Internship Repot

On
EFFECTIVENESS OF COMPENSATION MANAGEMENT SYSTEM
OF FIRST SECURITY ISLAMI BANK LIMITED.

Supervised by:
DR. MIHIR KUMAR ROY
Professor & Dean
Department of Business Administration
City University

Submitted by:

Fayshal Bokth Chowdhury

ID: 152391040
Batch:39th
Program : BBA
Major: Human Resource Management
Department of Business Administration
City University,Savar

An internship report presented to faculty of Business Administration in Particular

Fulfillment of the requirement for the Degree of
Bachelor of Business Administration (BBA)

Date of submission:15th July 2019

 INTERNSHIP REPORT
On
Effectiveness of Compensation Management System of First Security Islami
Bank Limited.

i
 Acknowledgement

This report is the outcome of my internship work with the First Security Islami Bank Limited.from
May to August 2019

It was a great pleasure to prepare an internship report on “Effectiveness of Compensation

Management System of First Security Islami Bank Limited.”. I would like to thank and convey
my gratitude to honorable supervisor Dr. Mihir Kumar Roy Professor & Dean Department of
Business Administration City University , Savar , Dhaka , for his whole hearted guidance and
supervision . His suggestions and comments to make the report a good one was really a great
source of sprit for me .
My sincere gratitude goes to MD Golom Jilony, First Security Islami Bank, who gave special
attention to me from very beginning and whenever I went there .
I was closely attached with them during my internship tenure. Without them this project would
have been very difficult. I must mention the wonderful working environment and group
commitment of this organization that has enabled me to deal with a lot of things.

And finally, I express my sincere gratitude to all those participated to prepare the report. Most of
them were busy employees of the First Security Islami Bank Limited

………………………………
Fayshal Bokth Chowdhury
ID: 152391040
Batch:39th
Program: BBA
Major: HRM

ii
 Declaration of the Student

I do hereby solemnly declare that the work presented in this report has been carried out by me and
has not been previously submitted to any other university for an academic qualification /certificate/
diploma degree.

This work I have presented does not breach any existing copyright and no portion of this report is
copied from any work done earlier for a degree or otherwise.

I further undertake to indemnify the department against any loss or damage arising from breach of
the forgoing obligation.

………………………………
Fayshal Bokth Chowdhury
ID: 152391040
Batch:39th
Program: BBA
Major: HRM

iii
 Supervisor's Declaration

This is to certify that the Internship Report “Effectiveness of Compensation Management

System of First Security Islami Bank Limited” is the authentic record and the report has been
done by Fayshal Bokth Chowdhury ID: 152391040 Major: Human resource management, under
my direct supervision as a partial fulfillment of the requirement of Bachelor of Business
Administration (BBA) degree, with major in HRM from the Department of Business
Administration, City University.

I recommended this report for submission to the Department of business Administration, its
university for consideration of the examination Committee.
I wish his every success in life.

………………………..
DR. MIHIR KUMAR ROY
Professor & Dean
Department of Business Administration
City University

iv
 Letter of Transmittal
Date: 15th July 2019
Mihir Kumar Roy
Department of Business Administration
City University
Dhaka , Bangladesh

Subject: Submission of Internship Report

Dear Sir,

With best respect and honor, I would like to inform you that I have completed my internship report
on “Effectiveness of Compensation Management System of First Security Islami Bank
Limited” It is an immense pleasure for me to place the same before you.

I made every endeavor to prepare this dissertation and tried my level best to accumulate
relevant and insightful information. It is a great experience for me to work on this topic. I have
tried to make the report vivid and comprehensive within the scheduled time and limited resources.
I sincerely hope that this report will help you to evaluate me. I will be obliged to clarify any
matter or to provide any further information regarding this report.
Thanking you for your kind supervision.
Sincerely yours,

………………………………
Fayshal Bokth Chowdhury
ID: 152391040
Batch:39th
Program: BBA
Major: HRM

v
 Executive Summary

This study “Effectiveness of Compensation Management System of First Security Islami

Bank Limited” was undertaken with the objective of analyzing about the Compensation
Management System of First Security Islami Bank Limited. Data for the study were
collected entirely from the primary sources as well as secondary sources such as Annual
reports, official documents etc. Researcher have divided the whole report into 4 (Four)
chapters. The Introduction part of the report contains the information about the origin of
the report, scope of the study, rationale of the study, objectives of the study, methodology,
and limitations. The second part is overview of First Security Islami Bank Limited. The
next part is on findings and analysis from the given statement. The employees of the First
Security Islami Bank Limited have been interviewed for finding the approximate data and
to evaluate its effectiveness. Finally, conclusion and recommendations are made in the last
chapter. The findings of this study showed that the organization has a Compensation
Management System process. prompt actions and remedies provided by its surveyor staff
following any inspection and report by the enforcing authorities. None of the employees
were highly dissatisfied with the Compensation Management System follow by the
organization. The study recommended that besides the sample organization, the concerned
stakeholders and regulatory body of the Banking Sectors should be sincere to improve the
overall Compensation Management System of the Banking Sector in Bangladesh. The
study concluded that the sample organization (First Security Islami Bank Limited). Not
only the sample Banking Sectors but also the concerned stake holders and regulatory body
should be sincere to improve the overall Compensation Management System to for their
higher employee in the Banking Sector in Bangladesh.

vi
 Table of Content
Serial No Topic Name Page(s)
Acknowledgement ii
Declaration of the Student iii
Internship’s certificate
Supervisor's Certificate iv
Letter of Transmittal V
Executive Summary vi
Table of Content vii

Chapter: I Introduction
1.1 Statement of the Problem 2
1.2 Objectives of the Study 3
1.3 Scope of the study 3
1.4 Methodology of the study 3
1.5 Limitation of the study 4

Chapter: II Organizational overview

2.1 An Overview of First Security Islami Bank Limited 6
2.2 Corporate information 7
2.3 Organization Hierarchy 8
2.4 Branch Hierarchy 9
2.5 Products and Services 10
2.6 Compensation Management System On FSBIL 15
2.7 Mission and Vison of First 26

Chapter: 3 Data Analysis and Finding of the Study

3.1 Demographic Characteristics 28
3.2 Effectiveness of Compensation Management System 31
3.3 Descriptive Statistics Interpretation 35
3.4 Summary of Findings 36

Chapter: 4 Recommendations and Conclusion

4.1 Recommendations 38
4.2 Conclusion 39
4.3 References 40

vii
 Chapter: I

Introduction

Page | 1
1.1: Statement of the problem:

