +ommission) in India (123241251), which recommended the appointment
of /a"or &fficers to settle the grie!ances of the workers and to deal with recruitment in
order to check corrupt practices in Indian industries "y excluding the 6o""er from
engagement and dismissal of la"or
0hile the employees were indifferent to this recommendation, initiati!e was taken "y the
,tate 7o!ernments and in 12589 the Bom"ay -isputes +onciliation #ct was passed which
pro!ided for the appointment of a 7o!ernment /a"or &fficer to deal with la"or pro"lems
$he Bom"ay Mill owners #ssociation were also persuaded "y the 7o!ernment to appoint a
la"or officer of its own
-uring :akistan period.
,oon after the "irth of :akistan in 128;, a num"er of "ig industries and commercial
esta"lishments were set up in the then <ast and 0est :akistan, "ut the role and the
functions of HRM were not changed $hey continued to work mostly as 0elfare &fficers to
a"ide "y the pro!isions of =actories #ct, 1258
In 12>3, on the re)uest of the go!ernment of :akistan, a I/& Mission undertook to pro!ide
assistance in carrying out a comprehensi!e sur!ey on la"or pro"lems in :akistan In 12?>,
the =actories #ct 1258 was replaced "y =actories #ct 12?>, which also pro!ided for the
appointment of 0elfare &fficer for industries employing >@@ or more workers -uring the
time of :resident =ield Marshal #yu" Ahan (12>B412?2), though large num"er of industries
were set up throughout :akistan, no importance was gi!en to HRM functions and the
heads of HR departments whate!er were their designations4 used to work mainly as
0elfare &fficers mainly dealing with day4to4day personnel pro"lems and at the end of 12?B
there was widespread la"or, political and student unrest throughout :akistan and the
7o!ernment of :resident #yu" Ahan collapsed in March, 12?2
MGT 351 4
HRM in Bangladesh.
0hile HRM has ad!anced in other de!eloped and de!eloping countries of the world, we are
still sitting idle and are continuing with our old ha"its and practices so far HRM functions
are concerned #s a result, though we set up large factories "y importing costly machineries
from a"road, our producti!ity le!el is !ery low compared with other countries and most of
the organizations are incurring huge losses e!ery year and lack of efficient management is
one of the most important reasons for this state of affairs
In May 12B@, the Institute of :ersonnel Management, Bangladesh, was set up in -haka and
since then the institute is also trying !ery hard, "y organizing coursesCworkshopsC seminars
etc and though its pu"lications to impress upon the owners of industrialC commercial
enterprises the importance of HRM in the field of management and with this end in !iew
the Institute also started post 7raduate -iploma course in 12B?, nine month duration
diploma course and six month duration +oncise diploma course in HRM and it is hoped
that the management of different organizations, realizing the importance of HRM in their
respecti!e organizations, will pay more attention to Dhuman elements% of the organization
for purpose of achie!ing higher producti!ity as well as for maintaining industrial peace
MGT 351 5
=actors hindering HRM in Bangladesh.
1) #ttitude of top management towards personnel functions.
0ith a few exceptions, the picture of an a!erage industrial esta"lishment in this country is
still one of the dominations "y the owners $hese men, although talented so far as "usiness
acumen is concerned, ha!e rarely acknowledged or accepted wholeheartedly the need for
sound personnel management methods and techni)ues
3) 0eakness inherent in the 'o".
$he inherent weakness of the 'o" is that its results cannot "e measured in concrete terms
ha!e pro!ed frustrating to many personnel executi!es and the employers also, "ecause of
this reason, employers often fail to appreciate the contri"utions of HRM -epartment
5) *ature of /a"or force.
$he nature of our la"or force is another hurdle in the sense that there is an a"undant
supply of la"or and )uite inexpensi!e $here is no compelling need on the part of the
employer to use the !arious ad!anced techni)ues of HRM to select, maintain and moti!ate
the employees
8) 0eak and unenlightened la"or mo!ement.
