HRM Practices of BB, SJIBL, HSBC Bank

Human Resource Practices

in the Banks of Bangladesh

Human Resource Practices in the Banks

of Bangladesh

Management Fundamentals: B-106

Submitted to: MR. Shahidul Islam Jahid

Lecturer

Department of Banking

University of Dhaka

Submitted by: Md. Mezbaul Haider (16-030)

Md. Mashrur Ali (16-031)

Nazim Reza (16-011)

Tauhidul Islam (16-071)

Rafsan Mahtab (16-087)

Rezaur Rahman (16-040)

Nahid Bulbul (16-078)

16th

Batch


University of Dhaka

Date of Submission: 23th

November, 2010

Acknowledgement

To begin with, We would like to express our infinite gratitude towards Almighty Allah and our

course teacher Mr. Shahidul Islam Jahid, Lecturer, Faculty of Business Studies, University of

Dhaka, to provide not only extremely well arranged guidelines to complete our report work but

would also help us to confront problems in our future career.

We would like to express our heartiest appreciation to our all classmates, who have been a

constant support to us and have patiently helped us throughout our report. We wish to extend our

thanks to the computer lab assistant and all the peers of the Department who made it possible to

work comfortably even in tough times.

Executive Summary

Human Resource Management (HRM) is the function within an organization that focuses on

recruitment, management and providing direction for the people who work in the organization.

Human Resource Management is the organizational function that deals with issues such as

compensation, hiring, performance management, organization development, benefits, employee

motivation, communication, administration, and training.

As we are assigned to prepare a report on the HRM practices of three banks including the central

of bank of Bangladesh, we have selected Shahjalal Islami Bank ltd. and HSBC for this purpose.

Bangladesh Bank is the central bank and the guardian of the money market in this country. The

Human Resource department of Bangladesh Bank is consisted of three divisions including

“Planning and Resourcing Division”, “Development and Benefit Division” and “Performance

and Reward Division”. Bangladesh Bank has a total of 1803 employees in their various

departments. Unlike other banks, its highest post in organization hierarchy is the Governor. This

bank follows its unique recruitment process. After recruiting people they give training to their

employees. They also provide them with proper compensation, leave and special rewards and

benefits.

With the motto “Committed to Cordial Service” Shahjalal Islami Bank Limited (SJIBL)

commenced its commercial operation in accordance with principle of Islamic Shariah. SJIBL has

a modern Human Resource (HR) policy. Since its inception, it has placed equal emphasis on all

the four key functions of the process of HRM-acquisition, development, motivation and

retention. SJIBL has about 964 employees working in their various branches. Like other

commercial banks, their highest rank is the Managing Director. They follow an organized

recruitment process for recruiting people. Like other commercial they provide training to their

employees and offer attractive salaries, leave and benefits.

HSBC, known as the world’s local bank, started its operation in Bangladesh in December 1996.

HSBC is the bank where all the employees are monitored under an effective HR department.

Internal and external all the situations and considerations related to human are monitored and

operated by the HR department. They have a total of 1073 employees as of 31 Dece mber 2009.

They have an organized organization Hierarchy which starts from the Managing Director. They

also follow their unique and organized recruitment process. They provide their employees with a

wide range of trainings to develop their skills. It offers their employees very attractive salaries,

leave and benefits which makes this bank the main attraction of many job seeking people.

Contents Chapter Topic Page

1 Companies’ profile 1

2 Profit Analysis 1

3 Number of Staff analysis 1

4 Current asset analysis 1

5 Long term asset analysis 1

6 Current liabilities Analysis 1

7 Long term liabilities Analysis 2

8 Return of asset Analysis 2

9 Equity Analysis 2

10 Return on Equity 2

11 Conclusion 3

12 References 3

Date: November 22, 2010

Mr. Md. Shahidul Islam Jahid

Course Instructor

Management Fundamentals


Faculty of business studies

University of Dhaka, Bangladesh.

Dear Sir,

It gives us pleasure to submit the report on “Statistical Analysis of Financial Statements” on the

basis of the two companies: Singer BangladeshLtd. and PRAN AMCL as you authorized us to

prepare by November 22, 2010.

It was a fantastic opportunity for us to prepare the report under your guidance, which really was a

great experience for us. We have collected the information from their annual reports, websites

and text books.

We have worked hard and tried our best to prepare the report. We will be very pleased to provide further information if necessary.

