Bangladesh University of Professionals

Term Paper on:

The Effect of Padma Bank Limited’s Organizational Culture

On Conflict Management of the Organization

Submitted to:

Maliha Rabeta

Lecturer

Department of Business Administration in Finance & Banking

Bangladesh University of Professional

Submitted by:

Group: 10
Section: A
Department of Business Administration in Finance & Banking
Batch: 2022

Course Code & Title: ALD1202- Principles of Management

Date of Submission: April 10, 2023

 Group Members
Name ID Section Group Remarks

Salekin Samin 2222151011

Al-Amin Rahman Sourav 2222151073

A 10
Mahbuba Sultana Sarah 2222151119

Jafir Abedin 2222151121

Nusaiba Sultana 2222151135

ii
 Letter of Transmittal
10th April, 2023
To,
Maliha Rabeta
Lecturer
Department of Business Administration in Finance and Banking
Faculty of Business Studies
Bangladesh University of Professionals

Subject: Term paper submission for the course “Principles of Management”

Dear Ma’am,

We are pleased to submit the report of our term paper titled "The Effect of Padma Bank
Limited’s Organizational Culture on Conflict Management of the Organization" for the 2nd
semester Principles of Management (ALD1202) that you asked for and gave us the
authorization to work on. We made every effort to work on the report carefully and make it as
accurate, descriptive and informative as possible.

The study we conducted vastly enhanced our knowledge to make an executive report. This
report has given us an exceptional experience that might have immense uses in future
endeavors. For the first time, we had an opportunity to do fieldwork in a business
organization which was a valuable opportunity for gaining practical insight into the real-
world application of theoretical concepts learned in class. We sincerely hope that it fulfills
your expectations.

Lastly, we also hope that this report is in accordance with your instructions. We eagerly await
your feedback for resolving any shortcomings in our paper.

Sincerely yours,
On behalf of Group 10,

iii
Al-Amin Rahman Sourav

Table of Contents
Executive Summary...............................................................................................................................1
1. Report Preliminaries..........................................................................................................................2
1.1 Origin of the report......................................................................................................................2
1.2 Scope and Objective....................................................................................................................2
1.3 Rationale......................................................................................................................................2
1.4 Methodology...............................................................................................................................3
1.5 Limitations...................................................................................................................................3
2. Chapter 1- Conflict Management and Company Culture...................................................................4
3. Chapter 2- Organizational Overview of Padma Bank Limited............................................................8
3.1 Introduction.................................................................................................................................8
3.2 Vision...........................................................................................................................................8
3.3 Mission........................................................................................................................................9
3.4 Strategic Objective.......................................................................................................................9
3.5 Departments of Pabna Bank Limited...........................................................................................9
3.6 Management Structure.............................................................................................................10
3.7 Services Provided by the Bank...................................................................................................11
3.8 SWOT Analysis...........................................................................................................................11
4. Chapter 3- Organizational culture and Conflict Management.........................................................12
4.1 Communication Style.................................................................................................................12
4.2 Decision Making/Planning.........................................................................................................13
4.3 Leadership.................................................................................................................................15
4.4 Risk Assesment..........................................................................................................................16
4.5 Employee Behavior and Engagement........................................................................................17
4.6 Incentives, Recognition and Reward..........................................................................................19
4.7 Client Service.............................................................................................................................22
5. Chapter 4- Employee Satisfaction and A Review of Padma Bank’s Conflict Management...............24
6. Conclusion.......................................................................................................................................25

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 Executive Summary

Conflict Management is the practice of being able to recognize and manage conflicts in a
sensible, fair and efficient manner. Our report analyzes the effects of Padma Bank Limited’s
organizational culture on its conflict management. The data we have used here has been taken
from their official website and many other reliable sources.

Upon conducting an interview with the employees of Padma Bank Limited, we were then
able to determine how they resolve various internal conflicts, how they make decisions and
whether the employees are satisfied with the culture. The theoretical part of the report delves
into the basic aspects of conflicts that arise in an organization and how they are managed.

Our report starts off by trying to understand conflict, the process of conflict and the different
conflict management styles that exist. Next, it proceeds to provide an organizational review
of Padma Bank Limited, where its mission, vision, objectives, SWOT analysis and the
management structure are highlighted. 

Further moving on, the report provides thorough details regarding Padma Bank Limited’s
organizational culture and conflict management. This section covers the following crucial
aspects: communication style, decision-making style, leadership, risk assessment, employee
behavior and engagement, recognition and rewards, client service and last but not least,
metrics/benchmarking. 

The report concludes by providing an overall review of Padma Bank Limited’s conflict
management style or techniques.

1
 1. Report Preliminaries

1.1 Origin of the report

The report is prepared as an academic requirement of the course "Principles of Management"
(ALD1202) under the supervision of Ms. Maliha Rabeta, Department of Business
Administration in Finance and Banking, Bangladesh University of Professionals (BUP).

