Internship Report in Janata Bank Limited

November 5, 2017 Commerce

1. 1 Origin of the Report Internship Program is a partial requirement for acquiring MBA degree in Dhaka University. Before completion of the degree, a student must undergo the Internship Program. Internship program is a perfect bridge to match the gap between theoretical and practical knowledge. Only curriculum activity is not sufficient to handle the real business situation. So, it is an urge to arrange an internship program. This program consists of at least there phases: ?Orientation with the organization ?Completing the project work ?Writing the report

Internship report on Human Resources Management Practices in Janata Bank has been supervised by Dr. Md. Nazmul Karim Chowdhury, Professor, department of Management studies, University of Dhaka. 1. 2 Background of the Report : Any academic course of study has a great value when it has partial application in real life. Only a lot of theoretical knowledge will be little important unless it is applicable in practice life. So we need proper application of our knowledge to get some benefit from out theoretical knowledge to make it more fruitful. Banking plays a pivotal role in the evelopment process of a country. It helps to accelerate the process of development by securing uninterrupted supply of financial resources to people engaged in numerous economic activities. As the world is becoming abridged due to increasing innovation of modem technology, people are experiencing radical changes. The demand for better service increases as the banking organizations are 1 coming with innovative ideas. In order to survive in the tremendously competitive market, all the banking organizations are trying to provide better opportunities to their client. As the life very much risky in the eality, it is very difficult to bear cash money now a day, without taking the help of banking sector it is quite impossible to deal with the day-to-day busy business. 1. 3 Objectives of the report: General objectives: 1. The general objective of the report is to know about the management system of Janata Bank as a public commercial bank, its formation, and its functional, operational, and financial aspects. 2. To know the background of the organization is another objective. Project Objectives: 1. The project objective of the report is to provide a clear awareness bout HRM practices in Janata Bank . 2. It aims at identifying the problems and prospects of HRM practices in Janata bank and to make some suggestions to improve the service of HRM practices. 1. 4 Scope of the study Human resource management practices in Janata bank covers a wide scope. Here an overview of Janata Bank is done, discuses about recruitment and selection procures, compensation, training and development performance appraisal and promotion policy. Finally find out some drawbacks of existing practices and the recommendation for improving that are also done. 2 1. 5 Methodology:

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To make the report more meaningful and presentable, two sources of data and information have been used widely: ?Primary Data. ?Secondary Data. The ‘Primary Sources’ are as follows: ?Face-to-face conversation with the respective officers and staffs and staffs of the branch. ?Informal conversation with the clients. ?Personal diary (That contains every day experience in bank while undergoing practical orientation). The ‘Secondary Sources’ of data and information are as follows: ?Annual reports of Janata Bank. ?Study of the relevant files as instructed by the offices concerned. ?Periodicals published by Bangladesh Bank. Various books, articles, ?The web site of the Bank ?New papers ?Banks internal records. 1. 6 Limitations: The study is constrained with several limitations. Some of these limitations are:- ?The employees of the Janata Bank remains so much busy with their own work that it is quite tough to provide time for making concept clear in a particular area. 3 ?Lack of knowledge, experience and expertise in banking field that’s why it becomes hard to understand each and everything during my practical orientation program. ?The time limit of the internship program is a big limitation, because his is a very short span of time to make an extensive report on the total banking activities, which consists of various things. ? Janata Bank authority is not cooperative manner. They confused me and never show any interest to me about that matter. ?Scope of my study is so wide that analytical and comprehensive study is not possible. 4 2. 1 History of Janata Bank: Janata Bank has been operating since its inception in 1972 both in Bangladesh and overseas. Janata Bank has been playing a significant role in the economic development of the country by mobilizing savings nd channelizing funds into different productive sectors. It is also a major player in the fields of micro-credit and software development. Janata Bank, the second largest commercial Bank in Bangladesh. Immediately after the emergence of Bangladesh in 1971, the erstwhile United Bank Limited and Union Bank Limited were nationalized and renamed as Janata Bank. ?Janata Bank operates through 847 branches ?The Bank employs more than fifteen thousand persons. ?The mission of the bank is to actively participate in the socio- conomic development of the nation by operating a commercially sound banking organization, providing credit to viable borrowers, efficiently delivered and competitively priced, simultaneously protecting depositors funds and providing a satisfactory return on equity to the owners. ?The Board of Directors is composed of 7 (seven) members headed by a Chairman. The Directors are representatives from both public and private sectors. ?The Bank is headed by the Managing Director (Chief Executive), who is a reputed banker. The corporate head office is located at Dhaka with 32 (thirty two)

Divisions. 5 2. 2 Area of Janata Bank 6 Hierarchy of management Board Of Directors Managing Directors Deputy Managing Directors General Manager Deputy General Manager Assistant General Manager Senior Principal Officer Principal Officer Senior Officer Officer 2. 3 Vision and mission of Janata Bank The vision of Janata Bank is to be the financial giant in Bangladesh and mission is to be the Largest, strongest, innovative and service engineering commercial bank. 7 2. 4 Number of Offices and Branches: SL. Name No. 01. Divisions of Head Office 32 02. Divisional Office 5 03. Area Office 15 04.