Sincerely,

Md. Mezbaul Haider (16-030)……………………………….

Md. Mashrur Ali (16-031) ……………………………….

Nazim Reza (16-011) ………………………………..

Tauhidul Islam (16-071) ………………………………

Rafsan Mahtab (16-087) …………………………….....

Rezaur Rahman (16-040) ……………………………….

Nahid Bulbul (16-078) …………………………………

1.1 Bank’s Profile: Bangladesh Bank

Bangladesh Bank is the central bank and monetary authority of the country. It has come into

existence under the Bangladesh Bank Order 1972 (Presidential Order No. 127 of 1972) which took

effect on 16 December 1971. Through this order, the entire operation of the former State Bank of

Pakistan in the eastern wing was transferred to Bangladesh Bank.

Bangladesh Bank has been entrusted with all the traditional central banking functions including the

sole responsibilities of issuing currency, keeping the reserves, formulating and managing the

monetary policy and regulating the credit system of Bangladesh with a view to stabilizing domestic

and external monetary value and promoting and maintaining a high level of production, employment

and real income in the country. The bank acts as the banker to the government and accepts

government deposits, cheques and drafts, and undertakes collection of cheques and drafts drawn on

other banks. The bank transfers government funds from one place to another as requested by the

government and its agencies.

Bangladesh Bank has 9 branch offices, two in Dhaka city (Sadarghat and Motijheel), and one each in

Chittagong, Khulna, Rajshahi, Sylhet, Bogra, Rangpur and Barisal. The head office discharges its

duties with 28 departments. The departments are International, Law, Financial Institutions, Computer

(2), Agricultural Credit, Agricultural Credit Inspection, Agricultural Credit Project, Credit

Information Bureau, Research (3), Public Relations and Publications, Audit and Inspection, Statistics

(2), Engineering, Problem Bank Monitoring, Administration, Training Academy, Foreign Exchange

Policy, Foreign Exchange Inspection, Foreign Exchange Investment, Administration and

Expenditure, Banking Inspection, Banking Regulation and Policy, Banking Operation and

Development, Monetary Management and Technical Unit, Currency Management and Accounts,

Industrial Credit, and Security Management.

1.2 HR Department at Bangladesh Bank

The Human Resource department of Bangladesh Bank is consisted of three divisions. Mainly these

three divisions conduct all kinds of HR activities. The divisions are:

Planning and Resourcing Division.

Development and Benefit Division.

Performance and Reward Division.

http://www.banglapedia.org/httpdocs/HT/M_0309.HTM

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1.2.1 Planning and Resourcing Division:

Planning, Promotion and Transfer Wing: This wing is responsible for developing Annual

Manpower Plan for Bangladesh Bank, conducting Job Analysis, preparing Job Descriptions,

formulating promotion and transfer Policy. It works for creation/retrenchment of posts, promotion,

rotation to ensure placement of right persons at right places and carry out the study of opening new

office/department/division/cell/unit and abolition thereof.

Recruitment and Outsourcing Wing: This wing is responsible for attracting, selecting & recruiting

the right people and other professionals from the market for Bangladesh Bank, State owned Banks

and Financial Institutions through a rigorous induction process in order to ensure presence of quality

professionals.

1.2.2 Development and Benefit Division:

Benefits and Administration Wing: This wing process cases related to LPR and retirement of

employees from the Bank’s service. It is responsible to carry out all activities related to developing

best market strategies regarding compensation and benefits like medical, welfare, recreation,

accommodation, leave etc.

Training and Development Wing: Manages the training needs and educational facilities for BB

employees and provides training for them in home and abroad.

1.2.3 Performance and Reward Division:

Recognition and Reward Wing: Manages and implements effective Performance Management

System Bank-wide, facilitates the promotion process accordingly and store up-to-date employees'

PMS rating in database.

Performance and Discipline Wing: Handles employees’ discipline, initiates disciplinary actions to

enforce organizational standards. This wing discourages infractions, resolve conflict and take

initiative for arbitration and litigation processes.