(nlike the 0est, la"or mo!ement in this country is neither strong nor enlightened &ur
working class is generally passi!e and depends on outside politicians for guidance of its
own affairs $he poor financial position, unsta"le leadership, inter4union ri!alry etc ha!e
also rendered the la"or mo!ement weak and not !ery effecti!e
>) /ack of )ualified and experienced people in the profession.
$here is no denying the fact that in the past students with !ery good academic records were
not interested in HRM profession #s such there is shortage of )ualified people in the
profession
?) /ack of long range planning.
Most HRM executi!es are so "usy with pro"lem sol!ing or fire fighting operations each day
that they ha!e neither time nor inclination to do long4range planning ,tatic unchanging
attitudes among HRM executi!es ha!e "een a ma'or factor hindering the growth of the
function in this country
;) /ack of support from /ine Managers.
0hen personnel management emerged as a separate discipline, it met with stiff resistance
In the first half of this century, people who had experience managed industries "ut they
had hardly any higher academic learning #s against this, the early representati!es of HRM
management came from educational institutions and had a good academic "ackground
$he appearance of the personnel man with high educational )ualifications caused some
discomfort in the minds of these Managers $hat%s why they always get lack of support
from /ine Mangers
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Recruitment and ,election
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$he &"'ecti!es of the policy.
$o outline the standards that are expected of new recruits to the Bank, and the processes
this will "e followed during recruitment and selection
$he foundation for this policy is that recruitment should only occur when there is a specific
"usiness need to "e met ie !acant post and that the selection of the appropriate candidate
will "e on the "asis of )ualification, performance, potential and aptitude
0ho decides on who should "e recruitedE
$he decision as to who should "e recruited is taken "y the Human resource :anel,
consisting of the +hief <xecuti!e &fficer, -eputy +hief <xecuti!e &fficer, consultant
Human Resources and other <xecuti!es rele!ant to the position to "e filled
MGT 351 8
$he ,election :rocess
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+andidates are selected after full consideration of the following factors.
1 *eed4
$here must "e a legitimate need to increase the Bank%s hand count In all cases the
-epartment Manager who considers that they ha!e a legitimate need to increase
their hand count, either "ecause an existing employee has resigned or "ecause the
expansion has "een agreed as a part of the #rea &perating :lan, must su"mit a
re)uest to HR &fficer for consideration within existing manning le!els and current
"usiness priorities for appro!al "y HR :anel :ro!ided that the re)uest is in line
with the #rea &perating :lan and current "usiness priorities HR &fficer will "egin
the recruitment process
3 #d!ertising4
It will "e Bank policy to ad!ertise its !acancies to potential candidates "oth
externally and internally $o meet the occasional need to recruit specialist4
experienced employees, ad!ertisements will "e placed in professional 'ournals and
newspapers "oth within Bangladesh and o!erseas as necessary
# copy of the ad!ertisement will also "e placed on the Bank *otice Board for
internal candidates In accordance with the 7roup Instruction Manual it must "e
emphasized that it is 7roup :olicy to discourage the employment of persons whose
close relati!es are already employed in4group offices in the same area
5 Fualifications4
6o" specifications and 'o" !acancy ad!ertisements will indicate the experience that
is re)uired for each 'o" ,uch as, when recruiting #ssistant &fficer%s will "e that the
successful candidates will posses, as a minimum, a first4degree le!el of academic
education
8 #ptitude4
+andidates for all !acancies will "e asked to undertake a range of a"ility tests prior
