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as the largest and leading Nationalized Commercial Bank by proclamation of the Banks' Nationalization Order 1972 (Presidential Order-26) liquidating the then National Bank of Pakistan, Premier Bank and Bank of Bhwalpur. As a fully state owned institution, the bank had been discharging its nation-building responsibilities by undertaking government entrusted different socio-economic schemes as well as money market activities of its own volition, covering all spheres of the economy. The bank has been converted to a Public Limited Company with 100% ownership of the government and started functioning as Sonali Bank Limited from November 15 2007 taking over all assets, liabilities and business of Sonali Bank. After corporatization, the management of the bank has been given required autonomy to make the bank competitive & to run its business effectively. Sonali Bank Limited is governed by a Board of Directors consisting of 13(thirteen) members. The Bank is headed by the Chief Executive Officer & Managing Director, who is a well-known Banker and a reputed professional. The corporate head quarter of the bank is located at Motijheel, Dhaka, Bangladesh, the main commercial center of the capital Branches Branches & Subsidiaries Total Branches :1184 Branches in Urban :341 areas Branches in Rural :841 areas Overseas Branches :2 Subsidiaries :3 : 1. Sonali Bank UK Limited having 7 (seven) branches in UK. 2. Sonali Exchange Company Incorporated (SECI) having 8 (eight) branches in USA. 3. Sonali Investment Limited (Merchant Banking) having 1 (one) branch at Motijheel, Dhaka, Bangladesh. Representative :3 :1(one) in Jeddah, KSA, 1 (one) in Riyadh, KSA Office and 1 (one) in Kuwait.
Sonali Bank Limited offers multiple special services with its network of branches throughout the country in addition to its normal banking operations. Collection:
• • • • • • • • • • •
Gas bills. Electricity bills. Telephone bills. Water/Sewerage bills. Municipal holding Tax . Passport fees, visa fees and Travel tax. Customs & Excise duties. Source tax and VAT. Jakat fund. Hajj deposit. Land development tax.
• • • • • • •
Pension of employees of Government and other Corporate Bodies. Bangladesh Bank employee’s pension. Army pension. British pension. Students' stipend/scholarship. Govt. & Non-Govt. Teachers' salary. Food procurement bill on behalf of the Govt.
• • • • • •
Old age allowances. Widows, divorcees and destitute women allowances. Freedom Fighters' allowances. Rehabilitation allowances for acid survival women. Maternal allowances for poor women. Disability allowances.
Sale & Encashment/Purchase:
• • • • • • • • • •
Savings Certificates. ICB Unit Certificates. Prize Bonds. Wage Earner's Development Bonds. US Dollar Premium & Investment Bond. Lottery tickets of different Semi-Govt. and Autonomous Bodies. Sanchaypatra. Public Service Commission's application form. Judicial Service Commission's application form. Exchange of soiled / torn notes.
• • •
Bank a/c information of tax payee client according to demand of NBR. Local Governance Support Project. Enlist of Non Government Insurance Company.