1.3 Human Resource Practices in Bangladesh Bank

Like any other Bank, the HR practices of Bangladesh Bank are almost same. But Bangladesh Bank

has some departments exceptional from others and being a central bank, it has some extra human

resource activities:

Recruitment, selection, and on boarding (resourcing)

Organizational design and development

Business transformation and change management

Performance, conduct and behavior management

Manager and employee relations

Human resources (workforce) analysis and workforce personnel data

management

Compensation, rewards, and benefits management

Training and development (learning management)

Internal communication

Social activities

1.4 Size of the Employee

A well performing bank can establish their refutation only through their performance and this kind of

performance is possible when there is enough number of employees who have sufficient skill and

sound knowledge. It is mentionable that Bangladesh bank has a huge number of employees around

3211(according to FY 2008).This is excluding Governor, Deputy Governors, and Executive

Directors. There are 36 departments in the bank.

1.1 Number of employees in BB

HRM9% ABD

18%

BRPD7%

DFIM4%FEID

4%

ISDD8%

SMD6%

CBSPC2%

FEOD3%

SSPD6%

Others33%

Number of employees

Name of the Departments Number of the Employees

HRM 476

Accounts & Budgeting Department(ABD) 922

Banking Regulation and Policy Department(BRPD) 349

Department of Financial Institutions and Markets(DFIM) 236

Foreign Exchange Investment Department(FEID) 228

Information Systems Development Department(ISDD) 342

Security Management Department(SMD) 289

Central Bank Strengthening Project Cell(CBSPC) 112

Foreign Exchange Operation Department(FEOD) 134

SME & Special Programmes Department(SSPD) 309

Others 1803

http://www.bb.org.bd/aboutus/dept/dept_details.php?dept_id=1









1.5 Hierarchy Bangladesh Bank

1.2 Organizational Hierarchy of BB

Govornor

Deputy Govornor

Board of Directors

Executive Director

General Manager

Deputy General Manager

Joint Director

Deputy Director

Assistant Director

Assistant Director-General

Assistant Director -Research

Officer

Trainee Officer (or Teller)

1.6 Recruitment Process:

Bangladesh Bank (BB) has an extensive recruitment process. BB recruits employee twice in a year.

Every time they recruit about 100 people. A huge of applicants applies for the post advertised. Last

year about 5000 applicants applied against 100 posts. BB usually recruits once in January or

February and another is in October or November. One notable thing is that BB invites applicants in

two categories. In January- February recruitment it invites application from Business Studies

students and in case of other one, application from other backgrounds is invited. The recruitment

exam consists of two parts- MCQ test and written exam with a viva voice. The recruitment process

maintained by the BB is like following:

1. Determining the number of vacant post: First of all, what number of employee is to be

recruited is determined. Generally HRM calls every other department to inform them (HRM) the

number of employee they (other departments) need. When the number is determined HRM

department goes to the next process.

2. Determining the job criteria: Here the HRM department determines the necessary job criteria

discussing with the respective departments. Different jobs require various criteria.

1.3 Recru itment Process

1• Determining the number of vacant post

2• Determinging the job critaria

3• Inviting Application

4• Scanning Application

5• Tender

6• MCQ test

7• Written exam and Viva Voice

8• Final Selection

3. Inviting Application: In this step BB invites application from the intended applicants. Generally

HRM department advertises inviting application in the dailies. Applicants full filling the job criteria

can only apply. Applicants send their CV through mail to HRM department. Besides BB has a CV

bank and people interested to work in BB register their CV there. They also come in consideration in

case of recruitment.

4. Scanning Application: HRM department now scans all of the CV and calls a limited number of

applicants for the next step of recruitment. This scanning is done based on various factors and

requirements.

5. Tender: The HRM department does not take recruitment exam. It calls tender for taking MCQ

test and written exam. The work is given to that bidder who full fills all of the requirements and bids

at the lowest rate.

6. MCQ test: In this step, Applicants have to face a MCQ test. The MCQ question paper is prepared

under strict secrecy. Governor has the power to suggest question. A special coding system is used to

identify the applicants in MCQ test. Applicants passing the MCQ test with at least a predetermined

number are called for the written exam and viva voice.

7. Written exam and viva voice: Here applicants have to go through a written exam and a viva

voice. In the written exam applicants has to write easy, arguments, solve mathematical problem etc.

After that applicants securing a very good number are called for the viva voice

8. Final selection: The number of MCQ test and written exam are summed and averaged.

Applicants with a high average number within 100 serial numbers are finally selected.

1.7 Training and Development:

Training is the processes of teaching the employee the skill for their better act upon on the job.

