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Far East Journal of Psychology and Business

Vol. 9 No. 1 Oct 2 012

A COMPARATIVE ANALYSIS OF HUMAN RESOURCE MANAGEMENT PRACTICES BETWEEN A LOCAL AND FOREIGN BANK OF BANGLADESH
Laila Zaman Senior Lecturer, Department of Business Administration, East West University, Dhaka, Bangladesh. Email: lz@ewubd.edu Md. Sajjad Hossain Lecturer, Department of Business Administration, East West University, Dhaka, Bangladesh. Email hossainmd.sajjad@gmail.com ABSTRACT This paper has analyzed and compared the human resource management practice in banking industry of Bangladesh and has considered a local and a foreign bank in this regard. As a sample it has taken Dhaka Bank Limited which is a local bank and Standard Chartered bank a foreign bank of Bangladesh that are well known in their respective field. From the analysis it has been found that though there are some differences in HR practice but both of the banks are careful and concerned about their employees and practicing a good HR system. Keywords: Human Resource Management (HRM), Dhaka Bank Limited (DBL), Standard Chartered Bank (SCB).
Paper Type: Research Paper

INTRODUCTION Human resources are the most important assets of an organizations because without them the business functions such as managing cash flow, making business transactions, communicating through all forms of media, and dealing with customers could not be completed (Haslinda, 2009). Over the years, researchers have suggested about the practice of HRM i.e. employee selection based on fit with the companys culture, emphasis on behavior, attitude, and necessary technical skills required by the job, compensation contingent on performance, and employee empowerment to foster team work, among others have the potential to improve and sustain organizational performance (Ahmad and Schroeder, 2003). A growing body of research, including both industry-specific studies and cross- industry studies, investigates the impact of human resource management (HRM) on firm performance (Bartel, 2004). Barney pointed (1986, 1991, 1995) that resource-based view of the firm has focused on sustained competitive advantage only by creating worth in a way that is rare and difficult for competitors to imitate. Therefore it can be said that knowledge, skill, ability of the people are the human capita that no one can imitate. As per Dessler and Varkkey (2009, 2011 a and b) knowledge of human resource management is important to all managers otherwise managers can select the 58

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wrong person for the job, experience high turnover, people will not be able to give their best output, waste time with useless interviews, can go to court because of discriminatory actions, the company can be cited by Occupational Safety and Health Administration (OSHA) for unsafe practices, can commit unfair labor practices and inequitable salaries relative to others in the organization, allow a lack of training to undermine the departments effectiveness. Mondy et al, 2006 pointed the increasing appreciation of HR as a reasonable business entity has made it highly strategic in nature and is vital to achieving corporate objectives. Considering the importance of human resource management practice any types of industry i.e. manufacturing or service, extractive or construction focuses on proper practice of HRM in their own area as effective management of this system is important for the success of the organization. Especially in case of service industry the importance of practicing HRM is higher as this industry is not only involved with back ended task but also with front ended task as well. Like other industries banking industry of Bangladesh also trying to have a sound HRM practices to get well motivated and efficient employees who will contribute to the companys success. In this study emphasis is given on the analysis of human resource management practice of banking sector considering a local and a foreign bank of Bangladesh.

THEORETICAL BACKGROUND
Human Resource Management (HRM) is the process of getting, training, assessing, and compensating employees, and maintaining labor relations, health and safety, and fairness concerns (Dessler and Varkkey, 2009, 2011a and b). While Mondy et al, 2005 placed that Human Resource Management (HRM) is the utilization of individuals to achieve organizational objectives. Noe et al, (2007) argued Human Resource Management refers to the policies, practices, and systems that influence employees behavior, attitudes and performance. So it can be said HRM is such process that focuses to get the best output from employees and to do so it focuses on the policies, practices, and systems that influence employees performance. Human resource planning, recruitment, selection, training & development, compensation, performance appraisal these are the major function of HRM. HR planning is the process of identifying the position for which the organization needs employees and the process of filling those positions (Dessler and Varkkey, 2009, 2011a). Ongori (2010) said, recruitment and selection is that function of HRM which ensures the success and growth of an organization by taking the employee inside the organization. Snell and Bohlander (2007) pointed recruitment is the process of encouraging and evaluating people to apply for current and anticipated job openings while selection is the process of choosing individuals who have relevant identification to fill current and anticipated job openings. While Training refers to the planned effort by a company to facilitate employees learning of job related competencies (Noe, 2011). Performance appraisal is a formal process of reviewing and assessing individual and team performance (Mondy et al, 2005). Dessler and Varkkey (2009, 2011a and b), enlightened that any types (direct or indirect) of financial payment or rewards going to employees and come up from their employment is called compensation. 59

