Premier University, Chittagong

Report On
“Impact of Employee Motivation on Organizational Effectiveness”
(This Report is submitted for the Partial Fulfilments of the Degree of Masters of
Business Administration with Major in HRM at Premier University Chattogram
Bangladesh)
Submitted To:
Ms. Zeenat Sahana
Lecturer
Department of Human Resource Management
Faculty of Business Studies
Premier University, Chittagong
Submitted By:
Name: Md.Abraz Uddin
ID: 2003220803928
MBA (HRM)
Batch: 32nd
Faculty of Business Studies
Premier University, Chittagong
Date of Submission: 07th June, 2022

1
 Letter of Submission

07th June, 2022

To
The Supervisor
Ms. Zeenat Sahana
Lecturer
Department of Human Resource Management
Faculty of Business Studies
Premier University, Chittagong
Subject: Submission of report on “Impact of Employee Motivation on
Organizational Effectiveness”
Dear Madam,
Here I am submitting my Report on “Impact of Employee Motivation on
Organizational Effectiveness”. The Report which you gave to me has been
finished successfully. It was a great experience for me and I have attempted my
best to collect information to make it clear, perfect and faultless while working
on it. It gave me an opportunity to gain knowledge and experience. I do not
want to miss the opportunity to thank you for all your support and guidelines
which you offered to me and I hope that it will continue in future.
Please accept my Report and call me for any further information at your
convent time and place.
Sincerely Yours,
Name: Md.Abraz Uddin
ID: 2003220803928
Program: MBA (HRM)
Batch: 32nd
Premier University, Chittagong

2
 Acknowledgement

Preparing a report of any sector of subject is really a challenging work for

anyone. Being the student of Human Resource Management and to prepare
report on the specified topic, I accept it with challenge opportunity and also
became successful to present the report with our full endeavor. This Report has
been duly prepared and submitted to meet the partial fulfillment of MBA
program. As being the student of MBA Level, I am so pleased and proud for
being the integral part of this report in the context.
I prefer to expressing my heartfelt and immense gratitude to my Report advisor,
our honorable Ms. Zeenat Sahana Madam, Lecturer of Premier University. I am
deeply grateful to her whole hearted and earnest supervision Turing the
Internship Report period. I have completed my term paper in a well-furnished
manner with taking her valuable suggestion and guidelines.
And I would like to convey my gratitude to my all-honorable Teachers and
madams who are always beside me and help me as much as they could and still
be.

3
Table of Contents
Chapter One..........................................................................................................6
Introduction...........................................................................................................6
1.1 Origin of the report.....................................................................................6
1.2 Background of the study:............................................................................6
1.3 Introduction.................................................................................................7
1.4 Data Collection Method............................................................................7
1.5 Data collection instruments........................................................................7
1.6 An Overview of IFIC Bank Limited:..........................................................8
1.7 Vision..........................................................................................................9
1.8 Mission.......................................................................................................9
1.9 Core Values................................................................................................9
1.10 Strategic Priority.....................................................................................10
1.6 Organization Profile of IFIC BANK........................................................11
1.8 Division of IFIC Bank:...........................................................................12
Chapter Two Literature Review.........................................................................13
2.1 The definition of motivation.....................................................................13
2.2 The concept of motivation.....................................................................13
2.3 Motivation methods...............................................................................15
2.4 The importance of motivation on organizational effectiveness.............18
2.5 Maslow Hierarchy of Needs...................................................................19
2.6 Herzberg’s two-factor theory....................................................................22
2.7 Vroom’s Expectancy theory.....................................................................25
2.8 Motivation in HRM..................................................................................27
Chapter Three: Internship at IFIC Bank Hathazari Branch, Chattogram...........29
3.1 Organizational Structure: Hathazari BRANCH........................................29
3.2 On the job responsibilities........................................................................30
3.2.1 General Banking Sections in Hathazari branch.................................30
3.2.2 Account Opening Section:.................................................................30
Chapter Four Motivation and Performance........................................................34
4.1 Motivation and performance (IFIC Bank Ltd.)........................................34
4.2 The Five-Step Training & Development Process.....................................35

4
 4.3 Wages and salary policy...........................................................................35
4.4 Job Scope and Individual pay...................................................................36
4.5 Employee Compensation & Benefits in IFIC BANK LTD......................36
4.5.1 Various Compensation Dimensions of IFIC Bank Ltd. Limited.......36
4.5.2 Several Types of Paid Leave in IFIC Bank Ltd. Limited..................36
4.5.3 Reword System of IFIC BANK LTD................................................37
4.5.4 Cola (Cost-Of-Living Adjustment)....................................................38
4.5.5 Motivation:........................................................................................38
4.5.6 Reward System:.................................................................................38
4.5.7 Benefit Package:................................................................................39
4.5.8 Indirect Compensation for Motivations.............................................39
Chapter Five Findings & Recommendation.......................................................40
5.1 Findings of the study:...............................................................................40
5.2 Recommendations:...................................................................................50
References...........................................................................................................51

5
 Chapter One
Introduction
1.1 Origin of the report
As a student of major in Human Resource Management, I had a choice to
develop my skills working in a renowned financial institution of our country.
The internship program as a complementary course of MBA program has given
me that chance. Having three months long internship program at IFIC Bank.
HR Training & Development Centre, I learnt a lot on practical implementation
of my knowledge and skills. This satisfied the prerequisite of the program as
well as worked with the scattering of information in the financial field of
Bangladesh and aided me a ton to contrast hypothetical information and
practical experience. This report is therefore the outcome of the assigned
internship, suggested by the IFIC Bank HR Training & Development Centre.

1.2 Background of the study:

Banks are the most important financial institutions of a country. And the
functions of the HR Division where action does not only take for recruiting
people but also for creating impacts on firm ‘s financial performances and IFIC
Bank, Human Resources (HR) Division regularly undertakes effectively
designed training programs targeting the right group of employees through
proper training need assessment. IFIC Bank believes that continuous efforts
should be given so that employees acquire and develop the right set of skills
required to face the challenge of ever-changing market. In IFIC Bank, the
employee development plan is based on proper training need assessment.
So, as a whole I hope this topic will certainly help all of us in various ways.
The Internship program is a practical course of the MBA Program of Premier
University. After completion of One-year theoretical knowledge gathering, I got
the opportunity as a practical exposure to business horizon through internship
program. My internship supervisor and respected course instructor Ms. Zeenat
Sahana, Lecturer, MBA Program, Business Administration, Premier University,
Chittagong, Bangladesh, assigned me the topic “Employee Training and
Development of IFIC Bank Limited”. I hope this report would able to portray
the importance of IFIC Bank HR-TDC.

6
1.3 Introduction
This Chapter begins with description of sampling procedure, which includes
the data Collection method of the present study. Subsequently, the variables
and measures, as well as statistical analysis used in the present study are
discussed.

1.4 Data Collection Method

Primary Data:
Primary data has been collected from -
• Face to face interview to Officers.
• Group discussion with the company personnel.
• My three months observation.
Secondary Data:
Secondary data has been collected from -
• Books.
• Annual reports.
• Journal.
• Google.

1.5 Data collection instruments

The study was carried out based on both primary and secondary data. Primary
data was collected from various apparel industry located at Chattogram. A
structured mostly closed styled, was provided to 38 employees of various
apparel industry to collect primary data. Secondary data was collected from
different HR Documents and Company Profile.