Training is very helpful for the employees for their better performance. There are many methods of

training, but in the banks of Bangladesh two methods are commonly used, lecture and on-the-job

training. Bangladesh Bank provides training to increase awareness of fake money, money laundering,

Q-cash debit card are compulsory for cash department employees. Other trainings are like Customer

Credit Scheme and Lease Finance Scheme, Credit Risk Grading, Credit risk Management, Loan

Classification and Provisioning, Loan Documentation, Lessons Learnt from Credit Feature,

Structured finance for Large Projects in Bangladesh, Exchange Rate Management etc.

Bangladesh bank arranges various training and development programs for its employees. Bangladesh

bank has its own training institute in Mirpur named Bangladesh Bank Training Institute. In this

institute employees are trained around the year. Bangladesh Bank sends it employees to another bank

training institute-Bangladesh Institute of Bank management. Alongside it, BB arranges various

training programs across the country around the year

After recruiting, in Bangladesh Bank a fresher has to go through some training. First of all S/he has

to do a three months foundation training. Then S/he has to do a three months practical training and

last of all S/he has to take part in a one year service plus training program. When a fresher completes

all of these, S/he promoted to Officer.

Employee cannot participate any in-house training from their own interest, Human Resource

Department will select the employee to participate the training. Human Resource Department sends

office notice to those employees to attend the training. After attending their training the employee

have to submit a report on that training to the Human Resource Department. Sometimes Human

Resource Department sends the employee to attend the training outside of the Bangladesh.

1.8 Posting and Transfer:

When a fresher enter in the Bank he/she has to complete his/her training period successfully and then

he/she is transferred to a branch. The decision of transfer is made by HRM department. HRM would

send him to the main branch or to a distant branch at time of joining. Usually a fresher is send to a

distant branch at first and it is mandatory that he/she must complete at least a period of two year

there. After that period he/she would be sent to another branch or to be kept there.

A mentionable point is that whenever an employee gets promotion he/she is transferred. Sometimes

as a punishment an employee is also sent to a distant branch. In case of transfer, a certain process is

maintained. Human Resource Department keeps one copy of posting in employee’s personal file and

the copy of posting order distribute among employee, the DD and manager of employee’s branch,

DMD and head of Affairs and Administration, , and manager of branch where employee will be

posted and IT Department. There is no hard and fast that after a certain period an employee must be

transferred.

1.9 Benefits and Rewards:

1.9.1 Salaries:

Bangladesh bank provides attractive salaries and other benefits to its employees. The monthly

salaries and other benefits are as per government pay scale. But alongside the government pay scale a

separate pay scale is also approved for the employees who are at least at officer level.

According to the new pay scale Tk. 66,700 monthly salary is for Executive Director (ED). His gross

monthly salary will stand at Tk. 93,000. An entry-level officer (Assistant Director) will draw Tk.

20,000 as monthly basic pay and his gross salary will be Tk. 32,000. The governor will draw

117000tk as his salary including all others. Staff at the lowest grade has been proposed at Tk. 7,000,

while his monthly gross salary will stand at Tk. 15,200. It is mentionable that there is a very number

of increments in the salary is provided to the employees especially those with officer or higher rank.

If an employee has four first classes/divisions then he will get four increments in a year and an

employee with three first classes/divisions will get three increments in a year.

1.9.2 Benefits & Rewards:

Bangladesh bank offers a wide number of benefits to its employees. Almost all of them are

applicable as far the government regulation for the bank. The benefits usually offered to the

employees are:

Private pension plan

Life and accident insurance

Medical check ups

Nursery and summer camp allowances

Bank car, parking space and allowances, depending on position

Eid children party, annual employee party etc

Health plan and routine medical allowance including optical and dental treatment.

Short and long-term disability coverage, as well as life insurance

An active Sports and Social Club.

Development opportunities and career support.

Retirement benefits.

Having rank of a first class gagged officer

Entertainment benefit

Advance training facilities

1.10 Promotion

In case of promotion, there is a separate rule for Bangladesh Bank. There are two criteria for

promotion and they are: Performance and Seniority. There is also certain ratio use in case of

promotion, it is 2:1. This means that among the number of promotion 66.66% will be applied on the

basis of performance and 33.33% will be applied on the basis of seniority. Sometimes this ration is

not maintained if there are adequate employees able of promotion according to certain criteria.