1.2 Scope and Objective

The report examines the corporate culture of Padma Bank Limited and the approaches they
take to handle internal conflicts. The primary objective of this report was to analyze all the
effects of Padma Bank Limited’s organizational culture on the company’s conflict
management system. However, there were some other specific objectives the report was
meant to achieve. Such as:

 To highlight the sector/scope of work of Padma Bank Limited

 To outline the organizational hierarchy and the company culture
 To determine how Padma Bank Limited resolves various conflicts and makes
decisions
 To evaluate whether or not the employees are fully satisfied with the company culture
 To cover the basic aspects of conflicts in an organization and how they are managed

1.3 Rationale
The report intends to show an analysis of the effects of Padma Bank Limited’s corporate
culture on its conflict management system. This will help the bank to point out their
shortcomings when it comes to managing all sorts of internal conflicts.

2
1.4 Methodology 
Data was gathered from both primary sources and secondary sources. Most of the information
required for the study was collected from primary sources through oral interviewing with the
employees. 

At first, we interviewed two managerial employees, including department managers and

assistant managers. The goal of these interviews was to have a deeper understanding of the
approaches the top-level managers take to handle conflicts within the organization. These
interviews addressed issues like conflict resolution techniques, employee satisfaction and
communication practices.

Afterwards, we interviewed two employees of the non-managerial level. This included

personnel on the front lines as well as in support positions. The objective of these interviews
was to learn about the conflict resolution techniques from the viewpoint of those who do not
hold leadership roles or positions. These interviews covered issues like employee relations
and working conditions.

Apart from that, some data was also gathered from Padma Bank Limited’s official website
and other prominent sites.

1.5 Limitations
While preparing the report, we encountered the following limitations:

 The size of the sample was too small

 Inadequate information as some of the data were treated as confidential
 Employees couldn’t provide us sufficient time as they were preoccupied with their
work
 Lack of available information online about Padma Bank Limited
 In-depth idea and analytical ability lacking to write such report

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 2. Chapter 1- Conflict Management and Company Culture

2.1 Understanding Conflict Management

Conflict is an inevitable part of our lives, and especially so in the workplace where people
from diverse backgrounds come together to work towards a common goal. Effective conflict
resolution is essential for any organization to succeed.

A well-managed conflict resolution process can improve the relationship between employees
and their supervisors, leading to a more positive work environment. Employers who invest in
proper conflict management can help prevent future disputes from arising, thereby promoting
a healthier and more productive workplace culture. Furthermore, effective conflict
management can prevent disputes from escalating into more serious issues.

2.1.1 Process of Conflict

The process of conflict mainly consists of four levels: 1) Latent stage, 2) Cognition and
personalization stage, 3) Conflict manifestation and 4) The conflict outcome.

It is advised that all conflicts should be fixed as early as possible

2.1.2 Conflict Management Styles

When it comes to conflict resolution in the workplace, there are five common communication
styles that can be utilized. By mastering these techniques for conflict resolution, employers
can create a more positive work environment for themselves and their colleagues. These
strategies include:

1. Collaborating: The first of these styles is collaborating, which involves working together to
solve a problem. This approach is often best when both parties involved in the conflict are
willing to listen and compromise.

2. Competing: When people compete, they try to outdo each other and win the argument or
conflict. However, this often leads to both parties feeling resentful towards each other.

4
3. Avoiding: This style involves ignoring or withdrawing from the conflict in order to
maintain peace. While this may seem like the easiest approach, it can often lead to increased
tension and stress in the workplace.

4. Accommodating: The accommodating style focuses on understanding and empathizing

with the other party's perspective. This style attempts to find a middle ground that both
parties can agree to.

5. Compromising: Lastly, we have got the compromising approach, which involves reaching
an agreement that satisfies both parties but is less than ideal for each.

2.1.3 Techniques and Common Mistakes to Avoid

There are some techniques that employers can utilize to ensure effective conflict
management. By implementing these techniques for effective conflict management,
workplace harmony can be restored quickly and efficiently.

1. Acknowledging the conflict

2. Encouraging open communication

3. Focusing on interests not positions

4. Negotiating win-win outcomes

Avoiding common mistakes during conflict resolution can help employers achieve a peaceful
workplace environment. Here are some things they should keep in mind:

1. Delaying Conflict Resolution

2. Focusing on Personalities Rather than Issues

3. Not Considering All Available Solutions

Effective conflict management is crucial for any organization that wants to foster a positive
and productive work environment. It can lead to lower employee turnover rates, increased
creativity and innovation, and stronger relationships between coworkers. By understanding

5
the conflict management styles and employing techniques we have previously discussed,
employers can successfully resolve conflicts in the workplace. 

2.2 Understanding Company Culture

Organizational culture is the set of shared values, beliefs, and behaviors that define a group or
organization. The impact of culture on a company's success cannot be overemphasized.
Understanding the types of organizational cultures can help an individual determine the best
fit for their working style.