7
1.6 An Overview of IFIC Bank Limited:
International Finance Investment and Commerce Bank Limited (IFIC Bank) is a
banking company incorporated in the People's Republic of Bangladesh with
limited liability. It was set up at the instance of the Government in 1976 as a
joint venture between the Government of Bangladesh and Sponsors in the
private sector with the objective of working as a finance company within the
country and setting up joint venture banks/financial institutions aboard. In
1983 when the Government allowed banks in the private sector, IFIC was
converted into a full-fledged commercial bank. The Government of the People's
Republic of Bangladesh holds 32.75% of the share capital of the Bank.
Sponsors/Directors having vast experience in the field of trade and commerce
own 4.11% of the share capital and the rest is held by Institutions both local &
foreign and General Shareholders. The Government is being represented by
three nominated Directors on the Board of the Bank and as such, the present
combined shareholding of the Sponsors/Directors are 36.86% of the total
outstanding share capital of the Bank.
In 1976 Established as an Investment & Finance Company under arrangement
of joint venture with the Govt. of Bangladesh (bout, 2021).
In 1980 Commenced operation in Foreign Exchange Business in a limited scale.
In 1983 Commenced operation as a full-fledged commercial bank in
Bangladesh.
Obtained permission from the Govt. to operate as a commercial Bank. Setting
up of its first overseas joint venture (Bank of Maldives Limited) in the Republic
of Maldives (IFIC's share in Bank of Maldives Limited was subsequently sold
to Maldives’ Govt. in 1992).
In 1986 Setting up of a joint venture Exchange Company in the Sultanate of
Oman, titled Oman Bangladesh Exchange Company (Subsequently, renamed as
Oman Exchange LLC) (Scholar).
Inauguration of 100th Branch at Tejgaon-Gulshan Link Road in Dhaka in 2012.
Achieved the Landmark of BDT 10,000 Crore in Deposits. Launching of IFIC
Mobile Bank in 2014.
Launched an innovative product IFIC Aamar Account, combining benefits of
current & saving accounts, FDR, credit cards etc in 2017. Became market leader
in Home Loan product under retail banking segment. Introduced One Strop
Service model in the branches for the first time in Bangladesh. IFIC Home Loan
outstanding crossed the amount BDT 2,911.40 crore. Aamar Account balance
stood at BDT 1,456.49 crore with a total of 99,399 nos. Accounts (GOOGLE) .

Launched IFIC Aamar Bank (Digital Banking Platform)

• Established 35 Uposhakhas across the country
• Launched IFIC Aamar Bank (Digital Banking Platform)

8
 • Launched IFIC Shohoj Account to expand financial inclusion
Launched IFIC Shohoj Rin
 Number of Branches crossed 150 and number of Uposhakhas around the
country stood at 285.
 IFIC Home Loan Sanctioned amount reached BDT 61061.924 million as
of 31 December 2020.
 Launched IFIC Shohoj Rin.
 Formation of IFIC Investment Limited for merchant banking operations.
 In 2021 Number of Branches crossed 160 and number of Uposhakhas
around the country stood at 730 (bout, 2021).

1.7 Vision
At IFIC, we want to be the preferred financial service provider through
innovative, sustainable and inclusive growth and deliver the best-in-class value
to all stakeholders.

1.8 Mission
Our Mission is to provide service to our clients with the help of a skilled and
dedicated workforce whose creative talents, innovative actions and competitive
edge make our position unique in giving quality service to all institutions and
individuals that we care for.
We are committed to the welfare and economic prosperity of the people and the
community, for we derive from them our inspiration and drive for onward
progress to prosperity.
In an intensely competitive and complex financial and business environment,
we particularly focus on growth and profitability of all concerned (bout, 2021).

1.9 Core Values

Integrity: Upholding integrity in all that we do, always, everywhere.
Fairness: Striving to offer the best to our customers equitably with
transparency.
Innovation: Encouraging and nurturing creativity.
Commitment: Committed to excellence in customer service and maximization
of stakeholders’ value through teamwork.

9
1.10 Strategic Priority
 To strive for sound business growth by ensuring customer satisfaction
through quality and timely services
 To manage and operate the Bank in the most efficient manner to ensure
achievement of goals
 To maintain adequate capital flow to support further growth
 To ensure effective and efficient risk management for sustainable
business growth
 To diversify loan portfolio through structured finance and expansion of
Corporate, SME, Agri and Retail businesses
 To mount state-of-the-art technologies and adopt innovative ideas for
financial inclusion
 To groom human resources for serving customers efficiently
 To increase brand visibility by creating positive image of the Bank S To
be a trend-setter in serving the society and remain responsive to the
environment S To ensure sound corporate governance practices
 To facilitate mobility in banking by up-gradation of Internet and Mobile
Banking S To add value for all stakeholders (bout, 2021).

10
1.6 Organization Profile of IFIC BANK
Name of the Company
International Finance Investment and Commerce
Bank Limited (IFIC)
Off-shore Banking Unit (OBU)
IFIC Bank Limited - OBU
Federation Branch, FBCCI Building, 60
Motijheel C/A, Dhaka

Legal Form Auditors

IFIC Bank Limited was incorporated in M. J. Abedin & Co., Chartered Accountants
Bangladesh and
registered with the Registrar of Joint Stock
Companies
& Firms as a public company limited by shares

Company Registration Number Legal Adviser

C-4967, Dated: 08 October 1976 Ahsanul Karim

Authorized Capital Tax Consultants

BDT 40,000.00 million Adil & Associates

Paid up Capital Credit Rating Agency

BDT 17,008.67 million Emerging Credit Rating Limited

Listing Status Chairman

Listed with Dhaka Stock Exchange Ltd. (DSE) Salman F Rahman MP
and
Chittagong Stock Exchange Ltd. (CSE) in 1986 Vice Chairman
and Ahmed Shayan Fazlur Rahman
1997 respectively

Market Category Managing Director & CEO

‘A’ Category Mohammad Shah Alam Sarwar

Tax Payer Identification Number (TIN) Head of ICC

135055865054 M. Mozibar Rahman

VAT Registration Number Chief Financial Officer

19081167140 Dilip Kumar Mandal, FCA

Business Identification Number (BIN) Company Secretary

000136288-0208 Md. Mokammel Hoque, FCS

Subsidiary Companies No. of Employees

IFIC Securities Limited 4,350*
IFIC Investment Limited
IFIC Money Transfer (UK) Limited

Registered Office No. of Branches

IFIC Tower, 61 Purana Paltan 160
GPO Box : 2229, Dhaka-1000
IP Phone No.: 09666716250 (Hunting) No. of Uposhakhas
Fax: 880-2-9554102, Swift: IFIC BD DH 818*
E-mail: info@ificbankbd.com
Website: www.ificbank.com.bd No. of Shareholders

11
 57,234

Investors’ Relation
IFIC Tower (17th Floor)
61 Purana Paltan, Dhaka-1000
Hotline: 09666716250

1.8 Division of IFIC Bank:

• ATM Card Division.
• Audit & Inspection Division.
• Board Secretariat.
• Budget & Monitoring Division.
• Credit Division.
• Credit Card Division.
• Classified Loan Recovery Division.
• Financial Administration Division.
• General Banking Division.
• Human Resources Division.
• International Division.
• Information System & Technology Division.
• Law & Recovery Division.
• Marketing Division.
• Merchant Banking Division.
• Public Relations Division.
• Protocol Division.
• Reconciliation Division.
• System & Operations.

Chapter Two Literature Review

2.1 The definition of motivation

The word “motivation” originates from a Latin word “movere”. “Movere”
means to move. Thus, it creates a reflection of something going up, keeping
us working and helping us to achieve our goals (Korth2007).
12
 Jeffrey S. Nevid, a profess. Or of psychology, defined “motivation” as: “The
term motivation refers to factors that activate, direct, and sustain directed
behavior. Motives are the ‘whys’ of behavior – the needs or wants that drive
behavior and explain what we do. We don’t actually observe a motive;
rather, we infer that one exists based on the behavior we observe.”
(Nevid2013).

The definition of “motivation” can be broad, and there are many ways to
define the term itself, depending on e.g., different perspectives. The purest
definition it expresses is something that motivates (1873). It is an act or a
process that gives a person a reason to do something in a particular way, or
an explanation for the repeated behaviors, needs, and desires (Elliot1999). In
short, it describes why a person does something.
In an organizational aspect, motivation has been defined as “the sum of the
processes that influence the arousal, direction, and maintenance of behaviors
relevant to work settings”. Employee motivation at work is considered as an
essential drive as it generates effort and action towards work-related
activities, for example, employee’s willingness to spend the energy to
achieve a common goal or reward. When an employee is motivated, he or
she shows enthusiasm and eagerness to- wards the work and a strong
determination to implement and accomplish the work tasks (Moran2013).