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Vol. 9 No. 1 Oct 2 012

Over the years, researchers have suggested about the practice of HRM for better performance of the organization. A study by Becker and Gerhart (1996) has emphasized that the choice of HR systems can have an economically significant effect on firm performance. Another study by Lado and Wilson (1994) explores the potential of human resource systems to assist the development and utilization of organizational competencies. Bartel (2004) in his study mentioned that Appelbaum et al. (2000) pointed, to create high performance work system it is necessary to give chance to non-managerial employees to participate in substantive decisions. Bartel also argued that the high-performance work system also requires encouraging human resource practices that develop worker skills and that provide incentives to use their skills and participate in decisions. While Ahmad and Schroeder, 2003 said, practitioners and researchers agree that human resources can be a source of competitive advantage and should be managed strategically. DHAKA BANK LIMITED (DBL): Dhaka Bank Limited started its commercial operation on July 05, 1995. The Bank offers the full range of banking and investment services for personal and corporate customers, backed by the stateofthe-art technology and a team of highly motivated professionals. So far the bank has 62 branches, 3 SME service centers, 6 CMS units, 2 Offshore banking unit across the country and a wide network of correspondents all over the world. As an integral part of commitment to excellence in banking, Dhaka Bank now offers the full range of real-time online banking services through its all branches, ATMs and internet banking channels (DBL, 2012a). The bank offers four types of product 1. Corporate Banking (Securitization of Assets, Corporate Finance and Advisory Services, Syndication of Funds, Project Finance, Syndication & Structured Finance, Trade Finance, Working Capital Finance), 2. Retail Banking (Bundled Savings Product, Deposit Pension Scheme, Salary Account, Personal Loan, Car Loan, Home Loan, Credit Card, ), 3. SME (Liability products, asset products), 4. Global Trade Services (GTS); (DBL, 2012b). And about services DBL offers Corporate Banking, Retail Banking (ATM/Debit Card, Retail & Cards Call Center) Islamic Banking, Capital Market Services, Credit Card, Locker (DBL, 2012c). STANDARD CHARTERED BANK (SCB): Standard Chartered Bangladesh (officially M/S Standard Bank Bangladesh Pvt. Lt) a wholly owned subsidiary of Standard Chartered is a banking and financial services company headquartered in Dhaka, Bangladesh (Wikipedia, 2012a). After the partition of the subcontinent in 1947, (Bangladesh became East Pakistan) SCB started its business in 1948, in the port city of Chittagong. Standard Chartered Bank is doing exceptionally well in Bangladesh (Wikipedia, 2012b). Today, SCB is the largest international bank in Bangladesh with 26 branches that is situated not only in Dhaka but also outside Dhaka (Bogra, Chittagong, Dhaka, Khulna, Savar and Sylhet), 57 ATMs and 7 financial kiosks; employing over 1,300 people is undoubtly the largest foreign bank in Bangladesh (SCB 2012a). Products and services of SCB range from corporate banking, retail and priority banking, treasury services and so. Under corporate banking category products like Project finance and investment consultancy, syndicated loans, import and export finance 60

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services, Trade finance facilities including counseling, confirming export L/Cs and issuing of import L/Cs, backed by its international branch and correspondent loan network, etc are offered by SCB. Superior retail banking services comprising a wide range of deposit and loan products are offered by the Standard Chartered Bank to its individual customers. The Consumer Banking division constantly faces challenges and meets them by developing new products and services t o fulfill the specific requirements of the clients. The bank offers a 24-hour service in Bangladesh through its ATM network and phone banking services (through 24 hour Call Center). In addition SCB provides priority banking service to clients to maintain an average balance of tk 35 lakh with the bank. Priority banking customers receive special service, preferential rates and wealth management services and have their individual relationship managers who manage their accounts.

METHODOLOGY
This research work is based on qualitative research method where analysis was done based on data collected from DBL and SCB. For this study both primary and secondary sources were used. Primary source includes face to face discussion, telephone discussion and oral interview that were taken since May to October, 2012 to the HR personnel of these two banks. Based on the research objectives, the study seeks answers to the following questions: How these two banks practice its HR operation in the organization? What strategy they follow in terms of hr planning, recruitment & selection, training & development, performance appraisal? And secondary source includes websites of DBL and SCB, literature, internet, and library. Huge data has been collected from these sources but based on the significance, the study considered those data that is important for research purpose.