Regional Office 31 05. Chief Executive’s Office (Abu Dhabi) 1 06. Branches in Bangladesh 843 07. Rural Branches 426 08. Urban Branches 417 09. Overseas Branches 4 Total Branches: 847 Number of Branches SL. Name No. 01 Local Office 1 08. Corporate-1 Branch 10 09. Corporate-1 Branch 39 10. Grade-1 Branch 189 11. Grade-2 Branch 182 12. Grade-3 Branch 323 13. Grade-4 Branch 103 Total: 847 Others Offices Name No. Computer Labs 3 Training Institute/Centers 3 Manpower 15705 ?Janata Bank offers all the major banking facilities and services to its customers. ?The Bank with it’s network spreading throughout the country has a nique feature of plugging back savings from those places and then investing them into different loan portfolios. 8 ?To modernize banking operation, 47 major branches of Janata Bank have already been computerized and a massive computerization program is on. ?Within a short span of time all the major urban branches of the Bank will be fully computerized. Janata Bank has been financing Small and Medium Enterprises with a view to developing a balanced and dynamic industrial sector having a strong base of SMEs throughout the country. ?Besides normal financing special tailor-made programs are ndertaken by the Bank ?Under this program a credit line has been extended to MIDAS while another program is under way 2. 5 Financial & Operational Status: Financial and operational status: 2000-2004 Taka in Million 9 Particulars 2000 2001 20002 2003 2004 Authorized capital 8000 8000 8000 8000 8000 Paid up capital 2594 2594 2594 2594 2594 Reserve fund 539. 70 548 558. 60 547. 37 1293 Deposits 104678 125066. 40 138892. 60 138597 151036 Advance 80952. 90 93293. 90 99748. 70 101461. 90 107786 Investment 20559. 60 20455. 80 29718. 60 22821. 80 28375 Revenue 9207 9703. 30 10990 11518. 40 10934. 50 Cost 9195. 80 9692. 10 9750. 0 9397. 50 8621. 60 Operating profit 831. 20 402. 50 1239. 80 2120. 90 2312. 90 Provision for loans/assets 820 391. 30 1225 2100 2180. 40 Net profit 11. 20 11. 20 14. 80 20. 90 – Export 30780 32387. 70 34454. 60 42865 54623. 30 Foreign funds 48004. 80 54666. 30 58889. 10 60475 74920 Total number of employees 16947 16692 16330 15993 15705 No. of foreign correspondent 1209 1274 1062 1100 1120 No. of branches 898 900 870 847 847 10 2. 6 Performance of Janata Bank Janata Bank is the second largest commercial bank in Bangladesh. The aim of the bank is to actively participate in the socio-economic evelopment of the nation by operating a commercially sound banking system. It provides credit to deserving borrowers and at the same time protect depositor’s interest. Operating profit & advances increased by 9 % & 6% respectively over the last year. 2. 6. 1 Deposit & Deposit mix Break-up of deposit & deposit mix Taka in million Type As on 31-12-2004 As on 31-12-2003 Current & others account deposits 22378 19672 Bill payable 1141 913 Savings bank deposit 48354 44110 Term deposit 79163 73902 Total 151036 138597 2. 6. 2 Investments 11 Janata Bank follows the portfolio investment. Portfolio wise investment is described below:

Taka in million Particulars 2004 2003 Treasury bill 16450. 00 10390. 00 Other bonds 11057. 20 11512. 00 Debentures 682. 30 726. 00 Shares 185. 50 194. 00 Total 28375. 00 22822. 00 Percentage wise investments of 2004 2. 6. 3 Loans and advances Following the guidelines of Bangladesh Bank, credit facilities have been extended to productive and priority sectors. The outstanding advance of the bank is Tk. 107785. 8 million on 31st December 2004. In extending credit facilities, the Bank has given due importance to sectoral needs and requirements of both public and private sectors. Sector wise advance are shown below:- Taka in million

Name of sector Public Private Total % Portfolio investment 58% 39% 2% 1% 3% Treasury bill Other bonds Debentures Shares 12 Jute sector 5516. 5 2981. 0 8497. 5 8% Textile, Ind. & Trade 737. 3 2863. 5 3600. 8 3% Steel & Engineering 804. 8 193. 7 998. 5 1% Food & Allied 1470. 3 1200. 7 2671. 0 2% Export credit 12949. 6 12949. 6 12% Import credit 8294. 3 7849. 3 16143. 6 15% Industrial credit 13819. 3 13819. 3 13% Rural, ME & SP. Financing 72. 5 12239. 6 12312. 1 12% Housing 17. 6 7346. 2 7363. 8 7% Others 459. 9 28969. 7 29429. 6 27% Total 17373. 2 90412. 6 107785. 8 100% 2. 6. 4 Rural credit, micro Ent. & special program financing

As a nationalized bank it has a social responsibility to improve the financial condition of the poor/unemployed people. With a view to perform that social responsibility, bank has initiated rural credit program since 1974. Now under this rural credit portfolio there are 33 products. Information related to important products under this program is shown below:- Name of products No. of loanees Outstanding Taka-2004 % Cyber-cafe Loan 36 8. 60 . 07% Credit for forestry/ 663 14. 80 . 12% 13 horticulture/nursery Credit program for employees 52167 799. 50 6. 49% Financing women entrepreneurship 16 39. 80 . 32% Financing goat and sheep farming 11984 80. 70 . 66% Gharoa project 2321 35. 40 . 29% Crop loan program 346591 4481. 00 36. 40% Doctor’s loan 53 19. 80 . 16% Small business development loan 47 10. 20 . 08% Others 263096 6822. 30 55. 41% Total 677174 12312. 30 100% 2. 6. 5 Foreign exchange and foreign trade The performance of foreign exchange and foreign trade business is shown below marked an increase over the last year. Taka in million Particulars 2004 2003 Increased Import 74919. 70 60475. 00 14444. 70 Export 54623. 30 42865. 00 11758. 30 Foreign remittance 24330. 80 21384. 00 2946. 80