2.2 The concept of motivation

“Motivation is psychological forces that determine the direction of a
person’s behavior in an organization, a person’s level of effort and a
person’s level of persistence” (Jones2008).

The concept of motivation could be broad; however, according to Jones &

George (2008), there are three major components of motivation which are
direction, intensity, and persistency.

Direction is a goal that forces an individual to perform an act to achieve it. A

goal is chosen consciously or unconsciously by an individual. There are
factors that influence a person in selecting the goal, including both internal
and external factors, and the final goal is the best one chosen among
potential alternatives. The intensity is the level of determination or effort put
by an individual in the process of achieving the goal; how hard an individual
has tried, and how much energy, time, money, or any other mental or
physical things have been used during the process to achieve the goal.
Persistence is the ability of an individual to maintain the motivation through
times even though obstacles may exist (Judge2013).
13
 It is not an exaggeration to say motivation is the core to being successful. A
motivated person is likely to willingly put more effort into doing a task and a
good result is within expectations. When goals are achieved, it drives a
feeling of being
Satisfied and enjoyment for the employees and creates a positive working
attitude in the workplace.
Additionally, the concept also mentions in the classification of motivation
types which can be divided as Intrinsic (internal) motivation and Extrinsic
(external) motivation as show in figure 2

Figure 2: Intrinsic and Extrinsic Motivation (Ryan & Deci 2000)

Intrinsic motivation comes from one’s self-desire to seek out new things and
to challenge oneself. It is the eagerness to learn, to gain knowledge and to
explore self-values and capabilities (Ryan2000, 2000). When a person has
intrinsic motivation, it means he or she does the job with interest and
enjoyment. Such persons have the tendency to be engaged in their jobs, do
their work with passion and willingness, striving for best results and self-
reward as well as continuously improving their skills and abilities
On the contrary, extrinsic motivation refers to the performance of activities
to achieve the desired outcomes. Extrinsic motivation can arise from both
internal and external factors. However, most of the time it comes from the
impact of external factors rather than internal ones (e.g., individual itself).
Therefore, the main question to answer is from where to get the extrinsic
motivation and how a person can sustain his/her motivation (Ryan2000,
2000). There are factors that create extrinsic motivation, for example,
competitions, appraisals, external rewards, or punishment (Dewani2017).

14
2.3 Motivation methods
There are many ways to motivate employees in today’s working
environment. Organization globally have been using different strategies and
approach in order to improve employees’ motivation. However, it seems that
the best motivator for employees is something that is indeed important in
their lives. Furthermore, different people might have different values and
approaches and, therefore, being able to understand employees’ needs and
using appropriate motivating methods can help increase the level of
motivation (Glesson2016)

According to Jan Ketil Arnulf’s article “Money as a Motivator” on Fudan

University School of Management (2014), money is deemed to be the best
motivator to any individual. Looking back to the historical time, it is money
that caused huge differences between employees working in inhuman
conditions in the early industrial revolution and the ones working in slave-
conditions in the countryside. For those who take part in the “paid
employee” system, the money means more than just itself; it also means
freedom and prosperity. That is why many people trying to move to
industrial regions with the hope to improving their lives and working
conditions. With that prospect of salary, today many young people are still
striving from poorer to better living conditions, from low to high education
since they think it is the only way to ensure a prosperous future.

But is money the best and only motivator? Or are there any of motivators
that have surpassed the money motivator? Considering from another
perspective, we, as human beings, work for money, but also for many other
things too, such as achievement, recognition, advancement, growth,
responsibility, and the work it- self (Herzberg1987) (Herzberg)
Employee empowerment has been promoted as a way to increase motivation
(Kaplan & Norton 1992, 1996) (Kaplan&Norton, 1992). Empowerment
gives employees a feeling of control, efficiency and impact. It creates a sense
of freedom in making choices and the ways how to work, and work
involvement; the feeling of responsibility and the ability to carry out work in
a satisfactory manner; and the feeling of achievement when the task is
accomplished within expectations and with desired outcomes. Many studies
have shown that employees with high empowerment motivation have higher
level of work motivation, which correspondingly results in better
organizational productivity and performance (Thomas&Velthouse1990,
1990).

Achievement motivation is referred to as the need for achievement (Elliot &

McGregor 1999). It is the need for success and indicates the wish of
15
 attaining excellence. Achievement may vary depending on different people.
For example, it is the need for enjoyment and fulfillment to have a work-life
balance, to feel engaged and satisfied with the work but still able to enjoy
meaningful life to the fullest. Or it is simply about the impact their work has
had on e.g., society and, environment. Feeling that you are making a
difference, changing the world in a positive way, and making it a better place
to live is really a powerful motivator (Jex&Britt2008).

Advancement as a motivator indicates the opportunities of being promoted to

higher position, having higher salary and more benefits in the company. Not
all employees share the same advancement motivation, therefore
understanding each employee’s needs and assisting them to reach the
satisfied drivers is also a way to motivating employees (LipmanV2014,
2014)

Growth motivation is quite similar to advancement motivation since it is one

of the motivators that helps retain the employees. However, the definition is
broader and it is not only just about career promotion or better salary and
benefits. Good employees are enthusiastic, eager, determined, and above all,
ambitious. They are always looking for better opportunities to grow, to
acquire more knowledge, to learn new skills, to widen their network, and to
challenge themselves with different positions. Providing and stimulating
employees’ growth motivation is essential method of increasing the level of
motivation (LipmanV2014, 2014)

The work itself is also a contributor to employee motivation. There is a fact

that an employee might absolutely love his or her job, is satisfied with the
pay, and has good relationships with his/her colleagues, but still finds the
work itself completely boring and uninspiring. A happy employee may stay,
but if you really want to motivate the employees, create interesting work and
let them engage with it. This means forming strong work cultures,
encouraging creative thinking and innovation, and especially, avoiding
unhealthy, unequal and impotent working environments.

Additionally, in 2014, the employee engagement firm TINY pulse carried

out a survey “The seven key Trends Impacting Today’s Workplace” which
involved over 200000 employees in more than 500 organizations (Lipman
2014). The aim of the survey was to discover the factors that motivate
employees to excel and go for an extra mile in the organization.

16
Figure3: Motivation factors (TINY pulse Employment Engagement &
Organizational Culture Report 2014)

The results came out were surprising. Money, which often seems to be the
major contributor to motivation, was the seventh on the list. On the contrary,
peer motivation/camaraderie was ranked first (20%), followed by the
intrinsic desire to a good job (17%) and feeling encouraged and recognized
(13%). This result had pointed out the paramount importance and huge
influence of intrinsic motivation towards a person’s viewpoint and
accordingly made concrete the perspective of intrinsic motivator has
surpassed extrinsic motivator.

17
2.4 The importance of motivation on organizational
effectiveness
All organizations, regardless of size, market, and technology, want to be
success- full and maintain a constant progress even in a current highly
competitive environment. In order to achieve those goals and objectives,
strategies must be developed and well-implemented with the effective
utilization of all capable re- sources. A few companies believe that their
employees are an important asset that can lead them to overcome difficulties,
exceed their limits and reach prosperity. In contrast, companies that put their
personnel in the center of the business, main- training a positive and strong
relationship with its employees, persuading them to- wards task fulfillment
are proved to result in higher effectivity and productivity.

However, today, organizations are also facing challenges in employee

retention. Acknowledging the important role of employees and the huge
influence they bring towards organizational effectiveness; companies are
trying to retain employees by creating motivation and a healthier workplace.
This is very important because if the personnel are not focused well, it
associates with a decline in organizations productivity and effectiveness.
Unless and until the employees are motivated and satisfied, an organization
cannot foster to success.

Many researchers have shown that motivated employees perform work better
than demotivated ones. Motivated employees are more innovative as they are
always looking for better ways to complete a task. They are self-direct and
goal-oriented. They can produce high-quality work with more or maximized
efficiency and productivity which also leads to maximization of profits.