to their recruitment $he Bank uses standard, professionally de!eloped tests that are
considered rele!ant to the positions of #ssistant &fficers, &fficer and <xecuti!es
=or more senior positions candidates may "e re)uired to undertake a wider range of
a"ility tests or )uestionnaires and to achie!e a satisfactory score in each test
+andidates who successfully pass the Bank%s a"ility test will "e in!ited to attend
inter!iews with mem"ers of the Human Resources :anel and other <xecuti!es
deemed appropriate in light of the particular !acancy to "e filled
> Recruitment #dministration4
a References
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$he candidate must pro!ide +HR with the names of three referees all of who
will "e contacted and references sought prior to the appointments Referees
must not "e mem"ers of the candidate%s family
" ,alary on commencement
$he starting salary for all new #ssistant &fficer will "e the minimum of the
grade for the position to which they are recruited, unless they ha!e prior
experience prefera"ly in a foreign "ank for a minimum of two years
c :ro"ation :eriod
*ew employees will "e placed on a pro"ation period depending on their
grade &n successful completion of their pro"ationary period the employee
will "e appointed to the permanent staff
? R&$ :rograms4
H,B+ 7roup, in line with other progressi!e employees, has for a num"er of years
had programs to intensi!ely de!elop a few young people who demonstrate !ery
considera"le long term potential $hese programs aim to ensure that we are a"le to
attract some of the "righter people with well "alanced )ualifications, graduating
from uni!ersities, who ha!e the potential to "ecome future leaders of a !ery
successful "usiness which will grow to pro!ide e!en more 'o" opportunities than at
present $herefore, whilst the 7roup may continue to promote suita"le &fficers and
<xecuti!es from amongst its cadre of experienced staff who demonstrate a"ility and
management skills, it will also periodically use the R&$ scheme $his scheme will
fall outside our normal promotion criteria <xisting staff who meet the academic
and other criteria which is pu"lished at the time of recruitment will "e encouraged
to apply # separate guide is a!aila"le from HR -epartment that pro!ides more
details of the R&$ programs
,tandards for Recruitment to #ssistant &fficer 7rade H,B/, -haka.
#ge. prefera"le no older than 3B years, unless for specialist 'o"
Minimum educational )ualification of B+&MCB,,CBB#, prefera"ly o"tained from
the -haka (ni!ersity or the IB#, -haka $he degree should prefera"ly "e in a
discipline related to Banking or other academically challenging su"'ect, such as
o <conomics
o #ccountingC=inanceCManagementCMarketing
o Business #dministration
,uccessful completion of a"ility tests and occupational personality )uestionnaire
,uccess at inter!iew with mem"ers of the HR :anel
$hree satisfactory references
,atisfactory medical reports
,uccessful completion of the pro"ation period
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Recruitment :rocess in -haka4
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Need identified in accordance with Area operating plan
Candidates are offered a position dependent on satisfactory
External Vacancy advertisement Placed (if necessary)
Candidates short-listed according to jo Criteria !atch
Candidates "nderta#e aility tests
Candidates "nderta#e c"stomer service $"estionnaire
Candidates are interviewed y %"man &eso"rce Panel
&eferences and medical examinations
Candidate is appointed to proationary staff
Candidate is appraised d"ring the proationary period
Candidate is appointed to the permanent staff
,ample of Re)uest for Recruitment
H&*7A&*7B#*A, -H#A#4
$raining and -e!elopment :olicy
MGT 351
BranchC-epartment.
:osition to "e filled.
6o" +ode. 6o" grade.
Replacement. GesC*oHHHHHHHHHHHHHHHHHHHH
*ew 6o". GesC*oHHHHHHHHHH
Recruitment 'ustification(in terms of work load, #&:, etc).
#ppro!ed "y Human resource :anel. GesC*oHHHHHHHHHHHHHHHHHHHHHHHH
-ateHHHHHHHHHHHHHHHHHHHHHH
#ction "y HR -epartment.