Corporate Profile Name of the Company : Sonali Bank Limited Chairman CEO and Managing Director Company Secretary Legal Status Genesis Date of Incorporation Date of Vendor's Agreement Registered Office Authorized Capital Paid-up Capital Number of Employee : Quazi Baharul Islam : Md. Humayun Kabir : Zaheed Hossain : Public Limited Company Emarged as Nationalised Commercial Bank in 1972, following the Bangladesh Bank : (Nationlisation) Order No. 1972(PO No.26 of 1972) : 03 June, 2007 : 15 November, 2007 35-42, 44 Motijheel Commercial Area, Dhaka, Bangladesh : Taka 10.00 billion : : Taka 09.00 billion : 21,839
Number of Branches Phone-PABX FAX SWIFT Website E-mail
: 1184 : 9550426-31, 33, 34, 9552924 : 88-02-9561410, 9552007 : BSONBDDH : www.sonalibank.com.bd email@example.com : firstname.lastname@example.org
Section 3: Management of the bank Approach to the management of the bank Sonali Bank Limited was a nationalized bank before it was made privatized. On that time there was a lot of lacking in management. But the time has changed now. If we look into the management of the bank we find that it follows general administrative theory then and so on as it described below: Division of work: work is divided among different departments of the bank. Authority: Managers are able to give orders and authority gives them this right. Unity of command: Every employee receives orders from only one supervisor i.e. all employee within a branch follow the order of the branch manager. Unity of direction: There is a single set of actions for managers and workers but it causes rigidity and takes a long time to solve any problem. Centralization: This bank is very much centralized. There are very few people involved with decision making. Scalar chain: There is a well formalized organizational structure from the top level to lowest ranks. The bank follows administrative theory but not properly. There are problem with discipline, subordination of individual interest to general interest, remuneration, order, equity and initiatives. There is a trend in our country that a government employee can never be fired. For this
reason employees show little respect to discipline. The employees always pay greater attention to their own interest rather than the general interest. The remuneration was not enough even it was very poor comparatively other banks of the country. But now employees are paid well according to new pay scale. It is found that employees are late present and the banking materials are not available when it is required. This bank likes to keep its managers far from other employees so they get little chance to work with other employees.
Culture of the bank All organizations have culture so SBL also has a culture but the cultures are not so much influencing on employees’ behaviors and action. The employees like to define their very culture as a strong one but there are little values which ar,e shared by all employees. As organizational size is an important determiner of culture it can be said that it is really difficult to share same values through out the country. If we look into the real scenario we find that employees have adopted some indiscipline as their culture which is nothing but the result of previous nationalized section. But after it was made privatized the authority was successful to bring some positive changes. Now the employees are suggested to serve the people, be obedient to the rules and regulations (corporate charter) which are going to be the new culture of the bank. From the study we can point out these characteristics of the bank’s culture: Huge organizational size gives a little chance to think about any culture Some values exist but limited to few people Employees pursue doing their own tasks only
Limited chance to take risk and innovation Managers play the dominant role Bureaucracy exists but only by certain criterion
Employees have little knowledge about the achievement of the
bank The bank should be a customer responsive organization but due to some dishonest, indiscipline employees the performance is very poor.
This bank supports diversity but the diversification occurs can
not bring any effective result. Example- bank recruits Graduates of Agriculture so that they can judge the feasibility of any agricultural investment but after working few months they are transferred to other departments. So they can’t do the tasks which they are supposed to do.
Unethical and illegal works of some employee hamper spirits of
Political influence is the main reason for corruption and
conspiracy. Employees are often found to use this illegally. External environment The term external environment refers to the factors and forces outside the bank that affect the performance of the bank. The management team of the bank like to categorize its external factors as below: Specific environment: i.
Clients of the bank Competitors (other financial institutions providing same service line)
General environment: i. ii. iii. National economic issues Global economic issues Political situation
Socio cultural condition Technology
Planning of the bank: Vision: Socially committed leading banking institution with global presence. Mission: Dedicated to extend a whole range of quality products that support divergent needs of people aiming at enriching their lives, creating value for the stakeholders and contributing towards socioeconomic development of the country. As it is a financial institution so it does formal planning associated with positive financial results- higher profits, higher returns on investment, and so forth. The bank usually plans with a well direction, new strategy to accomplish the targets with considering the changes in environmental factors. The goals are described by official statements which can be called stated goals. For this reason the bank publishes
corporate charter which is better known as employee rules and regulation among the employees, annual report and public relations announcements. The bank usually takes specified strategic plans for one year. The audit section of the bank held monthly review at ending of each month where the managers restate, correct, and deduct targets. After privatization is made the bank uses very sophisticated planning process.