ANALYSIS
Both DBL and SCB is quite wide in terms of their HR practice but this study focuses on the major areas of HRM of these two banks. DBLs HR division is divided into four wings, HR planning, HR operations, training and development, leave management. DBL performs employee recruitment, posting, transfer, increment, established yearly performance bonus, provident fund, confirmation, training, travel policy, telephone policy etc under these wings (ReportBD.Com, 2012). SCB HR department of Bangladesh consists of six sub departments, talent acquisition, service delivery, training and development, global technology and operations HR (GTO HR), consumer banking HR (CB HR) and corporate banking HR/ wholesale banking HR (WB HR). Each of the sub teams is connected with the concerned SCB regional team. For example talent acquisition team of Bangladesh is connected with regional talent acquisition team for adopting and rolling out new ideas and processes for better productivity and efficiency. HRSSC (Human Resource Shared Service Centre) is the global data base, which updates itself and stores data almost regularly. So every time a new process is rolled out, it is undoubtedly rolled out based on solid data base. 61

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COMPARISON IN TERMS OF HUMAN RESOURCES PLANNING: DBL & SCB make its human resource planning in following ways Analyzing the Organizational Plan: DBLs human resource planning starts with analyzing of plans, goals and strategies of the organization. To plan their human resource DBL analysis its technological plan, plan for expansion, diversification, future target, marketing plan, sales plan, financial plan etc. On the other hand SCB has a quite centralized control approach which involves the specific country officials or experts input for analyzing their future planning about human resource. Their main organizational plan is to satisfy their customers and in doing so SCB makes plan accordingly. As part of their strong centralized corporate governance philosophy, more or less every decision takes the leverage against the global data base HRSSC (Human Resource Shared Service Centre) which is situated in India. Forecasting (Demand): Demand forecasting is done by the DBLs & SCBs HR concerned people to learn about the future employee requirements. They do it for finding the quality of human resources (skills, knowledge, values, capabilities etc). DBL uses managerial judgment method for demand forecasting where they include managers or supervisors who are well acquainted with the work load, efficiency, future capabilities of employees and decide what number and type of human resource will be required. HR division of DBL also uses some statistical techniques to make a statement about their future labor demand. By comparing the past demand, turnover, production quantity they forecast the demand. SCB has a bottom-up approach of forecasting. Every sub department seeks for extra man power, known as headcount, in the department. The demand of additional headcount is normally based on past and predicted future business growth. To complete demand forecasting process all the HRRMs of SCB Bangladesh send the headcount sought to concerned regional team. Then the regional head takes the final decision either by approving the sought or by disapproving the sought. Forecasting (Supply): In case of supply forecasting HR division of both DBL and SCB focus on existing and new inventory. COMPARISON OF RECRUITMENT PROCESS Recruitment Sources: Generally DBL & SCB recruits employees by using both internal and external sources for fulfilling the vacant position.

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Internal Sources: Personnel who have already employed in the DBL they are eligible for fulfilling the vacant position, in this case DBL promotes their eligible employees from lower levels to fill up vacancies at higher levels. They also transfer their employees from one branch to another to fill up vacancy of that branch. Sometime ex-employee of the DBL is re-employed by the bank. SCB has two types of recruitment need. One is for local recruitment, where country specific vacant positions are subject of interest. The other one is international recruitment programs, where the potential candidates are attracted worldwide and hence future leaders of the bank are recruited. For local recruitment, SCB fill up their vacancy through their internal web portal PeopleSoft. Interested candidates apply against vacant positions. This PeopelSoft web portal attracts both internal parties and also external potential candidates. In other words both currents employees and external candidates can apply for vacant position in SCB Bangladesh through the portal. The existing employees use their employee ID as reference of candidature and outsiders use the personal email address and cell phone number for further communication. Both internal and external candidates must open a profile in the PeopelSoft portal with necessary details. One candidate with a valid profile can apply in multiple vacant positions. If company does not satisfy with the candidates attracted trough the web portal then they focus on other external sources. External Sources: DBL & SCB also recruit employees from outside the organization. For external recruitment, they recruit employees in two ways one by choosing from the market like from same industry or from other industry and second is recruiting fresh graduates from universities. Recruitment Methods: DBL & SCB follows direct method, indirect method, and third-party method for recruiting employees. a) Direct Method: In this case DBL recruits fresh graduate from different university, educational institute, training center and so on. In SCBs international recruitment programs, namely International Graduate (IG) program, fast track banking associate program, internal web portal is largely used. To aid the web portal advertisement a team from talent acquisition team visits selected universities and conducts workshops for making graduating students interested to apply in one of the international programs of the bank. For one local recruitment program, management trainee in GTO, the similar university based workshop is conducted. b) Indirect Method: Both DBL & SCB give advertisement in newspapers, professional and technical journals. DBL follows this indirect method for attracting fresh graduate, experienced employees, ex-employee 63

