A Thesis Report

On
Human Resource Management Policy & Practices of Banking
Industry in Bangladesh: A study on two selected banks

Supervised By:

Jasim U Ahmed
Faculty Member
Bangladesh Institute of Human Resource Management

Prepared By:

Md. Hasibur Rahaman

ID: PG-63214717
Batch: 63
Program: PGDHRM
Bangladesh Institute of Human Resource Management

Bangladesh Institute of Human Resource Management

Date of Submission: 30th September, 2018
 LETTER OF TRANSMITTAL

Date: 30th September, 2018

Jasim U Ahmed
Faculty Member
Bangladesh Institute of Human Resource Management

Subject: Submission of Thesis Report.

Dear Sir,
I am pleased to submit hereby the thesis report of “HR Policy and Practices of Banking
Industry in Bangladesh: A study on two selected banks (Mutual Trust Bank Ltd &
Southeast Bank)” for your kind evaluation. To prepare this report, I have given my best effort
that would enhance report.
This report attempts to describe my observation, learning during the study this course. I made
sincere effort to study related materials, document, annual report and operational system of
Banking sectors. And examine relevant records for preparation of the thesis paper as
comprehensive and informative as possible within the time allowed for me. Due to various there
may be some mistake for which I beg your apology.

I would be glad if you accept the thesis paper and also requesting to consider limitation with a
soft view that had made due to my limitation oblige thereby

With best regards

……………………….
Md. Hasibur Rahaman
ID: PG-63214717
Batch: 63
Program: PGDHRM
Bangladesh Institute of Human Resource Management
 SUPERVISOR’S DECLARATION

This is to certify that Md. Hasibur Rahaman, ID: PG-63214717, student of Bangladesh

Institute of Human Resource Management has completed the report on “Human Resource
Management Policy & Practices of Banking Industry in Bangladesh: A Study on two selected
banks successfully under my supervision. Wish her every success in life.

--------------------
Jasim U Ahmed
Faculty Member
Bangladesh Institute of Human Resource Management
 STUDENT DECLARATION

I, am Md. Hasibur Rahaman, student of Bangladesh Institute of Human Resource Management

and my ID: PG-63214717 Program in PGDHRM from Bangladesh Institute of Human
Resource Management, would like to declare that the thesis report on “Human Resource
Management Policy & practices of Banking industry in Bangladesh: A Study on two
selected banks Which I have not submitted for any other degree before.

I further undertake to identify against any loss or damage to be arisen from breach of the
forgoing obligation.

……………………..
Md. Hasibur Rahaman
ID: PG-63214719
Batch: 63
Program: PGDHRM
Bangladesh Institute of Human Resource Management
 ACKNOWLEDGEMENT

At first, I would like to express my deep gratitude to almighty Allah the supreme authority of the
universe.

I want to express my thankfulness to my supervisor Jasim U Ahmed, Faculty Member,

Bangladesh Institute of Human Resource Management for her direction, constant and
spontaneous support, efficient supervision and constructive suggestion. I am very grateful to my
supervisor, for guiding me to complete to my Thesis program. I am also highly indebted to her
for scholarly and constructive suggestion, which was of much assistance to prepare the report on
“HR Policy and Practice of Banking Industry: A Study on two selected banks”

I am also grateful to the all employees of Mutual Trust Bank Ltd and South East Bank Ltd who
help me to collect data for my thesis report.

I am also grateful to Stamford University, for giving me the opportunity to the work with
practical knowledge.

Finally I would like to convey my gratitude to all my teachers, and many others who showed and
provided their support to prepare the report
 EXECUTIVE SUMMARY

This report based on the thesis program, partial requirement for the Masters of Business
Administration program in Stamford University Bangladesh. The main objective of the report is
to understand the Human Resources practices of three establish bank in Bangladesh. Prepared a
thesis report on Mutual Trust Bank Limited & South East Bank Limited was a great practical
experience for my carrier life.
HRM is the most important part of the banking sectors. This report include how HRM planning ,
practice and implement, what are the possible division and work distribution in an HRD,
recruitment process, training and development initiative, how to keep employees motivated as
well as how to control insubordinations, compensation and benefits planning, how to lead etc.
Selected Bank has a rich Human Resource Policy. It maintains the organizational responsibilities
successfully .The HR team of selected bank of completely organized and well reputed team.
These two Banks are first generation commercial banks in Bangladesh. Recently these change
their mission, vision and business goals. They changed their branch banking system to central
banking system to operate their business with low cost and with minimum risk. The report
discusses about all the issues of human resources division and tried to learn the practical
procedure HR division.

This report is categories in six different chapters. In chapter one introduction, origin of the
report, background of the study, Rationality & scope of the study, objective, methodology,
limitations are discussed. In chapter two I have discussed about organizational profile of Mutual
Trust Bank Limited & South East Bank Limited, In chapter three discussed about Theoretical
framework of HRM Bangladesh to get a clear idea about the condition of this sector and
discussed about different types of theoretical aspects of HRM. In chapter four ,discussed about
Literature Review of HR Policy and Practices .In Chapter five discussed about analysis and
finding and Recommendation of this study and finally recommendations and conclusion are
given in this chapter. The last parts ends with problem identification, recommendation and
conclusion. Both are show in different chapters. In appendix showed the formats of some
relevant document required in this process. Although there are some limitations but these three
banks’s HR trying their best to input right people at right time and in right place and also
continuously trying to give better support to their all employees. I tried my best to concentrate to
write all the Human Resources management procedures of Mutual Trust Bank Limited & South
East Bank Limited and recommended some issues for better HR system in these two banks.
 TABLE OF CONTENT

