Difference between domestic and Multinational Companies Human Resource practice in Bangladesh

BBA Program

Subject: Human Resource ManagementMGT-3122Section: C

Prepared ForMohd. H. R. JoarderSchool Of Business

Prepared By:

Mohammad Moinul Islam 111 061 087Farhana Bari 111 072 021

Md. Saiful Islam Mazumder 111 063 103Farzana Chowdhury 111 072 142Anika Hassan 111 071 219

United International University (UIU)

Letter of transmittal

ToMohd. H. R. Joarder Sir,United International University, Dhanmondi, Dhaka.

Sub: “Difference between domestic and Multinational Companies Human Resource practices in Bangladesh"

Dear Sir,

We hereby submit our Term Paper Report on Difference between domestic

and Multinational Companies Human Resource practices in Bangladesh. This

report has been prepared according to your authorization and as the

requirement of finishing the “Human Resource Management” course.

To, submit the report, we have tried our best to gather authentic information

and provide exact explanation of all the points of the specified task. We really

enjoyed working with you in preparing this report and hope this will fulfill

your satisfaction. In fine, we would like to express our heartfelt gratitude for

the keen interest and guidance, you have provided us in preparing this report

and hope you would be so kind as to ask us if you find any deviation from

what you thought.

Sincerely Yours

Mohammad Moinul Islaml Farhana Bari Farzana Chowdhury

111 061 087 111 072 021 111 072 142

Md. Saiful Islam Mazumdar Anika Hassan1111 063 103 111 071 219

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Acknowledgement

By the cordial mercy of Allah, now we are able to submit our research paper to our honorable sir Mohd. H. R. Joarder. We strongly believe that it would not be possible preparing such a paper without Almighty’s grace.

Now we would like to thank our honorable sir Hasanur Raihan Joarder for his keen efforts and invaluable guidance, which facilitated the successful completion of our research paper.

This acknowledgment will remain incomplete if we don’t thanks to those people who helped and being co-operate with us.

We would also like to express gratitude to my university faculty members. They should be remembered because they produced the platform of our knowledge.

Finally we are really grateful to the people who help us to gather information and give valuable advice. Again, we thanks to our honorable teacher for giving us such a chance in completion of the report

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Table of Contents

Acknowledgement3

Executive Summary5

Introduction7

Scope of the Report10

Objective and limitations of the report 11

Findings and Analysis 13

Recommendations17

Conclusions 19

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Executive Summary

This report is based on the topic “Difference between domestic and

Multinational Companies Human Resource practices in Bangladesh” is

verbally assigned by our honorable course instructor, Mohd. H. R.

Joarder Sir as a requirement of the course Human Resource

Management. Most of the things are similar among the two banks

except the factors related to the international employee which

separates the Standard Chartered Bank from City Bank. Among

similarities both the bank maintains the similar ways for recruiting

like giving advertisement in news paper and also in the internet in their

own and other job web side. But the main recruitment is made

internally in the both bank. Both the bank also recruits from employee

reference and from those who are doing internship. Both banks

maintain the vertical hierarchy and relationship among employees

in both the banks are quite friendly. When fresh candidates are taken,

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both the banks give three months training to the freshers’ then

training given at least once in a year to every employee to increase

their knowledge on products and other issue. Also when a senior post

is empty, training is given to an employee and then promoted to fill up

the post. Both the banks also give promotion based on the

performance of the employees. Both banks has sales target on the

basis of which they work and commission given according to that.

Among difference the Standard Chartered Bank recruit foreign

employee but City Bank doesn’t for selecting foreign employee

Standard Chartered Bank take only viva which City Bank doesn’t have

to. In the Standard Chartered bank every employees have to give an

examination in each and every month while in City bank the

employees doesn’t have to. The Standard Chartered bank gives

commission depending on the performance of the monthly

examination results but in City bank, as there is no monthly exam so

no such commission facility.

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Chapter one

Introduction:

Standard Chartered Bank:

The Standard Chartered Group was formed in 1969 through a merger

of two banks: The Standard Bank of British South Africa founded in

1863 and the Chartered Bank of India, Australia and China, founded in

1853.

Both companies were keen to capitalize on the huge expansion of

trade and to earn the handsome profits to be made from financing the

movement of goods from Europe to the East and to Africa.