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employed in DBL. SCB goes for such indirect methods when they are going for recruitment regarding local vacancy and they want to attract a large pool of candidates across the country. Otherwise PeopelSoft web portal is largely used for local recruitment. c) Third Party Method: DBL also uses various agencies for recruiting new employees. These include commercial and private employment agencies, professional associations, recruiting firms, management consulting firms, and executive research agencies. Though it is costly to recruit employees in this fashion but ultimately it pays by proving the organization with skilled employees and it definitely builds market image. Thats why DBL uses these methods to enrich their banking system for gaining competitive advantage over other bank in the industry. SCB uses third party method very strongly. SCB has three types of employees; permanent employees, employees under management contract and employees under third party contract known as TPC. More or less in every department there are TPC employees in SCB Bangladesh. RS Corporation is the main vendor company who provides the large portion of TPC employees working in SCB Bangladesh. Another vendor company is PeopleScape who also provides TPC employees. Sometimes for top level vacant position recruitment those vendor companies are contracted. Their only work is to source resumes of potential experienced candidates in exchange of a certain fees. COMPARISON OF SELECTION PROCESS DBL in selecting employees typically follow a standard pattern, beginning with an initial screening interview and concluding with the final employment decision. On the other hand selection process significantly varies in SCB depending on the fact that whether its international program or local program for which selection has to be done. But one thing is common, all the applicants, whether for international program or local vacancy, must apply through web portal for further processing. In case of local vacant position normally a standard pattern is followed, beginning with an initial screening interview and concluding with the final employment decision. Written test is not a must but taken where required. Sometimes couple of interviews with one or two or no online test, but no written test, completes the selection process for local vacant positions. But in case of international program structured selection process is must followed and the whole process is supervised by the regional talent acquisition team with the help of country specific talent acquisition team. In international programs like IG and Fast Track Banking Associates four stages of online tests are taken where candidates numerical skill, mathematical skill, critical reasoning skill and writing skill are tested. If they pass with satisfactory score one phone interview is scheduled and taken by appointed regional official of talent acquisition team. If they pass here too then the short listed candidates are forwarded to country talent acquisition team for further tests, prescribed by the regional team. With a final interview the whole process comes to an end and employment offer is given to finally selected employees. 64

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CV Screening / Short Listing: After closing of a job advertisement, DBLs recruitment division collects and compiles applications manually .The applications are profiled against the given job advertisement and sent to the concern division for further screening. Short listing criteria include education, required academic qualification, reputation of academic institution, relevant courses, number of years and relevance of job experience (where applicable), skills and qualifications and some other factors (extra curricular activities). Once the CVs are evaluated the short listed CVs are sent back to HR division of DBL, they are checked against the profile and set for assessment. SCB directs all the applicants to the web portal and make them create their application profile on PeopelSoft portal. Then on the basis of education, required academic qualification, reputation of academic institution, relevant courses, number of years and relevance of job experience (where applicable), skills and qualifications and some other factors (extra curricular activities) short listing is done by the country talent acquisition team. Written Test: Written test is a prerequisite for Management Trainee Officer (MTO) recruitment of DBL. Nowa-days even for management trainee program for GTO SCB does not have any written test but have couple of online tests. Written test is taken on need basis if it is sought by the line manager under whom the incumbent will work. Interview: For conducting interview DBLs HR division provide proper guideline to the interviewer. It is preferred that internal candidates should inform their respective supervisors before attending interview session. In SCB a structured questionnaire is followed for interviews when country based local vacancy is concerned. Every interview panel member scores the candidates on specific criterion placed on a pre-decided rating scale. Then the aggregated average score is calculated for selecting desired candidates. Requirement of the Member for Interview Board: Top level management of DBL selects members for the interview board on the basis of good understanding of assessment tools and methods, assessment criteria, ability to evaluate objectively, understanding of the position and competency requirements. In SCB for all levels of interviews the interview panel consists of at least one talent acquisition team member, concerned line manager under whom the selected person will work, and some other senior members of the department where the vacancy is sought. Before selecting a candidate DBL & SCB follow the following sequenceFirst level interview: 65