Employee motivation has a strong influence on the effectiveness of an

organization (Paul 2017). Organizational effectiveness is a broad term but
this study follows the concept as “locating targets and attaining them
proficiently in spirited and energetic surroundings”. “An effective
organization will make sure that there is a spirit of cooperation and sense of
commitment and satisfaction within the sphere of its influence”. There are no
fixed parameters to compute the effectiveness of an organization since it
varies from company to company and from case to case. However, it can be
used to measure any- thing within an organization, from leadership,
communication, accountability, metric, human performance, to the delivery
systems. In this research, the focus is mainly on human performance,
specifically on the aspect of employees’ motivation. The aim is to prove the
18
 connection and made concrete the idea of employee motivation resulting in
organizational effectiveness.
In summary, motivation is important to both an individual and the
organization. For an individual, motivation is an essential factor that
encourages a person to achieve his/her personal goals. Within an
organization, motivation is said to be a factor that leads to employee
satisfaction. Also, motivation inspires a person to widen his/her knowledge,
to explore and unleash his/her full capabilities and potential.
Correspondingly, from the organizational aspects, motivation leads to a
positive attitude in the workplace, easy adaptation to changes and more
creativity. The more motivated the employees are, the more contribution
they bring, thus the more profitable and successful is the Organization.

2.5 Maslow Hierarchy of Needs

The first theory of motivation which is used as a theoretical base for this
study is Abraham Maslow’s motivation theory. Abraham Harold Maslow
(1908 – 1970) is an American psychologist who is well-known for his theory
of Hierarchy of Needs. The theory illustrates five different stages of human
needs in a hierarchic order, starting from the most basic to the most complex
ones. In a survey “Review of General Psychology” published in 2002,
Maslow was named among the tenth most famous psychologists in the 20th
century. There are some needs that are fundamental to human beings, and
without their existence nothing else matters. We living persons consider
needs as a motivator. We always start with the lowest level of needs and
strive for satisfaction fulfillment; once achieved, we are then looking to
satisfy higher needs. In other words, “a person cannot move to the next level
of needs without satisfying the previous level”.
Maslow’s Hierarchy of Needs is often described in a pyramid shape with the
largest and most elementary levels of need at the bottom, and the need for
self-actualization at the top.

“Maslow used the terms ‘physiological’, ‘safety’, ‘belongings and ‘love’,

‘esteem’, and ‘self-actualization’ to describe the pattern those human
motivations generally move through. The goal of Maslow’s theory is to
attain the highest level of stage: self-actualization needs”. According to
Maslow (Figure 4) (1954), the needs from the basic to the most complex are
listed as follow:

 Physiological needs: breathing, food, water, sex, sleep, homeostasis,

excretion
 Safety needs: security of body, employment, resources, morality, family,
19
 health, and property
 Love and belonging: family, friendship, sexual intimacy,
 Esteem: confidence, achievement, respect of others, respect by others
 Self-actualization: morality, creativity, spontaneity, problem solving, lack
of prejudice, acceptance affects

Figure 4: Maslow’s Hierarchy of Needs (Finkelstein 2006)

The most basic and essential four layers of Maslow’s Hierarchy of Needs
pyramid are called “deficiency needs” or “d-needs”: physiology needs,
safety needs, love and belongings, and esteem. If there is a deficiency on this
level, an individual’s all behaviors will be directed to content the deficits.
Furthermore, if these “d-needs” are not met – with the exception of
physiology needs: a fundamental level of need which must be fulfilled with
satisfaction in the first place the individual will feel nervous and scared. For
example, if you have not slept well or eaten adequately, you will not be
interested in your belonging’s desires. It is suggested by Maslow that the
most essential level of needs must be met and achieved before a person
moving to satisfy higher levels of needs. In addition, the “d-needs” itself
classified into basic needs (including physiological and safety needs) and
psychological needs (including love and belonging and esteem).

The Hierarchy of Needs starts with the lowest level of need: physiology
needs. Physiological needs including vital necessities for human existence
and survival, such as air, water, food, and other living needs. Physiological
20
 needs are considered to be the most important because without satisfying it
first, the desires for other needs are not a matter of concern. Without food, a
human body cannot function well; if you are hungry, all your activities will
be oriented and forced to find food; “employers who pay at least a minimal
living wage will meet these basic employee needs”. Therefore, physiological
needs should be met first. Once an individual’s physiological needs are
achieved and somewhat satisfied, the person drives the desire towards his or
her safety needs. It includes, for instance, the personal security: of body, of
health and wellbeing, of morality, and of family; the job security: of work
opportunity, and of employment; and the financial security: of property, and
of resources. In the world nowadays, it is a concern when the need for safety
is day by day increasing. It is not just about having a place to live, feeling
certain and being free from the threat of danger and pain. People feel unsafe
due to such reasons as natural disaster, war, violence, abuse, or economic
instability. This level is more likely to be appeared in children as they
normally need the feeling of being secured. In organization, “employers can
meet these needs by ensuring employees are safe from physical, verbal or
emotional hazards and have a sense of job security”.

The next level of needs is love and belonging, which be longs to human’s
psychological needs. “Humans need to love and be loved both sexually and
non-sexually by others”. According to Maslow, when an individual’s basic
needs are fulfilled, their need is interpersonal, involvement, and acceptance.
This is the need to be social, to have friends, and relationships. It can be the
involvement in a group of co-employees, clubs, student organization,
hobbies group, or a person’s own gang; or the connections with family, close
friends, colleagues, and neighbors. We cannot deny the important role of
love and belonging needs in human’s life, as there are evidences of people
experiencing from loneliness, anti-socialization, autism or even depression in
the deficient of this element. Respectively, for employers in business aspect,
being able to create a satisfactory reward system and implement
organizational program in which employees are actively take part in can help
fulfill and satisfy these needs of employees.
The fourth level mentioned by Maslow in the Hierarchy of Needs is esteem
needs. “All people in our society have a need or desire for a stable, firmly
based, usually high evaluation of themselves, for self-respect, and for the
esteem of others”. Consequently, this level of needs is categorized into 2
types, which can be defined by the term “self-respect” and “esteem”. Self-
respect refers to “the desire for strength, for achievement, for adequacy, for
mastery and competence for confidence in the face of the world, and for
independence and freedom”. This level is achieved when a person feels
satisfied and enjoyable with what they have completed, like simply by
feeling positively, and living a meaningful, valuable and on-purpose life.
21
 Likewise, esteem portrayed the desire to be accepted and valued by others.
And only by satisfying the “desire for reputation or prestige, status, fame and
glory, dominance, recognition, attention, importance, dignity, or
appreciation” this esteem needs will be fully achieved.
Finally, self-actualization – which is classified as the “being needs” or “b-
needs – is the highest level in Maslow’s Hierarchy of Needs. “What a man
can be, he must be” (Maslow 1954). This level illustrates the need of “to
become everything that one is capable of becoming” to be aware of and
achieve a person’s full potential. In other words, they will try to do
everything to the best of their ability. When a person has reached the state of
self-actualization, they tend to be individualistic, focusing more on
themselves and having a desire to widen knowledge, acquire new skills, take
on new responsibilities, experience more new challenges, and act in a way
that will take them to attain their desired life goals. According to Maslow, in
order to completely achieve this level of needs, an individual must not only
achieve and satisfying the previous needs, but also master them.
To sum up, Maslow’s Hierarchy of Needs can be briefly described up as
follow:

 Humans are influenced and motivated by their personal’s desires,

wants and goals. Only unsatisfied needs motivate, satisfied ones
don’t.
 The needs are organized in hierarchic order based on the priority
order in human’s life, starting from the most basic to the most
complex.
 A person can move to the higher levels of needs only when the
previous lower ones are successfully achieved.
 The higher level of needs a person reaches, the more individuality,
humankind, and well-being a person becomes.