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The bank was founded by James Wilson following the grant of a Royal

Charter by Queen Victoria in 1853. Chartered opened its first branches

in Mumbai (Bombay), Calcutta and Shanghai in 1858, followed by Hong

Kong and Singapore in 1859. it had its traditional business in cotton

from Mumbai (Bombay), indigo and tea from Calcutta, rice in Burma,

sugar from Java, tobacco from Sumatra, hemp in Manila and silk from

Yokohama. Standard Chartered played a major role in the development

of trade with the East which followed the opening of the Suez Canal in

1869 and the extension of the telegraph to China in 1871. In 1957

Chartered Bank bought the Eastern Bank together with the Ionian

Bank's Cyprus Branches. This established a presence in the Gulf.

In African continent, Standard Chartered was founded in the Cape

Province of South Africa in 1862 by John Paterson. Commenced

business in Port Elizabeth, South Africa, in January 1863 was prominent

in financing the development of the diamond fields of Kimberley from

1867 and later extended its network further north to the new town of

Johannesburg when gold was discovered there in 1885. Then the

expansion was made in Southern, Central and Eastern Africa and by

1953 had 600 offices. In 1965, it merged with the Bank of West Africa

expanding its operations into Cameroon, Gambia, Ghana, Nigeria and

Sierra Leone.

In 1969, the decision was made by Chartered and by Standard to

undergo a friendly merger. All was going well until 1986, when a

hostile takeover bid was made for the Group by Lloyds Bank of the

United Kingdom. When the bid was defeated, Standard Chartered

entered a period of change. Provisions had to be made against third

world debt exposure and loans to corporations and entrepreneurs who

could not meet their commitments. Standard Chartered began a series

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of divestments notably in the United States and South Africa, and also

entered into a number of asset sales.

From the early 1990s, Standard Chartered has focused on developing

its strong franchises in Asia, the Middle East and Africa using its

operations in the United Kingdom and North America to provide

customers with a bridge between these markets. Secondly, it would

focus on consumer, corporate and institutional banking and on the

provision of treasury services - areas in which the Group had particular

strength and expertise.

In the new millennium we acquired Grindlays Bank from the ANZ Group

and the Chase Consumer Banking operations in Hong Kong in 2000.

Since 2005, we have achieve several milestones with a number of

strategic alliances and acquisitions that will extend our customer or

geographic reach and broaden our product range.

City Bank Ltd

City Bank Ltd started its operations on 28 March 1983 with an

authorized capital of Tk 200 million divided into 2,000,000 ordinary

shares of Tk 100 each and paid up capital of Tk 34 million, of which Tk

30 million was paid up by its promoters and the remaining amount by

the government of the People's Republic of Bangladesh. In 2000, the

bank's paid up capital rose to Tk 160 million, of which Tk 80 million

was subscribed by the sponsors/promoters and the remaining amount

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by the general public. On 31 December 2000, the bank's reserve fund

was Tk 263.1 million as compared to Tk 125.22 million in 1995. But

there was shortfall in total capital adequacy ratio of the bank during

1997-2000 as per BIS (Bank for International Settlement) standards to

be followed by banks operating in Bangladesh.

Methodology of the research

work

To build up a meaningful report we needed to collect some

information. And for the required information we are supposed to

collect two types of data which are-

(1) Primary data

(2) Secondary data.

But for some problems we were unable to collect Primary data. So we

only collect secondary data through below process--

A. Books

B. Internet

Sources of information-

Secondary: We get the secondary information through prospectus,

Web side etc.

Study Approach: Study Approach is survey type.

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Study Instruments: The instruments are questionnaire, paper,

pencil, phone, computer, printer, photocopier etc.

Scope

This report is based on the difference between domestic and Multinational

Companies Human Resource practices in Bangladesh. So after reading this

report, readers will have a clear picture about the basic differences

regarding the local and international bank in operating and also the

similarities in perspective of the HRM practices.

Objectives

Broad Objective

To know the difference between domestic and Multinational Companies

Human Resource practices in Bangladesh

Specific Objectives

To know about the recruitment and selection process of City and

Standard Chartered Bank

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The organizational hierarchy of both the bank by which they

operate

The relationship among the employees

The training and development process of both the bank

Extra facility or training (if any) for the foreign employee in case

of Standard Chartered Bank

Other HRM practices of both the bank

Limitations

As the interviewers were quite busy, so we had difficulty in

interviewing them as a result, more required information

regarding the research purpose was not collected.