2.2.1 Types of Organizational Culture

There are different types of organizational cultures, each with its own unique characteristics
and leadership approach. Understanding these various types of organizational cultures and
how they affect employee behavior can help leaders create a positive work environment that
cultivates productivity, innovation, and growth.

 Clan Culture: Clan culture is a type of organizational culture in which employees are
bound by kinship ties. In this type of culture, there is often strong group identification
and a sense of loyalty to the group. The benefits of clan culture include a sense of
security and supportiveness, as well as a feeling of trust and shared values among
employees.
 Adhocracy Culture: Another type of organizational culture is adhocracy culture,
which is characterized by a lack of hierarchy and a reliance on collective decision-
making. This type of culture is often found in start-ups and non-profit organizations,
where there is a need for flexibility and creativity.
 Market Culture: Market culture is one of the types of organizational culture that refers
to the way in which an organization rewards and punishes its members.
 Hierarchy Culture: Lastly, we have got the hierarchy culture, where employees are
ranked according to their level of authority. This type of culture can lead to tension
and conflict within the workplace as employees compete for resources and status.

To create an effective learning culture, it's important for leaders to encourage creativity and
innovation among their employees. By providing opportunities for training and development,

6
employees are better equipped to meet the demands of their job and contribute to the success
of the organization. A learning culture that is aligned with organizational values will result in
increased productivity and success.

2.2.2 Factors that contribute to organizational culture

Several factors contribute to organizational culture, including values, leadership, employee

engagement, communication, and conflict management. These factors are as follows:

1. How the organization treats employees

2. The company’s mission

3. How decisions are made

4. How people communicate with each other

5. Expectations around work style and volume

Understanding the different types of organizational culture is crucial to ensure that employers
are creating a work environment that aligns with their business goals and values. Whether
they want to create a clan culture that focuses on teamwork and collaboration or a market
culture that emphasizes competition and results, it's vital to keep these factors in mind while
building their organization's culture.

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 3. Chapter 2- Organizational Overview of Padma Bank Limited

3.1 Introduction

Padma Bank Limited is a 4th generation scheduled bank in Bangladesh established back in
2013 under the name “The Farmers Bank of Bangladesh”. In January 2016, following various
controversies and allegations, Bangladesh Bank appointed an observer to The Farmers Bank
Limited who had found evidence of irregularities with the distribution of 4 billion taka loans.
In the course of events, Bangladesh took initiative in removing most of the directors off the
organization board including Former Chairperson Muhiuddin Khan Alamgir and changed the
name of the bank in 2019 in an attempt to rehabilitate and restore the bank to a suitable
position.

Currently Bangladesh Bank is holding 68% of all shares on Padma Bank and rest are owned
by various institutions. The headquarters of Padma Bank Limited is situated on Gulshan-1,
Dhaka. Padma Bank currently has 59 branches and over 1500 employees working in them.

3.2 Vision

To evolve as one of the most diversified yet reliable financial institutions of the nation. 
Having the view to ensure a first rate customer and employee experience and collaborating in
development through providing the nation a wide range of products and technocrat solutions. 

8
3.3 Mission

To build a relationship with the customers and partner where it is possible to achieve their
financial goals through a team of responsive, knowledgeable employees who will be
committed to the shareholders value and the well-being of our nation.  

3.4 Strategic Objective

The bank aims to create an environment where every interaction with the customers would be
enjoyable. Various surveys will be conducted to address gaps in service areas and they will
be rectified immediately. In order to broaden the service platforms of our customers,
developed skills of employees, and technology based solutions will be offered. They
areaiming to grow to satisfy the ongoing demand of the customers for a bank ensuring equity,
quality, integrity and customer centric model of services and products.

3.5 Departments of Pabna Bank Limited

The bank operates as a result of collaboration between many departments. The departments
are fitted for the particular works and the performance of each departments is measured
perfectly. Padma Bank Limited has the following departments

 Human Resources Division

 Finance Division
 Logistic and Support
 Audit and Inspection Division
 Information Technology
 Internal Control and Compliance
 Retail Finance Center
 Marketing Division
 Credit Division
 Corporate Banking
 SME Consumer Banking
 Treasury
 Card Division
 Recovery and Legal

9
3.6 Management Structure

Md. Abdus Salam Azad

Md. Afzal Karim

Md. Murshedul Kabir

Mohammad Jahangir

Md. Abul Hossain

Md. Abu Kaiser

Tamim Marzan Huda

Nafisa Kamal

Shahnul Hasan Khan

M Imtiaz Farooq

Jahidur Rahman

Syed Rafiqul Haq

Tarek Reaz Khan

Online Banking
g
JTan
Director

Director

Director

Director

Director

Director

Director

Director

Director
SEA
M
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P
rFV
fice
st.O
Like almost every bank in Bangladesh, Padma Bank has a hierarchical management structure.
The top-level management consists of a Board of Directors, followed by the Managing
Director and Deputy Managing Director. Underneath the Managing Director and Deputy
Managing Director, there are several General Managers who oversee different departments
such as Credit Risk Management, Operations, Human Resources etc. Each department has its
own set of Assistant General Managers who assist their respective General Manager in
managing the day-to-day operations. Furthermore, each Assistant General Manager is
supported by a team of officers and clerical staff members who carry out the operational tasks
assigned to them.

