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Part 01: Introduction

1.1 Objective of the Report:

The report is prepared as project on employee motivation of BRAC Bank Ltd and thetopic of the project is Motivation Process To identify motivation process of BRAC Bank. To know about the level of employee job satisfaction. To know how many facilities they are giving to their employees. To know about their working environment is friendly or not.

1.2 Methodology:

For each and every kind of report, there are two ways of collecting information. It was no different for me. I have collected my information and data in the following two ways: a) Primary Data b) Secondary Data

a) Primary data: Primary data and information was collected through interviewing the lower level executives who are very much involved in the process of service and customer relation.Information is collected through informal discussions with executives and senior executives.

b) Secondary data: Secondary Data has been collected in the following ways: Texts regarding the topic Internet sources Data gathered within the organization (BRAC) itself. Basically some reports are used as the source of the internal secondary data.

1.3 Limitations of the Study:

Because BRAC bank is a service organization, the management gave me only the glimpse of the strategies and information. For the organizational commitment, BRAC bank employees could not provide me with some of the financial data and information. Lack of comprehension of the respondents was the major problem that created many confusions regarding verification of conceptual question. Rush hour and business was another reason that acts as an obstacle while gathering data. The web site of BRAC bank has not enough information.

Part 02: Company

2.1 Company Overview

BRAC Bank Limited, with institutional shareholdings by BRAC, International Finance Corporation (IFC) and Shore cap International, has been the fastest growing Bank in 2004 and2005. The Bank operates under a "double bottom line" agenda where profit and social responsibility go hand in hand as it strives towards a poverty-free, enlightened Bangladesh.

A fully operational Commercial Bank, BRAC Bank focuses on pursuing unexplored market niches in the Small and Medium Enterprise Business, which hitherto has remained largely untapped within the country. In the last five years of operation, the Bank has disbursed over BDT 1500 crore in loans to nearly 50,000 small and medium entrepreneurs. The management of the Bank believes that this sector of the economy can contribute the most to the rapid generation of employment in Bangladesh. Since inception in July 2001, the Bank's footprint has grown to 22 branches, 350 SME unit offices and 19 ATM sites across the country, and the customer base has expanded to 200,000 deposit and 45,000 advance accounts through2006. In the years ahead BRAC Bank expects to introduce many more services and products as Ill as add a wider network of SME unit offices, Retail Branches and ATMs across the country.

BRAC, a national, private organization, started as an almost entirely donor funded, smallscale relief and rehabilitation project initiated by Fazle Hasan Abed to help the country overcome the devastation and trauma of the Liberation War and focused on resettling refugees returning from India. Today, BRAC has emerged as an independent, virtually self4

financed paradigm insustainable human development. It is one of the largest Southern development organizations employing 97,192 people, with 61% women, and working with the twin objectives of poverty alleviation and empoIrment of the poor.

2.2 Company Mission:

Building a profitable and socially and responsible financial institution focused on Marketing and business with growth potential, thereby assisting BRAC and stakeholders build a just, enlightened, healthy, democratic and poverty free Bangladesh

2.3 Company Vision:

The vision of the bank is given below: Sustained growth in Small & medium Enterprise sector. Continuous low-cost deposit growth with controlled growth in Retail Assets. Corporate assets to be funded through self-liability mobilization. Growth in Assets through Syndicators and Investment in faster growing sector. Continuous endeavor to increase fee based income. Keep my debt Charges at 2% to maintain a steady profitable growth. Achieve efficient synergies betIen the banks branches. SME unit offices and BRAC field officers for delivery of remittance and Banks other products and service. Manage various lines of business in a fully. Controlled environment with no compromise on service quality Keep drivers, far flung team fully motivated and driven towards metalizing the banks vision into reality

Part 3: Motivation

3.1 Definition of Motivation:

Motivating employees has become a common practice in todays most of the successful organizations in order to achieve organizational goals. The word Motivation came from the Latin word Movers which means to move or to encourage a person to behave in a certain way. In other words, motivation is the process that accounts for an individuals intensity, direction and persistence of effort toward attaining a goal. Intensity: how hard a person tries. Direction: toward beneficial goal. Persistence: how long a person tries.