#uthorized ,ignature HHHHHHHHHHHHHHHHHHHHHH
-ateHHHHHHHHHHHHHHHHHH
13
$he chart on the following page details the proposed steps for training and de!elopment of
staff It is strongly suggested that these steps "e followed to ensure that staff are achie!ing
the maximum from the facilities a!aila"le
$he performance appraisalCre!iew will identify de!elopment needs and the ,trategic and
#rea &perating plans will identify the "usiness needs Based on these needs appropriate
training will "e agreed, whether through self4study and self4de!elopment programmers, on
the 'o" coaching or structured courses :rior to attending a training course, pre course
discussion is essential "etween the participant and hisCher manager to clarify why she has
"een selected to attend a specific training course, and to discuss the course contents and
o"'ecti!es $his may in!ol!e completion of pre4course work
#fter attending the training course, a post course discussion is re)uired to discuss the
trainees% !iews on the course and agree a suita"le action plan +ontinuous re!iew and
follow up, as well as future appraisals will help assess each employee%s need on an ongoing
"asis
$he Role of the HR training functions-
$he prime responsi"ility of the HR $raining function is a coordinating role "etween
R7$C7$M- and -#A $he training functions will co4ordinate the training needs each
year after input !ia the #ppraisal :erformance ,ystem and =unction Heads and su"mit the
training needs for appro!al "y HH& HHR !ia the operating :lan process 0e are
increasingly aware of the need to pro!ide cost4effecti!e training to meet specific
re)uirement at the right time 0e ha!e therefore geared oursel!es to operate a more
flexi"le approach to training $he HR training function monitors the training "udget and
MGT 351 14
produces regular reports, which are sent to the +<& and -+<& for expenditure and
whether or not we are achie!ing performance impro!ements following training
programmers !ia the post training action plans agreed
$he HR -epartment has the responsi"ility under I,&2@@3 for the following.
+ollate training needs
#gree training solution with the supplier of the solution
:lanC,chedule training as appropriate
Record training recei!ed
Re!iew and follow4up de!elopment
$he role of line managers in the training and de!elopment-
0hilst the thrust of HR $raining efforts is on classroom or 7roup training, the importance
of on4the4'o" learning cannot "e o!erlooked as playing an acti!e role in an indi!idual%s
de!elopment It is therefore essential that structured training courses and on4the4'o"
coaching run side "y side, as the former pro!ides the knowledge, and guidelines that are
further enhanced "y the latter
THE MANAGER HAS A KEY ROLE TO PLAY HERE. $he responsi"ility of training and
de!eloping staff working with them, is ade)uately spelt out in each Manager%s own 'o"
description $he manager clearly has to ha!e committed in!ol!ement in his staff if they are
fully "enefit from their work en!ironment and the training programmers that they may
attend4 "e the 'o" specific needs or de!elopment needs $he degree of interest and support
gi!en "y the trainee%s superior will ha!e a direct "earing on the trainee%s attitude and
commitment to the programmer It is therefore essential that staffs are "riefed "efore "eing
sent for training and de"riefed on return to their duties $he /ine Managers responsi"ility
under I,& 2@@3 is.
Identify and report training needs to person responsi"le for training in HR
-epartment
Identify and pro!ide &n4the46o" training solutions where applica"le
Report all training recei!ed to the person responsi"le for training in HR
department
:lanCschedule training as appropriate
MGT 351 15
MGT 351 16
I,& 2@@3 :rocedures
a) $o identify :rimary and ,econdary $raining *eeds4
i :erformance #ppraisal.
$his pro!ides for a formal, annual re!iew of an indi!idual%s training needs
and should "e used to re!iew and re4affirm training and de!elopment needs
identified throughout the year Interim appraisals of performance, including
training needs, will "e carried out *eeds noted on the #ppraisal form must
also "e reported to the person responsi"le for $raining form must also "e
reported to the person responsi"le for $raining so that appropriate action is
initiated without delay and a record of the need is pro!ided # suggested
former for this report is the I:ersonal /earning /ogJ
MGT 351 17
ii #s the need arises $raining needs may arise when.