Human resource management aims at obtaining capable people for achieving the objectives of
the organization and for ensuring effective utilization of their services. As the success of any
organization largely depends on the quality of its human resources and the extent to which they
are motivated, human resource management acquires special significance in an organization.
Human resource policy, practices and procedures constitute human resource management.
Goal directed policy, well accepted practices and well-designed procedures contribute to the
successful execution of the vital and critical human resource function. Among these human
resource practices play a significant role in shaping, influencing and enhancing the morale,
motivation, capability, commitment and ultimately performance of the employees. Hence there
is need for effective management of human resources irrespective of the size and nature of the
organization. Compensation Management is an important component of HRM in the current
theory and practice of management. Compensation is a systematic approach to provide
extrinsic and intrinsic benefits, monetary and non-monetary benefits to the employees. It is also
considered as measurement how employees are being treated in an organization. Each and
every organization has their own compensation planning where they specify what facilities are
going to provide their employees, how it should be provided and based on what category.
Having the theoretical knowledge of compensation, the researcher feel interest to know about
the real scenario of compensation practices and how it is being implemented in an organization
of our country. The researcher has selected First Security Islami Bank Ltd to know about their
compensation system and employee satisfaction. The human resources policy and procedure
manual of FSIBL provides the policies and procedures for managing and developing staffs. It
also provides the guideline which will use to administer these policies with the correct
procedure to follow. These policies and procedures are applied to the employees of FSIBL. It
refers to all forms of pay or rewards going to employee and arising from their employment, it
has two main components. There are direct financial payments in the form of wages, salaries,
incentives, commissions, and bonus and there is indirect payment in the form of financial
benefits like employer- paid insurance and vacations.
Reward basically provided to the employees of the organization for their good performance. It
is of two types: (1) Intrinsic and (2) Extrinsic.
The first one is the personal satisfactions one gets from the job itself. These are self-initiated
rewards, such as having pride in one’s work. The second one includes money, promotions

Page | 2
and benefit. Their common thread is that they are external to the job and come from outside
source, mainly management. Benefits include mandatory protection programs, pay for time
not worked, optional protection programs, private retirement plans and a wide variety of
other services. The proposed study on compensation management is a modest attempt to
through light on the different components of compensations packages at FSIBL .

1.2: Objectives of the study:

The main objective of this study is to have an assessment about overall practices of
Compensation management system of FSIBL .

The specific objectives of the study are as follows:

▪ To provide an overview of FSIBL with reference to CM.

▪ To analyze the CMS of FSIBL .
▪ To suggest policy implications arising out of the study.

1.3: Scope of the study:

The scope of the study will be concentrated mainly on the variables like internal as well as
external benefits in respect of finance.

1.4: Methodology:

✓ Sources of Data:

❖ Secondary Source Of Data

➢ Analyzing official reports.

➢ Visiting the company website .
➢ Previous report from the campus library, City University

❖ Primary Source of Data

Sample Size:

▪ Selecting The Study Area:

Page | 3
First Security Islami Bank Limited , Savar Branch will be the study area of the research.

▪ Study Sample:

This is a qualitative research and mainly uses own observation/qualitative survey and use a
complete census method. Thus all employees including top personnel of FSIBL Savar Branch
will be considered in the survey.

▪ Data Collection

▪ Questionnaires

A structured questionnaire will be developed incorporating the CMS of the bank .

▪ Data Analysis Process

Data will be processed through MS Word, MS Excel Etc.

1.5: Limitations of the Study

As a financial institution every bank has to maintain high level privacy for each and every task.

It is quite difficult to get a clear picture about all the operations of banking business within a

short period of time. So, the study is simply able to give an idea not the whole picture. Due to

the bank’s policy of maintain security, the author did not get the opportunity to collect

information regarding all departments. Three months’ time is not enough for such an extensive

study. It is very difficult to collect all the required information in such a short period. Lack

availability of data sources. There are different departments like accounts, cash, general

banking, foreign exchange and etc. For this reason, it is difficult to collect information of all

the departments within a short period of time.

Page | 4
 Chapter: II
Organizational overview

Page | 5
2.1: An Overview of First Security Islami Bank Limited.

First Security Islami Bank Limited (FSIBL) was incorporated in Bangladesh on 29 August
1999 as a banking company under Companies Act 1994 to carry on banking business. It
obtained permission from Bangladesh Bank on 22 September 1999 to commence its business.
The commercial banking activities of the bank encompass a wide range of services including
accepting deposits, making loans, discounting bills, conducting money transfer and foreign
exchange transactions, and performing other related services such as safe keeping, collections
and issuing guarantees, acceptances and letter of credit. The company philosophy “A step
ahead in time” has been precisely the essence of the legend of Asian success; the bank has been
operating with talented and brilliant personnel, equipment with modern technology so as to
make it most efficient to meet the challenges of 21st century. At first in 1999 the bank
incorporated as First Security Bank Ltd. and then in January 01, 2009 the bank changes its
name and mode of business and incorporated as First Security Islami Bank Ltd. In these days
our living is deeply dependent in the banking system. The house we live in may have been
mortgaged to a bank, the car we drive or the taxi and the bus we ride to our office may have
been bought with money borrowed from yet another bank. The businesses we see around have
their links with banks; they might have borrowed money from a bank to finance their working
capital or fixed assets. If nothing else, they will have at least a current or a savings account for
deposit of the day’s sale proceeds. So it is clear that bank and banking business is very much
important for us in all aspects and steps of our life.

The expansion of the branches of banks, privatization of major national banks, introduction of
the scheme of social control, have all resulted in growth of banking habit among the people
and realization by banks of their social responsibilities. Basic changes are being introduced in
the working patterns of our banks so that they can fit in well in our new economic and social
system. On account of the growing importance of banking institutions most of the universities
and educational institutions give priority on the study about banking and its industry. For this
reason, I conduct my internship in First Security Islami Bank Limited (FSIBL) and try to
accumulate the knowledge regarding banking industry.

Page | 6
2.2 Corporate information of First Security Islami Bank Limited (FSIBL)

Chairman Mr. Mohammad Saiful Alam

Vice Chairman Mr. Alhaj Mohammad Abdul Maleque
Managing Director (Current Charge) Mr. Syed Waseque Md. Ali
Company Secretary Mr. S. M. Nazrul Islam
Legal Status Public Limited Company
Date of Incorporation August 29, 1999
Date of Commencement of Business August 29, 1999
Date of getting license from Bangladesh
September 22, 1999
Bank
Date of Opening of First Branch October 25, 1999
House- SW (I) 1/A, Road-8, Gulshan-1, Dhaka-
Corporate Head Office
1212, Bangladesh.
Registered Office 23, Dilkusha, Dhaka-1000, Bangladesh
Line of Business Banking
Authorized Capital Tk.10,000 Million
Paid up Capital Tk.4,114.38 Million
Date of consent for IPO 04 June 2008
88-02-9888446 (Hunting), 8402613-8402625
Phone
(ICT Division).
E-mail bcs@fsiblbd.com , info@fsiblbd.com
Fax 880-02-9891915

Managing Director:

Name Position Address

Mr. Syed Waseque Md. Managing Director (Current House SW(I)1/A(4th Floor),
Ali Charge), FSIBL & Observer Road – 8, Gulshan -1, Dhaka-
Member, Shari’ah Council 1212

Page | 7
2.3 Organization Hierarchy of First Security Islami Bank Limited (FSIBL)

MANAGING
DIRECTOR

DEPUTY MANAGING
DIRCETOR

EXECUTIVE VICE
PRESIDENT

SENIOR VICE
PRESIDENT

VICE PRESIDENT

FIRST VICE
PRESIDENT

ASSISTANT VICE
PRESIDENT

PRINCIPAL OFFICER

SENIOR OFFICER

OFFICER

ASSISTANT
OFFICER

Page | 8
2.4 Branch Hierarchy of First Security Islami Bank Limited (FSIBL)

SAVP & HEAD OF

FAVP & BAMLCO EXECUTIVE OFFICER
BRANCH

FIRST EXECUTIVE
OFFICERS ASSISTANT OFFICERS
OFFICER

Page | 9
2.5 Products and Services of First Security Islami Bank Limited (FSIBL)

AL-WADIAH CURRENT DEPOSIT ( ACD)

MUDARABAH SAVINGS DEPOSIT ( MSD)

MUDARABAH SHORT TERM DEPOSIT (MSTD)

MUDARABAH TERM DEPOSIT ( MTD)

CONSUMER FINANCE SCHEME ( CFS)

MONTHLY SAVINGS SCHEME ( MSS )

MORE THAN DOUBLE THE DEPOSIT ( DD )IN 6 YEARS

MONTHLY PROFIT SCHEME ( MPS )

Service

Ready Cash Card services

Remittance service

First security bank Ltd. is a member of SWIFT (society for worldwide

interbank financial telecommunication)

The bank is planning to introduce Master Card very soon.