The top-level management makes all the organizational decisions and develops the bank's
overall strategy, while the lower-level management is responsible for executing these
decisions and achieving strategic objectives. The organization follows this chain of command
rigidly.

Name
Board of Directors

Chowdhury Nafeez Sarafat

Hasan Taher Imam

Designation
Chairperson

Vice Chairperson

Independent Director

Independent Director

Independent Director

CEO and Managing Director

Figure 2: Board of Directors in Padma Bank

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Organogram of Padma Bank

Figure 1: Hierarchy Structure of Padma Bank Limited

3.7 Services Provided by the

Bank

SMS Banking

Figure 1: Hierarchal Structure of Padma Bank Limite

 Contributory Saving Scheme Consumer Credit Scheme
Monetary Benefit Scheme Lease Finance
Special Deposit Scheme Cash Credit (Hypo & Pledge)
Education Saving Scheme Team Loan
Monthly Savings Deposit House Building Finance
Fixed Deposit SND
Saving Deposit Account SOD
Current Deposit Account Transport Loan
Consumer Credit Scheme Small and Medium Enterprise

The Padma Bank is successfully providing many major services. Their vision is to rapidly
increase their services and thus being one of the major and trustable banks in the country.
Right now we can mention a few services provided by the Padma Bank,

3.8 SWOT Analysis

Strength Weakness
1. Stable source of funding from different 1. Lack of trust among the general public
organization
2.Relatively high overhead expense
2. Strong liquidity position
3. Vulnerability to economic conditions
3. Wide network of branches

4. Diversified service line

5. Satisfactory IT infrastructure

Opportunities Threats
1. Regularity environment favoring 1. Losing investor trust (recently ICB)

2. Private sector development 2. Market pressure for lowering the interest

rate
3. Credit card business
3. Economic downturns and recession threat
4. SME & Agro based industry loan
4. Cybersecurity threats
5. Newly launched fixed deposit scheme

4. Chapter 3- Organizational culture and Conflict Management

11
To have thorough first-hand insights about the company culture, we visited the Gulshan
Corporate Branch of Padma Bank Limited. The Deputy Managing Director Mr. Faisal Ahsan
Chowdhury and the FVP & Head of Department Mr. Niaz Hosain Khan were kind enough to
grant us their valuable time. We also had the opportunity to discuss with AVP & Head of
Branch Mr. Mohammad Khorshed Alam and Executive Officer Ms. Ummul Wara Rumpa.
From all the personals’ insights, we sensed a seemingly positive culture in the workplace. As
Padma Bank is a relatively new bank with a controversial history, the management is always
diligent and prompt about making decisions to keep the pace up in the current banking sector
and gain back the trust of the general people.

4.1 Communication Style 

Effective communication is essential for resolving conflicts. Organizational culture can shape
the way communication takes place within an organization. As the management of Padma
Bank follows a hierarchical structure, the communication process within the workplace, as
claimed and described by the managers, is top to down (Downward communication) and
partially open.

1. Downward Communication: Downward communication within a bank refers to the flow of

information from the top management level to the lower levels of the organization. This
communication flow can take various forms, such as memos, emails, meetings, reports, or
presentations. As claimed by the managers, Padma Bank has the two important qualities
necessary in any downward communication style:

 Clear communication of performance objectives and expectations

 Information about any changes in policies, procedures, or organizational structure.

2. Partially Open Process: Mr. Niaz stated that the bank ensures that each person can convey
their ideas, suggestions and feedback to their immediate supervisors whenever necessary.
Communication with higher levels of management may be limited, but in any concerning
matter the employees can always reach out to the top-level management via proper channels.

Figure 3: Simplified Model of communication

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Although the bank claims to have a fun, collaborative and engaging workplace full of
communicative discussions, the office space is rather monotonous and cramped. As Padma
Bank is trying to establish itself as a progressive and up to date modern institution, the
organization is focused on showing the innovative side of its work process. Most of the
information are shared digitally, reports of all sorts of operation is kept on their server. The
bank provides specific “Complain Box” for both customers and employees. This approach in
communication helps the management identify any sort of workplace conflict as soon as
possible and act accordingly.