2.6 Herzberg’s two-factor theory

22
 The theoretical study of this thesis continues with Frederik Herzberg’s
motivation theory. Frederick Herzberg’s two-factor theory demonstrated that
human’s behavior is influenced by two sets of factors which are the
satisfaction factor and the dissatisfaction factor. He believes that those

factors result in human motivation and job satisfaction in the workplace and
the absence of them does not cause dissatisfaction but not motivation either.
Based on the theory, Frederik Herzberg also pointed out the two components
which contribute to the state of satisfaction and Dissatisfaction, called
motivator factors and hygiene factors.

Motivator factors, including personal achievement, status, recognition, the work

itself, responsibility, growth, promotion, and opportunity for advancement, are
described as intrinsic factors. The intrinsic factors tend to be in- tangible and
deal with more emotional needs. A typical example of it would be referred to
doing something with interest and enjoyment. The presence of motivator factors
can lead to an increase in motivation, satisfaction and, thus, higher commitment,
but the absence of it will not certainly reduce motivation on the contrary,
hygiene factors, for instances, interpersonal relationships, company policies and
administration, working conditions, quality of supervision, job security, salary,
and wages and other benefits, and work-life balance, are characterized as

23
extrinsic factors. The extrinsic factors are tangible and classified as basic needs
since it refers to doing something for external rewards such as money, fame, or
status. It is opposite to intrinsic factors which influence a person’s behavior by
his or her inner desire and motivation. Also, unlike motivator factors, the
presence of hygiene factors will not motivate, but could avoid dissatisfaction,
however the absence will surely lead to demotivation.

According to Herzberg (1987), there exist a complex connection between

satisfaction and dissatisfaction. They both have a great influence on a person’s
behavior and the state of being satisfied or dissatisfied, however, they are
affected by different factors and proceeded independently of each other. For
example, a person indicates himself/herself as a cause to satisfaction, whilst
blaming the external factors like the situation or environment for resulting in
dissatisfaction.

Nonetheless, the theory is essential to every manager as it marked the

importance of providing hygiene factors sufficiently to the employees as a way
of motivation and so far, somewhat resulted in satisfaction. The absence of
hygiene factors will lead to demotivation however, the presence of it is not
enough to motivate people. Therefore, managers also have to focus on
increasing motivator factors, such as by job enrichment: creating an interesting
job and working environment, giving employee more opportunities for
advancement, to maximize the competences, taking more responsibilities,
experiencing new challenges, and giving employees a praise whenever needed.

24
2.7 Vroom’s Expectancy theory
The last motivation theory chosen as a basement for this study is Vroom’s
expectancy theory. The theory, which was established by Victor H. Vroom
in1964 cited the connection between a person’s effort and motivation with the
expected desired outcomes. It explains the procedure of how a person selects to
perform a set of behaviors over another one, and how the decision made is
related to the goals.

According to Vroom (1964), an individual’s motivation to reach a desired

outcome is determined by the three important components, which are
expectancy, instrumentality, and valence. They can be illustrated in an equated
as show in figure 6:

Figure 6: Vroom’s expectancy theory (Scholl 2002)

The first component in the equation is expectancy, which is defined as a
person’s belief that their effort will resulted in desired outcomes, such as
performance or success. It is also a person’s evaluation of what kind and how
much effort should be put in order to achieve better results or higher
performance. For example, an employee working in the customer services
department believes that if he/she tries harder, the work performance will lead
to customer satisfaction. When the employee has a strong feeling of it and is
aware that he/she is able to accomplish the goal, then he/she will be likely to put
more effort to work. In this way, we say he/she has high expectancy. The
second component – instrumentality – refers to a person’s belief that his/her
performance is linked to later results, such as reward or punishment. For
instance, if a person believes that his/her hard-work will be recognized and
resulted in rewards, he/she is likely to put more effort to work. Finally, valence
component demonstrates a person’s perception about the amount of reward or
punishment received as a result of performance. If a person feels that the reward
or punishment is well-earned with his/her effort and performance, he/she will
put more effort to achieving it.
Force, which indicates a person’s motivation to perform a set of activities, is the
result of the three components. “In general, people will work hard when they
think that it is likely to lead to desired organizational rewards”. “Vroom thought
that people are motivated to work toward a goal if they believe the goal is
25
worthwhile and if they perceived that their efforts will contribute to the
achievement of that goal”.

In short, the theory implies that when a person reaches a high level of all
components in the equation, he/she will be highly motivated and put more effort
into attaining the desired outcome.

26
2.8 Motivation in HRM
Motivation is concerned with getting someone to do something one want or, on
an individual basis, wanting to do something for own self for a particular
reason. For many businesses, the most expensive asset they possess is their
human resources. These resources are hired for the value that they add to a
business – as a result it makes sense to ensure that the business gets the best out
of those resources.
On other words Motivation is to inspire people to work, individuals in such as
to produce best results. It is the willingness to exert high level of effort towards
organizational goals, conditioned by the efforts and ability to satisfy some
individual needs.
An important part of the retention of staff, reducing staff turnover and
minimizing absenteeism at work is ensuring that staff are properly motivated.
The wage should be increased, the facilities should be insured and social
security should be confirmed. These are the types of common motivational
ways.
Staff motivation is the cornerstone of open, flexible and caring management
culture, which the Government aims to establish through HRM.
To put it into practice, “open” means not only to listen to staff suggestions and
opinions, but also to empower staff, accept their constructive criticisms and use
their suggestions.
To be “flexible”, we may need to change the traditional ways of doing things.
As far as staff motivation is concerned, the biggest challenge perhaps is to stop
focusing on problems and the guilty party (police behaviour) and start looking
for those responsible for things gone right (coach behaviour).
“Caring” calls for a human leader who would give emotional support to
individuals and at the same time attend to the overall emotional needs of team
members – which include treating them all in a fair and impartial manner.
Today’s employees want a respect that can be seen as involvedness in decision
that will affect them. Listening to the employees is a way of Motivation. All the
motivation functions focus on one primary goal, to have some competent and
adapted employees with up-to-date skills, knowledge and abilities, exerting high
energy levels.
That’s how we belief that “people are our most important asset”. The basic
principle underpinning motivation is that if employees are led effectively, they
will seek to give of their best voluntarily without the need for control through
rules and sanctions — they will eventually be self-motivating.

27
Maintenance of employees:

To maintain the employees of a company must look after the employee-

Health and safety: For employees health and safety then there is an act called
OSHA (Occupational Safety and Health Act) which assures Assure so far as
possible every working man and woman in the nation safe and healthful
working conditions and to preserve our human resources.
The basic purpose of OSHA is to administer the act and to set and enforce the
safety and health standards and responsible for promulgating legally
enforceable standards. It is said that Employers with 11 or more employees
must maintain records of occupational injuries and illnesses, and report both
occupational injuries and occupational illnesses.

Communication: The communication between the employees and top-level

management should be clear and transparent. There should no gap between top
level management and low-level management.

Employee’s relation: Employees should be committed to their companies and

the companies also should understand the needs and wants of the employees. In
some companies’ employees and labours create labour union for better
relationship among the workers and employees.

28
 Chapter Three: Internship at IFIC Bank
Hathazari Branch, Chattogram

3.1 Organizational Structure: Hathazari BRANCH

Organizational Structure: Hathazari BRANCH

M.O.G. Habibul Islam Chowdhury

[Branch Manager]

Md. Kauser Suman

[Customer Service Manager]

Md. Ahmedullah Siddik

[Operation Manager]

Imdadul Tamanna Md.Abdullah Abul Hasnat

Hoque Chowdhury Al Mizan [Officer]
[Junior [Transaction [Sales
Officer] Officer] Associate]

Nusrat Jahan Mr. Semir Monirul Islam Md. Misbaul

Mim Kanti Dey [Junior Hoque
[Transaction [Officer] Officer] [Transaction
Officer] Officer]

29
3.2 On the job responsibilities
From March1st to April 30th, these three months I had been closely
observed all the general banking tasks done by the officers at the desk.
At different departments, tasks are completely different. Sometimes I
had to talk with the clients face to face, sometimes I had to check the
supplementary details.
As an intern in IFIC Bank Limited Hathazari I had the opportunity to
learn from departments like accounts department, clearing department
and foreign exchange department.
My experience of these jobs in different departments will be discussed in this
chapter.