Bangladesh Bank has Performance Management System (PMS). Based on PMS, employees’

performance id evaluated. There are some points that are noted in PMS like integrity, honesty, team

working ability, skill and knowledge of the job and so on. Educational qualifications are big factor in

case of promotion. Employees having higher degree and good number of training experience is given

preference for promotion.

When an employee is promoted to a higher post, he gets more authority coming with more

responsibility, higher salary and better number of benefits and so on.

1.12 Leave

Bangladesh Bank grants different kinds of leave for their employees. But all of the leave must be

logical and necessary. Bangladesh Bank grants only limited leave. The bank mainly offers earn

Leave, disability leave, study leave, maternity leave and casual leave.

If an employee enjoys excessive leave or without prior notice then he/she has to show cause to the

proper authority. He/she even may be punished by cutting salary.

1.13 Resignation

In case of resignation, prior notice is mandatory. If an employee wants to resign then he/she has to inform to the suitable authority three months before the date of resignation. This is applicable for the permanent employees. But temporary employees employed for more than a period of three years has to inform to the authority a year before the date of resignation. If he/she fails to inform before a proper time period then his/her three months’ salary would be cut.

After an employee applying for resignation Human Resource Department will query all the branches

that the employee has any transaction with any branch or not. If the branches reports are ok then the

Head of HRD approve his/her resignation and send to the employee’s Branch Manager.

2.1 Bank’s Profile: Shahjalal Islami Bank Limited

With the motto “Committed to Cordial Service” Shahjalal Islami Bank Limited (SJIBL) has started

its activity on 10May; 2001.It commenced its commercial operation in accordance with principle of

Islamic Shariah. During last nine years SJIBL has diversified its service coverage by opening new

branches at different strategically important locations across the country offering various service

products both investment & deposit. Islamic Banking, in essence, is not only INTEREST-FREE

banking business, it carries deal wise business product thereby generating real income and thus

boosting GDP of the economy.

SJIBL Limited is one of the most successful banks among the third-generation private banks. The

bank has successfully entered its tenth year of operations. With professional and dedicated team of

management having long experience, commendable knowledge and experience in conventional and

modern banking, the bank has achieved success among its peer group within a short span of time.

2.2 Human Resource Practices in SJIBL

SJIBL has a modern Human Resource (HR) policy. Since its inception, it has placed equal emphasis

on all the four key functions of the process of HRM-acquisition, development, motivation and

retention. The various programs undertaken by the SJIBL to enrich the quality of human resource are

mainly aimed at increasing professional knowledge and skill levels of employees through training

and development, in order to form a well-equipped work force for providing excellent services to the

customers.

The HRM department of this bank has a very vital role in the bank’s high success. Internal and

external all the situations and considerations related to human is monitored and operated by the HR

department. Eventually this bank uses all the basic functions of HR to run the organizations. Among

those specifically:

Recruitment

Selection

Training and development

Compensation management

Human Resource Information System (HRIS)

High Performance Work Systems (HPWS)

2.3 Size of the Work force

A bank must have well skilled and qualified employee to pursue its goals. It is not necessary that the

bank should have huge number of employee rather limited skilled employees. SJIBL has a group of

highly skilled and qualified employees.

SJIBL has about total 964 employees and among them

Name of the Deparment Number of employee

HRM department 83

Finance 204

Accounting 283

Management 189

Marketing. 56

IT department 63

foreign exchange 24

others 62

2.1 Employee number of SJIBL

9%

21%

29%

20%

6%

7%

2%6%

Employee Number

HRM Finance Accounting Management Marketing IT foreign exchange Others

2.4 Hierarchy of SJIBL

2.2 Organizational Hierarchy of SJIBL

President and Managing Director

Deputy Managing Director (DMD)

Senior Executive Vice President (SEVP)

Executive Vice President (EVP)

Senior Vice President (SVP)

Vice President (VP)

First Vice President (FVP)

Assistant Vice President (AVP)

First Assistant Vice President (FAVP)

Senior Executive Officer (SEO)

Executive Officer (EO)

Senior Officer (SO)

Management Trainee (MT)

Officer

Junior Officer (JO)

Assistant Officer (AO)

Banking Officer (BO)


2.5 HR Activities of SJIBL

HRM department of SJIBL tries to perform all of the HR activities. For this reason SJIBL has a name

and fame in the banking sector. SJIBL not only pays an attractive salaries to its employees but also

provides adequate and necessary training and others. The HR activities performed by SJIBL are:

Personal and organizational benefits and rewards

Performance metrics

Organizational charts

Diverse recruitment process

Proficiency development program (PDP)

Advanced HRIS (Human Resource Information System)

Four Step selection process

Internal communication


Recruitment refers to process of finding right people for the right job or function, usually undertake

by Human Resource Department. Advertising is commonly part of the recruiting process, and SJIBL

does it through newspapers. Mainly two newspapers they advertise for Prothom Alo and Daily Star .