Major items were Readymade Garments, Shrimps, Tea and non-traditional items. Import remained confined mainly to consumer goods, capital machineries and industrial raw materials. Foreign exchange and foreign trade are shown by a bar-chart 14 2. 6. 6 Budget of Janata Bank Revenue budget of Janata Bank is shown by a chart in below:- Taka in million No. Particulars 2004 2003 Budget Actual Budget Actual 01 Intt. Income 7420. 00 7398. 60 8200. 00 7928. 70 02 Intt. Expenditure 5305. 00 5519. 90 6775. 00 6415. 80 03 Intt. Margin (1-2) 2115. 00 1878. 70 1425. 00 1512. 90 04 Investment income including ther income 3473. 00 3670. 00 3992. 10 3692. 50 05 Total operating income (3+4) 5588. 00 5588. 00 5417. 10 5205. 40 06 Salaries & Allowances 2372. 00 2320. 50 2443. 30 2237. 20 07 Fixed Cost 447. 50 474. 80 480. 50 414. 10 08 Variable Cost 461. 50 440. 40 493. 00 433. 30 09 Total Operating Cost (6+7+8) 3281. 00 3235. 70 3416. 80 3084. 60 10 Operating Profit (5-9) 2307. 00 2313. 00 2000. 30 2120. 80 Capital budget of Janata Bank is shown by a chart in below:- Taka in million No. Particulars 2004 2003 Budget Actual Budget Actual 01 Receipt 2886. 30 3021. 35 1177. 70 1177. 70 02 Expenditure 935. 20 461. 93 836. 90 869. 0 0 20000 40000 60000 80000 Taka in million 2004 2003 Year Foreign exchange and Foreign Trade Import Export Foreign RE. 15 2. 6. 7 Profit Profit of Janata Bank is shown in below Taka in million Particulars 2004 2003 Operating profit 2312. 90 2120. 90 Pre tax net profit – 20. 90 Distribution of net profit: Transferred to reserve fund – 15. 80 Transferred to benevolent fund – 3. 10 Transferred to insurance fund – 2. 00 2. 6. 8 Information technology of Janata Bank ?Computerized 103 important branches with one stop services. ?Successfully implemented the banking application software named “JB Soft Banking”.

Other important in house developed application software(s) are functioning smoothly. Beside, above Branch Banking Software of four different vendors’ are also being used by the bank. Introduced internet Banking, SWIFT, ATM, POS, and EFT facilities. 16 3. 1 Meaning of Recruitment and Selection Recruitment is defined as searching for and obtaining potential job candidates in sufficient numbers and quality so that organization can select the most appropriate people to fill its needs while selection is the process of gathering information for the purposes of evaluating and eciding whom should be employed in particular jobs. 3. 2 General Recruitment and Selection Process 17 Finding out vacancy either replacement or new creation Job analysis Leads to the writing of a job description and a person specification Attracting a field Applicant’s choice of appropriate field Short listing Shorting out candidates by comparing Applications Selection By interview and/or by tests Offer and acceptance A contract of employment given to the successful candidate Induction Of the new recruitment into the organization Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6 Stage 7 RecruitmentSelection

Typical Personnel Selection Collection of CV Screening Employment Test Interview Medical Examination Hiring Decision 18 3. 3 Recruitment and Selection Process of Janata Bank Janata Bank is one the public commercial bank in Bangladesh. There is no own recruitment and selection policy. Janata Bank follows recruitment and selection policy of Bangladesh bank (BB). BB is used advertisement in the media, notice board, educational institution recommendation, professional association etc as the sources of recruitment. BB is mainly preferred advertisement in the media sources uch as the daily Newspapers. The candidates should be Bangladeshi citizen, minimum 18 years of old and physically fit for the job. Method of appointment-appointment to the posts of officers and other employees shall be made by direct recruitment or by promotion. Besides these, there are following important recruitment principles of BB. ?Recruiting qualified personnel ?Not to be influenced by other opportunities ?Equal employment opportunities. Generally selection is the process of choosing right person in the right job. For selecting new employees BB is using following selection steps: ?Initial screening test Written employment test ?Preliminary interview ?Interview by the board of directors ?Background investigations and reference check ?Finally, selection and placement. For the purpose of selecting new employees BB examine- a) The cognitive ability b) Physical ability c) Measure personally and interests d) Finally, work samples test 19 BB mainly uses unstructured interview, job related interview, and panel interview for the interviewing the interviewees. The organization normally appoints some consultants for interviewing the job applicants, but the managing director and the board of directors take the final decision of election. In the process of selecting new employees, BB faces some problems. The most important problems are:- ?A large number of applicants ?Lack of specialized personnel ?Political pressure ?Union pressure ?Nepotism Commence of service – The service under the bank shall commerce form the working day on which an employee reports for duty at the place and time intimated to him by the competent authority if he report before noon and form the next working day if he reports in the afternoon. Agreements, etc. – An employee entering the service of the bank, at the time of his ppointment, sign agreements in the form specified by the bank. Assignment of duty- An employee may be assigned such duties as may be determined in each cases or class of cases form time to time. An employee may be required to serve at any time and in any place in Bangladesh. Confirmation – In the case of direct recruitment to any post, the period of probation shall be two years in case of an officer and one year in case of other employees. Confirmation of a direct recruit to any post shall be made by 20 the board and based on the results of such departmental examinations s the board may decide, annual confidential reports and other service records. A direct recruit shall be confirmed in his post from the date of appointment if has successfully completed the period of probation within two years or one years, as the may be, and form such other date as the board or the managing director, as the case may be, may deem proper, if the period of probation is extended beyond two years and on year, s the case may be. The confirmation of a direct recruit shall take effect from the date as specified in the order of confirmation. 21 4. 1 Define training and development