4.2 Decision Making/Planning

Padma Bank Limited has a very well developed and elaborated decision making and planning
process. The responsibility of making decisions lies on different level of managers based on
the significance and urgency of the situation. But the management ensures that every decision
is made through a focused manner in an elaborated process. The process as described by Mr.
Niaz consisted of these steps:

i. Identifying the Problem/Opportunity: The first step is of course always, understanding

the situation and defining the situation at hand. At any circumstances where conflict may
occur, first-line managers must report to the mid-level managers of their department.

ii. Gathering Information: Managers then tries to gather all the information necessary to
describe the situation even more appropriately. This could include data analysis, market
research, feedback from stakeholders etc.

iii. Analyzing and Making Decisions: Mid-level managers then assess the situation based on
their discretion. At any case where the decision puts the bank’s goals in stake, it must be
reported to the top level managers and if the situation calls for urgent decisions then they are
permitted to do what they deem the best course of action.

According to Mr. Faisal Ahsan, the bank ensures that at least more than one manager is
involved while making any workplace decisions to keep integrity intact and conflict at a
minimum.

While making big organizational decisions, the management typically involves developing a
detailed plan for implementing the decision which includes timelines, budgets and resource

13
allocation. After implementing the decision, the bank will then run an evaluation process to
assess the effectiveness of the decision and identify areas for improvement.

Figure 4: Steps for Organizational Decisions

As Padma Bank is in a rather transitioning period, the managers claim to have a structured
planning process in place to guide decision-making which involves some common aspects:

1. Proactive Approach: The management anticipates future challenges and

opportunities to formulate plans that align with the bank's vision and objectives as
well as increase workplace efficiency and productivity.

2. Strategic Focus: The bank's culture is of long-term objectives and ambitions as

Padma Bank aspires to be one of the leading financial institutions in the country. This
also reflects in the overall work process within the establishment.

3. Collaboration: Although rare in the banking sector, According to the Deputy

Managing Director, the bank always encourages cross-departmental collaboration
while making decisions. This approach is intended to generate multiple perspectives
and expertise resulting in better decision-making outcomes. This helps mitigate any
sort of incoherent communication which might lead to future conflicts or hindrances
in implementing the decision.

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4.3 Leadership
A leader's actions greatly influence the culture of an organization. They determine the
schedule, assign tasks, manage, lead, and delegate. A bank's leadership culture in conflict
management refers to the organization's approach to managing and leading its employees.
Any good leader will guide their institution with a clear vision and mission, and establish a
code of conduct that focuses on effective conflict resolution. Usually, an organization is on
the path of continuous improvement when the leadership within the workplace encourages
collaboration and teamwork with an incentive for learning and development. Good
communication between a leader and the employees is key in conflict management, as it
increases transparency and trust between two parties.

Our group was fortunate enough to have a discussion with the DMD of Padma Bank Limited
Mr. Faisal Ahsan about his responsibility within the bank and have a moderate idea about
how a leader makes a change within the workplace. Mr. Faisal played the following roles in
conflict management:

1. Establishing Conflict Management Policies: A DMD may work with the HR

department to establish conflict management policies and procedures for the bank.
This includes developing guidelines for handling conflicts among employees,
guidelines on how to report conflicts, and providing proper training and instructions.
2. Providing Coaching and Feedback: A DMD may work together with employees
and managers to provide coaching on various conflict resolution skills. This may
include feedback in communication style, helping employees understand their own
biases, addressing systemic issues, work with different boards directly or indirectly to
increase the quality of teaching.
3. Resolving Conflicts Firsthand: Although it is unusual for a DMD to b directly
involved in individual conflicts, he may serve as a mediator for conflicts that cannot
be resolved through informal channels. Usually, when a "Priority Client" is involved
or there's a dispute among senior management, a DMD may take on the role of
facilitating communication and negotiation to resolve the conflict.
4. Encouraging Collaboration: It falls within a general duty for managers to
encourage employee collaboration to maintain a smooth working culture in the
workplace. Padma Bank claims to have one of the most collaborative working culture
in the banking sector. In his responsibility to oversee the conflict resolution process,
Mr. Faisal makes sure that the managers are engaged with each other and a stable

15
 communication is in action. Mr. Faisal also let us know that he often takes his
managers to dinner whenever he has free time.
5. Holding Employees Accountable: A DMD holds a very high position in power
within an organization. If an employee engages in behavior that violates company
policies or ethical standards, the DMD may take disciplinary action, which can
include anything from a verbal warning to termination. This sets an example for other
employees and helps build a certain standard of behavior and accountability within
the organization.

4.4 Risk Assessment

We identified risk assessment scenarios in the managerial activities in many ways, which can
be among the employees, can be related to project vision, can be having a complaint from the
customer or can be a customer satisfaction thing. As the DMD of Padma Bank Limited, Mr.
Faisal Ahsan tried to project that, in every scenario, top-level managers focus on only one
thing, which is not letting the virus get spread. Treating a problem when it has not reached
its potential is maybe the easiest way to cut off every detrimental effect that comes with it.