FSIBL is also planning to introduce Merchant Banking Activities.

Page | 10
2.5.1 Online Banking

FSIBL Online Banking includes balance inquiry, limit inquiry, profit details, term deposit
details, investment repayment schedule, cheque book details, clearing, cheque status,
transaction details, customerinformation, statement request, cancelling cheque request, address
change request, cheque book requisition, password change, EMI calculator.

2.5.2 Mobile Banking

Features of FSIBL Mobile Banking are convenient, faster electronic fund transfer, safe
payment system, cash withdrawal, fund transfer facilities, widely available throughout the
Country, simple account opening.

2.5.3 SMS Banking

First Security Islami Bank welcomes to access banking needs from anywhere anytime. It is
indeed a fast, secure, convenient and quickest way of banking. The service is available round
the clock 24×7 a week. People can get real-time banking information and in touch any time
with FSIBL from their mobile. They can check balance, account information, or even get mini
account statements through FSIBL SMS banking service.

2.2.4 ATM Banking

First Security Islami Bank Ltd. has implemented successfully Automated Teller Machine
(ATM) card transaction from June 25, 2008. Through Automated Teller Machine (ATM)
/Debit card, customer can avail the facilities like withdrawal money, balance inquiry and
purchase goods from Point of sale (POS).

• Pay Order (PO):

A pay order is a written under, issued by a branch of the Bank, to pay a certain sum of money
to a specific person or a bank. It may be said as to be a banker's cheque as it is issued by a bank
and payable by itself.

• Demand Draft (DD):

This is an instrument through which customers money is remitted to another person /Firm/
organization in outstation (outside the clearing house area) form a branch of one Bank to an

Page | 11
outstation branch of the same Bank or to a branch of another Bank (with prior arrangement
between that bank with the issuing branch).

• Telegraphic Transfer (TT): A Telegraphic Transfer is a method of remittance, which

is effected by the banker through a coded telegram attested by secret cheek signal, on
receipt of which, the paying office pay the amount to the payee by crediting his account.
• Mail Transfer Advice (MT):

When the remitter desires the banker does it through a mail transfer advice. The payee must
have an account the paying office as the amount remitted in such a manner is meant for credit
to the payee’s account and not cash payment. Foreign Remittance: Foreign remittance is the
transfer of foreign currency from one country to another country. In another word, foreign
remittance means, remittance in foreign currency that are received in and made out abroad.
Actually, foreign remittance is purchase and sale of freely convertible foreign currencies as
permissible under exchange control regulations of the country. Foreign remittance is very
important for the country as valuable foreign exchange is involved in the transfer mechanism.

2.2.5 Outward foreign Remittance

Remittance from our country to foreign countries is called outward foreign remittance. On the
other word, sales of foreign currency by the authorized dealer or formal channels may be
addressed as outward remittance. The authorized dealers must utmost caution to ensure that
foreign currencies remitted or released by them are used only for the purposes for

➢ Inward
➢ Outward
➢ Inward Remittance
➢ Draft
➢ Mail Transfer
➢ Telegraphic Transfer
➢ Purchase of Foreign Bills & Traveler Check
➢ Export Proceed

which they are released. Out ward remittance may be made by appropriate method to the
country to which remittance is authorized. Most outward remittance is approved by the
authorized dealer on behalf of Bangladesh Bank. Outward remittance may be made for
following purposes –

Page | 12
 ➢ Travel
➢ Medical treatment
➢ Educational purpose
➢ Attending seminar etc.
➢ Balance amount of F.C account.
➢ Profit of foreign companies.
➢ Technical assistance
➢ New exporters up to USD 6,000/- for business promotion
➢ F.C. remittance can be made for fare, exhibition from export retention quota.

2.2.6 Strategies of of First Security Islami Bank Limited (FSIBL

➢
To achieve our customer’s best satisfaction & win their confidence.
➢
To manage & operate the bank in the most effective manner.
➢
To identify customer’s need & monitor their perception towards meeting those
requirements.
➢
To review & update policies, procedures & practices to enhance the ability to extend
better customer services.
➢
To train & develop all employees & provide them adequate resources so that
customers can reasonably addressed.
➢
To promote organizational efficiency by disclosing company plans policies &
procedures openly to the employees in a timely fashion.
➢
To ensure a congenial working environment.
➢
To diversify portfolio in both retail & wholesale market.

Page | 13
2.2.6 Outward foreign Remittance

Remittance from our country to foreign countries is called outward foreign remittance. On the
other word, sales of foreign currency by the authorized dealer or formal channels may be
addressed as outward remittance. The authorized dealers must utmost caution to ensure that
foreign currencies remitted or released by them are used only for the purposes for

 Inward
 Outward
 Inward Remittance
 Draft
 Mail Transfer
 Telegraphic Transfer
 Purchase of Foreign Bills & Traveler Check
 Export Proceed

which they are released. Out ward remittance may be made by appropriate method to the
country to which remittance is authorized. Most outward remittance is approved by the
authorized dealer on behalf of Bangladesh Bank. Outward remittance may be made for
following purposes –

➢ Travel
➢ Medical treatment
➢ Educational purpose
➢ Attending seminar etc.
➢ Balance amount of F.C account.
➢ Profit of foreign companies.
➢ Technical assistance
➢ New exporters up to USD 6,000/- for business promotion
➢ F.C. remittance can be made for fare, exhibition from export retention quota.

Page | 14
2.2.7 Strategies of First Security Islami Bank Limited (FSIBL)

 To achieve our customer’s best satisfaction & win their confidence.

 To manage & operate the bank in the most effective manner.
 To identify customer’s need & monitor their perception towards meeting those
requirements.
 To review & update policies, procedures & practices to enhance the ability to extend
better customer services.
 To train & develop all employees & provide them adequate resources so that customers
can reasonably addressed.
 To promote organizational efficiency by disclosing company plans policies &
procedures openly to the employees in a timely fashion.
 To ensure a congenial working environment.
 To diversify portfolio in both retail & wholesale market.

2.6: Compensation Management System On FSBIL :

2.6.1 Compensation Package :

Compensation is systematic approach to providing monetary value to employees in exchange for work
performed. Compensation may achieve several purposes assisting in recruitment, job performance and
satisfaction .
Today’s compensation system have come from a long way. With the changing organizational structures
workers need and compensation system have also been changing. From the bureaucratic organization
to the participated organization, employees have started asking for their rights and appropriate
compensation. The higher education standards and higher skills required for the jobs have made the
organization provided competitive compensation to their employees . Compensation strategy is derived
from the business strategy. The business goals and objective are aligned with the HR strategies .Then
the compensation committee or the concerned authority formulates the compensation strategy. It
depends on both internal and external factors as well as the life cycle of an organization.

