Internship Report HRM

Letter of Transmittal
Mrs. Farhana Islam
Assistant professor
Department of management
Bangladesh university of Business & technology (BUBT)
Subject: Submission of internship report on “compensation management system of Grameen

Bank”
Dear sir,
It is a great pleasure for me to submit here with my internship report, which has been prepared
under the smart dynamic leadership of personality like you. This report is an integral part of my
academic courses in conclusion of BBA program. The title of the report is compensation
management system of Grameen Bank. During my three months internship in Grameen Bank
for any further explanation about the report, I will be gladly available to clarify all the things.
To complete the report, I have tried my best in imparting every available detail avoiding
unnecessary amplification of the report.
I am very much glad that you helped me for preparing report and hope that this report will
meet standards of your judgment.
Sincerely yours
Farhana Ahmed
ID: 15161101014
Program: BBA
Major in FIN, Department of Finance
Bangladesh University of Business &Technology (BUBT)
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STUDENT DECLARATION
I, Farhana Ahmed here by declared that the internship report entitled compensation
Management system of "Grameen Bank" is prepared by my own effort after the completion of
three months ' works at Grameen Bank . Under my internship supervisor, Mrs. Farhana Islam,
Assistant professor, Department of Human Resource Management. Bangladesh University of
Business and Technology (BUBT). I also confirm that, this report is only prepared for my
academic requirement not for other purpose and not submitted any other purpose and not
submitted any other place before.
Farhana Ahmed
ID: 15161101014
Intake: 38th
Program: BBA
Major in Human Resource Management
Bangladesh University of Business and Technology (BUBT)
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Acknowledgement
At first, I would like to express my gratitude to almighty Allah who has given me the
opportunity to go through the total process of internship and to write a report in this regard.
In conducting this report, I have munificent receive help from many quarters, which I like
to put on record here with deep gratitude and pleaser.
I would like to acknowledge my deepest gratitude to honorable internship supervisor, Mrs.

Farhana Islam, Assistant professor, Department of Management, Bangladesh University of
Business and Technology (BUBT). He gave me his precious time from the very beginning of this
report till the completion. His expert guidance, affectionate encouragement provides me critical
insight into the research problem and shows me the way for the meaningful ending of the
report work in short duration.
I also express my warm gratitude and cordial thanks to Md. Golam Zakaria Rahman
(Principal Officer of International Program Department) for giving me their valuable time and
thus enabling me to prepare me to prepare my internship report.
Last but not the least; I would like to thank all the officials of Grameen Bank Who have
giving me the chance to be familiar with the real organizational environment and practically
experiencing the procedure practiced at Grameen Bank. I also give thanks to my University
authority for providing excellent library and l ab facilities.
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Executive summery
Under internship program, each student has to prepare a report on the particular topic related
to the organization. According to the requirement, I have already completed my internship at
Grameen Bank. On the basis of my particular experience as well as theoretical knowledge, I
have completed the report regarding “compensation management system of Grameen Bank’.
The main focus of the study is to know the compensation management system of Grameen
bank and also showing the rational of the report. Background of the organization, history and
objective of my report. A sample of questionnaire which is used in the report and analyzed this
questionnaire some employees are satisfied with their compensation management system. But
need to improve their compensation management system.
All this information will help the management to identify various scopes and limitation of an
organization. This id basic rational behind the study. Besides it would be a great opportunity for
me to get familiar with this system. Although this report was carried out within short spell of
time, but I have tried my best to impart the accurate & huge information concerning the
comparative study on compensation system of Grameen bank.
An internship program is a part of our course. It also a partial fulfilment of the requirement for
the degree of Bachelor of Business administration (BBA). Basically, this internship course is one
type of potential job experience to see if a particular industry or career is the right choice for
us.
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Table of Content
Topic Page
Latter of Transmittal
Acknowledgement
Executive Summery
Chapter 01 Introduction
1.1 Introduction of the Study
1.2 Background of the Report
1.3 Significance of the Report
1.4 Scope of the Report
1.5 Objective of the Report
1.6 Methodology of the Report
1.7 Limitations of the Study
Chapter 02 Organization Profile Overview

2.1 Organization Overview
2.2 Vision
2.3 Mission
2.4 Objectives
2.5 Products & Services
Chapter 03 Theoretical Aspects

3.1 Definition of Human Resource Management
3.2 Functions of HRM
3.3 Definition of Compensation
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3.4 Compensation Management
3.5 Objectives of Compensation
3.6 Types of Compensation
3.7 Direct Compensation
3.8 Indirect Compensation
3.9 Factors Affecting Pay Satisfaction
3.10 Consequence of Ineffective Compensation
3.11 Benefits & Importance of Compensation
Chapter 04 Compensation Practice