Also another projection of risk assessment comes with understanding the proper positioning
of a change, which is related to i) if the company should stick to its current model ii) if the
company has decided to change its model, then which alternative should be prioritized iii)
how it will execute iv) will this be sustainable and easy to adapt for all the employees. 
Considering that, top-level managers set plans to achieve their goals, or it would cause a
serious chaos in the workplace. Such as, employees can be unable to adapt to the new visions
which will make them less productive in the workplace. Top managers assess all the probable
scenarios and thus conduct a proper judgment based on their risk assessment model.

A less productive employee, or an underperforming employee can be such a burden for a

workplace as he will not only bring less to the table, but can also bring such effects like
decreased morale, legal risks, and reputational damage. So top managers assess the scenarios
and train them to make sure every employee is getting the best kind of support to be more
productive in a session, thus bringing more to the table.

Also proper risk assessment comes with taking proper action. Proper action may need
properly skilled human being to be in the charge, so the Padma Bank has its own rulebook to
decide who will resolve a matter, as per their interviews, we got the insight that they

16
encourages the transparent system between the top managers and the employees but they also
try to push mid level managers to develop their problem solving and decision making skills.
So the top level managers can put their focus into more conceptual problems.

Even pushing every employee to only be productive can be another harm for a workplace as
it can bring things like negative competition, toxic traits or politics in a workplace. So, a
manager focuses on pushing team-spirit on the conversation to make sure everyone respects,
acknowledges others' efforts. For that employees are trained in special programs which are
related to building up a better team oriented work environment and a healthy competitive
mindset.

Risk assessment scenarios bring down one question, which is which level manager should
approach a certain problem, it totally depends on the severity of the problem. But the Padma
Bank highly encourages the mid level managers or entry level managers to handle an urgency
at first, which develops their skills from the core. And there are still top level managers for
handling any great urgency.

Padma Bank is growing rapidly and we believe they have been quite successful at doing their
risk assessment, their proper action and judgment has led  to a greater work satisfaction.
Their newly appointed Executive Officer Ummul Wara Rumpa was very happy about how
the Padma Bank has kept all its employees in a bond, she feels like the workplace culture was
very relaxing and she enjoys working there.  We really appreciate how the Padma Bank has
done its risk assessment.

4.5 Employee Behavior and Engagement

Managing employee behavior and engagement is a crucial part in conflict management.
Employee behavior and engagement are critical factors that can shape an organization's
culture, productivity, and ultimately its success. It is necessary for any company to ensure
that its employees are motivated, committed and engaged in the company's mission and
goals. In this particular matter, insights from Executive Officer Ummul Wara Rumpa and
AVP Md. Khorshedul Alam were incredibly valuable.

1. Recruitment Process: To maintain the desired level of culture quality any organization
must handpick candidates who align with the company's values and mission. Padma Bank
also very careful about selecting the people who will be a part of the future of the bank. The
department head is responsible for the recruitments of their respective departments. After the

17
general process of going through CVs and interviews, chosen candidates go through an
orientation process first. Then they have to go through a probation period of 3 to 6 months
after which an evaluation report is made on them which determines if they get the job or not.

Throughout this process, managers look for more than necessary hard skills to get the job
done. Various soft skills such as communication strength, teamwork ability, and adaptability
to change are also taken into consideration. Padma Bank has a strong sense of ethics and the
managers believe the best way to keep any sort of conflicts at a minimum is filtering out the
only candidates who are fitting to the company culture and ethics.

2. Training & Development: Padma Bank Limited focuses on continuous improvement of

its workforce to keep up with the current world. To ensure this, the bank provides various
training and development programs for employees. Such as

i. Foundation course of bank

ii. Gender equality course

iii. Customer service training

iv. IT security and risk management

v. Compliance training etc.

Giving employees these opportunities to improve their knowledge and skill sets not only
benefits them but also the company as a whole, ensuring improved productivity, better
communication, improved teamwork, positive work culture and overall increased job
satisfaction. All of this combined leads to the reduction of conflicts within the whole
organization.

3. Motivating Employees: Motivation is a word that can be easily described, but motivating
employees is a challenging task that requires constant effort. As different people have
different values and leanings, it is a big challenge for the management to find ways to
motivate and engage employees effectively. The management of Padma Bank use some
motivating tools such as

i. Financial support

ii. Recognition and reward based on performance

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iii. Gratuity Policies

iv. Monthly/weekly targets

v. Employee appreciation events

vi. Make them feel valued and part of the company's success etc.

It is crucially important that employees feel motivated and satisfied in a workplace to keep
productivity up and reduce any potential conflicts that might arise because of differences in
opinions among employees.

4. Diversity & Inclusion: Padma Bank provides different incentives to people from all walks
of life. In an attempt to have the most diversified workplace, the bank proposes quota to
people from hill tracks, off springs of freedom fighters, people with disability etc. The
management also ensures security of its workforce so that everyone can work here peacefully
and feel accepted.