Planning process The planning process employed by the SBL was participative, consultative and result oriented. While the overall direction was provided by senior management, the action plans were evolved at the departmental level to ensure ownership and commitment of those charged with implementing the plan. The role of the Strategic Planning Unit (SPU) was that of catalyst, facilitator and synthesizer, to guide the planning process effectively. The SPU held a series of meetings for all the departmental clusters at the end of each year to share with them the basic strategic planning model employed by the SBL. A concept paper on planning, approved by the Corporate Management Team (CMT), highlighted the importance of the planning function and charted out a roadmap for the completion of the planning process of a year at the beginning of next year. All the relevant documents were also posted on the financial statements for the information and knowledge of all employees. Individual departments are requested to do their respective environmental scans through an analysis whereby they
identified their internal strengths and weaknesses as well as the external opportunities and threats. The individual department’s SWOT analyses are consolidated by the CMT. The bank holds several types of meetings and conferences throughout the year to make employees more concentrated to the plan. The plans were then refined and amended during the Management Conference (MC), to take account of feedback received from both internal and external factors. The strategies were also prioritized in terms of their importance for resource allocation in the annual business planning cycle. The strategies, which had linkages across various departments, were identified and cross-functional teams were developed. After approval of the Strategic Plan by the Board of Directors (BOD) of the SBL, the document is served to all managers of the branches.
Organizing function of the bank There are dramatic changes have been occurred in the organizing function and organizational structure of the bank in last two years.
Managers are reevaluating their traditional approaches that support best for each of the branches of the bank. Model of organizational design: The recent organizing function of the bank can be considered as organic model because of follows:
Cross functional teams: The bank has different departments like Audit, SME, Short loan, etc. to carry out the specified tasks. Cross hierarchical teams: Hierarchy of command in each department makes it easy to carry out their tasks. Free flow of information: The IT section has made the flow of information easier than it was before. Decentralization: The Managers and the Principle officer of each branch are provided with flexibility of decision making.
Organizational design The six key elements of an organizational design are at these stages in this bank: Work specialization: Work is now divided among employees. Individual employees specialize in doing part of an activity rather than doing the entire activity is increasing the output level. Not only the employees but also the managers also have specialized work. The managers of the bank are classified into three categories:
Departmentalization: Common work activities are grouped back so work is done in a coordinated and integrated way.
Chain of command: There is a clear chain of command showing the line of authority. The bank has both chains of command for its top level managers and banking sector. The authority, responsibility and unity of command are easily recognizable associated with each position as the chain flows down.
Span of control: For the head office a Deputy General Manager (DGM) is head of a department. He/she controls bankers’ expert on that field. The number of the employee depends on the importance of the department. For any branch there is a branch manager who is the supervisor of that branch and the number of the employee working in each branch depends upon the size of the branch, the banking type and range of that branch. But the problem is that the managers of the branches are experienced but not so much skillful and have less professional knowledge. So sometimes it is found that they can’t manage their employees properly or even a short number of employees may fall a burden to them. Centralization and decentralization: Some decisions are made in so much top managers that it supposed to be a centralized bank like annual goal setting, investment on a huge project. But in some cases it is found that lower level managers are making short term decisions or a manager of a branch is making decisions for his own branch. So branch is centralized as well as decentralized in decision making depending on the nature of the task or decision. Formalization: The bank is less standardized than the other banks of the country. The jobs of the bank are not so much standardized because it has a wide range of services; it also provides free banking in
38 categories to government. This wide banking disables the chance to make the jobs standard.
Sl No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.