4.1 Introduction
4.2 Types of Compensation Management of Grameen Bank
4.3 Compensation Management system of Grameen Bank
Chapter 05 Questionnaire Analysis & Findings

Questionnaire survey analysis
5.1 Summary of Response of the Respondents at a Glance
5.2 Findings
Chapter 06 Recommendations & Conclusion

6.1 Recommendation
6.2 Conclusion
Bibliography
Appendix
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Chapter: 01
Introduction
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1.1Introduction of the study:
In today’s world only academic education does not make a student perfect to become
competitive
With the outside the world. Internship is a system when a student can compare theoretical
concept with practical situation that position is an internship and the report which is theoretical
based of data of information is called internship report, Bachelor of Business Administration
(BBA) is professional program. The program designed with an excellent combination of practical
and theoretical aspects. After completing he theoretical aspects of BBA, semester is designed
for internship; afterwards internship report is prepared to summarize the intern’s analysis,
findings and achieved knowledge from this program.
This report is a basic academic requirement for the completion of BBA under the
department of management, Bangladesh university of business and technology (BUBT). The
topic of the report is the Compensation Management system of Grameen Bank.
1.2 Background of the Report:
The report is an attempt to provide an orientation to real life scenario where in one can
observe and evaluate the uses and applicability of theoretical concepts the were taught in BBA
program. As a partial fulfillment of program BBA Bachelor of business administration faculty of
business administration, Bangladesh university of business and technology (BUBT), every
student has to undergo and internship program.
1.3 Significance of the Report:
any theoretical study with worth a great Value when it can be applied in the real life or in the
practical world, So the students need to know the proper application of theoretical knowledge
to the real world. when is students engage in the internship program, can know the application
of their knowledge.
The world is changing rapidly to face the challenge of competitive free market economy.
keep peach with the trade each and every organization seeks employees who have the best
combination of the practical knowledge with the theoretical knowledge. Internship is a program
to which the student can gather the practical world knowledge. So, the internship program will
help the students’ knowledge building in two specific fields one is through the program the
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students can gather the real world knowledge and second is the student after being graduates
can achieve capabilities to write about the practical world.
1.4 Scope of the Report:
the study discusses about the compensation management system and its impact of various
managerial interventions at Grameen Bank. The prime focus of this study remains with
compensation system and its influence of basic of facts and figures collected though primary &
secondary data.
1.5 Objective of the Report:
Board objectives
 To describe the compensation management system of Grameen Bank.
Specific objectives
 To explain the different elements of compensation.

 to narrate about employee opinion regarding compensation management
system of Grameen Bank.
 To suggest some possible recommendation to overcome the problems
1.6 Methodology of the Report
This report is aimed at presenting experience gathered in the workplace regarding

compensation management system. With this end of view, I have collected data on the
structure. The methodology of my internship report is described in the following paragraphs.
1.6.1 Type research:
The research type is descriptive in nature which briefly reveals the overall compensation
management system. It has been administered by collecting both primary and secondary data.
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1.6.2 Sources of Data:
Both primary and secondary data have been used in preparing this report. The details of the
source of data are as follows:
 Primary Sources
 Questionnaires survey.
 Face to face conversation with officers.
 Direct observation
 Secondary Sources
 Data available with the website of Grameen Bank.
 Annual report of Grameen Bank.
Questionnaire Design:
An opinion and option basic questionnaire have been used to collect the opinion (five points
Likert scale techniques had been applied). For the other queries Dichotomous and other scaling
techniques are used.
1.6.3 Population and Sample Plan:
Population and the sampling plan of the study were:
Population:
The targeted population was the employees working at the Grameen Bank.
Sampling Method:
The non-probability purposive or biased sampling method in used to collect the primary data.
Sampling size:
Sample size means the number of elements in the obtained sample. The size of the sample was
10 employees. Among them there were some officer level employees and some operational
level employees. The following table shows the sample details:
Table: Sample Size of the Study.
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Serial No Designation of the Employees Number of Respondents
01 Senior Officer 3
02 Officer 5
03 Supervisor/In-change 2
Total 10
*Data source: Grameen Bank
1.7 Limitations of the Study:
Since the most of the information are very confidentially maintained in Grameen Bank, it was
very challenging task for me to collect all required information from the management.
However, the limitation of this report ware-
 Due to time restriction, in-depth study was not possible.