Training is used to indicate any process by which the aptitudes, skills and abilities of employees to perform specific jobs are increased. Training to new employees is important for the reason that they need to acquire basic skills related to the particular job in which he is employed and development means aims to increase abilities in relation to some future position or job-usually management. 4. 2 Objectives of training Like every organization, Janata Bank and the employees or human resources of this organization have some objectives. The organizational nd individual objectives are complementary. So a training program is directed toward the accomplishment of both organizational and individual objectives. We can classify the objectives in two major headings. 4. 3 Objectives of training related to Bank ?Achieving efficiency in operation. ?Improving knowledge on new method. ?Informing the banking policy. ?Providing knowledge on bank-customer relationship. ?Change of attitude toward the job. ?Reduction of employee turn-over. ?Improving quality of work. ?Increasing productivity. ?Reduced operating cost. Objectives of training related to individual. Reducing inherent fear about job. 22 ?Prevention of obsolescence. ?Change of behavior. ?Personal growth. 4. 4 Methods of Training used by Janata Bank Methods are the ways through which employees are trained. Janata Bank uses several methods of training depending on the situation and training objectives. However, the methods of training can primarily classify into two types. 1. On the job Training: On the job training is normally given by a senior employee or manager on the job site. The employee is shown how to perform the job and is allowed to do it under trainer’s supervision.

The various forms of on the job training include the following: Job rotation Job rotation is also called cross-training method. This method requires an individual to learn several different jobs in a work unit or department and perform each for a specified time period. The major advantage of job rotation is that it makes flexibility possible in the department. So when a member of a work unit is absent, another can perform the job. Apprenticeship training Apprenticeship training is a system in which an employee is given instruction by more experienced employee or employees in all the ractical and theoretical aspects of the work required in a skilled occupation. 23 Coaching Coaching is similar to apprenticeships because the coach attempts to provide a model for the trainee to copy. It tends to be less formal than an apprenticeship training program because there are few formal classroom sessions and coaching is provided when needed rather than as part of a carefully planned program. 2. off the job training: Off the job training is usually given at a place not necessarily to the job site and tends to rely more heavily on communications than on the odeling approach used in on the job programs. The various techniques of off-the job training include the following: ?Class room training Classroom training is the most familiar off-the job training method. It is a lecturing method of training useful for quickly imparting information to large groups with little or no knowledge of the subject. ?Video presentation Television, films and slides presentation are similar to lectures and are very useful to train the new incumbents. ?Behavior modeling Modeling is one of the fundamental psychological processes by which new existing patterns can be altered. ?Case study

By studying case situations trainees learn about real or hypothetical circumstances and the actions others take under those circumstances. Trainees can develop decision making skills from this approach. 24 4. 5 Training institutes of Janata Bank Janata Bank training institution was established in September 1977. Since then, institute has been conducting various types of training programs on different banking affairs in order to develop knowledge, skill, and attitude of the employees of bank. This institute has two other training centers situated at Rajshahi and Comilla. 4. . 1 Objectives of Training Institutes The major objectives are:- ?To enrich both theoretical and practical knowledge in banking and also developing managerial skills of the employees of bank. ?To impact training programs based on day-to-day banking needs. ?To develop new training programs for achieving organizational goals. ?To raise the standard of performance of the work force employed in the bank. 4. 5. 2 Activities of JBTI, Dhaka Officers/staff trained since it’s inception Year No. of officers’/staff Year No. of officers’/staff 1977 140 1991 1007 19978 512 1992 1128 1979 685 1993 1227 1980 576 1994 1030 981 819 1995 838 1982 756 1996 1271 1983 669 1997 2750 1984 852 1998 1503 1985 1244 1999 1345 1986 1321 2000 3143 1987 915 2001 2165 1988 555 2002 1733 1989 630 2003 3572 1990 772 2004 2688 Figure: Officers/staff trained since it’s inception Source: Annual course calendar 2005 25 Figure: Officers/staff trained Source: Annual course calendar 2005 Course summary for the year 2005 Training institute: Dhaka 1. General Courses for the training institute Dhaka. A-I General Course Title Duration Frequency Participants 1 Managers’ induction course 40 2 50 2 Foundation course for probationary officer 30 3 75 3 Credit management course 15 2 50 Industrial credit & project financing course 15 1 25 5 International trade finance (export & import) 21 4 100 6 Credit risk analysis course 12 2 50 7 Rural credit & micro finance course 6 4 100 8 Faculty development course 3 1 25 9 Internal control, audit & inspection course 6 3 75 10 Banking laws 9 1 25 11 Human resource management course 6 1 25 Total 24 600 0 1000 2000 3000 4000 Num ber of empl oyee s 2000 2001 20022003 2004 Year Trained offices/staff Trained offices/staff 26 2. Short courses A-II Short courses Duration Frequency participants 1 Managing core risks in banking 4 2 50 2 Management of non-performing assets 3 4 100 Disciplinary and appeal 3 1 25 4 Documentation of loans & advances 2 2 50 5 Disputes in foreign trade 3 2 50 6 Regulation in foreign trade payment (ICC rules) 3 2 50 7 Reporting on foreign trade transactions 2 2 50 8 Prevention of fraud, forgeries & malpractices 3 2 50 9 Fund management 2 2 50 10 Women entrepreneurship development 2 1 25 11 Foreign remittance & anti-money laundering course 2 2 50 Total 22 550 3. Executive courses A-III Executive course Duration Frequency Participants 1 Executive development course (evening) Dhaka. 5 1 25 2 Executive development course (outside Dhaka ) 3 3 75 3 Managing core risks in banking 3 3 75 Course of lease financing, merchant banking, factoring and securitization 3 2 50 5 E-commerce & E-banking 1 1 25 6 Relationship banking 1 1 25 7 Special session 1 2 60 Total 13 335 27 4. Refreshers (outreach course) Dhaka & outside Dhaka A-IV Refreshers (outreach course) Dhaka & outside Dhaka Duration Frequency Participants 1 Managing core risks in banking 3 8 240 2 Recovery of stick-up advances & management of court cases 2 8 240 3 Financing in small & micro enterprise 2 4 120 4 Customer service development 2 3 90 5 CIB reporting 2 2 60 6 Disputes in foreign trade 2 1 30 7 Documentation of loans & advances 2 3 90 Foreign remittance & anti-money laundering course 2 2 60 Sub-Total 31 930 Total (AI+AII+AIII+AIV) 90 2415 5. Computer course A-V Computer course Duration Frequency Participants 1 Executive (outside Dhaka) training course 4 2 40 2 Basic computer course 15 4 80 3 Computer orientation, LAN and software maintenance course 5 5 100 4 Audit & inspection for computerized branches 6 2 40 5 MIS software and yearly closing 3 5 100 6 Users training on customized software 10 2 40 Total 20 400 28 6. Computer course (IT division lab) A-VI Computer course (IT division lab) Duration Frequency Participants 1 Basic computer course 15 2 40 Users’ training for customized software 18 1 20 3 Hardware maintenance, trouble shooting & networking 12 2 40 4 Refreshers’ course on customized software 10 1 20 5 Banking application software 10 10 200 6 Executive training course (evening) 8 1 20 7 Trainer’s training 15 1 20 Total 18 380 Computer training total 38 760 Total (AI+AII+AIII+AIV+AV+AVI) 128 3175 Activities of JBTI, Rajshahi Janata Bank training centre, Rajshahi was established in 1982 with a view to provide training facilities for the enlistment of work standard of the officers and the staff of the North & Western region of the Bank. Activities of JBTI, Comilla