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DBL & SCB arranges the first formal interview / viva session in the assessment process is the 1st level interview which evaluates competencies, attitude, commitment and most importantly the job fit of the candidates. On 1st level interview they reduce the applicant size. A final interview is also taken by DBL at the end of using other selection tool. Assessment Center: In certain cases DBLs assessment centers may substitute for the written test as it includes multiple assessment tools. Components include a case analysis (group or individual), presentation, and formal interview. Once a candidate is selected recruitment division will process and compile the assessments and communicate with concerned assessors for final approval. In certain cases, approval may be immediate. On the other hand in SCB typical assessment center doesnt exist, since emphasis is given on online tests. However for international program like IG a partial assessment is conducted by country talent acquisition team and instructed by regional talent acquisition team. More precisely group discussion is conducted where the topic, criteria of marking, number of team members, scoring scale and other necessary details are provided by the regional talent acquisition team. Medical Test: A pre-employment medical check-up for all full time employees of the bank will be conducted for the potential employees of DBL at the cost of the bank. But in SCB they do not need any medical test or police clearance. Probation Period: DBL practices one year probation period for the employees joining with less than three years of working experience. The probation period for employees joining with three (3) years or more experience is six months. Probation period shall not be applicable for employees joining for VP and above grades with ten years of experience. In SCB for local positions the probation period is in between 3 months to one year but for international programs the probation period is two years. In IG program after the probation period the employees are posted internationally in different countries, where SCB is operating, based on their performance during the probation period. COMPARISON IN TERMS OF TRAINING AND DEVELOPMENT PROGRAMS Training and development is very vital for banking industry as there is ample opportunity to add value by extra caliber. DBL believes this and so they have taken various programs aiming at developing employee skill and knowledge. Basically fresh recruits are sent to BIBM for fundamentals of banking training initially and then for advanced training when necessary. For MTOs they also provide on the job training so that prior to professional responsibility they get the chance to acquire firsthand experience by job rotation. In this way seniors also have the opportunity to train them according to their needs. There are some basic training that is mandatory by Bangladesh Bank like- Anti money Laundering Act and Loan KYC. Training on these issues is strictly maintained by DBL. Recently 66

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extensive trainings on Basel II are planned by DBL. DBL has own training institute for giving continuous training to their employees. It also believes in bringing holistic approach in training and development area. Human Resources Division sent handful of participants to attend various courses both at home and abroad. On the other hand SCB training & development system includes: The Initial One/Two Years Training: Employees experience initial 1 or 2 years training as a blend of core and discretionary elements, such as induction training which introduces the new entrants to the bank, the employees own business or function and particular department. Moreover the new employees receive training in specific products, work based assignments in respective department, and crossdepartmental attachments experiencing short period of time spent in another business or support function during the probation period. Those who are selected under international program go for scheduled abroad training followed by exams to pass with satisfactory threshold score during the probation period. Long Term Training: Development and training does not stop after two years. After this initial training, the employees of SCB are faced with internal development programs, business-related studies and professional qualifications development program. SCB Bangladesh training and development team work with the regional training and development team to assess the training need of the existing employees and set training calendar accordingly. In SCB for every employee a training path is followed, composed of online training module and classroom training. Attending those training and passing them with at least 80% marks is mandatory. Every month HRSSC generates a report on the training progress details. Then concerned country HRRMs take necessary actions to ensure full compliance, if not met by certain employees. Members of the regional training and development team pay scheduled visits to Bangladesh for conducting classroom training sessions, mostly for mid and top level employees of the bank. Orientation: Every staff member joining SCB has to attend a 2 days comprehensive orientation to get a feel about the bank and its business. This orientation program provides a good chance to meet with seniors & colleagues and to build up the team spirit. Besides the above training employees of SCB also get products training (cash product training, operational training etc), skill training (credit workshop, sales& negotiation skills, project management, etc), on-job training, self-learning (The bank sends out CDs and books to staff for them to study on trade knowledge, credit knowledge, etc), management development training, specific competency training. The required training is designed for specified role positions. Employees according to their current role positions get the training. 67