 Because of the restrictive policy of the Bank regarding the circulation of crucial
information, I could not collect any appropriate data on the non-financial compensation
provided by Grameen Bank.
 Because being a fresher, I really had no professional experiences because of Which it
took lots of time for me to understand things practically and that is my lack of
experience.
 I did not show the in-depth statistical analysis for lack of skills.
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Chapter-02
Organization
Profile
Overview of
Grameen Bank
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2.1 organizational overview
Grameen Bank is a micro finance organization and community development bank founded
in Bangladesh. It makes small loans (known as microcredit or "grameencredit") to the impoverished
without requiring collateral
Grameen Bank (GB) has reversed conventional banking practice by removing the need for
collateral and created a banking system based on mutual trust, accountability, participation and
creativity. GB provides credit to the poorest of the poor in rural Bangladesh, without any
collateral. At GB, credit is a cost-effective weapon to fight poverty and it serves as a catalyst in
the overall development of socio-economic conditions of the poor who have been kept outside
the banking orbit on the ground that they are poor and hence not bankable. Professor Muhammad
Yunus, the founder of “Grameen Bank” reasoned that if financial resources can be made
available to the poor people on terms and conditions that are appropriate and reasonable, “these
millions of small people with their millions of small pursuits can add up to create the biggest
development wonder.” As of December, 2017, it has 8.93 million borrowers, 97 percent of
whom are women. With 2,568 branches, GB provides services in 81,400 villages, covering more
than 97 percent of the total villages in Bangladesh. Grameen Bank’s positive impact on its poor
and formerly poor borrowers has been documented in many independent studies carried out by
external agencies including the World Bank, the International Food Research Policy Institute
(IFPRI) and the Bangladesh Institute of Development Studies (BIDS).
2.2 vision
The most important aspect of Grameen intervention is that the vision of a poverty free

society expounded by the Grameen leadership has been fostered among the important
stakeholder management, operating staff and bank members. They all share the
same vision and value.
2.3. mission
 extend banking facilities to poor men and women;
 eliminate the exploitation of the poor by money lenders;

 create opportunities for self-employment for the vast multitude of unemployed
people in rural Bangladesh;
 bring the disadvantaged, mostly the women from the poorest households, within
the fold of an organizational format which they can understand and manage by
themselves; and
 reverse the age-old vicious circle of “low income, low saving & low investment”,
into virtuous circle of “low income, injection of credit, investment, more income,
more savings, more investment, more income”.
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2.4. objectives
The Grameen Bank believes that the best way for participants to learn about how the
bank works, is through first hand exposure and observations at the field level. Through
these experiences, participants are encouraged to draw their own conclusions about the
effectiveness of Grameen Bank’s work and the impact it has on the poorest of the poor.
The objectives of GB’s training programs are to:
 Arouse curiosity
 Stimulate interest on the subject of Microfinancing
 Encourage responsibility of self-motivated learning
 Learn and share with others
 Discover individual role in the organization and the global community
2.5 product and services
Grameen Bank provide loans and banking services for the poor-
 Investment:
- poor women are given a loan to start an income generating activity
 Refund:
- From profit earned, the women pay back the loan with small interest
 Reinvestment:
- with the interest earned on the loan, the bank can give loans to more people.
 Local development:
- Loans, saving accounts, pension
- Education
- Empowerment of women
- Distribution of dividends to the poor (as shareholders)
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Chapter-03
Theoretical
Aspects
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3.1 Definition of Human Resource management:
Human resource management is the management activities that are related to the human in
the organization. Human resource management is the process of hiring, training and
developing, compensating, evaluating the performance and monitoring a harmonious
relationship with employees in an organization.
According to Gary Dessler,
“Human resource management refers to the policies and practices one needs to carry out
the people or human resource aspects of management position including recruiting, screening,
training, rewarding and apprising.”
According to Decenzo and Robbinfs,
“Human Resource management is a process consisting of four functions-acquisition,

development, motivation and maintenance of human resource.”
Prof. Ataur Rahman has defined
Human Resource Management as a set of activities which include acquisition,

development, motivation maintenance and utilization of manpower for the purpose of the
purpose of effective and timely achievement of organization goals.
Human resource management regards people as the most important resource of an

organization. It’s all policies and practices are oriented towards improving human resource
performance, which directly contributed to the achievement of organizational goals.
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3.2 functions of HRM
There are four basic Functions of human resource management:
 Acquisition function
 Training & development
 Motivation
 Maintenance
Four Basic HRM Functions
Acquisition Training &