4 # staff mem"er 'oins the "ranchCdepartmentCsection
- # staff mem"er takes on new tasks within their current area
- # system or procedure is introduced or changed
- # 'o"holder%s performance does not meet re)uired standards
$here is a systematic approach to the identification of training needs
$he Head of ,ectionC -epartment lists on a training matrix all the
tasks carried out in the area
$he name of each mem"er of staff in the area is entered on the matrix
:ro"a"ly with the help of the staff in the area, the Head of
sectionC-epartment assesses the I Minimum Resources re)uired% in
terms of fully skilled staff to ensure that the task is fulfilled effecti!ely
at all times $his is entered on the matrix
$hen, for each mem"er of staff, mark on the matrix whether the
person is currently capa"le of carrying out the task In addition, mark
where staff are appro!ed to train others If staff would not "e
expected to carry out task, ensure that this is e!ident from the matrix
$he num"er of staff capa"le of carrying out the task is then compared
to the IMinimum Resources Re)uiredJ
If there is shortfall of capa"le staff. :rimary $raining needs must "e
assigned as appropriate to ensure that sufficient staff are trained for that
task
If there is an ade)uate num"er of capa"le staff. ,econdary $raining
*eeds may "e assigned for that to pro!ide additional co!er as
appropriate
") $o MonitorCRe!iew +losely ,taff de!elopment4
Monitoring of ,taff -e!elopment starts with pro!ision of solutions to training
*eeds $his falls into two categories.
i 0ithin the department4
&n4the46o" training is usually the most effecti!e method of pro!ide
technical skills training for staff 'oining sections or taking on new tasks
$his form of training should "e identified "y the Head of the ,ectionC
-epartment and pro!ided without delay
ii By line management4
*ormally, the pro!ision of other forms of training, often in respect of the
non4technical skills, will "e at the discretion of the line management $he
person should make appropriate arrangements for the pro!ision of
MGT 351 18
training, other than &n4the46o" training, responsi"le for trainings in
liaison with the Head of ,ectionC-epartment as necessary
MGT 351 19
:lanning for the pro!ision of $raining
<!idence of ade)uate planningCscheduling is re)uired where a num"er of training solutions
are "eing addressed in an area $he form that these plansCschedules takes is the discretion
of Fuality +oordinatorsC/ine Managers <!idence of periodic re!iew of progress against
these plansCschedules is also re)uired
Reporting and Re!iewing $raining Recei!ed4
It is the responsi"ility of the Head of ,ectionC-epartment to confirm in writing to the
person responsi"le for training, the agreed staff training has "een completed and whether it
has "een effecti!e in meeting the original need $raining log may "e used for this purpose
$he $raining Record of the staff mem"er is updated accordingly $hese $raining Records
may "e sa!ed on :+
MGT 351 20
$he matrix is (pdated regularly (and e!idence "y initial) "y the Head of
,ectionC-epartment to ensure needs are systematically and regularly re!iewed


MGT 351 21

$raining :rograms
#t H,B+, their training programs are "ased on the 'o" natures and the performance of the
employees $heir goal is to attract, retain and moti!ate the !ery "est and to do that they
support training, de!elopment and "usiness education through the following.