Different job required different skills. So, suitability for a job is typically assessed by looking for

skills, e.g. communication skills, computer skills. Evidence for skills required for a job may be

provided in the form of qualifications (educational or professional), experience in a job requiring the

relevant skills or the testimony of references. The recruitment process is like below

1. CV Submission: Potential candidates interested in joining the bank are required to send their

complete curriculum vitae. An acknowledgement of receipt is sent for all submitted applications to

the candidate's email.

2. Application Evaluation: The Human Resources department evaluates all incoming applications,

against prerequisite abilities and skills set for all current openings. All applications are kept based on

strengths and specialization, for future reference

3. Ability Tests: Potential candidates will be invited to participate in aptitude tests i.e. numerical,

verbal, English and psychometric, when deemed necessary.

2.3 process of recruitment

4. Capability Based Interviews: To ensure that our recruitment process is fair and consistent, all

candidates who are successful at the exams are invited for a capability based interview. Interviews

are based against capabilities, required for each position for which the candidate is interviewed for. A

capability or competency is an ability described in terms of skills & behaviors that are essential to

effectively perform within a job

5. Reply Letters: At all stages of the process candidates are kept informed of the status of their

application with an email reply letter.

6. Job Offer: If a candidate successfully reaches the final stage, a position offering is made in

conjunction with a competitive reward package.

In case of internal recruitment several points are noted. In SJIBL basically internal recruitment is

done on the basis of performance, seniority and skills. It is notable that in SJIBL sometimes internal

recruitment are done on the basis of suggestion and request of a very high official of the bank.

1• CV Submission

2 • Application Evaluation

3• Ability Tests

4• Capability Based Interviews

5• Reply Letters

6• Job Offer

2.7 Confirmation of Service

When an employee joins in the service s/he will remain under provision of one year. If the employee

performs satisfactory in his/her job s/he will confirm of his/her service and that is normally a

promotion. For example, one employee joins as a Teller or Trainee Officer, if his/her performance is

satisfactory then s/he will confirm as Banking Officer (BO). If the employee’s performance is not

satisfactory then the bank can extent the provision or can confirm as Teller or Trainee Officer.


Training is the processes of teaching the employee the skill for their better act upon on the job.

Training is very helpful for the employees for their better performance. There are many methods of

training, but in the banks of Bangladesh two methods are commonly used, lecture and on-the-job

training. Many institute and banks like BIBM, IBA, World Bank, Asian Development Bank,

Bangladesh Bank, Citi Bank etc arrange varies kinds of training. Lots of banks of Bangladesh have

their own training institute .SJIBL doesn’t have its own training institute but this bank arranged many

type of training in its corporate office and other banks employees can contribute these trainings. A

number of trainings are specific for specific department like

Awareness of fake money, money laundering, Q-cash debit card are compulsory for cash department

employees. Other trainings are like Customer Credit Scheme and Lease Finance Scheme, Credit Risk

Grading, Credit risk Management, Loan Classification and Provisioning, Loan Documentation,

Lessons Learnt from Credit Feature, Structured finance for Large Projects in Bangladesh, Exchange

Rate Management etc. Employee cannot participate any in-house training from their own interest,

Human Resource Department will select the employee to participate the training. Human Resource

Department sends office notice to those employees to attend the training. After attending their

training the employee have to submit a report on that training to the Human Resource Department.


An employee first joins in the Human Resource Department (HRD) in the Corporate Office. After

accepting his/her joining s/he is posted to Branch Office. Before geting the posting order employee

doesn’t know in which Branch s/he will be posted.

All jobs are transferable in this Bank Asia. The Competent Authority has the right to transfer

employees of the Bank from one department to anther department or from one branch to another

branch of the Bank. Human Resource Department keeps one copy of posting in employee’s personal

file and the copy of posting order distribute among employee, the FVP and manager of employee’s

branch, DMD and head of Corporate Affairs and Administration, Managing Director’s Secretariat

Bank Asia Limited, the FVP and manager of branch where employee will be posted and IT

Department.