Motivation Maintenance
Function Development
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3.2.1. Acquisition Function:
It is a process of identifying and employing people possessing required level of skills it includes-
 Job analysis
 HRP
 Recruitment
 Selection
3.2.2. Training and Development:
It is the systematic development of the systematic development of the attitude, knowledge,

skill pattern required by a person to perform a given task or job adequately and development is
‘the growth of the individual in terms of ability, understanding and awareness’
3.2.3. Motivation:
Employees work in the organization for the satisfaction of their needs. In many of the cases, it is
found that they do not contribute towards the organizational goals as much as they can. This
happens because employees are not adequately motivated. The human resource manager
helps the various departmental manager to design a system of financial and non-financial
rewards to motivate the employees.
3.2.4. Maintenance
Merely appointment and training of people is not sufficient; they must be provided with good
working conditions. So that they may like their work and workplace and maintain their
efficiency. Working conditions certainly influence the motivation and morale of the employees.
These include measures taken for health, safety, and comfort of the workforce. The personnel
department also provides for various welfare services which relate to the physical and social
well-being of the employees. These may include provision of cafeteria, rest rooms, counseling,
group insurance, education for children of employees, recreational facilities, etc.
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3.3 Definition of compensation
The word compensation has been originated from the Latin word “compensation” Which
means the reward or remuneration given in exchange for labor or service. Compensation may
be both financial and non-financial.
Employees exchange their physical and mental efforts for compensation, but compensation
means more than wage and salaries. It may include incentives & benefits that motivate
employees and relate labor costs to productivity.
Various scholars have defined compensation in various ways. A few among them are mentioned
below:
According to R.S. Schuler
“compensation is a mode through which an organization logically evaluates the contribution of

its employees and provides them with financial and non-financial incentives according to its
affordability and within the government regulation”
According to Thomas pattern Jr. and colleagues,
Compensation refers to a form of pay or reward going to employees arising from their
employments.
“compensation means rewarding the employees of an organization equitably for their

contribution towards the achievement of the goal of the concern- According to E.B. Flipo.
3.4 Compensation Management
Compensation management provides a step-by-step approached for designing a remuneration

system that requirements, employee knowledge and skills, performance related incentives that
link individual, team, work unit and organization performance.
Compensation management is the process by which the authority of the organization provides
some financial and non-financial benefits to the employees for their contribution”
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3.5 Objective of the compensation
Objective of the compensation are very important because it helps the organization obtain,
maintain and a productive work force. Without adequate compensation, current employees are
likely to leave. It is the main reason why most individual seek employment. From the employee
point of view, pay is necessary of life. Pay is the means by which people provide for their own
and their own and their family needs.
The management of compensation must meet several objectives. These objectives are listed
below:
 To acquire qualified personnel: Compensation needs to be high enough to attract

qualified personnel.
 To retain present employees: Compensation level must be competitive in order to
retain qualified employees otherwise they may leave.
 To ensure equity: Workers must be paid at a rate equal to the pay that similar workers
receive in another firm.
 To reward desired behavior: Good performance, experience, loyalty, new
responsibilities and behavior can be rewarded through an effective compensation plan.
 To control costs: The compensation system must will all sorts of legal regulations.
 To comply with legal regulation: The compensation system must with all sorts of legal
regulations.
 To further administrative efficiency: In pursuing the other objectives of effective
compensation program in such a way that it can be administered efficiently.
Administrative efficiency, however, is the secondary priority of the compensation
management.
Some other objectives of compensation are:
 To manage conflict and to ensure congenial working environment.