Page | 15
 Traditional
Compensation
System
Modern
Compensation
System
Change In
Compensation
System

➢ Traditional Compensation System :

In the traditional organization structures, employees were expected to work hard and obey the bosses
order. In return they were provided with job security, salary increments and promotions annually. The
salary was determined on the basis of the job work and the years of experience the employee is holding.
Some of the organization provided for retirement benefits such as, pension plans for the employees. It
was assumed that humans work for money, there was no space for the psychological and social need of
workers.
➢ Changes In Compensation System :

With the behavioral science theories and evolution of labor and trade unions, employees started asking
for their rights. Maslow brought in the need hierarchy for the rights of the employees. He stated that
employees do not work only for money but there are other needs too which they want to satisfy from
their job , i.e. social needs , psychological needs, safety needs, self – actualization etc . Now the
employees were being treated as human resource.
Their performance was being measured and appraised based on the organizational and individual
performance. Competition among employees existed. Employees were expected to work hard the job
security. The compensation was designed on the basis of job work and related proficiency of the
employee.

2.6.2 Today’s Modern Compensation System :

Today the compensation package is design aligned to the business goal and strategy. The employees
are expected to work and take their own decision. Authority is being delegated. Employees feel secure
and valued in the organization. Organization offered monitory or non monitory benefits to attract and
retain the best talent in the competitive environment. Some of the benefits special allowances like
mobile, company vehicles, house rent, statutory leaves etc.
Compensation and Reward system plays a vital role in business organization. Since among from Ms
;Men , Material , Machine and Money . Men has been most important factor it is possible to imaging
business process without Men. Every factor contribution to the process of Production and Business.
Labor plays a vital role in bringing about the process of Production and in motion . The other factors
being human has expectation, emotion, ambition and egos. Labor therefore expect to have fair share in
the Business and Production process.
Therefore a fair compensation system is a must for every business organization. The fair compensation
system will help in the following :

Page | 16
 An ideal compensation system will have positive impact on the efficiency and results produced
by employees . It will encourage the employees to perform better and achieved the standards
fixed.
It will enhance the process of job evaluation. It will be help in setting up an ideal job evaluation
and the set standards would be more realistic and achievable .
Such a system should be well defined and uniform . It will be apply to all the levels of the
organization as a general system .
The system should be simple and flexible so that every employee would be able to compute his
own compensation receivable.
It should be easy to implement not result in exploitation of workers .
It will raise the morale , efficiency and cooperation among the workers . It being just and fair
would provide satisfaction to the workers.
Such system would help management in complying with the various labor acts .
Such system should also solve disputes between the employee union and management.
The system should follow the management principle of equal pay .
It should motivated and encourage these who perform better and should provided opportunity
for those who wish to excel.
Sound compensation and reward system brings peace in the relationship of employer and
employees.

The sound compensation system in hallmark of organization’s success and prosperity . The success
and stability of organization is measured with pay package to its employees.
2.6.3 Purpose Or Uses Of Compensation :

Compensation is a tool used by management for variety of purpose to further the existence of the
company . Compensation may be adjusted according the business needs , goals and available resources
.
Compensation may be used to:
▪ Recruit and retain qualified employees.
▪ Increase or maintain morale or satisfaction .
▪ Reward and encourage peak perform .
▪ Achieve internal external equity.
▪ Reduce turnover and encourage loyalty .
▪ Modify practices of unions .

Compensation may also be used as a reward for exceptional job performance . Example of such plans
include : Bonuses ,Commissions , Stocks and profit Sharing , Gain sharing .
2.6.4 Components Of A Compensation System :

Compensation will be provided by employees as fair if based on systematic components . Various

compensation systems have developed to determined the value of positions. These systems utilize many
similar components include job description , salary structure and written procedures . Job analysis is a
systematic approach to defining the job role , description ,requirements, evaluation etc . It helps in
finding out required level of education, skill, knowledge, training etc for the job position . It also depicts
the job worth i.e. measurable effectiveness of the job and contribution of job to the organization. Thus
, it effectively contributes to setting up the compensation package for the job position .
❖ The Components Of A Compensation System Include :

Page | 17
 Job Descriptions :

A critical component of both compensation and selection system , job descriptions defining writing the
responsibility , requirements , function , duties , locations , environments , conditions and other aspects
of jobs . Description may be developed for jobs individually or for entire job families .
Job Analysis :

Job analysis is the process of analyzing job from which job description are development . Job analysis
techniques include the use of interview, questionnaires and observation .

2.6.5 Types Of Compensation Package :

Direct Compensation Package :

Direct compensation refers to monetary benefits offered and provided to employees in return of the
service they provided to the organization. The monetary benefits included basis salary , house rent
allowance , conveyance , leave travel allowance , medical reimbursements, special allowance , bonus ,
gratuity etc . They are given at a regular interval at a definite time.

Basis
Salary

House Medical
Rent Relmburs
Allowance emen

Direct
Compensation
Conveyan Special
ce Allowance

Leave
Travle
Bonus
Allowance
s

▪ Basis Salary :

Salary is the amount received by the employee in lieu of the work done by him or her for a certain
period say a day , a week , a month etc. It is the money an employee received from his or her services
.
▪ House Rent Allowance :

Page | 18
Organization either provided accommodation to its employees who are from different state or country
or they provide house rent allowance to its employees . This is done to provided them social security
and motivate them to work.
▪ Conveyance :

Organization provided for cab or vehicles facilities to their employees .

▪ Leave Travel Allowance :

The employees are given allowances to visit any place they wish with their family .The allowances are
scale as per the position of employee in the organization.
▪ Bonus :

Bonus is paid to the employees during festive seasons to motivate them and providing them the social
security .
▪ Medial Reimbursement :

Organization also look after the health conditions of their employees .The employees are providing with
midi- claims for them and their family members . These midi-claims include health insurance and
treatment bills reimbursement .
▪ Special Allowance :

Special allowance such as overtime , mobile allowance , meals , commission , travel expense , reduce
interest loans , insurance etc are provided to employees to provide them social security and motivated
them which improve the organization productivity .

Indirect Compensation Package :

Indirect compensation refers to non-monetary benefits offered and provided to employees in lieu of the
service provided by them to the organization . They include Leave policy , Overtime Policy , Car Policy
, Hospitalization , Insurance , Leave Travel Assistance , Retirement Benefits , Holiday Home etc .

Leave Policy

Overtime
Flexible Timing
Ploicy

Indirect
Holiday Home Compansati Hospitalization
on

Retirment
Insuarance
Benefits

LeaveTravle

Page | 19
 ➢ Leave Policy :

It s the right of employee to get adequate number of leave while working with the organization . The
organization provided for paid leaves such as , casual leaves , medical leaves and maternity leaves ,
statutory leaves etc.
➢ Overtime Policy :

Employees should be provided with the adequate allowances and facilities during their overtime .
➢ Hospitalization :

The employees should be provided allowances to get their regular cheek ups say at an interval of one
year
➢ Insurance :

Organizations also provided for accidental insurance and life for employees . This give them the
emotional security and they feel themselves valued in the organization .
➢ Leave And Travel :

The employees are provided with leaves and travel allowance to go for holiday with their families .
Some organization arrange for a tour . This is usually done to make the employees stress free .
➢ Retirement Benefits :

Organization provided for pension plans and other benefits for their employees which benefits them
after they retire from the organization at the prescribed age .
➢ Holiday Homes :

Organization Provided for holiday homes and guest house for their employees at different locations .
The organization makes sure that the employees do not face any kind of difficulties during their stay in
the gust house .
➢ Flexible Timings :