Lack of time, always a constraint as due to lack of information,

other information’s related to HRM practices is not sufficiently

collected

Also we were unable to provide more required information

regarding the topic as some of the information was confidential.

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Chapter Two

Finding and Analysis

The similarities between the City (local) and Standard Chartered (international) bank

Recruitment

Both the bank maintains the similar ways for recruiting. If they want to

recruit, they give advertisement in news paper and also in the internet

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in their own and other job web side. But the main recruitment is made

internally in the both bank. Both the bank also recruits from employee

reference. Another way they recruit is taking eligible candidates from

those who are doing internship.

Selection

In case of local bank those who applied, first they have to sit for a

written examination. Then few of them got initially selected and then

finally in Viva the required people are selected. In case of international

bank the applicants give CV to the bank and bank initially choose their

desired candidate and call for viva from where they finally select their

employee. Both the bank also select employee internally. Also some

applicants were selected among the interns.

Organizational Hierarchy

Both the banks have vertical hierarchy as lots of different posts are

there in both the banks and so limited span of control.

Organizational Relationship

Both the bank has very good relationship among the employees and

call sir to their seniors.

Training and development

When fresh candidates are taken, both the banks give three months

training to the freshers so that the new employee’s will find it easier to

adjust with the environment and know how the banks operate. Then

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training given at least once in a year to every employee to increase

their knowledge on products and other issue so that they can motivate

the consumer as well as the employee in building up their career. Also

when a senior post is empty, training is given to an employee and then

promoted to fill up the post. Both the banks also give promotion based

on the performance of the employees. Both banks has sales target on

the basis of which they work and commission given according to that.

The difference between the City (local) and Standard Chartered (international) bank

Recruitment

Only difference in recruitment is in case of local bank they recruit only domestic candidates but in case of international bank they recruit both domestic and international candidates.

Selection

In case of City bank their selection process is both written and viva but in case of Standard Chartered bank only the viva foreign employee has to give to get selected.

Organizational Relationship

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In City bank the same level employees call each other ‘sir’ but in

Standard Chartered bank the same level employees call each other

‘brother’.

Training and development

In the Standard Chartered bank every employees have to give an

examination in each and every month while in City bank the

employees doesn’t have to give examination in each and every month.

The Standard Chartered bank gives commission depending on the

performance of the monthly examination results but in City bank, as

there is no monthly exam so no such commission facility. Foreign

employee gets one more extra training regarding the local countries

culture which Standard Chartered Bank gives but City Bank doesn’t

have to.

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Chapter Three

Recommendations

Based on our findings, our recommendation is as follows:

City Bank should also recruit foreign employees in order to

develop their network globally and also so that local employee

will learn more about the foreign environment.

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City Bank can also include monthly exam and give commissions

in order to motivate employee and also evaluate their

performance regularly.

Standard Chartered Bank should be careful about designing

facilities in case of both foreign and local bank so that it doesn’t

vary much between foreign and local employee in order to keep

both grouped employee satisfied.

Sometime the target given to the employee regarding sale for

getting commission as their performance output is almost

impossible to achieve. So Standard Chartered Bank should give

such a target which can be achievable which will also make the

employee motivated.

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Chapter Four

Conclusion

Though both the City Bank and Standard Chartered Bank apply the

similar HRM practices like the recruitment, training etc. yet the

difference between them is clearly noticed according to expectation as

domestic and international bank can’t run in exactly the similar way,

keeping in mind that both are bank. Mainly the difference between the

banks is the international factors like whatever the difference, it is

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because one is domestic and another one is international. The facilities

vary in case of international as most of the foreign employee’s family

members live outside Bangladesh. Training is also given to them to

adopt Bangladesh’s culture and characteristics which domestic bank

doesn’t have to give as they hardly have any foreign employee. Other

than the international factors, the banks hardly have any other

difference suggests that most banks operate in a similar manner.

Doesn’t matter whether bank is local or international, bank mainly

focuses on the basic issues of HRM by means of recruitment, selection,

training etc. in order to achieve the right number and kind of people at

the right place and at the right time for efficient performance of the

required tasks in order to achieve the organizational goals and

objectives.

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