3.2.1 General Banking Sections in Hathazari branch

i. Accounts Opening Section
ii. Remittance Section
iii. Clearing Department
iv. Cash Department

3.2.2 Account Opening Section:

1. Account Opening Procedure:

Eligibility: Any Bangladeshi citizen can open this account. He/She

must be at least 18 years old and not mentally disturbed. The account
can be opened singly or jointly.
This signatory can be:
a. A person
b. proprietorship/partnership firm
c. limited company (private/public)
d. educational institution
e. club, association
f. socio-economic organization

30
2. Filling a form
At first the applicant has to fill up a form. Depending on applicants’
choice of deposit schemes a form is given to them. They can be
verified by their color. Bottle green savings A/C form, blue DPS A/C
form, green FDR A/C form, orange current A/C form.
3. Nominee
The applicant needs a nominee for his account. If the A/C holder
deceased, the nominee becomes the A/C holder.

4. Referrer

The applicant must have a referrer to open an account in IFIC. The

referrer takes full responsibility that the applicant is good in nature
and will follow all the rules of the bank.

5. Required Documents

 National Id
To verify applicant some documents are needed. For this
national id card is the most relevant source.

 Photo Id
But sometimes the applicant may not have the id card. For that
a photo id from their work place or educational institution is
required. Both the applicant and the nominee require photo id.

 Birth Certificate
Sometimes without any photo id only applicants birth
certificate can be relevant if they have a referrer.

 Photograph
When opening a savings A/C the applicant requires 2 passport
size photo and nominee requires 1 passport size photo. When

31
 opening DPS and FDR, both applicant and nominee each
requires 1 copy of passport size photo.

 For Current A/C

For current account there will be some additional documents
are need. In case of partnership.
 Partnership deed of the firm.
 A duly certified photocopy for records of Bank.
 Copy of trade license.
 Photocopy of TIN paper of applicants.
 In case of limited company.
 Certified copy of the memorandum and articles of
association of the company.
 A duly certified photocopy for Bank’s records) •
Chairman / Managing Directors passport photocopy.
 Photographs of signatories.
 Copy of trade license.
 Corporate resolution.
6. Information gathered
Information gathered from the applicants from both talking face
to face and from the gathered documents. Direct conversation is
very important because the A/C opening officer can identify the
applicants mental state and can collect some of the information
that’s not available in the gathered documents like contact
number.

Also, the A/C opening officer verifies the income source of the
applicant and set the transaction parameter of the A/C.

7. Signing the agreements

The applicants have to sign agreeing the procedures. The
applicant must use that same signature to every transaction with
the bank. If the applicant wants SMS and ATM service, then they
have to sign extra two papers.

32
8. Checking Information
The authorized officer checks all the information given by the
applicant. A/C is opened if all information is correct but any
wrong information leads the officer to call the applicant to
verify, if the applicant not response within a month, then the
officer will not submit the form.

9. A/C Holder
Then the applicant become the A/C holder. Bank then give the
A/C holder one paybook and cheque book. The cheque book
usually comes to the branch after 3 working days from
submitting a form.

33
Chapter Four Motivation and Performance

4.1 Motivation and performance (IFIC Bank Ltd.)

We living persons consider needs as a motivator. We always start with the
lowest level of needs and strive for satisfaction fulfillment; once achieved, we
are then looking to satisfy higher needs. In other words, “a person cannot move
to the next level of needs without satisfying the previous level”.
Motivator factors, including personal achievement, status, recognition, the work
itself, responsibility, growth, promotion, and opportunity for advancement, are
described as intrinsic factors. The intrinsic factors tend to be in- tangible and
deal with more emotional needs. A typical example of it would be referred to
doing something with interest and enjoyment.

IFIC Bank Ltd. sets its goal annually does revision for them and takes monthly
feedback.
 To earn profit for the Bank itself and maximize its shareholder value. To
promote and boost up business sector inside and outside the country.
 To provide solutions for multiple requirements of clients of diverse
financial nature.
 To adopt the new techniques of current financial market.
 To be a diversified bank by offering all basic consumer services along
with specialized services.
 Honest and ethical conduct, including ethical handling of actual or
apparent conflicts of interest between personal and professional
relationship.
 To provide employment opportunities to people.
 To offer loans and advances to help out in self-employment schemes.
 To be a customer focused bank.
 To build sound relationships with top industrial groups and various
multinationals.
 To increase the number of online branches.
 To improve market shares of the bank by increasing ATM network.
 To implement the performance appraisal process to provide motivation
and merit-oriented culture in the bank.
To improve extensive training to the employees in the process,
products, marketing and selling skills.

34
4.2 The Five-Step Training & Development Process

Training program consists of five steps which are given below:

Needs analysis step

IFIC BANK LTD. identifies the specific job performance skills needed,
analyses the skills & needs of the prospective trainees, & develop specific,
measurable knowledge & performance objectives.
Instructional Design:
Here the HR manager of IFIC BANK LTD. decides, compile & produce the
training program content, including workbooks, exercises, & activities.
Validation Step:
In this step the bugs are worked out of the training program by presenting it to a
small representative audience.
Implementation:
Training the targeted employee group.
Evaluation & Follow-up:
In this step management of IFIC BANK LTD. assesses the program’s successes
or failures.

4.3 Wages and salary policy

The bank is giving or following the customary compensation plan. In the
customary compensation plan essential compensation is decide on status
premise. They previously concluded that what pay they will give to their
workers. Compensation given to the representatives as indicated by the pre
characterize grades/scales which is decide by the legislature. The idea pay for
execution isn't follow in the IFIC Bank Ltd. Two kinds of recompenses which
offers to the workers are as per the following:
Specialist Allowance, General Allowance. Except basic salary different special
types of allowances which is related to the post of employee are given to the
employees, for example designation allowance offers to the higher post
employees like (District manager, Branch manager or regional manager).
security key allowance are offers to customer service operational manager.
General type of allowances are offers to every employee of the bank. It includes
medical allowance for (the dependent family members), festival allowance for
(Both Eid’s) or travelling allowance for (Business tours, meeting or trainings
etc.)

35
4.4 Job Scope and Individual pay
Job scope determine on the basis of the job to what extent the job is worthwhile
for the organization not on the basis of personality or other. Individual pay
determines by the bank on the basis or pre define standards or also qualification,
experience of the job, skills of the person, competitiveness of the person or on
the basis of knowledge. Individual pay also depends upon the annual
performance report of the employee which determine how much percentage of
salary should be increase. Salary starts from 25000 increase according to the
service or performance appraisal report.

4.5 Employee Compensation & Benefits in IFIC

BANK LTD.
Employee compensation refers or all forms of pay or rewards going to
employees and arising from their employment. Thus, compensation means what
employee receives in exchange for their work.
Benefits are indirect financial payments given to employees. They may include
health and life insurance, vacation, pension, education plans, and discounts on
company products, or instance (Armstrong1969).

4.5.1 Various Compensation Dimensions of IFIC Bank Ltd.

Limited
 House Rent: IFIC Bank Ltd. provides house rent every month 50% of
his/her basic salary.
 Children’s education facility: IFIC BANK LTD. provides children’s
education fee as every month 20% of his/her basic salary.
 Medical Allowance: Medical allowance provide 10% of basic salary.