Organization provided for flexible timings to the employees who cannot come to work during normal
shifts due to their personal problems and valid reasons .
2.6.5 Basis Component Of Compensation Program :

A Compensation program may included the following four components : Basis Pay , Wage And Salary
add-ons , Incentives payment and Benefits and Services . Base pay refers to the cash that an employer
pays for work performed. This based pay can be further delineated as either a wage or salary. Wage are
hourly rate of pay regular by Fair Labor Standards Act (FLSA) Of 1938 .
Wage and salary add-ons include cost of living adjustment (COLA), Overtime, Holiday and other
premium wages , Travel and apparel expense and a host of related forms of premiums and
reimbursements . Wages and salary add-ons are used to compensate employees for work above and
beyond their normal work schedules or reimburse them for expense related to their jobs. COLAs are
usually across the board contractual increasing tied to an economic indicator, such as the consumer
price index , that reports an increasing in the cost of living .
Incentive payments refers to funds employees received for meeting performance or output goals as well
as to seniority and merit pay . Companies provided these forms of compensation to influence employee

Page | 20
behavior , improve productivity and reward employees for their year of service or their strong
performance .
Finally , benefits and services include paid time off , health insurance , deferred income such as pension
and profit sharing programs , company cars , fitness club membership , child care service etc . Social
security , workers compensation and unemployment compensation are three legally required benefits .
Compensation is the most important part in any organization as it is one of the key factors of motivation
for all employees now-a-days. Therefore, different organization undertakes attractive compensation
policy to uphold the potential employees to increase the productivity. Generally, we can see two types
of compensation system. One is financial and another one is non-financial.
First Security Islamic Bank Limited has been also offering lucrative compensation to their employees
for years for which their demand is up scaling day by day. One of the finest things that I observe that
FSIBL has always tried their utmost to keep their best person else by ensuring the best pay scale
comparing with the competitors.
Therefore, it is seen that the turnout ratio of employees of FSIBL is so low. FSIBL goal of compensation
is to focus on the certain activity or works done by the employees upon which the compensation is
maintain or scaled such as it has maintained a combination of cash, benefits, retirement, perquisites as
a total compensation package
There are several compensation policies taken by FSIBL . These are given below:
Salary:
To compare with all the Existing operating local banks FSIBL pays relatively so high to their lower
level employees. It is done due to grab the potential employees from the market. Actually there are few
companies in the market to pay such a high basics to their employees for which FSIBL is still is the
first choice of new comers.
This is the area in which FSIBL has done marvelous job because now-a-days employees are more
concern of their basics. FSIBL has successfully adapted this change. It has been seen that employees of
FSIBL are highly satisfied due to the convenient salary structure as other company in the market are
not paying like this.
Moreover, FSIBL used to review its salary once in a year. For a instance every December, the salary of
the employee review based on the performance which is key motivating factor to perform well. Another
thing that is to mention that FSIBL conducts performance evaluation twice in a year according to that
they are to review the salary.

Page | 21
 The overall pay structure of the employees varies in different layers which are shown below:

No Name Basic

1 Assistant Officer 39000

2 Junior Officer 48000

3 Officer 55000

4 Senior Officer 62000

5 Junior Assistant Vice 67000

President (JAVP )
6 First Assistant Vice President 75000
(FAVP )
7 Assistant Vice President ( 89000
AVP )

FSIBL Salary Structure ( Savar Branch )

No Name Basic House Medical Transport Service ( Provide Communicat Annua Other Total
Rent Food) nt Fund ion l
& Increm
Gratuit ent
y
1 Assistant 39000 23400 2800 1750 150 3900 700 3900 1750 70350
Officer
2 Junior 48000 28800 3600 2250 150 4800 900 4800 2250 86550
Officer
3 Officer 55000 33000 4000 2500 150 5500 1000 5500 2500 99150
4 Senior 62000 37200 4400 2750 150 6200 1100 6200 2750 111750
Officer
5 JAVP 67000 40200 4800 3000 150 6700 1200 6700 3000 120750
6 FAVP 75000 45000 5200 3250 150 7500 1300 7500 3250 135150
7 AVP 89000 53400 6400 4000 150 8900 1600 8900 4000 160350

Salary Payment:
The most important thing about the payment of the salary of FSIBL is that it clears all the salary
payments within 5thof each month which is quite absent in other companies. The employees are paid
their every month salary on their accounts which they have to open while joining in the company. It is
good in such way that all the tax and deductible income are cut by company itself and the employees
get those amounts withdrawn the money from their account as a whole.

Page | 22
Bonus:
Like the other banks, FSIBL provides two festival bonuses to their employee’s one is in Eid-ul- Fitar
another one is Eid-ul-Azha. The bonus is equivalent to the basics of the employees. Moreover, there is
another provision regarding the bonus which is based on the performance of the employee. But it
actually depends in the performance of the branch which means if a branch does well as a whole then
all the employees of that branch get bonuses of their performance.
Performance Bonus:
If the bank makes profit, the employees will be entitled to 5% of pre-tax profit as performance bonus.
Fifty percent of such bonus distributed on the basis of basic pay of an employee, and balance fifty
percent on the basis of performance of individual employees. Performance appraisal for the purpose
made on the criterion set by the management time to time.
Provident Fund & Gratuity:
The employees are also entitled with provident fund in FSIBL. Actually 10% of the basic are deducted
from each employee for the provident fund along with this 10% another 10% provided by the company
total 20% is installed as the payment of provident fund. This fund is given to their employees at the end
of their service. If any employees leave the organization before completing three years of employment
he will get the provident fund induce from the 10% of the basic that will calculated upon his service
period which means those employees will not be able to claim the other 10% provided by the company.
In addition FSIBL also provide gratuity to their which has a handsome amount apart from the basics.
The employees who complete 10 years are used to get a gratuity equivalent to the basic of 3 months.
Annual Increment:
There is a provision of annual increment of FSIBL which is 10% increment based on the performance.
It works as a motivating factor for the employees to perform well. Therefore, each employee tries their
best to make it happen so that their base salary having well shaped structure.
Travel Allowance:
The bank also provides travel allowance to their employees. If any employee travels any place in
Bangladesh regarding company’s prospect, they will get the money or remuneration that is cost by them
but the cost that is spent is verified by the HR personnel and after that they got the requisition of the
money.
House Rent Allowance:
The company also provides house rent to their permanent employees who are in the managerial level.
Each employee in the managerial level gets 65% of their basic as house rent. This encourages the
potential candidates in the market to work for FSIBL.
Employee Loan:
Unlike other banks, FSIBL provides a great scheme of loans to their employees. First of all, the
permanent employees get loans from their provident fund at a cost of 10%. They can use their money
for several purposes. Secondly, from the executive level the employees are qualified for home loans,
car loans and others at a cost of 8% where it is around 15% for the customers so it an extra benefits
consumed by the employees.