5. Holding Employees Accountable: When an employee of a bank is found to be breaching

rules and regulations, the consequences can vary depending on the severity of the breach and
the policies of the bank. Padma Bank has a separate board called the Disciplinary Action
Committee (DAC) to handle these kinds of unfortunate situations. As stated before, the bank
values its ethics and integrity very highly and holds a zero-tolerance policy toward any kind
of unethical behavior. Depending on the severity of the breach, the bank may take
disciplinary action against the employee. This may include verbal or written warnings,
suspension without pay, demotion, or termination of employment.

This approach sets a strong sense of accountability within the workplace and acts as a code of
conduct for all employees to abide by. As a result, various conflicts that may arise due to
unethical behavior can be prevented, and the employees are aware of their responsibilities
toward the bank's rules and regulations.

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4.6 Incentives, Recognition and Reward

Employee incentives are monetary or non-monetary (but still tangible) rewards designed to
motivate and engage employees acknowledging and appreciating an individual's
contributions or achievements inside an organization is referred to as recognition. The
compensation given to persons in recognition of their efforts, achievements, or performance
is referred to as a reward. Promotions, bonuses, gift cards, extra vacation days, and other
non-monetary rewards are available for the employees of Padma Bank.

Recognition and reward is one of the most basic and effective go-to tools for any
management structure to apply, thus it keeps every employee more motivated and engaged to
improve their work style. This improves the workplace and its culture as a whole and
influences the team to follow a straight line.

Padma Bank is a visionary bank which is aiming for catching up to the level of other top
banks in Bangladesh, so it is recruiting new brains to get a wider and fresh vision of this
generation. Now, Padma Bank has been effectively using a recognition and reward model in
multiple scenarios.

For instance, Padma bank sets monthly, quarterly, and yearly goals. Among which, it
prioritizes quarterly goals the most. The goals are communicated effectively to the employees
and managers set and distribute tasks to their subordinates. Employees are evaluated for their
works and thus rewarded with lucrative opportunities and gifts, like, cash price, foreign tour,
increment etc. 

Also, Padma Bank sets multiple special training opportunities for employees with higher
ambitions, which also results in better retention and more progressive dynamics for a
workplace. Employees with good results are then rewarded properly. This even pushes
anyone from a workplace to get out of their shell and adapt to the vision of the workplace
rapidly.

Padma Bank also appreciates good cognitive inputs from their employees, that can benefit
both the company and the employees. This may lead to better customer experience, and these
inputs from the employees are well recognized and in return Padma bank provides a good
reputation to the employees’ name.

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Other incentives provided by the bank include

1. Medical Insurance: Padma Bank provides its employees with a certain insurance
plan. In case of death, disability or any inury occurred while working for the
organization, the bank will compensate for the employee's medical expenses as per
the insurance policy.
2. Maternity Leave: According to the Bangladesh Labor Act, 2006, female employees
are entitled to 16 weeks of maternity leave. Padma Bank goes beyond the legal
requirements and provides female employees with an additional two weeks of fully-
paid maternity leave.
3. Pension Plan & Gratuity: A pension plan is a retirement policy for the employee,
where the employer and employee both make contributions towards a fund that pays
out a fixed income at retirement age. Like any other reputed organization, Padma
Bank provides this benefit to its eligible employees.
4. Festive Bonuses: Padma Bank provides its employees with bonuses during various
festivals like Eid, Durga Puja, Christmas, etc. as a token of appreciation for their hard
work throughout the year. Usually, the bank provides all the festive bonuses which
are given to employees in our country. But this year, as per the instructions of
Bangladesh Bank the bank is having to cut back some of the incentives packages such
as "Boishakhi Vaata".

All these incentives aim to motivate and retain the employees of Padma Bank. These
incentives help to improve employee morale and productivity which ultimately leads to better
customer service and increased profitability of the bank. Any kind of conflict is at its lowest
when employee satisfaction is achieved.

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4.7 Client Service

Client service is an essential part of any organization. Without satisfied customers, no

business can sustain properly. Clients should be valued in such a way that customers turn out
to be promoters of your business. Taking this into consideration, Padma Bank has effectively
set up a number of initiatives. As per DMD of Padma Bank Limited Mr. Faisal Ahsan, Padma
Bank follows two simple mottos for their customers, “Every customer is important” and
“Every customer should be treated equally”.

Thus, Padma Bank has built up its mechanism to ensure that clients are getting a satisfied
experience. The bank is also concerned about any demand from the customers' side,
considering the new day customers want an easier banking system that may keep them away
from the hassles of the traditional banking system. 

Padma Bank usually engages with customers in three ways,

I. Compliant Box

II. Suggestion Box

III. Customer Feedback

Padma Bank has its own team to deal with every suggestion, every complaint and every
feedback from the customer's side. As the DMD of Padma Bank Limited Mr. Faisal Ahsan
said, every feedback is the next step of having fuel for the team, this shows how important it
is for them to acknowledge and to take proper measures for their company.