Internal $raining :rograms4
H,B+ pro!ides Internal $raining :rograms to their employees Most of the times they
"ring the trainers to train the employee locally $he trainers come from o!erseas $he head
office in H&*7 A&*7 controls the total program $his training is mandatory for e!ery
employee of the "ank ,eminars, workshops and locally tailor made training on the !ariety
of topics are offered directly "y H,B+ $raining and -e!elopment -epartment at their
training center located at Moti'heel
<xternal +ourses4
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=re)uently they send their higher4le!el employees o!erseas to get <xternal $raining
+ourses # specific group of trainers pro!ide these trainings $hese groups of trainers are
working world wide to pro!ide trainings *ow a days, H,B+ in Bangladesh "ring s the
trainers in the country to train a group of people together to decline cost margin
6o" related courses, seminars, workshops and conferences de!eloped and presented as
H,B+ &fficers in #sia and also at 7roup $raining and Management -e!elopment +enter
at Bricketwood, (A $hey maintain the standard of these trainings "y RM$ training
program, which is mandatory for the people in Britain who are related in Banking 'o"s and
want to esta"lish their career in this field Before H,B+ only British +ouncil in Bangladesh
pro!ided this RM$ program
Resident Management $rainee :rogram (RM$ :rogram)4
$he Resident Management $rainee :rogram (RM$ :rogram) aims to select a group of
high potential executi!e trainees and pro!ide them training and de!elopment
opportunities $he RM$ program ensures that successful applicants with the right training
will ha!e the a"ility and potential to reach the highest le!el of management within H,B+
Bangladesh
-istance /earning4
0e" "ased and multimedia self4study programmers a!aila"le through Internet and
Multimedia /earning +enters located in H,B+ offices $his program helps the employee to
get their appropriate trainings without hampering their 'o"s and time
Role <ffecti!eness $raining4
$his training program of H,B+ is designed to de!elop the role of the certain employees
who showed their capa"ility and efficiency on their assigned 'o"s H,B+ has launched this
program as a part of its continuous learning system
,uper Kisual Management4
$his training program is launched to gi!e the employees an o!er all idea of the
management system of the "ank :eople ho are working in a department get the
description of another department "y doing this training which helps them to ac)uire a
supporti!e management system
H(B $raining4
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H,B+ has its own software, which helps them to do, and sol!es all of their pro"lems and
managerial works $his particular software is called H(B software $raining on this
software is essential for each and e!ery employee of the "ank
+ontinuous /earning :rocess4
H,B+ runs a continuous learning process management It helps the employees to
understand the entire work process "y gi!ing them particular trainings on the particular
issues $his system helps the employees to ac)uire new skills, apply them on the 'o" and
share what they ha!e leaned with other employees
,pecialized $raining4
H,B+ experts its employees "y pro!iding this kind of training program which helps the
employees to specialize in certain field of their 'o"s It gi!es employees opportunity to get
the a"ility to do the 'o"s with the highest potential
Basically H,B+ is a perfect learning organization whose employees are continuously
attempting to learn new things and apply what they ha!e learned to impro!e ser!ice
)uality


MGT 351 24
Human Resources -e!elopment L #dministration
MGT 351 25
$he functions of Human Resources -epartment are strategic planning and policy
formulation for compensation, recruitment, promotion, training, de!elopment and
appraisal $his -epartment also contri"utes to employees% performance "y pro!iding high
standard of training
&perations.
$op4le!el decision4making process on compensation, promotion, training,
de!elopment L appraisal
-e!elopment of employee
#ssists all HR acti!ities
+ommunicates with the external and internal entities
Monitors lea!e, payroll, increment, L allowances etc
Maintain financial flow related to HR-
Maintains Monthly payment system
7enerates Report for #udit re)uirements
:lans for the de!elopment of the employee
#rranges training according to the re)uirements
<nsures standard of the groups
<nsures cost effecti!eness
+ontrols of archi!e L data"ase L training L performance
=acilitates the training functions
Maintains communication among trainer L the trainee and other facilitators
/ooks offer all the properties of the Bank
<nsures operating procedures in the proper way