 To generate motivation among employees.
 To reduce turnover.
 To ensure loyalty/commitment and participation
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3.6 TYPES OF COMPENSATION
Financial compensation
The organization provides the financial facilities to the employees for doing their job in the
organization. Financial compensation includes the following:
 Salary
 Wages
 Incentives
 Fringe Benefits
 Dearness Allowance
 House rent Allowance
 Gratuity
 Retirement benefits
Non-financial compensation
Non-financial compensation benefits are included following:
 Dignity
 Recognition
 Working condition
 Social status
 Achievement
 Security
3.7 Direct Compensation
Consisting of pay received in the form of wages, salaries, incentives and benefits provided at
regular and consistent intervals.
Components of direct compensation are discussed below:
Base pay:
The basic compensation that an employee receives, usually as a wage or salary, is called base
pay. Many organizations use two base pay categories, hourly and salaried, which are identified
according to the way pay distribution and the nature of the jobs. In contrast, people who are
paid salaries receive payments that are consistent from period despite the number of hours
worked. Being salaried typically has earned higher status for employees than being paid wages.
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Wages and salaries
Wages and salary as the amount of money that employees earn month in their job, not
including any extra payments they may receive. Payments directly calculated on the amount of
time worked. Hourly pay is the most common means of payment based on time; employees
who are paid hourly are said to receive wages, which are payments directly calculated on the
amount of time worked. In contrast, people who are paid salaries receive payments that are
consistent from period to period despite the number of hours worked.
Merit pay
Merit pay is an approach to provide compensation that rewards the higher performing
employees with additional pay or incentives pay. Merit pay has advantage and disadvantage for
the employees and the employer.
Incentives and benefits
Incentives are rewards designed to encourage and reimburse employees for effort beyond
normal performance expectation. Benefits are rewards available to employees or group of the
employees and of their organization membership.
Deferred pay
Deferred pay is employee compensation that changes as compared to salary which is paid in
annual proportions throughout the year. This pay is used generally to recognize and reward
employee contribution toward.
3.8 Indirect Compensation
Including all financial reward that are not include in direct compensation understood to from
part of social contract between the employer and employee such as loss of job income
continuation, disability income continuation and spouse income continuation.
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Components of indirect compensation are discussed below:
Loss of job income continuation
Job security is a prime concern for workers. They want assurance of their jobs and income until
retirement. But very few jobs provide such guarantee. Other than accident and sickness, under
performance, interpersonal dynamics, changes in economic condition and technology may
cause temporary layoff or termination of employment opportunities arise.
Disability income continuation
When employees are unable to work due to some disability after an accident on job or outside,
some organization continue to pay them. Organization pays the employee remains absent for
work due to some accident. Mostly insurance covers, the medical expenses are the example of
disability income continuation.
Spouse income continuation
Employees with families worry that they will not be able to provide and care for a support their
dependents in the event of their death or disability. To this end, certain plans have been
created to provide the dependents with the financial means to go on if an employee dies or
incapacitated due o temporary and permanent disability.
Pay for time not worked
The past few years have seen a reduction in working hours. In addition, employees today enjoy
mode official non-working days and longer paid level. Components of payment for non-working
days raise labor costs. On the other hand, such payment allows for Lifestyle change and
enhancement of the quality of life.
Income equivalent payments
Income equivalent payments are also known as perquisites or perks. Some of these special
benefits are exempted from tax and this advantageous for employers and employees. Examples
of special benefits are provision of credit cards, allowance to attend official meetings subsidized
food and childcare services.
3.9 FACTORS AFFECTING PAY SATISFACTION
Nash and Carroll found that pay satisfaction varies with the following factors.
Salary level:
Higher the pay, higher satisfaction within an occupational group.
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Community cost of leaving:
Lower cost o leaving, higher the pay satisfaction.
Education:
Lower the education level, higher the pay.
Experience:
Higher the experience, higher pay dissatisfaction.
Future expectation:
The more optimistic the employee is about future job conditions, the greater the pay
satisfaction.
Pay basis:
The more pay is perceived to be based on merit or performance, the greater the pay
satisfaction.
Others personal characteristic:
The more intelligent, self-assured and decisive a person is, the lower the pay
dissatisfaction.
3.10 CONSEQUENCE OF INEFFECTIVE COMPENSATION
A compensation consequence of ineffective compensation system may be termed as over-

compensation and under-compensation.
Effect of over-compensation
 Over enthusiasm
 Loss of initiative
 Feeling guilty
 Feeling of discomfort
 Not cost effective
 Loss of competitive of the firm
Effect of under-compensation
 Loss of initiative
 Lack of motivation
 Feeling insecurity
 Decline in the quality of work life
 Pay satisfaction
 High turnover
 High absenteeism
 Low performance
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3.11 BENEFITS AND IMPORTANCE OF COMPENSATION
 Enhance dignity & satisfaction from worked performed

 Enhance psychological, health, Intellectual growth and emotion maturity.
 Promote constructive social relationship with co-workers.
 Design job that requires adequate attention and effort.
 Allocate sufficient resource to perform work assignments.
 Offer supportive leadership & management.
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Chapter-04
Compensation
Management
System Of
Grameen Bank
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4.1 Introduction:
These HR practices are very effective to improve performance. BY this practice they can collect
capable and effective employee. Its compensation and benefit even punishment help to receive
the best efforts from employee.
4.2 Types of compensation Management of Grameen Bank:

Grameen Bank also follows type’s compensations these are given below:
Types
Direct Compensation Indirect Compensation
Leave Policy
Overtime Policy
Car Policy
Travel Policy
Basic Salary
Sick Leave
House Rent Allowance
Bereavement Leave
Conveyance Allowance
Vacation & Pain Time Off
Medical Allowance
Maternity & Paternity Leave
Retirement Plan
Disability Insurance
Performance Bonus
Free Lunch or snacks
Pension Plan
Employee Assistance Program
Stock Options & Equity
Professional Support
(Diversity Program, Job training &

tuition, Apprenticeship Program)
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4.3 compensation management system of Grameen Bank
Elements of compensation package of Grameen Bank
1.Salary
2. Medical allowance
3. House rent allowance
4. Conveyance allowance
5. Insurance facility
6. Festival bonus
7. Incentive bonus
8. provident fund
Compensation Management structure of Grameen Bank

a) Basic salary
Grade 7th National Pay Scale 8th National Pay Scale
Grade 1 40,000 78,000
Grade 2 33,500 66,000
Grade 3 29,000 56,000
Grade 4 25,750 50,000
Grade 5 22,250 43,000
Grade 6 18,500 35,500
Grade 7 15,000 29,000
Grade 8 12,000 23,000
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Grade 9 11,000 22,000
Grade 10 8,000 16,000
Grade 11 6,400 12,000
Grade 12 5,900 11,300
Grade 13 5,500 11,000
Grade 14 5,200 10,200
Grade 15 4,900 9,700
Grade 16 4,700 9,300
Grade 17 4,500 9,000
Grade 18 4,400 8,800
Grade 19 4,250 8,500
Grade 20 4,100 8,250
b) Allowance
“The various allowances have been clearly spelt out in the new pay scale. Some might
get more and some less allowances than before,” the cabinet secretary said.
The housing allowance would be determined according to the place of residence as

before.
In the Seventh Pay Scale, government employees used to get Tk 700 as medical
allowance every month.
They used to get a host of other extras such as festival, tiffin, laundry, travel, domestic,
and hill allowances among others.
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Chapter-05
Questionnaire
Analysis
&
Findings
Page | 30
1.Are you satisfied with organization’s compensation policy?
The responses of the respondents are accumulated in the following table:
Particular Respondents Percentage

Strongly Satisfied 8 80%
Satisfied 2 20%
Neutral 0 0%
Dissatisfied 0 0%
Strongly Dissatisfied 0 0%
Total 10 100%
Compansesation policy
20%
80%
Strongly Satisfied Satisfied Neutral

Dissatisfied Strongly dissatisfied
Graph 1: Compensation policy
Interpretation:
From The above graph, it is seen that 80% respondents were strongly satisfied, 20%
respondents were satisfied. They said that human resource department properly contributes in
their job.
Comment:
Grameen Bank properly provided compensation to employees for their job.
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2. Are you satisfied with basic salary?

Satisfied 0 0%
Neutral 0 0%
Dissatisfied 0 0%
Total 10 100%
Basic salary
100%

Graph 2: Basic salary
Interpretation:
From The above graph, it is seen that 100% respondents were strongly satisfied with their basic
salaries.
Comment:
Employees are highly satisfied with their current salaries in Grameen Bank.
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3. Are you satisfied with your increment?

Satisfied 2 20%
Neutral 0 0%
Dissatisfied 0 0%
Total 10 100%
Increment
20%
80%

Graph 3: Increment
Interpretation:
respondents were satisfied with increment.
Comment:
Employees are satisfied with their increment.
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4. Are you satisfied with your incentives?

Satisfied 5 50%
Neutral 0 0%
Dissatisfied 0 0%
Total 10 100%
incentives
50% 50%

Graph 4: Incentives
Interpretation:
From The above graph, it is seen that 50% respondents were strongly satisfied & 50%
respondents were satisfied with incentives.
Comment:
Employees are satisfied with incentives of Grameen Bank.
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5. Are you satisfied with your medical allowance?

Satisfied 2 20%
Neutral 1 10%
Dissatisfied 0 0%
Total 10 100%
Medical Allowance
10%
20%
70%

Graph 5: Medical Allowance
Interpretation:
respondents were satisfied, and 10% respondents were neutral with medical allowance.
Comment:
Medical allowance is satisfactory.
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6. Are you satisfied with your conveyance allowance?