Page | 23
Medical Facilities:
The medical facility provided by FSIBL is quite different from other banks. FSIBL has their own
medical team to look after their employees in case of any medical assistance. They have their nursing
home as well. Therefore employees of FSIBL do not have the opportunity to enjoy life insurance which
means FSIBL does not provides life insurance policies to the employee.
Welfare Funds:
Every year 800 taka for each employee is deducted to count in the employee welfare fund. The money
induced from the welfare fund is used for the welfare for the employees when they are in trouble or in
emergency. This money is totally distributed to the employees so that they feel safe at their emergency
period.
Earn Leave:
The employees who complete one year of service without any unusual leave, get 30 days for earn leave
in a year. It means their paid equivalent 30 days of compensation.
Disability Leave:
If any employee faces unusual accident or physical challenge, then they are provided leave granted by
the company which is called disability leave but for this leave the salary of them will not be deduced
which means these are paid leave.
Maternity Leave:
Maternity leave may be granted by the competent authority to an employee for a maximum three
months period at a time. This flexibility is provided considering the labor law made by the
government. This is also a paid leave .
Study leave:
There is a fantastic opportunity for the employee of FSIBL. The employees who perform extensively
well and show gratitude of benefits that they can contribute for the sake of company are entitled for
recommendation to study. Generally, the employees are recommended to get 3 (three) years paid leave
for their studies but all the employees do not get this advantage because it is for those who are really
high performer are to authorized to get the full payment to continue their studies.
There are several compensation policies in an organization. Compensation is important such a way that
without a fair policy in this sector, it is not possible to make the employee participate in their work
effectively. First Security Islami Bank Limited undertake different lucrative policies regarding the
compensation of their employees so that they can manipulate employees to have a productive outcome.

The policies over the compensation taken by FSIBL are discussed below :
The most important policy of FSIBL is providing the death benefits to their employees to
support their families to run with. It is such a benefit that is handover to their families after the
death of employees. To get this after this death employee nominate a person of him to take the
money which is done for the proper documentation and safety of the money. Due to this the
families of those employees feel comfortable and secure after the death of their wage earner.
The death benefit varies according to the designation and employment status.

The following chart will give the clear overview of several death benefits in different layers :

Page | 24
 Designation Amount of taka

Managing Director 10 Lac

EVP-SVP 8 Lac

AVP-VP 7 Lac

SO-FAVP 6 Lac

AO-JAVP 5 Lac

There is another policy which is providing loan to the employees at a lower interest rate.
FSIBL of the employee are ought to pay only 8% interest rate over the loan. So, the
employees can use this money of the loan for their personal welfare.
Another eye catching policy of FSIBL is their welfare fund. It is actually undertaken for
the welfare of the employee’s so that they can run themselves in a solvent way when
they become unable and physically challenged to work. But the fact is they have to
deposit 200 taka to their welfare fund at end of each year. But the sanction of the money
of the welfare fund is distributed according to the job status of the job employees.

Designation Amount of taka

MD 6 Lac

DMD 5.5 Lac

SEVP 4.5 Lac

AVP-EVP 4 Lac

OFFICER 3.5 Lac

Other 2.5 Lac

FSIBL has undertaken different plans of the employees who are of ages over 60 years
regarding the compensation. The basic compensation policies are not valid to the employees
who are over 60 years old. It means all the employees get the compensation benefits within
60 years.
In addition, FSIBL also provides financial aids to those employees who are enthusiastic to
participate any competitive examination. FSIBL bears all the fees and necessary finance of
those particular competitions. For instance if any employee eager to participate in CDCS
(Certified documentary credit specialist) where an employee will need eighty thousand
taka which is totally bear by the bank .

Page | 25
 Moreover, FSIBL also some policies over the completion over the several courses like
JAIBB (Junior Associate of the Indian Institute of Bankers). If the employee can complete
the first part of JAIBB, he will be provided eight thousand taka where if they become able
to complete the second part they will be funded fifteen thousand taka. These sorts of
assistance encourage the employees to make themselves to more competent to relevant field
by undertaking those professional courses.

2.7: Mission and Vison of First Security Islami Bank Limited (FSIBL

2.7.1 Mission:

➢
To contribute to the socio-economic development of the country.

➢
To attain the highest level of satisfaction through the extension of services by
dedicated and motivated professionals.
➢
To maintain continuous growth of market share by ensuring quality
➢
To ensure ethics and transparency in all levels.
➢
To ensure sustainable growth and establish full value of the honorable shareholders
and
➢
Above all, to contribute effectively to the national economy.

2.7.2 Vision:

To be the premier financial institution in the country by providing high quality products and
services backed by latest technology and a team of highly motivated personnel to deliver
excellence in Banking.

Page | 26
Chapter: III
Data Analysis
&
Finding

Page | 27
3.1 : Demography characteristics
Statistics

Age Group

Gender

Income
Name

Q10

Q11

Q12
Q1

Q2

Q3

Q4

Q5

Q6

Q7

Q8

Q9
N Valid 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25

Missing 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

➢ Name of the respondent

Name
Cumulative
Frequency Percent Valid Percent Percent
Valid A.T.AM ATIQUR RHAHMAN 1 4.0 4.0 4.0
ABIR HOSSAIN 1 4.0 4.0 8.0
Almain Hossain 1 4.0 4.0 12.0
ANISUR RAHMAN 1 4.0 4.0 16.0
BRISTI BEGUM 1 4.0 4.0 20.0
FAYSHAL ISLAM 1 4.0 4.0 24.0
HAFIZ MIA 1 4.0 4.0 28.0
HALIM HOSSAIN 1 4.0 4.0 32.0
HUMAION ISLAM 1 4.0 4.0 36.0
KAMAL ISLAM 1 4.0 4.0 40.0
KARIM MIA 1 4.0 4.0 44.0
MD. ABUL BASAR 1 4.0 4.0 48.0
MD. AMZAD 1 4.0 4.0 52.0
MD. HASAN 1 4.0 4.0 56.0
MD. NAZMUL HOSSAIN 1 4.0 4.0 60.0
MD. NOBI 1 4.0 4.0 64.0
NADIA PARVIN 1 4.0 4.0 68.0
Naeem Islam 1 4.0 4.0 72.0
PARVIN SULTANA 1 4.0 4.0 76.0
RABBI ISLAM 1 4.0 4.0 80.0
RABIE HOSSAIN 1 4.0 4.0 84.0
SAJAL KHAN 1 4.0 4.0 88.0
SAYMA KABIR 1 4.0 4.0 92.0
Sazzad Ahmad 1 4.0 4.0 96.0
Shakil Mahamud Shuvo 1 4.0 4.0 100.0
Total 25 100.0 100.0

Page | 28
 3.1.1 Gender
Frequency Percent Valid Percent Cumulative Percent

Valid 1.0 21 84.0 84.0 84.0

2.0 4 16.0 16.0 100.0

Total 25 100.0 100.0

Table 3.1

16% Female

84% Male

Interpretation: The table 3.1 is followed by Descriptive statistic sowing that Out of Total 25
respondents 21 are Male and other 4 are Female. The all are the member of First Security Islami
Bank Limited FSIB. In percentage 84% are Male and 16% Female.

3.1.2 Age Group

Frequency Percent Valid Percent Cumulative Percent

Valid 1.0 3 12.0 12.0 12.0

2.0 6 24.0 24.0 36.0

3.0 15 60.0 60.0 96.0

4.0 1 4.0 4.0 100.0

Total 25 100.0 100.0

Table: 3.2

Age groups
4% 12%
23-26 years ages
24% 27-31 years ages
60% 37-41 years ages
23-26 years ages

Interpretation: The table 3.2 is followed by Descriptive statistic sowing that Out of Total 25
respondents 3 are in between 23-26 year age 6 are 27-31 years age 15 are 37-41 years and 1 is
41 avobe years aged. The all are the member of First Security Islami Bank Limited FSIB. In
percentage 4%,12%,24%and 60%.