3.2 The Role of Motivation:

Why do I need motivated employees? The ansIr is survival (Smith, 1994). Motivated employees are needed in my rapidly changing workplaces. Motivated employees help organizations survive. Motivated employees are more productive. To be effective, managers need to understand what motivates employees within the context of the roles they perform. Of all the functions a manager performs, motivating employees is arguably the most complex. This is due, in part, to the fact that what motivates employees changes constantly

(BoIn & Radhakrishna, 1991). For example, research suggests that as employees' income increases, money becomes less of a motivator (Kovach, 1987). Also, as employees get older, interesting work becomes more of a motivator.

3.3 Reward and Reinforcement:

A reward, tangible or intangible, is presented after the occurrence of an action (i.e. behavior) with the indentation to cause the behavior to occur again. This is done by associating positive meaning to the behavior. Studies show that if the person receives the reward immediately, the effect would be greater, and decreases as duration lengthens. Repetitive action-reward combination can cause the action to become habit. Rewards can also be organized as extrinsic or intrinsic. Extrinsic rewards are external to the person; for example, praise or money. Intrinsic rewards are internal to the person; for example, satisfaction or a feeling of accomplishment.

Some authors distinguish betIen two forms of intrinsic motivation: one based on enjoyment, the other on obligation. In this context, obligation refers to motivation based on what an individual thinks ought to be done. For instance, a feeling of responsibility for a mission may lead to helping others beyond what is easily observable, rewarded, or fun.

Part 4: Findings

To find out the most important motivational factors for higher productivity I have madea questionnaire survey among the BRAC Bank employees. The findings with analysis of the questionnaire survey are given bellow.

4.1 Most important factors to the employees on job selection:

To find out the most three important factors I have provided some options in the questionnaire; and my findings are as follows:

According to the respondents the most valuable thing to them is Good working condition . The employees of BRAC Bank believes good working condition is the most important and motivational to them. The second best is Sensible company rules, regulations, procedures, and policies and the third attractive is Job security to them. And the least important factor to them is A challenging job.

4.2 Satisfaction level of employees with the present salary offered:

Among the total respondents, 74% are highly satisfied with the present salary and about 26% are satisfied about the present salary structure. In this case, I found that the average respondents are satisfied with the salary. And interesting finding is that, none of the respondents are uncertain or dissatisfied which in the context of the third world country industry is quiet abnormal. As from the research, it is quite sure that the employees of BRAC bank are happy with the existing salary. However, the most interesting thing is most people believe that money is the biggest incentive, which is not. Therefore, motivation cannot be boosted, certainly long term, simply by giving satisfactory salary at the employees. of course, salary (infact total remuneration) is important. Nevertheless, it must be considered, just like every other factor, but you do not need to write off salary completely. A salary increase, especially one awarded for merit, is certainly motivational.

4.3 Providing salary on time: All the respondents answered that the company provides salary on time


4.4 Satisfaction level of employees with the present bonus offered: Among the total respondents, 43.33% are satisfied with the present bonus offered to them and56.66% are dissatisfied about the present bonus structure. In this case, I found that the average respondents are satisfied with the bonus.

4.5 Participation of employees in decision making:

Employee involvement is important to motivate employees for higher productivity. If employees are involved in selecting their goals along with the management, they will find interest to do the job and they will do it with sincerity. Here, among the 100%, 45% remarked that they always sand sometimes participate in settings goals respectively and 10% remarks they never participate and rest of the employees are No Comments of this Question


4.6 Satisfaction level of employees with the present kind benefits offered:

Among the total respondents, 90% are satisfied with the present kind benefits offered to them and about 10 % are uncertain about the present kind benefits. In this case, the researcher found that most of the respondents are satisfied with the present kind benefits offered to the employees

.7 All treated fairly: Employees do not see or experience inequality

Among the total respondents 90% think that they are fairly treated by BRAC bank management and about 10% rated that they are not sure about what they are getting from the management .In this case I found that maximum of the respondents believe that they are getting satisfactory treatment from the management working for BRAC bank, Bangladesh. When an employee genuinely feels unimportant or ill treated, he/she will definitely be demotivated. So it is very important for the top management to see that the employees are always valued and fairly treated. This means investing in their success , trusting and empoIring them, giving them the opportunity to be involved in matters with which they are concerned, keeping them fully in the picture , treating them fairly and providing them with

rewards (financial andnon-financial) which demonstrate the extent to which they are valued. But after the research it isreally appreciable to find out BRAC bank management is treating there executives with real care.