4.5.2 Several Types of Paid Leave in IFIC Bank Ltd. Limited

 Sick Leave: Sick leave refers to when employees take time off from
work to attend to the health needs of themselves or their family. IFIC
BANK LTD. provides 15days of sick leave in a year.
 Casual Leave: Casual defines an event or situation that occurs by chance
and without any plan. Casual leave is paid leave and can be typically
availed after the probation period of the employee ends. It is the most
commonly availed leave among the others and can be availed as per

36
 casual leave rules of the company. IFIC BANK LTD. provides 15days of
Casual leave in a year.
 Maternity leave: Maternity Leave is a paid leave/absence from work
provided by an employer to a woman employee for the period before and
after childbirth. IFIC BANK LTD. provides 5 months of Maternity leave
in a year.
 Compensatory leave: Employees who have clocked in more hours than
they were required to can be eligible for compensatory days off. Ensure
that any employee who has put more time in or come to work on days
they were off (like Saturday) are given a compensatory day off. IFIC
BANK LTD. provides 3 days of Casual leave in a year.

4.5.3 Reword System of IFIC BANK LTD.

Every employee wants to hear "good job" from their supervisors. While it
doesn't have to be the employee-of-the-month plaque, a bonus or a raise,
rewarding employees should be on the top of managers to-do list.

Keep employees involved

A disconnect can form between upper management and the rest of the staff. One
of the biggest rifts forms over communication - there may not be enough talking
between the various levels. Employees of IFIC BANK LTD. make sure that
they stay involved with the day-to-day operations of bank branch. Hold regular
meetings, send out frequent emails and loop everyone in on major decisions.

Reward the whole team

When someone does something great at bank, the entire team should feel that
win. In fact, rewards program should have a team-based focus. While highlight
one person's accomplishments, their entire department can reap the reward. This
will increase morale and build unity among staff. Not only that, but they'll also
be more motivated to work hard knowing a team-wide benefit is coming their
way.

Be more flexible
One of the biggest gripes employees have with their jobs is their hours. Few
people actually want to be at work, and oftentimes, personal commitments get
in the way. HR can truly reward his/her staff by being more flexible with hours.

Spice up the work day

Work doesn't have to be bland and boring, even at a bank. There are a number
of ways Hr can have a little fun on the job. For example, HR can relax the dress
code once per week. He/she could also throw a monthly party or create a team-
37
building exercise, like bringing in a family photo and sharing. Work can get
monotonous, and anything Hr do to change that can be seen as a reward.

4.5.4 Cola (Cost-Of-Living Adjustment)

IFIC BANK LTD. have two components of COLA: the CPI-W and the
employer-contracted COLA percentage. CPI determines the rate of inflation
and is compared yearly. When consumer prices drop or if inflation has not
been high enough to substantiate a COLA increase recipient do not receive a
COLA. If there is no CPI-W increase, then there is no COLA increase.

4.5.5 Motivation:
One of the main criteria for effective human resource management is
motivation. For the desired result of any organization, motivating the employees
is very important. So, the IFIC BANK LTD. Ltd. also tries to motivate its
employees. But the bank does not have a standard motivational process. It
motivates only with the help of increment. One thing about this increment is
that it has no specific period. The increments may be annual, semi-annual or
quarterly, depending upon the overall performance of the workers and the bank
itself.
The human resource officer informed us that they believe in McGregor’s
“Theory Y” and emphasize the safety and love need for all employees. So,
besides the increment, the bank sometimes tries to motivate the employees by
full-filling their required needs of the employee. But as it is a centralized
organization, management plays a big role with the administrative department
in determining these motivating factors. The bank is always cautious that all the
hygiene factors are present in the environment and that if the employees are not
motivated, at least they are not de-motivated.

4.5.6 Reward System:

As the bank does not have any specific performance evaluation and appraisal
system it does not provide any standard reward system. If any employee can
really impress the authority by his/her extra-ordinary performance s/he is then
usually financially rewarded, which comparatively has a low effect on the
employee who is in quite a higher level of the organizational ladder. On the
whole, increment is the only reward that the bank uses for motivating or
appreciating its employees.

38
4.5.7 Benefit Package:
Though the IFIC BANK LTD. Ltd. does not have a satisfactory performance
appraisal or reward system, it has a very good benefit package. Firstly, for the
staff level workers the bank provides uniform and its maintenance expenditure
(Officials and managers don’t need any uniform). The bank also has a package
of different types of leaves for all level of employees. The bank provides a
satisfactory annual leave, sick leave and casual leave. The bank has provided
the opportunity for the employees to have extra leave for emergency situation.
Female workers get three months long maternity leave twice in their working
lives in this organization. Besides this leave package the bank provides an
opportunity for the employees to have a provident fund, which the bank and the
employee share equally (5% contributed by both the worker and the employer).
The bank provides “Fringe Benefits” for its executive level employees.

4.5.8 Indirect Compensation for Motivations

Incentive Pay: It includes with Bonus, Commission, Profit sharing, Stock
option etc. When any employee receives these as for their good performance,
they obviously work more efficiently than before (Atom2020).

Provident Fund: IFIC Bank Ltd. provides provident facility. Employees give
10% of their salaries to the provident fund and employers must contribute on
behalf of their employees. The money in the fund is then held and managed by
the government and eventually withdrawn by retirees or, in certain countries,
their surviving families. In some cases, the fund also pays out to the disabled
who cannot work.

Paid Time Off: Paid time off (PTO) is a benefit program offered by many
companies which allows employees to take off for a specific number of days
and still receive compensation. IFIC Bank Ltd. also provide facility to its
employees. This generally includes absences related to vacation, illness or
personal circumstances.

39
Chapter Five Findings & Recommendation

5.1 Findings of the study:

IFIC Bank Ltd. has its own training center. There are on the job and off the job
training techniques in which the bank follows some of that technique, but the
bank cannot arrange off the job techniques which include video and films show.
The bank cannot practice proper IFIC Bank Ltd. guideline. The IFIC Bank Ltd.
has some objectives but the bank cannot all those objectives.
To evaluate employee’s performance IFIC Bank Ltd. cannot evaluate their
employee’s performance properly.
IFIC Bank Ltd. is a truly online bank. Only the case section of the branch is
computerized. Hopefully the management decided to provide computers for
departments, which will bolster services of the bank.
When a join stock comes to open an account, if the company happens to be an
existing one, the banker should demand copies of the balance sheet and profit
and loss account, which will reflect the financial growth of the company and its
soundness.
Officers of the bank are competent even though many of them simply know the
working procedure of what they are doing but don’t know the philosophy
behind doing those.
Project loan requires testing the feasibility of the project and judging the
marketability of the product. It requires infusion of knowledge of both the fields
marketing and banking. But the bank has hardly any officer with this kind of
ability.

40
Frequency Table:

My company provide fair promotion opportunities

Cumulative
Frequency Percent Valid Percent Percent

Valid Strongly Agree 10 100.0 100.0 100.0

Employees are 100% strongly agrees that their company provide fair
promotion opportunities.

Promotion should be based on performance

Cumulative
Frequency Percent Valid Percent Percent

Valid Strongly Agree 10 100.0 100.0 100.0

Employees are 100% strongly agrees that their promotion should be

based on performance
41
 My job is benificial to my career

Cumulative
Frequency Percent Valid Percent Percent

Valid Agree 1 10.0 10.0 10.0

Strongly Agree 9 90.0 90.0 100.0

Total 10 100.0 100.0

Employees are 10% agree & 90% strongly agree with job is beneficial to
their career.

My boss allows me to have my ability fully utilize

Cumulative
Frequency Percent Valid Percent Percent

Valid Agree 5 50.0 50.0 50.0

Strongly Agree 5 50.0 50.0 100.0

Total 10 100.0 100.0

Employees are 50% agree & 50% strongly agree with their boss allows
them to have their ability fully utilize.
42
 Its enjoyable to go to work

Cumulative
Frequency Percent Valid Percent Percent

Valid Agree 4 40.0 40.0 40.0

Strongly Agree 6 60.0 60.0 100.0

Total 10 100.0 100.0

Employees are 40% agree & 60% strongly agree with it’s enjoyable to go
to work.

I have possibility to be promoted in my work

Cumulative
Frequency Percent Valid Percent Percent

Valid Agree 5 50.0 50.0 50.0

Strongly Agree 5 50.0 50.0 100.0

Total 10 100.0 100.0

Employees are 50% agree & 50% strongly agree with they have
possibility to be promoted in their work.
43
 I have possibility to be promoted in my work

Cumulative
Frequency Percent Valid Percent Percent

Valid Agree 3 30.0 30.0 30.0

Strongly Agree 7 70.0 70.0 100.0

Total 10 100.0 100.0

Employees are 30% agree & 70% strongly agree with they have
possibility to be promoted in their work.