Page | 29
 3.1.3 Income
Frequency Percent Valid Percent Cumulative Percent

Valid 1.0 5 20.0 20.0 20.0

2.0 3 12.0 12.0 32.0

3.0 9 36.0 36.0 68.0

4.0 6 24.0 24.0 92.0

5.0 2 8.0 8.0 100.0

Total 25 100.0 100.0

Table 3.2

INCOME
8%
20%

24%

12%

36%
10000 - 20000 21000 – 40000
41000 – 60000 61000 – 80000
80000 And Above

Interpretation: The table 3.3 is followed by Descriptive statistic sowing that Out of Total 25
20.0% or 5 income are in between 10000 – 20000৳ 12.0% or 3 have 321000 – 40000৳. 36.0%
or 9 have 41000 – 60000৳. 24.0% or 6 have 61000 – 80000৳. and 8.0% or 2 have 80000৳ above
Monthly income. The all are the member of First Security Islami Bank Limited FSIB.

Page | 30
3.2. Effectiveness of Compensation Management System
3.2.1:Q1:Employee Compensation Such As Bonus Or Profit Sharing Are An Important Part
Of The Compensation Strategy In This Organization .

Frequency Percent Valid Percent Cumulative Percent

Valid 4.0 11 44.0 44.0 44.0

5.0 14 56.0 56.0 100.0

Total 25 100.0 100.0

Interpretation: In the Study According to the 25 Respondents 44.0 % Agree and 56.0% are
Strongly Agree with the statement. So, it could be assumed that majority of the respondent
are Agree with Employee Compensation Such as Bonus or Profit Sharing Are An Important
Part Of The Compensation Strategy In This Organization.

Q2: The Benefit Are an Important Part of The Total Compensation Package.

Frequency Percent Valid Percent Cumulative Percent

Valid 3.0 1 4.0 4.0 4.0

4.0 14 56.0 56.0 60.0

5.0 10 40.0 40.0 100.0

Total 25 100.0 100.0

Interpretation: In the Study According to the 25 Respondents 1% are natural 56.0 % Agree
and 40.0% are Strongly Agree with the statement. So, it could be assumed that majority of
the respondent are Agree with the Statement.

Q3: In This Organization A Portion of An Employee’s Earning Is Contingent on Group or

Organization Performance Goals Being Achieved.

Frequency Percent Valid Percent Cumulative Percent

Valid 3.0 21 84.0 84.0 84.0

4.0 4 16.0 16.0 100.0

Total 25 100.0 100.0

Interpretation: In the Study According to the 25 Respondents 84.0 % Agree and 16.0% are
Strongly Agree with the statement. So, it could be assumed that majority of the respondent
are Agree with the Statement.
Page | 31
Q4: Our Compensation Policies Recognize That Long –Term Results Are More Important
Than Short Term Results.

Frequency Percent Valid Percent Cumulative Percent

Valid 3.0 21 84.0 84.0 84.0

4.0 4 16.0 16.0 100.0

Total 25 100.0 100.0

Interpretation: In the Study According to the 25 Respondents 84.0 % Agree and 16.0% are
Strongly Agree with the statement. So, it could be assumed that majority of the respondent
are Agree with the Statement.

Q5: An Employee’s Seniority Does Enter into Compensation Decision.

Frequency Percent Valid Percent Cumulative Percent

Valid 3.0 16 64.0 64.0 64.0

4.0 9 36.0 36.0 100.0

Total 25 100.0 100.0

Interpretation: In the Study According to the 25 Respondents 64.0 % Agree and 36.0% are
Strongly Agree with the statement. So, it could be assumed that majority of the respondent are
Agree with An Employee’s Seniority Does Enter into Compensation Decision.

Q6: Employee Compensation Are Designed To Provide A Significant Amount Of An

Employee’s Total Earning In This Organization.

Frequency Percent Valid Percent Cumulative Percent

Valid 4.0 25 100.0 100.0 100.0

Interpretation: In the Study According to the 25 Respondents 100.00 % Agree with the
statement. So, it could be assumed that majority of the respondent are Agree with Employee
Compensation Are Designed To Provide A Significant Amount Of An Employee’s Total
Earning In This Organization .

Page | 32
Q7: The Employee Benefits Package Is Very Generous Compared To What It Could Be.

Frequency Percent Valid Percent Cumulative Percent

Valid 3.0 6 24.0 24.0 24.0

4.0 12 48.0 48.0 72.0

5.0 7 28.0 28.0 100.0

Total 25 100.0 100.0

Interpretation: In the Study According to the 25 Respondents, 24.0% Natural 48.0 % Agree
and 28.0% are Strongly Agree with the statement. So, it could be assumed that majority of the
respondent are positive with The Employee Benefits Package Is Very Generous Compared to
What It Could Be.

Q8: The Compensation System in This Organization Has A Futuristic Orientation. It Focuses
Employee’s Attention on Long Term Goals.

Frequency Percent Valid Percent Cumulative Percent

Valid 3.0 8 32.0 32.0 32.0

4.0 16 64.0 64.0 96.0

5.0 1 4.0 4.0 100.0

Total 25 100.0 100.0

Interpretation: In the Study According to the 25 Respondents, 21.0% Natural 64.0 % Agree
and 4.0% are Strongly Agree with the statement. So, it could be assumed that majority of the
respondent are positive with The Compensation System in This Organization Has A Futuristic
Orientation. It Focuses Employee’s Attention on Long Term Goals

Q9 In This Organization Compensation Raised Are Determined Mainly By An Employees

Job Performance. There Is A Large Compensation Spread Between Low Performer And High
Performer

Frequency Percent Valid Percent Cumulative Percent

Valid 3.0 5 20.0 20.0 20.0

4.0 9 36.0 36.0 56.0

5.0 11 44.0 44.0 100.0

Page | 33
 Total 25 100.0 100.0

Interpretation: In the Study According to the Respondents, 20.0% Natural 36.0 % Agree and
44.0% are Strongly Agree with the statement. So, it could be assumed that majority of the
respondent are positive with the statement.

Q10: In the Organization Compensation Policy That Can Be Helps to Achieve Success.

Frequency Percent Valid Percent Cumulative Percent

Valid 3.0 3 12.0 12.0 12.0

4.0 22 88.0 88.0 100.0

Total 25 100.0 100.0

Interpretation: In the Study According to the Respondents, 12.0 % natural and 88.0% are
Agree with the statement. So, it could be assumed that majority of the respondent are positive
with the statement.

Q11: In This Organization Compensation Policy Is Better Than Other Organization.

Frequency Percent Valid Percent Cumulative Percent

Valid 4.0 6 24.0 24.0 24.0

5.0 19 76.0 76.0 100.0

Total 25 100.0 100.0

Interpretation: In the Study According to the Respondents 24.0 % Agree and 76.0% are
Strongly Agree with the statement. So, it could be assumed that majority of the respondent are
positive with In This Organization Compensation Policy Is Better Than Other Organization.

Q12: In Compensation Policy, Organization Provided Fringe Benefits.

Frequency Percent Valid Percent Cumulative Percent

Valid 3.0 14 56.0 56.0 56.0

4.0 11 44.0 44.0 100.0

Total 25 100.0 100.0

Page | 34
Interpretation: In the Study of the Respondents 56.0 % Agree and 44.0% are Strongly Agree
with the statement. So, it could be assumed that majority of the respondent are Agree with In
Compensation Policy, Organization Provided Fringe Benefits.