Janata Bank training centre, Comilla was established in 1987 with a view to provide training facilities for developing the work standard of the staff & the officers of Janata Bank who are working in Chittagong and Sylhet Divisions. Course summary -2005 Location No. of course/Ref. course/workshop/seminar No. of participants JBTI, Dhaka 128 3175 JBTI, Rajshahi 42 1020 JBTI, Comilla 30 690 Total 200 4885 Course summary shown by a bar-chart 29 Human resource development: As a part of the continuous development of existing Human Resources Janata Bank through its three training institutes conducted 178 training ourses during the year 2004 imparted training to 4037 executives, officers and staff which is about 26% of the total manpower. It may be mentioned that to build up a group of well trained and skilled managers in Bank, training program named “Managers Induction Course” of 52 working days has been introduced. Besides these, some special training Programs viz. “Credit Risk Management”, “Asset Liability Risk Management”, “Foreign Exchange Risk Management”, “Internal Control & Compliance Risk Management”, and “Anti Money Laundering” courses are being held under the program f “Managing Core Risk Banking” introduced by Bangladesh Bank along with other training courses. 0 1000 2000 3000 4000 Dhaka Rajshahi Comilla Location course summary 2005 No. of course Nol. Of participants Number of participate 30 5. 1 Compensation and benefits Employee compensation refers or all forms of pay or rewards going to employees and arising from their employment. Thus compensation means what employee receive in exchange for their work. Benefits are indirect financial payments given to employees. They may include health and life insurance, vacation, pension, education plans, nd discounts on company products, or instance. 5. 2 Various compensation dimensions of Janata Bank ?House Rent ?Leave with Pay (staff) ?Children’s education facility ?Home furnishing allowances (MD) ?House loan ?Sick leave ?Materiality leave ?Ordinary leave 5. 3 Several Types of Leave in Janata Bank ?Ordinary leave (with full payment) ?Leave on half pay ?Advance leave ?Leave without pay ?Special disability leave ?Study leave ?Quarantine leave ?Maternity leave ?Casual leave 31 5. 4 Pay scales of Janata Bank Janata Bank has no pay scales for its own employee’s . It follows the pay structured of Bangladesh Govt. 5. Compensation Principles of Janata Bank There is a Welfare Trust in Janata Bank. The compensation is determined according to the nature of case. It is determined by the committee. 5. 6 Welfare Section Janata Bank considers all types of welfare of the employee regarding are: ?Treatment if any personnel suffer Janata bank has been providing treatment facilities for it personnel’s. There are two doctors for the employees in head office. For example, if any body needs open heart surgery he/she will get Tk 50000 to 100000. He/she will get set rent as government rate. ?Scholarship of staff’s son/ boy Transportation facilities ?Bonus at time of Eid/ Puja etc. ?Insurance facilities of JB personnel Title Amount in TK Guard 50000 Officer 100000 Senior Officer 200000 Figure: insurance facilities of JB personnel Source: welfare Division 32 Allowances Calculations Pension Tables Pension able Year of Job Amount of pensions 10 32% 11 35% 12 38% 13 42% 14 45% 15 48% 16 51% 17 54% 18 58% 19 61% 20 64% 21 67% 22 70% 23 74% 24 77% 25+ 80% 6 months or above is treated as one year 3 months or above is treated as one year Government pension and allowance calculations ?An employee is eligible for pension after completing 10 years of obs ?If the pension able job period is less than 3 years then he will not be eligible for pension/ allowances ?But the period is more than 3 years but less than 5year then he will get 3 months salary ?If the period is more than 3 years but less than 10 years then he will get 2 months salary for every years 5. 7 Retirement After completing 25 years of job, one may to through pension or retirement. Statically presentation of retirement or pension are given below- 33 Figure: Retirement and pension in different years Source: Welfare Division Register Book.