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COMPARISON IN TERMS OF COMPENSATION PRACTICE Employee Compensation Records & Salary Structure: DBLs employee pay records are maintained by the personnel & admin division for workers and supervisors and by the HR division for the executives. In SCB personal employee file maintenance, monthly payroll processing, insurance claim processing etc. are controlled by the service delivery team in connection with regional service delivery team. All employees also have an online profile in PeopelSoft portal which contains summarized information and the track of career progression within SCB. The salary & payment structure for managers and executive staff of DBL & SCB for different units are shortly described below. Basic Employee Benefits for Permanent Employees Provident Fund: The Dhaka Bank's provident fund is a funded scheme. All confirmed and permanent employees are entitled to be members of the provident fund. The employee contribution, equal to 10% of the basic salary, is deducted each month through the payroll. The bank contributes an equal amount and both the employees' and the organizations contributions are paid to the fund each month. In SCB employees contribute 5% of basic salary, deducted at source per month, as provident fund. The employer also contributes the same. But if any employee leaves the company, before completion of 5 years in the organization, employer will not contribute anything. Medical Benefits for the Executive Staff: The DBL will reimburse the cost of authorized medical treatments in Bangladesh including hospitalization, surgical and childbirth subject to the conditions mentioned hereunder. In case of any overseas treatment prior approval from the chief executives required. Life Insurance: The DBL provides coverage of life insurance to all permanent employees after their joining with the organization effective on the date of joining. SCB employee gets all type of insurance benefit like life insurance, car insurance etc by METLIFE ALICO. Like DBL they also give insurance benefit to their permanent employee. In the event of the death of an employee while in the banks service, other than death by suicide, death by criminal prosecution, or death by taking part in any activities subversive of the state, the bank depending on the classification of employees shall pay benefits on normal death and accidental death from insurance bank as follows: For DBL in case of executives normal death benefit is 36 months last basic salary and accidental death benefit is 72 months last basic salary. In addition to this coverage of insurance benefits 68

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compensation will also be made as per "Workman's Compensation Act 1923" in the case of death/disability of employees. In SCB under insurance coverage specified payment is made in regard to death, visit to general outdoor doctors, hospitalization, maternity, and accidents. In SCB, unlike many companies of Bangladesh, the spouse and children of the employee also get the same insurance coverage. Bonuses: All confirmed permanent employees of DBL are entitled to one annual bonus each equivalent to Basic Salary under the following conditions: 213 days+ attendance in the calendar year is equal to 100% of the bonus & 107 days+ is equal to 50% of the bonus. On the other hand in SCB employees do not get any festival bonus rather they get target bonus which is uncertain in nature. If employees perform satisfactorily then they will get the target bonus. SCB also recognizes the over achievers by giving extra performance bonus. For example if one employee has target bonus of BDT 100000/ annum and if the employee is declared as over achiever then he may get 150% of the target bonus that is BDT 150000 or more, depending on the level of performance. Government holidays and other statutory paid leaves are given. Meal Facilities: DBL provides meals with a subsidized rate for executives in branch offices. But for executives of head office no meals are provided. But meal facilities are available for all employees in SCB without any subsidy. Sharesave: SCB believes that wider employee ownership is an important and integral part of the reward package. The aim of the banks employee share schemes is to extend share ownership across the group. The Sharesave scheme is a way for employees to save money straight from their salary and buy SBC shares. COMPARISON IN TERMS OF PERFORMANCE APPRAISAL SYSTEMS Performance appraisal of DBL: DBLs performance appraisal system is quite structured through which it can assess both goal (What) and the management competencies (How). Goals-Key Result Areas (KRA) is the specific major objectives to be set at the beginning of the year through consultation with the reporting manager or supervisor. These need to be aligned to the objectives of the function and consequently to overall objectives of the bank (Dhaka Bank Training Institute, 2011). Performance Standard considered by DBL; Excellent (4.5-5.0), Very Good (3.5-4.5), Good (2.53.5), Average (1.5-2.5), Below Average (1.0-1.5) Performance Appraisal Policy: 69