:ro!ides full logistic support to the departments as well as employees
-eals with Intra L outer communication for the administration issues
<nsures !alue acta"ility
:lan for the de!elopment of company
=acilitates admin officers% 'o"s
Maintains all records
/ooks after maintaining of property
-e!elops plan for support ser!ice
<nsures security of the company
Maintains monthly444444444 regarding HR
#nalyses performance
:repares Monthly report
<xecutes recruitment arrangement
+ontrols stationary and store
-eals with #ccounting acti!ity related to the administration
0orks on operational le!el on the support system of the company
MGT 351 26
<xecutes the re)uiem
+ompensation4
$he "ank maintains fair and competiti!e remuneration packages "ased on "usiness needs
and competitor practices # compensation and "enefit sur!ey is conducted on a regular
"asis, which in!ol!es the "ank o"taining salary information form other foreign "anks in
Bangladesh such as ,tandard +hartered, #merican <xpress $he compensation package
includes a competiti!e salary, and progressi!e "enefits, all designed to influence and reward
personal achie!ement
,alary4
,alary is as stated in the appointed letter Howe!er, any changes will "e notified in writing
(pon satisfactory completion of the pro"ation period a "asic monthly salary increment of
1@M will "e awarded =urthermore, employee%s salary will "e re!iewed on an annual "asis
in #pril according to hisCher performance and may "e ad'usted at the discretion of Bank
,alary :ayments4
Monthly salary will "e credited into staff account, which heCshe opens upon 'oining the
Bank ,alaries are paid on 3>
th
of each month in arrears, plus other allowances less
deductions such as Income $ax, contri"ution to :ro!ident =und etc <ach employee will
recei!e a monthly pay statement detailing gross pay and deductions
#llowances4
Karious allowances are paid in the Bank such as Housing Rent, +on!eyance, /ea!e, $iffin,
and Medical
Bonus4
$he Bank awards "onuses in addition to "asic salaries for occasions such as <dC+hristmas,
as =esti!al "onuses
,alary #dministration :olicy4
In order to support the Bank%s wish to see employees rewarded "ased upon the work they
do, it is necessary to esta"lish the parameters of each 'o" $he Bank does this through the
use of 'o" descriptions and 'o" e!aluation
6o" -escription
Both the 'o"holders and the /ine Manager ha!e agreed to and signed the description to
ensure they are as accurate as possi"le $he main purposes of a 'o" description are.
$o pro!ide a record in the nature and content of a particular 'o"
$o outline the 'o"holder%s accounta"ilities (and the criteria against performance will
"e assessed)
$o summarize the )ualification re)uired for competent performance of a 'o"
MGT 351 27
0hene!er an employee feels hisCher 'o" description needs to "e amended, should contact
hisCher /ine Manager, and if necessary re4write the 'o" description and su"mit this to the
HR+
6o" <!aluation
6o" e!aluation is used to esta"lish an internal hierarchy of 'o"s It is therefore, a relia"le
method of assigning a grade to each 'o" $his grade, in turn, will "e supported "y a salary
range, which ensures that each employee is rewarded fairly for the 'o" they do $he grade
structure of the Bank as follows.
<xecuti!es (<xpatriate)
<xecuti!es (/ocal)
&fficers
,uper!isors
#ssistant &fficers
*on4clerical ,taff ( +<&%s -ri!er)
By esta"lishing a hierarchy of 'o"s, management can plan career progression of each
employee to support their indi!idual de!elopment Moreo!er, the structure can "e used to
design 'o" rotation and training programs so that employees ha!e an opportunity to use
their talents and learn as much a"out "anking as possi"le, in order to ad!ance their
careers
<M:/&G<< B<*I=I$,.
$he "ank reser!es the right to !ary the rules of employee "enefits from time to time
:ro!ident =und L 7ratuity.
$he ,taff :ro!ident =und ,cheme is a !oluntary contri"ution scheme $he
employee will "e entitled to 'oin the scheme upon completion of the pro"ation
period $he employee will "e entitled to "enefit from the scheme after completion of
fi!e years ser!ice L payment will "e made upon resignation, termination, and
retirement $he employee will also "e entitled to a gratuity payment e)ual to one
month%s "asic salary for each year of ser!ice after fi!e years upon hisC her
resignation, retirement
Medical.
Married employees will "e entitled to a medical allowance for their respecti!e grade
for their spouse L children up to the age of 12 ,ingle employees are entitled to half
MGT 351 28
of the medical allowance for their respecti!e rank In "oth cases medical expenses
incurred w3ill only "e reim"ursed when supported "y appro!ed medical !ouchers
<mployee /oans.