I am well aware of the company’s comprehensive goals

Cumulative
Frequency Percent Valid Percent Percent

Valid Strongly Agree 10 100.0 100.0 100.0

Employees are 100% strongly agrees that they are well aware of the
company’s comprehensive goals.
44
 I am satisfying with the working condition

Cumulative
Frequency Percent Valid Percent Percent

Valid Fair 1 10.0 10.0 10.0

Agree 9 90.0 90.0 100.0

Total 10 100.0 100.0

Employees are 10% fair & 90% agree that they are satisfied with the
working condition.

My boss is good communicating information

Cumulative
Frequency Percent Valid Percent Percent

Valid Strongly Agree 10 100.0 100.0 100.0

Employees are 100% strongly agrees that their boss is good in

communicating information.
45
 The company value my sercvice

Cumulative
Frequency Percent Valid Percent Percent

Valid Agree 3 30.0 30.0 30.0

Strongly Agree 7 70.0 70.0 100.0

Total 10 100.0 100.0

Employees are 30% agree & 70% strongly agrees that their company
value their service.

My boss is good communicating information

Cumulative
Frequency Percent Valid Percent Percent

Valid Strongly Agree 10 100.0 100.0 100.0

Employees are 100% strongly agrees that their boss is good in

communicating information.
46
 I am happy with my salary

Cumulative
Frequency Percent Valid Percent Percent

Valid Fair 5 50.0 50.0 50.0

Agree 4 40.0 40.0 90.0

Strongly Agree 1 10.0 10.0 100.0

Total 10 100.0 100.0

Employees are 50% fair, 40% agree & 10% strongly agrees that they are
happy with their salary.

I know how my success was measured

Cumulative
Frequency Percent Valid Percent Percent

Valid Strongly Agree 10 100.0 100.0 100.0

Employees are 100% strongly agrees that they know how their success
was measured.
47
 Bonuses should not be part of the company policy

Cumulative
Frequency Percent Valid Percent Percent

Valid Strongly Disagree 10 100.0 100.0 100.0

Employees are 100% strongly disagrees that bonuses should not be part
of the company policy.

My boss recognize the extra effort i put at work

Cumulative
Frequency Percent Valid Percent Percent

Valid Fair 4 40.0 40.0 40.0

Agree 6 60.0 60.0 100.0

Total 10 100.0 100.0

Employees are 40% fair & 60% agrees that their boss recognize the extra
effort they put at work.
48
 Rewards should be based on performance

Cumulative
Frequency Percent Valid Percent Percent

Valid Agree 1 10.0 10.0 10.0

Strongly Agree 9 90.0 90.0 100.0

Total 10 100.0 100.0

Employees are 10% agree & 90% strongly agrees that rewards should be
based on performance.

49
5.2 Recommendations:
 The bank should practice proper IFIC Bank Ltd. guideline. The purpose
of Human Resource Management is to improve the productive
contribution of people.
 To get effective and efficient employee, the bank should arrange proper
training and development programs.
 The entire HR department should be will informed regarding the
employment personal.
 Employee’s development is needed for the own interest of the bank.
 The bank should provide well direct compensation as well as direct to its
staffs. The bank should have job evaluated salary structure, which is most
competitive than other banks in the country.
 To evaluate employee’s performance the bank should follow promotion
policy properly.
 In order to get competitive advantage and to deliver quality service, top
management should try to modify the services.
 IFIC Bank Ltd. Limited needs to advertise through various Media about,
 Credit Cards
 ATM Cards
 Tele Banking &
 Other Product & Services
 Letter of Credit opening procedure and Margin requirement may be
relaxed to the qualified employees to keep motivating.
 Periodical performance appraisal and giving recognition and rewards to
the qualified employees to keep motivating them.
 Proper training needed for ensuring efficient performance of the
employees.


50
 References
1873, M. W. (n.d.). Merriam-Webster Dictionary. 1873. Motivation. Accessed
3.9.2017. Retrieved from
https://www.merriam-webster.com/dictionary/motivation
Armstrong1969. (n.d.). Retrieved from https://assignmentpoint.com/internship-
report-on-general-banking-of-ific-bank/
Atom2020. (n.d.). Retrieved from
https://www.academia.edu/11584242/Internship_Report_on_Financial_P
erformance_Analysis_Of_IFIC_Bank_Limited
bout. (2021). About. (IFIC, Ed.) Bangladesh, BD, Bangladesh: IFIC. Retrieved
from https://www.ificbank.com.bd/aboutus
Dewani2017. (n.d.). Dewani, V. Motivation. slideshare. Accessed 3.9.2017.
Retrieved from https://www.slideshare.net/vijaydewani7/motivation-
15959567
Elliot1999. (n.d.). Elliot, A. J. & McGregor, H. A. 1999. Test anxiety and the
hierarchical model of approach and avoidance achievement motivation.
Journal of Personality and So- cial Psychology, 76, 628-644.
Glesson2016. (n.d.). Gleeson, B. 2016. The Best Ways to Motivate Employees
and Get Results. Ac- cessed 3.9.2017.
https://www.forbes.com/sites/brentgleeson/2016/11/30/the-best- ways-to-
motivate-employees-and-get-results/2/#6eb685273035. Retrieved from
https://www.forbes.com/sites/brentgleeson/2016/11/30/the-best- ways-to-
motivate-employees-and-get-results/2/#6eb685273035
GOOGLE. (n.d.). Retrieved from https://www.google.com/
Herzberg, F. (n.d.). Herzberg, F. 1965. The motivation to work among Finnish
supervisors. (Personnel Psychology, 18, 393–402. ed.).
Jex&Britt2008. (n.d.). Jex, S. & Britt, T. 2008. Organizational Psychology: A
scientist-practitioner ap- proach. Hoboken, NJ. John Wiley & Sons, Inc.
Jones2008. (n.d.). Jones, G. R. & George, J. M. 2008. Contemporary
Management. McGraw-Hill Education.
Judge2013, R. &. (n.d.). Robbins, S. P. & Judge, T. A. 2013. Organizational
Behaviour. Boston. Pearson Education, Inc.
Kaplan&Norton. (1992). Kaplan, R. S. & Norton, D. P. 1992. Measures that
drive performance. Harvard Business Review, 70, 92-100.
Korth2007. (n.d.). Korth, M. 2007. Maslow - Move Aside! A Heuristical
Motivation Model for Leaders in Career and Technical Education.
Journal of industrial teacher educa- tion, 5-36.
LipmanV2014. (2014). Lipman, V. 2014. New Study Answers: What Motivates
Employees to “Go the Extra Miles?”. Accessed 3.9.2017. New Study
Answers: What Motivates Employees to “Go the Extra Miles?”. Accessed
3.9.2017.

51
Moran2013. (n.d.). Moran, B. B. 2013. Library and Information Center
Management. Santa Barbara, CA. Libraries Unlimited.
Nevid2013. (n.d.). Nevid, J. S. 2013. Psychology: Concepts and Applications.
Belmont, CA. Wadsworth CengageLearning.
Ryan2000. (2000). Ryan, R. M., Deci, E. L. 2000. Self-determination theory and
the facilitation of intrinsic motivation, social development, and well-
being. American Psycholo- gist. 55, 1, 68–78.Doi:10.1037/0003-
066X.55.1.68. American Psycholo- gist. 55, 1, 68–78.Doi:10.1037/0003-
066X.55.1.68.
Scholar. (n.d.). Retrieved from https://scholar.google.com/
Thomas&Velthouse1990. (1990). Thomas, K. W. & Velthouse, B. A. 1990.
Cognitive elements of empowerment: An ‘‘interpretive’’ model of
intrinsic task motivation. Academy of Management Review, 15, 666–
681.

52