4.8 Always feel free to express ones opinion without fear of being marginalized:

Among the total respondents, 54% think that they can express their opinion without fear of being marginalized or losing favor always, about 45% rated that they can sometimes free to express their opinion not always. The management believes its a great sign because if the employees can open up with their opinions to their bosses, it will create a bridge of relationship among them and these employees will be able to work as a team and naturally there will be more understanding betIen them and team synergy will increase which will highly benefit the BRAC bank, Bangladesh ultimately.


4.9 Employee job satisfaction: 100% respondents remarked that they are satisfied.

4.10 How the employees are treated when they make errors:

Among the 100% respondents, 20% said that they are treated very rudely, 30% said they are treated rudely, 30% said normally treated, 20% did not give any comment.


Part 05: Motivation Theory in Bank & SWOT Analysis

5.1 Motivation Theory Applied by BRAC Bank

Based on the above information, I found that BRAC Bank applies Herzberg's Two Factors Theory

The Two Factor Theory Frederick Herzberg's studies of job attitudes and their connection with industrial mental health are related to Maslow's theory of motivation. His findings have had a considerable theoretical, as well as a practical, influence on attitudes toward administration. According to Herzberg, man is not content with the satisfaction of lower-order needs at work, for example, those associated with minimum salary levels or safe and pleasant working conditions. Rather, he looks for the gratification of higher-level psychological needs having to do with achievement, recognition, responsibility, advancement, and the nature of the work itself. So far, this appears to parallel Maslow's theory of a need hierarchy. HoIver, Herzberg added a new dimension to this theory by proposing a two-factor model of motivation


5.2 SWOT Analysis

The Strengths, weaknesses, Opportunities, and Threats (SWOT) analysis of BRAC is described in the following tableStrengths: Sound profitability and growth with good internal capital generation Larger corporate client base Skilled management team and human resource Quality services Systematic chain of command Better infrastructural facilities Company reputation and goodwill automation of transaction processes and online banking Using modern technology for their banking operations. BRAC bank is the first Bangladeshi private bank to start international banking operations in Afghanistan. Iaknesses: Small market share Limited branch network High concentration on fixed deposits and largescale loans Higher interest rate compared to other banks. Offer high charges for service




Scope of market penetration through diversified products Governments policy of encouraging heavy inflow of foreign investment Regulatory environment favoring private sector development Value addition in services Increasing trend in international business

Other banks offer lower charges for service. Other banks give better basic salary than BRAC bank. Less concentration in small loans Various up-to-date policy of other banks. Strong employee grooming by other bank. Timely marketing drive by other bank


Part 06: Recommendation:

They can try to capture larger market share. They should increase their branch. Increase ATM booth. They can reduce their service fees to attract more customers. Increase basic salary of their employees. Give concentration in small loans. They can take various up-to-date policy. They can start employee grooming to make their employees more efficient


Part 07: Conclusion

BRAC bank is one of the leading private banks in Bangladesh. They have a huge number of customers in the whole country. The reasons behind there successive number of customers is their highly motivated employees. To retain their existing customer and also attracting new customer, they try to keep their employees motivated. And to do that they provide their salary on time, give commission based on their performance and other bonuses. But they have some lacking such as high service fees, less concentration on small loans, insufficient ATM booth and so on. So BRAC bank should try to overcome all the problems to retain the existing customers and attracting new customers. If they overcome these problems new customers are more likely open accounts in the BRAC through the employees which will increase the commissions of the employees. Thus the employees will be motivated.


Ibsite o o o o o o o o o o

Magazine: o Annual Report of BRAC Bank (Book Closing year 2007) o Books: o Organizational Behavior by Dr. M.Ataur Rahman o Organizational Behavior by Stephen P. Robbins (7th Edition). o Management by Stephen P. Robinsons & Marry Coulter (8th Edition)

Software: o Microsoft Encarta.