$he employee /oan policy has "een esta"lished at preferential rates to pro!ide
financial assistance to )ualified L deser!ing employees of the "ank $he "ank%s
policy shall "e re!iewed periodically <mployees will "e eligi"le for the "anks
su"sidized Housing /oan scheme +ar loan L sundry loan ,chemes upon
satisfactorily completing the re)uired num"er of years ser!ice L achie!ement of
performance standards ,eparate policies are a!aila"le for employee reference L
guidance from HRC#-MI* department #pplications for loans should "e sent to
HR+ through respecti!e Head of departments $he +<& shall appro!e loan
applications
<mployee 7roup Insurance.
$he "ank pro!ides all permanent L contract employees with insurance !ia the
0orkmen%s compensation policy
6o" &pportunities.
Imagine yourself as part of an international financial institution in BangladeshN
+ongratulations on successfully completing your graduation, and all the "est for
those of you who are still working hard on papers and examsN #s the leading
international financial institution in Bangladesh, H,B+ welcomes talented students
to 'oin its dynamic team after they complete their studies ,trongly committed to
de!eloping our people, we ha!e training programs and opportunities in place,
ena"ling highly moti!ated graduates like you to realize your potential and make
direct contri"utions in the real "usiness world H,B+ is an e)ual opportunity
employer, offering competiti!e compensation packages, excellent career
de!elopments programmers and a friendly working en!ironment
$ransfer.
# mem"er of ,taff will "e re)uired to ser!e any of the Bank%s offices in Bangladesh
or su"sidiaryCassociated companies of the "ank $he Bank reser!es the right to
transfer employees as the "usiness dictates <mployees therefore will, from time to
time, "e re)uired to "e transferred to other departments L "ranches if opened in
the future ,uch transfers will help employees o"tain a "alance experience of
"anking operations L de!elopC"roaden their experience "ase
MGT 351 29
:romotion.
$he "ank takes pride in proportioning )ualified staff to higher positions which is
normally gi!en to an employee in the following.
o 0hen a suita"le opportunity arises, ie when there is a !acancy at a
higher le!el9
o 0hen the employee has the suita"le skills for that particular 'o", ie the
right le!el of experience education for their 'o"9
o 0hen the employee shows the necessary a"ility to undertake a 'o" at a
higher le!el, appraisal performance ratings9 aptitude testing
# separate policy is a!aila"le from HRC#-MI* department for employee reference L
guidance

MGT 351 30
+onclusion
1 H,B+ is an internationally reputed "ank operating in Bangladesh who maintains an
excellent and distinct culture in the "anking industry in terms of the )uality of its
manpower $he highly )ualified and trained manpower of the "ank has made it
possi"le to stand out as one of the good "anks ha!ing outstanding performance
,trictly adhering to the selection and recruitment policy has ena"led this "ank to
recruit the "est people from the 'o" market #long with this "est "reed, pragmatic
training and de!elopment policy of the "ank has sharpened the manpower to
achie!e its own goal as well as the goal of the organization
3 $he picture depicted "y the scenario of H,B+ is similar to that of other foreign
"anks operating in our country But it is )uite different in the local pri!ate "anks
where lack of selection and recruitment policy and lack of proper training and
de!elopment policy are increasing the num"er of under skilled manpower in these
"anks #s a result, desired output of these "anks is not achie!ed #lthough many
other things are in!ol!ed to maximize the goal of the organization, recruiting under
)ualified people and ignoring the need of training and de!eloping the manpower
should "e emphasized to maximize the output of the "anks
5 /ocal pri!ate "anks can "orrow the knowledge of these foreign commercial "anks
operating in Bangladesh in terms of de!eloping the different policies guiding the
"anks to achie!e its o"'ecti!es Most of the local pri!ate "anks either do not ha!e a
selection and recruitment policy and a training and de!elopment policy, or they do
not follow these policies due to the interference of the owners of the "anks #s a
result, these "anks suffer $o impro!e the condition, Bangladesh Bank may
formulate these policies and the local pri!ate commercial "anks may "e asked to
strictly follow it



MGT 351 31