According to the policies of services of Janata Bank, retirement of a staff/ officer will be regulated by the rules of Public Servants Retirement Act 1995, according to this rules, an employee can get following types of retirement. 1. Retirement on disablement: If an employee becomes disable to perform his job or to carry out the position where he is, due to his physical or mental disability, will be considered eligible for pension. But a) For this reasons he has to apply along with the recommendation of medical board b) The recommendation of medical board is not needed for he retirement on old age c) The persons who apply for pension showing others reasons except these two reasons will not be considered eligible though he has applied with the recommendation of medical board. 2. Retirement on old age: The problems of retirement in JB are solved by the Public Service Retirement Act 1995. According to section 4 of this 34 act, an employee must go to the full retirement within the competition 58 years of his age from the government job. But therefore going to full retirement, he has to go the pre retirement preparation leave for a period of one year depending of the leave cumulated.

For this reasons, he has to apply before. That means, he has to apply for the pre- retirement preparation leave before the completion of 57 years of his age, otherwise he will be offered directly full retirement. 3. Retirement on will: Any employee, who has completed 25 years on the govt. job, can go to the retirement at anytime by giving one month notifications. But ?The notification can not be revoked of amended ?Even the govt. can not postpone the notification ?This retirement can be taken at the time of leave or vacation 4. Compulsory retirement: The government can send a person to etirement for the webbings of the society without notifying any reasons that has completed 25 years of govt. jobs. d) Only govt. has this power e) The employee will have the right to receive all the benefits along with the leave on pre-retirement preparation. 5. Retirement on death: If an employee died after attaining fitness of retirement, his family will have the rights to receive this pension. To receive this pension, the govt. declared 2566(40) F rules on 16/04/1959 in the following ways When the Government Servant leaves a family- ?The amount of gratuity or any part therefore to which the

Nomination relates shall become to his/ her nominee or nominees in the proportion specified in the nomination. 35 ?If no nomination in favor of a member or members or a family subsists or if nomination relates only to a part of the amount of the gratuity the whole amount of the part therefore of to which the nomination does not relate, shall become pay able to the members of his/ her family in equal shares. Provided that no share shall be payable to: ?Sons who have attained the age of 18 years ?Sons of a deceased so who have attained the age of 18 years; ?Married daughters whose husbands are alive. 5. Budget of welfare division Yearly budget of the welfare division of Janata Bank are as below Figure: Budget of Welfare Division Source: welfare Division 6. 1 Performance Appraisal Performance appraisal is a process of summarizing, assessing and developing the work performance of an employee. In order to be effective and constructive, the performance manager should make every 0 10 20 30 40 50 Lac 2002 2003 2004 2005 year Budget of welfare Division in different years Budget Amount in 36 effort to obtain as much objective information about the employee’s performance as possible. . 2 Importance of Performance Appraisal Performance appraisal is a vehicle to ?Validate and refine organizational actions (e. g. selection, training); and ?Provide feedback to employees with an eye on improving future performance. (a) Validating and refining organizational action: Employee selection, training and just about any cultural or management practice—such as the introduction of a new pruning method or an incentive pay program—may be evaluated in part by obtaining worker performance data. The evaluation may provide ideas for refining established practices or instituting new ones.

For instance, appraisal data may show that a farm supervisor has had a number of interpersonal conflicts with other managers and employees. Some options include ?Paying more attention to interpersonal skills when selecting new supervisors, ?Encouraging present supervisors to attend communication or conflict management classes at the local community college, or ?Providing the supervisor one-on-one counseling. 37 (b) Employee need for feedback: Although employees vary in their desire for improvement, generally workers want to know how well they are performing. A successful farmer ecalled with sadness how as a youth he had worked very hard, along with his immigrant family, for a farmer who never seemed to notice the effort. Years later he met the former employer and asked why he had never made any positive comments about their work. The response from the former boss was, “I feared you would stop working as hard. ” People need positive feedback and validation on a regular basis. Once an employee has been selected, few management actions can have as positive an effect on worker performance as encouraging affirmation. These are, in effect, good-will deposits, without which withdrawals annot be made. This does not mean you should gloss over areas needing improvement. When presented in a constructive fashion, workers will often be grateful for information on how to improve shortcomings. Such constructive feedback, however, “can happen only within the context of listening to and caring about the person. ” In general, supervisors who tend to look for worker’s positive behaviors— and do so in a sincere, non-manipulative way—will have less difficulty giving constructive feedback or suggestions. Furthermore, in the egotiated approach, the burden for performance analysis does not fall on the supervisor alone, but requires introspection on the part of the individual being evaluated. 6. 3 Steps in Appraising Performance: A performance appraisal contains four steps. These are– a) Job analysis: Job analysis is the procedure for determining the duties and skill requirements of a job and the king of person who should be hired for it. Job analysis includes job description and job specification. 38 Figure: Performance appraisal process b) Goal setting: The second step of performance appraisal process is goal setting. To easure the performance of the employees of an organization, the HR department of the organization has to set the goal of the measuring performance. After setting the goal go to the appraising performance. c) Performance appraisal: Appraising performance means comparing employee’s actual performance to the standards that have been set; this actually involves some types of rating form. d) Feedback: It is the most effective way to measuring performance. Performance appraisal usually requires one or more feedback sessions. By this way the subordinates performance and progress are discussed and plans are ade for any development that is required. 39 Job analysis Goal setting Performance appraisal Feedback 6. 4 Performance Appraisal Methods: Performance appraisal is generally conducted with the aid of a predetermined and formal method. Different methods of performance appraisal are shown below– 1. Essay Appraisal: In its simplest form, this technique asks the rater to write a paragraph or more covering an individual’s strengths, weaknesses, potential, and so on. In most selection situations, particularly those involving professional, sales, or managerial positions, essay appraisals from former employers, eachers, or associates carry significant weight. The assumption seems to be that an honest and informed statement -either by word of mouth or in writing- from someone who knows a man well, is fully as valid as more formal and more complicated methods. 2. Graphic Rating Scale: This technique may not yield the depth of an essay appraisal, but it is more consistent and reliable. Typically, a graphic scale assesses a person on the quality and quantity of his work and on a variety of other factors that vary with the job but usually include personal traits like eliability and cooperation. It may also include specific performance items like oral and written communication. 3. Field Review: The field review is one of several techniques for doing this. A member of the personnel or central administrative staff meets with small groups of raters from each supervisory unit and goes over each employee’s rating with them to ?Identify areas of inter-rater disagreement, ?Help the group arrive at a consensus, and ?Determine that each rater conceives the standards similarly. 40 4. Forced-Choice Rating: Like the field review, this technique was developed to reduce bias and stablish objective standards of comparison between individuals, but it does not involve the intervention of a third party. Although there are many variations of this method, the most common one asks raters to choose from among groups of statements those which best fit the individual being rated and those which least fit him. The statements are then weighted or scored, very much the way a psychological test is scored. People with high scores are, by definition, the better employees; those with low scores are the poorer ones. Since the rater does not now what the scoring weights for each statement are, in theory at least, he cannot play favorites. He simply describes his people, and someone in the personnel department applies the scoring weights to determine who gets the best rating. 5. Critical incident Appraisal: The discussion of ratings with employees has, in many companies, proved to be a traumatic experience for supervisors. Some have learned from bitter experience what General Electric later documented; people who receive honest but negative feedback are typically not motivated to do better – and often do worse – after the appraisal interview.