Satisfied 3 30%
Neutral 2 20%
Dissatisfied 0 0%
Total 10 100%
Conveyance Allowance
20%
50%
30%

Graph 6: Conveyance Allowance
Interpretation:
respondents were satisfied, and 20% respondents were neutral with the conveyance allowance.
Comment:
Grameen Bank conveyance facilities are satisfactory.
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7. Are you satisfied with your insurance facilities?

Satisfied 3 30%
Neutral 0 0%
Dissatisfied 0 0%
Total 10 100%
Insurance coverage
30%
70%

Graph 7: Insurance coverage
Interpretation:
respondents were satisfied with the insurance coverage to offered them.
Comment:
Satisfactory insurance coverage offered by Grameen Bank.
Page | 37
8. Are you satisfied with your festival bonus?

Satisfied 2 20%
Neutral 0 0%
Dissatisfied 0 0%
Total 10 100%
Festival Bonus
20%
80%

Graph 8: Festival Bonus
Interpretation:
respondents were satisfied with festival bonus of Grameen Bank.
Comment:
Employees are satisfied with the festival bonus of the organization.
Page | 38
9. Are you satisfied with your house rent allowance?

Satisfied 1 10%
Neutral 0 0%
Dissatisfied 0 0%
Total 10 100%
House Rent Allowance
10%
90%

Graph 9: House Rent Allowance
Interpretation:
respondents were satisfied.
Comment:
House rent allowance is satisfactory.
Page | 39
10. Are you satisfied with your provident fund?

Satisfied 1 10%
Neutral 0 0%
Dissatisfied 0 0%
Total 10 100%
Provident Fund
10%
90%

Graph 10: Provident Fund
Interpretation:
respondents were satisfied.
Comment:
Employees are satisfied with provident fund.
Page | 40
5.1 Summary of Response of the Respondents at a Glance:
Variables Strongly Satisfied Neutral Dissatisfied Strongly
Satisfied Dissatisfied
01. Compensation Policy 80% 20% 0% 0% 0%
02. Basic Salary 100% 0% 0% 0% 0%
03. Increment 80% 20% 0% 0% 0%
04. Incentive 50% 50% 0% 0% 0%
05. Medical Allowance 70% 20% 10% 0% 0%
06. Conveyance Facility 50% 30% 20% 0% 0%
07. Insurance Facility 70% 30% 0% 0% 0%
08. Festival Bonus 80% 20% 0% 0% 0%
09. House Rent 90% 10% 0% 0% 0%

Allowance
10. Provident Fund 90% 10% 0% 0% 0%
Page | 41
5.2 Findings
By analyzing the “Financial Compensation provided by Grameen Bank”, I had found that
incentives and benefits provided by Grameen Bank are normally satisfied by their employee.
Following information summarizes the findings on financial compensation of Grameen Bank.
 Employees are satisfied with the festival bonuses of the company.

 House rent allowance is satisfactory.
 Medical allowance is satisfactory.
 Grameen Bank conveyance facilities are satisfactory.
 Satisfactory insurance coverage offered by Grameen Bank.
 Employees are satisfied with their increment.
 Employees are satisfied with provident fund.
 Employees are satisfied with incentive of Grameen Bank.
Page | 42
Chapter-06
Recommendations
And
Conclusion
Page | 43
6.1 Recommendation:
Effective compensation management can give an organization a competitive edge over its
competitor by saving both time and cost. The following are put present and future sustainability
of compensation management system of Grameen Bank. Depend on the finding. We may put
some recommendation that is enclosed bellow:
 Grameen Bank should provide standard conveyance allowance and medical allowance.
 Grameen bank should ensure pension plan to their employees for their high level of
satisfaction.
Page | 44
6.2 Conclusion:
From the aforesaid topic & my point of origin to work in Grameen Bank, I can say that I really
enjoyed my report period at Grameen Bank from the first day. Though this short period of time
is not enough to go through all the selection of banking and gather adequate knowledge but I
am confident that this few days report program at Grameen Bank will definitely help me realize
my further career in the job market.
Although committed and loyal employees are the most influential factor to becoming an
employer of choice, it’s no surprise that companies and organizations face significant challenges
in developing energized workforce. However, there are plenty of research to show that
increased employee commitment and trust in leadership can positively impact the company’s
bottom line. In fact, the true potential of an organization can only be realized when the
productivity level of all individuals and teams are fully aligned, committed and energized to
successfully accomplish the goals of the organization.
Companies need to express and a commitment to develop employees career objectives by
introducing initiatives that make employees believe that their current job is the best path to
achieving their career goals.
Page | 45
Bibliography
 Desslargary, Human Resource Management 10th ed person presentation hall,