There have been multiple scenarios where a simple customer feedback, or a random
suggestion has made the administration core implement a new change in the system, so we
have seen a equivalent relation between their feedback processing and improvement in the
system

Most noticeable thing is how the bank is launching its new schemes everyday to gain more
trust and to catch a more diverse customer base from every economic class, like launching car

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and home loans schemes recently. Also, the bank is planning to launch an SME loans
scheme, and micro finance loans scheme for more popularity.

Also in the age of digital transactions, it is very much surprising how Padma Bank, despite
being a newly launched bank, has its own app to do digital transactions. Recently following
the suggestions of their customers, they have even added Visa and MasterCard facilities for
their customers.

Priority Clients: VIP/ Important Clients are treated well as Padma Bank gives a personal
RM for 24/7 Assistance, which gives them higher satisfaction, thus providing more capital to
the bank. As stated by Mr. Niaz Hosain, Padma Bank is built on a policy where they  meet
the checklist of not giving Priority clients any chance for complaint. 

This reflects how resource heavy but efficient Padma Bank is aspiring to be while dealing
with such conflicts. Their recent setup of the Service Quality Department (SQD) which is
totally focused on dealing with customers is another example. Even in the cases of SQD not
being sufficient enough, the top level managers come to the scenario and deal with the issue
personally. So, this as a whole stands out as an excellent setup of mechanism to properly
implement best quality customer service and feedback.

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 5. Chapter 4- Employee Satisfaction and

A Review of Padma Bank’s Conflict Management

Although the managers claim to have a fun and professional work environment at Padma
Bank, the non-managerial employees think otherwise. According to Ms. Rumpa, even though
Padma Bank is moving in the right direction, there's room for improvement. We can evaluate
employee satisfaction and build a correlation in an attempt to understand how the company
culture is affecting conflict management and how much successful it is.

1. Work-life Balance: Most of the employees working in the banking sector are
struggling to keep a work-life balance day by day and Padma bank is no different. The
office is very strict about time management and the overbearing workload pressure
can exhaust anyone.

2. Proper Incentives: Padma Bank affirms about its employee incentive program, but
recently it has been lacking with employees seeing some of the incentive packages not
being properly implemented or getting paused due to various reasons.

3. Work Environment & Security: Padma Bank provides the upmost security in the
workplace to ensure the safety of its employees and resources. The general
environment is healthy, fun and cooperative as described by the managers, but also
very strict.

4. Availability of Communication Channels: In any kind of unfortunate incident or

emergency, all the communication channels are open for all employees. Managers
work cooperatively and closely with everyone so it is very easy for the employees to
reach out for help, support or clarification when needed. The complaint box provided
by the company is taken very seriously and any issue raised through this channel is
addressed promptly.

5. Conflict Management: Like the managers described, the managerial committee

really is swift and diligent about addressing any sort of conflicts and fixing it in the
initial stage. For example, when a customer complained about a malfunction in the
SMS Banking scheme, managers quickly took over the matter and fixed it within a
day.

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 6. Room for Improvement: As Ms. Rumpa suggested, even though the company
operates effectively and efficiently, there's room for improvement. Currently there
was a software issue with loan finance which was being assisted. The morale in the
last few months got down for various reasons. For example, the management refused
to organize any sort of iftaar party this year.

6. Conclusion
Padma Bank Limited is a relatively new bank which is working impressively in the market.
With their higher ambitions and such initiatives, it is no wonder that Padma Bank is also
focusing on applying a proper and efficient management ecosystem. As a result, the Padma
Bank is having one of the most workaholic but a healthy work culture.

Though the employees are happily choosing to continue their work life at the Padma Bank,
we really felt like there is still room for improvement. This will eventually work out well as it
will bring a loyal team of employees for the company who will be both physically and
emotionally engaged with the company. Like Pahela Baishakh allowance or more leave days
for their employees. 

Also we noticed that all the programs for the welfare of the employees run on the ideas of the
top level managers, but it will be highly appreciable if the employees can choose their
investment on their growth which will be then fully/ partially sponsored by the Padma Bank.
This will even make the workforce stronger, and loyal in a single attempt.

In the end, we really could see how well organized and properly planned the Padma Bank
Limited really is, from having multiple obstacles to flying in the banking sector, they have
come a long way by doing proper planning and executing those. We can expect them to be
more open to the newer changes in the market and even ensure that their employees are
keeping up with the pace. And even adding new facilities for their employees is a great sign,
considering their limited resources at the beginning. We can sense a positive cultural flow in
the Padma Bank, with their properly taken measures on planning, leadership, communication
style, risk assessment, recognition and reward, client service overview and etc, we can be
very sure of the Padma Bank aiming for the correct goal with the most efficient team. 

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Appendix
References

1. https://www.padmabankbd.com/

2. https://en.wikipedia.org/wiki/Padma_Bank_Limited

Pictures with the employees

Pictures of their visiting cards

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