Particulars Page No:

Chapter 1: Introduction 01-07
1.1 Origin of the Study 02
1.2 Background of the Study 03
1.3 Scope of the study 03
1.4 Objective of the report 04
1.5 Rationality of the study 05
1.6 Methodology 05
1.6.1 Research Design 06
1.6.2 Analysis Techniques 07
1.7 Limitation of study: 07
Chapter 2: Profile of Organizations 08
2.1. History of Mutual Trust Bank Ltd 09
2.2 Vision 09
2.3 Mission 09
2.4 MTB Core Values 10
2.5 Accountability: 10
2.6 Agility: 10
2.7 Trust: 10
2.8 Corporate Culture 10
2.9 Corporate Slogan 11
2.10 Objectives of MTBL 11
2.11 Strategies of MTBL: 11
2.12 Structures: 12
2.12.1 Board of Directors 14
2.12.2 Board Committees 14
2.12.3 Executive Committee 14
2.12.4 Policy Committee: 14
2.12.5 Audit Committee: 15
2.13 Organization chart 15
2.14 Department of Branch 16
2.15 Branch employee Hierarchy & Branch Management Activities 16
2.16 MTBL Management: 16
2.17 Economic value Added (EVA) statement for the year ended 31 Dec-2016: 17
2.17.1 Sources of Fund (2016) 18
2.17.2 Uses of Fund (2016) 19
2.17.3 Income & Revenue: 19
2.18 Services of the MTB 20
2.19 Consumer Banking 20
2.20 Institutional Banking 20
2.21 Corporate Banking 20
2.22 Commercial Banking 20
2.24 Consumer Credit Facility 21
2.23 Lease Finance Facility 21
2.25 MTB Retail Products 21
2.26 Other Services Aside from all the services mentioned above, MTB will arrange 25
individual client required services such as:
2.27 Southeast Bank Limited 26
2.27.1. History of South East Bank 26
2.27.2 Mission: 26
2.27.3 Vision: 26
2.27.5 Agility: 27
2.27.6 Number of Branch: 27
2.27.7 Total No of Employees: 27
2.27.8. Board of Directors 28
2.27.9 Executive Committee: 29
2.27.10. Audit Committee: 29
2.27.11. Strategies 29
2.27.12. Corporate Slogan and culture 30
2.27.13 Corporate culture: 30
2.27.14. Legal Status and Nature of SEBL 30
2.27.15. Capital Base 31
2.27.16. Management with Chain of command (Hierarchy) 31
2.27.17. Hierarchy of Corporate Governance Management 32
2.27.18. Bank Management 32
2.27.19. Loan to Director 32
2.27.20. Independent External Auditors 33
2.27.21 Regulatory Authorities 33
2.27.22. Shareholders 34
2.27.23 Banking Services 34
Chapter 3: Theoretical Framework 37
3.1 HRM 38
3.2 Human Resource Planning: 38
3.2.1 Human Resource Demand: 38
3.2.2 Judgmental Methods: 39
3.3 Recruiting & Selection 39
3.4. The Recruiting and Selection Process 40
3.5 Training & Development 40
3.5.1 Training method 40
3.5.2 Methods of Development 41
3.6 Compensation & Employee Benefits 41
3.7 Promotion 42
3.8 Recruitment and Selection 42
3.8.1 Recruitment: 42
3.8.2 Selection: 44
3.9 Orientation 47
Chapter 4: Literature Review 48-50
Chapter 5: Analysis and Findings 51
5.1 Mutual Trust Bank Limited 52
5.1.1 The organization places the right person in the right job. 52
5.1.2 Use the perfect method for recruiting the right people: 53
5.1.3 Selection of a candidate in the organization is strictly based on his/her merit. 54
5.1.4 Training for higher responsibilities is effective 55
5.1.5 The Bank follows competitive salary structure. 56
5.1.6 Employees are motivated to work collectively towards achieving common 57
goals.
5.1.7 Transfer decisions are fair and effective: 58
5.1.8 Management is quick to deal with problem employees face 59
5.1.9 The bank provides adequate benefits to employees 60
5.1.10 Organization has Satisfactory leave provisions 61
5.2 South East Bank Limited 62
5.2.1 The organization places the right person in the right job. 62
5.2..2Use the perfect method for recruiting the right people: 63
5.2.3 Selection of a candidate in the organization is strictly based on his/her merit. 64
5.2.4 Training for higher responsibilities is effective 65
5.2.5 The Bank follows competitive salary structure. 66
5.2.6 Employees are motivated to work collectively towards achieving common 67
goals.
5.2.7.Transfer decisions are fair and effective 68
5.2.8. Management is quick to deal with problem employees face 69
5.2.9. The bank provides adequate benefits to employees 70
5.2.10. Organization has Satisfactory leave provisions 71
Chapter 6: Problem Identification Recommendations and Conclusion 72
6.1 Problem Identification of Mutual Trust Bank Ltd 73
6.2. Recommendations of Mutual Trust Bank Ltd 74
6.3. Problem Identification Recommendations of Southeast Bank 75
6.3.1 Problem Identification of Southeast Bank Ltd 75
6.3.2 Recommendations of Southeast Bank Ltd 75
6.4 Conclusion: 77
Bibliography: 78
Appendix 79-80