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Performance appraisal process is conducted by the HR Division of DBL. So the policy is also made by the HR division to conduct this process smoothly and clearly. Types of Performance Appraisal Form: DBL has two types of performance appraisal forms. One is for the branch managers or division heads and another is for the other employees who are working under them. The performance appraisal form of the relationship managers or the division heads are filled by the management committee. And the employees other then managers performance appraisal forms are filled up by the relationship managers of the branches and the division heads. Managers fill this performance appraisal form and send it directly to the HR Division as TOP CONFIDENTIAL papers. Performance Appraisal process of SCB: In SCB the performance appraisal is a nice blend of online and manual mechanisms. The annual performance appraisal in SCB is done in two parts, half yearly and yearly. So after the half yearly appraisal the employees get the second chance to work on their performance. The performance appraisal is termed as P3 (Payments for Performance and Potentials) where alphanumeric rating is given by the immediate supervisor and supervised by the concerned HRRMs. The approving authority concludes the process by approving the rating and suggested salary increment after necessary adjustments, if required. Components of Performance Appraisal: In SCB both qualitative and quantitative components are considered under performance appraisal process. Qualitative components, known as value rating, like behaviors, interaction with other staff members, whether courageous respectful to others or not etc are considered. Based on this a rating is given (A/B/C/D/E), A being the best and E being the worst. Quantitative components directly represent the departmental works. For example selling loans for the sales department. Based on quantitative criteria numeric rating is given (1/2/3/4/5), 1 being the best and 5 being the worst. Together the alphanumeric rating gives the final rating for the employees, 1A being the best possible and 5E being the worst possible rating one employee can get. But normally based on quantitative performance rating target bonus is disbursed in following proportion: 1 raters get 145%-200% of target performance award (target bonus), 2 raters get 120%-150%, 3 raters get 75%-125%, 4 raters get 0%-80% and 5 raters get 0% of target performance award (target bonus). The appraisal at the organization includes appraisal of current performance as well as the potential. Future potentials are recognized through talent rating. Talent rating includes HiPo (high performer), critical resource, core contributor, under performer and under achiever. So its possible for one employee to get rating 4, which is poor, but still be termed as critical resource for the organization. Normally 1 and 2 raters, together, are termed as HiPo (high performer) under talent rating Approach of Measuring Individual Performance: 70

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A long-standing question that SCB and many other organizations are still grappling with is whether and how to reward good performance (or conversely, how to deal with persistent poor performers). SCB has come up with a solution of evaluating individual performance. In the starting of the financial year every individual employee discusses his performance objectives, to be achieved over the year, with his supervisor. After necessary adjustments, the agreed performance objectives are approved and stored in PeopelSoft employee profile. This agreed objectives become the standard against which actual performance will be compared. Linking Performance to Promotions: Some have argued tying career advancement to performance is more important than linking performance and pay. Whereas the benefits of pay for performance are uncertain, particularly in the lower echelons, there is no doubt of the need to ensure that the best people rise to management levels. SCB monitor all employee performance and then linking performance to promotion of those employee. SCBs P3 (Payments for Performance and Potentials) mechanism, value rating, performance rating and talent rating provide perfect basis for linking performance to promotion HRIS Practiced by the DBL & SCB: DBL & SCB usually uses almost all-possible modern banking equipment in their offices. SCB use People Soft HRIS portal that helps them to do all HRIS work. DBL uses Human Resource Information System (HRIS) software in their HR division for accomplishing their assigned task timely with standardized way such as payroll, time and attendance, appraisal performance, benefits administration, scheduling, absence management. Both DBL & SCB arranges training program for operating that software properly.

CONCLUSION
The study being theoretical in nature has just focused some of the major areas of human resource management practices of Dhaka Bank Limited and Standard Chartered Bank of Bangladesh. And the findings show that as being a local bank Dhaka Bank Limited and Standard Charted Bank as a world reputed foreign bank is doing satisfactory HR practices which lead these bank toward their corporate success. Finally this study could be helpful for many employers in Bangladesh and around the world to follow the mentioned HR practice and researcher to do more research in HR field. REFERENCES

Appelbaum, Eileen, Thomas Bailey, Peter Berg, and Arne L. Kalleberg. (2000) Manufacturing Advantage: Why High-Performance Work Systems Pay Off. Ithaca, N.Y.: ILR Press (an imprint of Cornell University Press). Ahmad, S. and Schroeder, R. G. (2003) The impact of human resource management practices on operational performance: recognizing country and industry differences, Journal of Operations Management, 21 1943.

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