3.3: Descriptive:

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

Q1 25 4.0 5.0 4.560 .5066

Q2 25 3.0 5.0 4.360 .5686
Q3 25 3.0 4.0 3.160 .3742
Q4 25 3.0 4.0 3.160 .3742
Q5 25 3.0 4.0 3.360 .4899
Q6 25 4.0 4.0 4.000 .0000
Q7 25 3.0 5.0 4.040 .7348
Q8 25 3.0 5.0 3.720 .5416
Q9 25 3.0 5.0 4.240 .7789
Q10 25 3.0 4.0 3.880 .3317
Q11 25 4.0 5.0 4.760 .4359
Q12 25 3.0 4.0 3.440 .5066
Valid N (listwise) 25

Descriptive Statistics

4.76
4.56
4.36 4.24
4 4.04
3.88
3.72
3.36 3.44
3.16 3.16

0.7348 0.7789
0.5066 0.5686 0.3742 0.3742 0.4899 0 0.5416 0.3317 0.4359 0.5066

Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12

Mean SD

Page | 35
Interpretation:
The mean responses of (Effectiveness of Compensation Management System) questionnaire
is 4.56 4.36, 3.16, 3.16, 3.36, 4.0, 4.04, 3.72, 4.24, 3.88, 4.76 and 3.44, out of 5 respectively
for orientation employees are fairly and almost contented of the 6 questions. And the standard
deviation is .5066, .5686, .3742, .3742, .4899, .0000, .7348, .5416, .7789, .3317, .4359, and
.5066 respectively for orientation employee's response is same but not same for everywhere.

The Descriptive Analysis of Effectiveness of Compensation Management System is described

that the Respondents are not pretty much agree with it the result is slowing they Effectiveness
of Compensation Management System.

3.4: Summary of Findings:

• FSIBL does not provide any life insurance policy which I have come to know while

working there

• The absence of life insurance may discourage the employees to settle there.

• In term of promotion FSIBL only focuses to the increment of the salary

• It is discouraging the senior most employees to continue their work at FSIBL due to the

policy of not giving compensation benefits 60 ages above employees

Page | 36
 Chapter: IV
Recommendation
and
Conclusion

Page | 37
4.1: Recommendation:
Compensation and benefits which are provided to the employees are good but should be better
because employees of certain levels are satisfied but not all. According to the findings the
following recommendations may help in improving the Effectiveness of Compensation
Management System of First Security Islami Bank Limited.

✓ FSIBL should increase other benefits according to their promotion and efforts.

✓ FSIBL should try to increase compensation and benefits according to market standard

analysis

✓ FSIBL should introduce life insurance policy to their employees since other

organization of similar field have their life insurance policy.

✓ It would be better and satisfactory for the employee if FSIBL get other incentives and

benefits along with the salary when they are promoted.

✓ FSIBL can review this policy considering for the job satisfaction of senior level

employees.

Page | 38
4.2: Conclusion:
In conclusion, the study was conduct to find out the Effectiveness of Compensation
Management System of First Security Islami Bank Limited. It can be concluded from the
present study that the sample organization (First Security Islami Bank Limited The have a
Compensation Management System, the above recommendations should be followed by the
sample organization. Not only the sample Banking organization but also the other Banking
Organizations should be sincere to implement and improve Compensation Management
System of the employees of Banking organization in Bangladesh. If it is possible to improve
Compensation Management System organization, the overall productivity, performance of the
workers as well as the organizations could be improved which will contribute in the economic
development of Bangladesh, As an organization the First security Islami Bank Limited has
earned the reputation of top banking operation in Bangladesh. The organization is much more
structured compared to any other bank operating local or foreign in Bangladesh. It is relentless
in pursuit of business innovation and improvement. It has a reputation as a partner of consumer
growth. I am fortunate that I was given the opportunity to work in HR division of FSIBL which
I can relate with my academic knowledge. FSIBL ensures a fair compensation policy for which
the satisfaction level of employee is so high. Due to this high job satisfaction of the employee
regarding the compensation, the overall employee turnover is quite negligible in FSIBL.
Finally it is to mention that I was able to relate all my academic HR knowledge with the real
environment which is I think will be highly helpful for my future career.

Page | 39
4.3: Reference

Websites:

➢ http://www.fsiblbd.com/
➢ http://www.bdtradeinfo.com/yellowpages/company_detail.php?did=46255
➢ http://www.humanresourcesrrocess.com

Others:

➢ Official documents from the organization.

➢ First Security Islami Bank Limited. (2017).
➢ First Security Islami Bank Limited. (2018).

Page | 40
 Resume
Of
Fayshal Bokth Chowdhury .

Fayshal Bokth Chowdhury .

Contact No: +880-1738784605
218/04, C,R,P, Chapain , Savar , Dhaka
E- mail: fayshalchowdhury2018@gmail.com

Career Objective:

I have such ability and mentality to suite myself for any hard working and also challenging job. I want to develop myself
through my hard work and that will also help the organization. Enhance my skill in work related environment and learn new
thing.

Self-Appraisal:
▪ Honesty and punctual .
▪ Quick Learner .
▪ Excellent as a team member .
▪ Like to take the challenge .
▪ Can work under pressure .
▪ Friendly .

Educational Qualification:
Bachelor of Business Administration (BBA) :

Institute : City University .

Major : Human Resource Management .
Minor : Marketing .
Passing Year : 2019 (Duration 2015-19 ) 4 years .
C.G.P.A : 3. 38 ( Out of 4.00 )

Higher Secondary Certificate (H.S.C) :

College : Savar Model College .

Group : Humanities .
Board : Dhaka .
Passing Year : 2015 .
G.P.A : 3.89 ( Out Of 5.00 )

Secondary School Certificate (S.S.C) :

School : Radio Colony Model School .

Group : Humanities .
Board : Dhaka
Passing Year : 2013 .
G.P.A : 4.00 ( Out of 5.00)

Page | 41
Skill And Abilities :

Computer : Have adequate knowledge on computer hard and software . Diploma In

Software Application ,Basis C+.

Language : Bengali & English (Efficient in speaking & writing) .

Other Skills : Report writing, Research, Field work ,Team management, Quick learner &
Work independently or in teams .

Interests And Hobbies :

Travelling , Cycling , Social Media , Cricket . Member of Savar Cyclist Group , Savar Member of
NUB Adventure Club .
Personal Information :

Name : Fayshal Bokth Chowdhury .

Father’s Name : Jamal Ahmad Chowdhury .
Mother’s Name : Hosna Ara Begum .
Permanent Address : Village : Chapain , P.O : C,R,P , P.S : Savar , District : Dhaka .
Date of Birth : 27, January , 1996 .
Gender : Male .
Marital Status : Single .
Religion : Islam .
Blood Group : O ( +ve ) .
Nationality : Bangladesh .

References :

References :1 References:2
▪ Name :Sabbir Hasan Chowdhury ▪ Name :Md. Rahat Khan
▪ Organization : City University ▪ Organization : City University
▪ Designation : Asst. professor , Department ▪ Designation : Asst. professor , Department
of Business Administration : of Business Administration
▪ Mobile +8801711395499 ▪ Mobile : +880171726233
▪ E-mail : ratul-libra@hotmail.com ▪ E-mail : rahatkhan.mrk14@gmail.com
▪ Relation : Academic
▪ Relation
: Academic

Declaration:
I, the undersigned certify that this curriculum vita correctly describes my qualification and myself.

………………………………
(Fayshal Bokth Chowdhury)

Page | 42