Consequently, supervisors tend to avoid such interviews, or if forced to hold them, avoid giving negative ratings when the ratings have to be shown to the employee. 6. Management by Objectives Approach: To avoid, or to deal with, the feeling that they are being judged by unfairly high standards, employees in some organizations are being asked to set – or help set – their own performance goals. It should be noted, however, that when MBO is applied at lower organizational levels, employees do not always want to be involved in their own goal setting. 41 7. Works-Standard Approach:

Instead of asking employees to set their own performance goals, many organizations set measured daily work standards. In short, the work standards technique establishes work and staffing targets aimed at improving productivity. When realistically used, it can make possible an objective and accurate appraisal of the work of employees and supervisors. 8. Ranking Methods: For comparative purposes, particularly when it is necessary to compare people who work for different supervisors, individual statements, ratings, or appraisal forms are not particularly useful.

Instead, it is necessary to recognize that comparisons involve an overall subjective judgment to which a host of additional facts and impressions must somehow be added. There is no single form or way to do this. There are two types of ranking methods– ?Alternation ranking method ?Paired comparison method 9. Assessment Centers: So far, we have been talking about assessing past performance. What about the assessment of future performance or potential? In any placement decision and even more so in promotion decisions, some prediction of future performance is necessary.

How can this kind of prediction be made most validly and most fairly? 6. 5 Key Elements of Effective Performance Appraisal System: For effective performance appraisal system the following points must be considered. ?It must be candid and honest ?It should be presented in written form ?The appraisal form itself should be simple ?The comments should be as specific as possible 42 ?The full board should be involved in the appraisal process ?The appraisal should be kept as impersonal as possible ?The appraisal of the manager should be separated from the overall employee compensation planning The focus of the appraisal should be the future, not the past. 6. 6 Performance appraisal system of Janata Bank Employee performance appraisal system as adopted in Janata Bank with effect from August, 1995, is a part of the whole system to Human Resource Development. There are two components of the Janata Bank appraisal system. These are ?Periodic Performance Review (PPR), ?Annual Performance Appraisal (APA) I) Periodic Performance Review (PPR): Periodic Performance Review is used for assessment of skill and to identify the development need of the employees. This is intended to evelop a number of things such as mutuality, openness, trust, respect etc. this system is applied to Officer Grade-1 and above up to Sr. Asst. Vice President. The review falls due on the completion of six months of service from the date of joining or promotion. This assessment is done once a year. ii) Annual Performance Appraisal (APA): The annual performance appraisal forms at the Janata Bank are designed by following a simple management model that the employees at lower level require more of technical skills where as employees moving upwards gradually require more of conceptual and human skills. 3 Annual appraisal process: Management Model: Based on the management model the employees at the Janata Bank have been grouped as follows- Group A Executive Vice -President/Senior Vice- President/First -Vice President/ Vice- President. Group B Senior Asst. Vice -President/ First Asst. -Vice President/ Asst. Vice- President. Group C Senior a Staff Officer/Staff Officer/Officer Grade-1. Group D Officer Grage-2/Asst. Officer. Group E Officer Assistant. Group F Driver/Security staff/Officer Attendant. Mark and Basis Rating All employees are rated on 100 marks. That is allocated to different actors. The different boards categories of factors are given different weight age depending on the categories of the employees. These are- 1. Excellent (over60%): Employees achieving exceptional results consistently under adverse conditions are rated as excellent. An excellent employee is one who demonstrates complete mastery of the job and is recognized as a rare professional in the field. 44 2. Good (over 45% and up to 60%): Employees showing acceptable performance which meets normal expectation where targets have always been met and occasionally xceeded under normal conditions are rated as good. Category Marks (Out of 100) Excellent Over 60% Good Over 45% up of 60% Average Over 30% and up to 45% Unsatisfactory 30% and below Figure: Mark and Basis Rating of JB employees Source: Janata Bank (employees) service regulations, 1995 3. Average (over 30% and up to 45%): Employees showing marginal performance with occasional failure to achieve expected results are rated as Average. An average performer who has reached his/her peak requires corrective action. 4. Unsatisfactory (30% and below): Employees showing unacceptable performance with frequent failures to eet expected result are rated as unsatisfactory. He/she lacks adequate knowledge of the job and exerts little to overcome his/her shortcomings and finds excesses around. He is totally misfit future jobs for the organization. Appraisal Process for the APA: There has certain form or structure that Janata Bank follows to gain the advantage from the term performance appraisal. This process includes- Fill-up the forms: Immediate supervising officer fills up the forms on the employee supervised and Branch- in-charge and/or development chief countersigns.

