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Human Resource Management Practices at

Eastern Bank Limited

Muhammed Rishad Hossain


ID No: 3-07-11-064

MBA (Evening) Program


Department of Management Studies
Faculty of Business Studies
University of Dhaka

December 2010

Human Resource Management Practices at


Eastern Bank Limited

Muhammed Rishad Hossain


ID No: 3-07-11-064

Supervisor:
Dr. Md. Abbas Ali Khan
Professor
Department of Management Studies
Faculty of Business Studies
University of Dhaka

EMBA Program
Department of Management Studies
Faculty of Business Studies
University of Dhaka

December 2010

Date: December 11, 2010

Dr. Md. Abbas Ali Khan


Professor
Department of Management Studies
Faculty of Business Studies
University of Dhaka
Dear Sir,
It is to inform you that I have completed my report on Human Resource
Management Practices at Eastern Bank Limited. This paper will provide you with
information regarding analysis, investigation, findings and recommendations of
Human Resource Management Practices at Eastern Bank Limited. I have tried my
level best to bring all variables for the study and tried to reach in conclusion by
identifying some problems and recommendations to overcome them.
I have studied and collected the relevant information for analysis. I have enjoyed a lot
while preparing this paper, as it was something different from my previous report and
assignment. It required studying details with maintaining regular work at the office,
which gives me the different type of learning from the real world.
I hope that this paper will meet your requirement. I would be glad to furnish any
further clarification in this regard, if needed.
Sincerely,

Muhammed Rishad Hossain


ID: 3-07-11-064

Acknowledgement
It was the kind design of Merciful Allah that I Muhammed Rishad Hossain have
completed the assigned task within the specified time period with fewer hazards.

Any assignment is the product of numerous people whose efforts, ideas and
suggestions make my job manageable. I am indebted to many people and
organizations for their assistance in making this assignment in reality.

I particularly appreciate the perseverance and contributions of supervision by Mr. Dr.


Md. Abbas Ali Khan, Professor of the Department of Management Studies, University
of Dhaka. Without his constant supervision and valuable advices and suggestions
from time-to-time, I would be failing to complete the whole thing in a right manner. I
am indebted to my organizational supervisors Mr. Sirajul Islam, Head of Human
Resources and Mr. Monjurul Alam, Senior Manager HRD, Eastern Bank Limited for
their vigilance and guidance that paved the way for the meaningful ending of this
study in a short duration.

I also express my gratitude to the department of Management Studies, all Honourable


faculty members of this department and my all course mates of MBA (Evening)
Program

As always, any errors or omissions are the sole responsibilities of the writers. Any
suggestions improving the quality of this assignment are welcomed.

Muhammed Rishad Hossain


ID: 3-07-11-064

Executive Summary

The study of this report is focused on how the Human Resource Management (HRM)
Practices at Eastern Bank Limited are carried out. Eastern Bank Limited (EBL), one
of the most prominent banks of Bangladesh, commenced its journey in 1992 as the
successor of former Bank of Credit and Commerce International (BCCI). EBLs vision
is to be the Bank of Choice in Bangladesh. In achieving this vision, EBL realizes the
importance of taking due care of all the constituents, particularly the shareholders,
customers and workforce. The most carefully formulated plans, the most logical
organizational structure, the most sophisticated marketing programs, and the most
advanced computer systems will not, of themselves assure an organization success.
Plans, structures, programs and systems are not self actuating, they can only be
implemented, maintained and realized through people. Its people the most crucial
resources who serve as the catalyst, the activating and energizing force, making
possible the utilization of all other resources and enabling an organization to achieve
its goals.

Human Resource Practices involved in the Eastern Bank Limited Human Resources
are HR Planning, HR Resouceing, Orientation Program for New Employees, Training
and Development, Career Planning and Development, Performance Management,
Compensation & Benefits, Reward Management, Discipline and Grievance and
Employee Communications.

In EBL total manpower has increased from 536 in December 2005 to 1522 in
December 2009. At the same time net profit before tax has also increased. More over,
in terms of Operating Profit Per Employee EBL is in the Number One in the banking
sector of Bangladesh. In the year 2009 Operating Profit Per Employee was BDT

3.41 million. So it proves that with the deployment of the additional manpower, EBL
has been able to run its business successfully over the period. After thorough
evaluation of the process, it seems that EBLs recruitment and selection process is
satisfactory but there are some areas which needs improvement. EBL should try to
improve the process continuously and benchmark the process with its competitors

In line with the objective of my study, I sought information on what flexibility it actually
has in its human resources policies and practices that, how it integrates HRM into its
strategic management practices. In this report I have identified some problem areas
of HRM practice at EBL and recommend some suggestions to overcome them with
justifications.

Contents
Chapter 1: Introduction
1.1 Background of the report
1.2 Statement of the problem
1.3 Objective of the study
1.4 Limitations of the study

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Chapter - 2: Research Methodology


2.1 Variables Covered
2.2 Methods of collecting Data
2.3 Sources of data

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Chapter 3: An Overview of Eastern Bank Limited


3.1 Historical Background
3.2 Nature of Business
3.3 Organizational Overview
3.4 Mission and Vision
Chapter 4: Recruiting Sources and Selection Process

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Chapter 5: Learning and Development Programs

18

Chapter 6: Performance Management Programs

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Chapter 7: Reward Management: Compensation and Benefits

26

Chapter 8: Exit Procedures

30

Chapter 9: Findings, Recommendations and Conclusions

32

Bibliography