Board of Directors Name Designation Mr. Quazi Baharul Islam Mr. Md. Shahid Ulla Mia Dr. Nasreen Khundker Mr. A.S.M. Nayeem, FCA, FCCA Mr. M. Lutfur Rahman Khan Mr. K.M. Zaman Romel Mr. Kashem Humayun Mr. Shaimum Sarwar Kamal Advocate Sattayendra Chandra Bhakta Mrs. Jannat Ara Henry Mr. Suvas Singho Roy Mr. Md. Anwar Shahid Mr. Md. Humayun Kabir Key Executives Managing Director and CEO Md. Humayun Kabir Deputy Managing Directors Kazi Faqurul Islam Mushtaque Ahmed Md. Atiqur Rahman General Managers M.A. Baten Khan Khondoker Md. Iqbal Naosher Ali Khondoker Md. Ali Hossain Khan Md. Mustafizur Rahman Mir Mahidur Rahman Zaheed Hossain Md. Nurul Islam Chowdhury Chairman Director Director Director Director Director Director Director Director Director Director Director CEO & MD
Hasan Iqbal Nasrin Begum Omar Faruk Bhuia Senior Consultants S.M. Jahangir Akhter Motivating employees: There are little scopes to motivate employees within this bank. The new authority has been able to bring a little change in motivating employees since its privatization. They like to identify the organizational size as the main barrier to motivate employees. It is true that its really difficult to take same measures for such huge number of employees while the organizational culture is very week. We like to define the factors to motivate employees into two types: Basic factors Motivating factors • Salaries: employees are now • Allowances: employees paid paid well than that was with several allowances and before bonuse. • Bank policy: the recent rules • Recognition: the best are made giving prior to the employees are recognized employees now at divisional meetings. • Departmentalization: work is • Growth: the recent now much more specified, recruitment policy and divided into groups service rule provide enough scope of promotion for the • Security: working in this employees. bank is more secured than any other bank but • Pension: It is a motivating employees misuse this factor for the employees benefit who joined the bank before privatization. • Status: the employees hold good status in the society as they are known as government employee • Working condition: the working condition is getting well day by day as new methodology is followed in management and new technology is introduced to the employees. Recruitment policy:
Sonali Bank Limited focuses on advertisement in the conventional print media. All recruitment related notices are posted on the website also. Candidates are required to fill up the blank resume format provided in the website. A well-structured and systematic selection procedure is followed to get the most suitable candidate now. Following the selection procedure, pre-employment medical examination and reference checks are done. As political influence plays a great role in the bank for this reason the bank has to take some employees on recommendation of political leaders. The recruitment process is quit like this:
Recommendations: After studying SBL in theory and watching its performance from such close quarters, it is our understanding that there are many scopes for improvement. It should be mentioned that SBL is the largest bank in the country. It should spread some of its parts. • • High qualified employees should be recruited. The management team should be more effective and efficient in overall management specially in setting goals and organize it wisely. Employees need to be more sincere about their job.
Political leaders should stop making unfair influence.
Feedback: It should survey regularly about the opinion, advice of clients and employees about the service and management of the bank. Glossaries:
Largest bank: it means largest in size, in employee number and the line of services. Strategy: It means the well directed way to accomplish the goal Human Side: The human resources of the bank and their management. Managing Director: The key person to operator the entire company. Responsibility: Duty of the company as a legal entity.
1. www.sblbd.com 2. www.oppapers.com
3. 4. 5. 6. 7.
www.bankersclub.com Corporate charter of the bank Citizen charter of the bank Annual report of the year 2009 Annual report of the year 2008
SONALI BANK LIMITED
We made a survey on performance of Sonali Bank Limited to assess satisfaction about the services of the bank. This questionnaire provides clients views, which has helped us to make the report. To measure performance part we asked some questions about the services of the bank. The measurement scale is graded from 1 to 5. Here: 1 is EXCELLENT. 2 is VERY GOOD. 3 is GOOD. 4 is NOT GOOD. 5 is POOR. • Do the services of SBL satisfy your demand? 1 • 2 3 4 5
Are the services of SBL better than the services of other banks? 1 2 3 4 5
Are the services available at all branches? 1 2 3 4 5
What should the bank do to improve its services?
Please tell us about the product of SBL?
Do you think the bank should improve its services? Why? YES No
The results achieved from the survey have helped us to make the report.
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