2010 Print.
 DeCenZo, David A, and Stephen P. Robbins, Fundamentals of Human Resource
Management 9thed.
Websites
a) https://bdnews24.com/bangladesh/2015/09/07/8th-national-pay-scale-approved-basic-
pay-range-tk-8250---78000
b) www.google.com
c) http://humanresource.about.com
d) www.businessdictionary.com
e) http://www.grameen.com/
Page | 46
Appendix
Questionnaire
Honorable Respondent, I’m Farhana Ahmed, the student of Bangladesh University of Business
& Technology (BUBT), conducting a survey on “Compensation Management System of
Grameen Bank”. The following question are designed to get your valuable opinion regarding
the recruitment and selection process of your organization. Kindly note that this is an academic
study and the findings will remain confident within academic interest. No part of this study will
be disclosed.
Your kind cooperation will be highly appreciated.
Personal Information
Name of the Respondent….............................................
Name of the Department…………………………………………….
Designation in this Organization………………………………….
Contact Number………………………………………………………….
Page | 47
The questionnaire is prepared with five points Likert scale. Where:
5= Strongly Satisfied
4= satisfied
3= Neutral
2= Dissatisfied
1= Strongly dissatisfied
Please read carefully the questions and just put a tick () in the respective box.
Serial Statements Strongly Satisfied Neutral Dissatisfied Strongly

No. Satisfied dissatisfied
01. Are you satisfied with organization’s
compensation policy?
02. Are you satisfied with organization’s basic

salary?
03. Are you satisfied with your increment?
04 Are you satisfied with your incentives?
05 Are you satisfied with your medical

allowance?
06 Are you satisfied with your conveyance

allowance?
07 Are you satisfied with your insurance
facilities?
08 Are you satisfied with your festival bonus?
09 Are you satisfied with your house rent

allowance?
10 Are you satisfied with your provident fund?
*** Thanks a lot for your pleasant cooperation***
Page | 48

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Letter of Transmittal

Mrs. Farhana Islam

Bangladesh university of Business & technology (BUBT)

Subject: Submission of internship report on “compensation management system of Grameen

Major in FIN, Department of Finance

Bangladesh University of Business &Technology (BUBT)

Major in Human Resource Management

Bangladesh University of Business and Technology (BUBT)

I would like to acknowledge my deepest gratitude to honorable internship supervisor, Mrs.

1.2 Background of the Report

1.3 Significance of the Report

1.4 Scope of the Report

1.5 Objective of the Report

1.6 Methodology of the Report

1.7 Limitations of the Study

Chapter 02 Organization Profile Overview

2.5 Products & Services

Chapter 03 Theoretical Aspects

3.2 Functions of HRM

3.3 Definition of Compensation

3.5 Objectives of Compensation

3.6 Types of Compensation

3.7 Direct Compensation

3.8 Indirect Compensation

3.9 Factors Affecting Pay Satisfaction

3.10 Consequence of Ineffective Compensation

3.11 Benefits & Importance of Compensation

Chapter 04 Compensation Practice

4.2 Types of Compensation Management of Grameen Bank

4.3 Compensation Management system of Grameen Bank

Chapter 05 Questionnaire Analysis & Findings

5.1 Summary of Response of the Respondents at a Glance

Chapter 06 Recommendations & Conclusion

1.2 Background of the Report:

1.3 Significance of the Report:

1.4 Scope of the Report:

1.5 Objective of the Report:

 To describe the compensation management system of Grameen Bank.

 To explain the different elements of compensation.

1.6 Methodology of the Report

This report is aimed at presenting experience gathered in the workplace regarding

1.6.1 Type research:

1.6.3 Population and Sample Plan:

Population and the sampling plan of the study were:

Table: Sample Size of the Study.

*Data source: Grameen Bank

1.7 Limitations of the Study:

 Due to time restriction, in-depth study was not possible.

The most important aspect of Grameen intervention is that the vision of a poverty free

 extend banking facilities to poor men and women;

 eliminate the exploitation of the poor by money lenders;

2.5 product and services

According to Gary Dessler,

According to Decenzo and Robbinfs,

“Human Resource management is a process consisting of four functions-acquisition,

Prof. Ataur Rahman has defined

Human Resource Management as a set of activities which include acquisition,

Human resource management regards people as the most important resource of an

There are four basic Functions of human resource management:

Four Basic HRM Functions

Acquisition Training &

3.2.2. Training and Development:

It is the systematic development of the systematic development of the attitude, knowledge,