The forms of the Branch-in-charge are filled up by three 45 Group Executives of Head Office jointly and countersigned by the Deputy Managing Director. Each king of form contains several performance areas. The main performance areas are-Business performance, relation performance, personal characteristics, planning and innovation. Each performance area has some factors. Each of these factors is considered while allocating marks. Rating and Comments (Specific): Rating column has a corresponding column for-“Comments”. This olumn is filled up with specific comments and not with general comments. Remarks by the Supervising officer: In the space provided for REMARKS BY THE SUPERVISING OFFICER the strength and weakness of employees are mentioned specifically. Recommendation for increments: If recommended for additional increments, specific reasons are stated. Excellent performer calls for consideration of additional increments. Assessment of potential: In reporting potentiality the reporting officer mentions suitable positing of the officers only. This is relevant when reporting officer feels that a articular employee should not be promoted now, but is worthy for higher for independent assignment. Recommendation for promotion: Recommendation for promotion accompanies specific reasons. Employees showing excellent performance for more than one/two years 46 are considered for promotion. Id recommended for promotion, he/she is not recommended for additional increments. Remarks by the Countersigning officer: If the countersigning officer disagrees with the assessments on the employee by the supervising officer, he/she has to provide specific easons. Simple disagreement will not merit any consideration by the Head office. Comments by Reviewing officer: In case of disagreement between supervising officer and the countersigning officer, the Head Office does reviews. Review and Head Office Action: Columns for comments by the reviewing officer and for a Head Office use are not used by the reporting officers. These columns are lest for the Head Office use only. Head office reviews the marks and ratings. Evaluation: Informal interviews were conducted and questionnaire was distributed among both the appraiser and appraise. 47 7. Define Promotion Promotion is defined as a movement to a position in which responsibilities and prestige are increased. Promotion satisfies the needs of human beings in the organization. Since the promotion depends upon capabilities and good performance, people will try for that if the venues for promotion exit. We also mean that refers to the filling of a vacancy at an upper level of the organization by the internal movement of a present employee from an immediate lower level, the new position having higher pay, status and job conditions as compared with the old.

Very simply promotion is a higher position at a higher level from people within the organization itself. 7. 2 Objectives of promotion Following are the objectives of promotion ?Reward of good employee. ?Recognition of outstanding achievements. ?Meet the career objective of an employee. ?Meet the organizational objective by utilizing special skill and knowledge gained through T & D. ?Attract and retain right talents in the organization. ?Improve morale, motivation and, job satisfaction of employees. ?Empowerment of employees through competence, interest and ommitment. 7. 3 Advantages of promotion ?Promotion helps attract efficient employees to the organization and keep its labor turnover rate at a minimum. ?It is a device to retain and reward an employee for his/her years of service to the organization. 48 ?Promotion is an important means for meeting the organizational objectives by utilizing special skills and knowledge gained through training and development. ?It gives employee recognition for his/her outstanding achievement. ?Promotion gives incentive, enterprise and ambition. ?It reduces discontent and unrest. Developing their career through promotion can increase employee productivity and job satisfaction. ?Promo9tion develops loyalty, morale and a sense of belongingness in the employee towards the organization. 7. 4 Principles of promotion There are certain principles of promotion. These principles form the basis of promotion policy laid down by all organization. Following are the principles- a) Principles of consistency Promotion must follow certain rules and regulation in regard to qualification, experience, special training or courses, years of service aid down steps or sequence of hierarchical position of jobs, etc. Any violation of such rules and regulation goes against principle of consistency. b) Principle of fairness and equity In most organizations promotion is a subject, which is viewed by employees skeptically. All kinds of rumors are set into motion like favoritisms, aphorisms, arbitrariness, etc. All efforts must be made to ensure firmness and equity in promotion. All rules and regulations must be meticulously followed so that no scope for rumor and disinformation exist. 49 ) Principle of transparency ?Publication of rules and regulations. ?Seniority list of employees for promotion are circulated periodically. ?Notifying vacancies and persons selected. ?Notifying list of selection committee members and list, of persons promoted after selection process. ?Permission for representation from aggrieved persons, etc. d) Principle of policy and planning Promotion must be properly planned. Planning involves forecasting future vacancies in advance, taking inventory of existing skills, assessing gaps in skills and knowledge, taking stock of T & D program, locating otential candidates for promotion sufficiently early, preparing such people to acquire required knowledge and ability, preparation of succession plans, deciding on mix of internal promotion and external recruitment to fill up potential future vacancies, etc. e) Principle of seniority Seniority is an important aspect of promotion. Proper weightage must be accorded to seniority in promotion. This is because, such weightage influences morale and motivation of existing employees, as it affects their career prospects. 7. 5 General Promotional Policy

Promotion policy is the guidelines of promoting employees within the organization. Policy varies with organization. Since promotion is a sensitive issue to the employees, it is very essential, that promotion policies are clearly stated, widely circulated and fully explained to their employees. Policies influence a number of factors such as morale, motivation and turnover of personnel in the organization. It also affects productivity, innovative skill and ultimately the competitive advantage of firm in the market. Some criteria requiring policy of promotion are given below: 50


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