SJIBL always provides attractive salaries to all of its employees. Beside it, the bank also gives

benefits. This kind of attractive salary and additional benefits ensure job satisfaction and

concentration to work

2.10.1 Pay and Allowances:

The scale of pay and other allowances of officers and employees of the bank are prescribed by the

Competent Authority from time to time. The initial pay of an employee appointed or promoted to the

higher post are ordinarily fixed at the initial stage of the scale of pay of the post to which he

promoted or appointed.

President and Managing Director to Banking Officer the salary breaks down are Basic pay, House

Rent Ceiling, Conveyance Allowance, Medical Allowance and Entertainment Allowance. Here

House Rent Ceiling is 54%, Conveyance Allowance is 26%, Medical Allowance is 10% and

Entertainment Allowance is 10% of basic salary. Tellers and Trainee Officers are got Consolidated

Salary only, because they are on provision period. Top level Officers from President and Managing

Director to First Assistant Vice President (FAVP) got extra charges like House Maintenance, Utilities

and Car Maintenance. Deputy Managing Director (DMD) and Senior Executive Vice President

(SEVP) got Electricity, Gas, Telephone and Domestic Aids also.

President and Managing Director to Executive Vice President (EVP) got direct car from the bank.

From Senior Vice President (SVP) to First Assistant Vice President (FAVP) got Car Loan facility.

And President and Managing Director to First Assistant Vice President (FAVP) got House Loan also.

These loan special for bank staff only, and the name of these loan are Staff Car Loan, Staff House

Building Loan. The bank takes only 7% interest on these loan. Group Insurance facilities will get the

entire confirmed employee. This insurance basically health insurance and will get facilities on only

hospitalization. In this insurance

2.10.2 Festival Bonus:

Regular employee will be entitled to Festival Bonuses payable on the occasion of Eidul-Azha and

Eid-ul-Fitre. The bonus amount will be the half of his/her salary.

2.10.3 Performance Bonus:

If the bank makes profit, the employees will be entitled to 3% of pre-tax profit as performance bonus.

Fifty percent of such bonus distributed on the basis of basic pay of an employee, and balance fifty

percent on the basis of performance of individual employees. Performance appraisal for the purpose

made on the criterion set by the management time to time.

2.10.4 Cash award:

The Competent Authority may grand cash reward to any of its employee for performance of a work

which is occasional in character and innovative or research and development oriented warranting

special merit as to justify the payment of the same.

2.10.5 Annual Increment:

If employee’s service records and Annual Confidential Report (ACR) are satisfactory then the

Competent Authority sanctions the increment on the salary. The percentage of salary increment is not

fixed; it varies on Competent Authority decision. If the service records and Annual Confidential

Report (ACR) are not satisfactory of an employee then the Competent Authority puts him/her on

special report for a period not exceeding six months and upon receipt of such report may sanction the

increment either from demonstration or from immediate effect or may defer it for the whole year.

If an employee recognized of his/her outstanding and meritorious performance then the Board may

decide to give him/her another special increment in one year period of time.

2.10.6 Benefits:



Medical check ups

Banking products with preferential pricing




Market competitive remuneration package and annual cash bonuses.


Short and long-term disability coverage, as well as life insurance.

Staff banking privileges, including special interest rates for car loans, sundry loans and

home loans.




2.11 Promotion

The criteria for promotion to a specified post usually merit-cum-seniority. A person will be eligible

for promotion if he has the satisfactory records of service, meets the criteria for promotion, and has

clear recommendation for promotion in his/her Annual Confidential Report(ACR). If there is any

departmental proceeding in underway against him/her or any penalty other than censure or warning

has been imposed on him/her within the last three years then the employee will not be promoted.

2.12 Leave

SJIBL offers various kinds of leave to their employees. Based on their need and time these kinds of

leaves are granted. SJIBL usually provides earn Leave, disability leave, study leave, maternity leave,

casual leave

On completion of period of three years of continuous service in the Bank employee may earn study

leave without any pay and allowances, for a period not exceeding two years may be granted by the

Board to an employee to enable him/her to study considered useful for his/her services under the

Bank.

2.13 Resignation

When an employee wants resignation, he has to apply in Human Resource Department. He should

notice Human Resource Department three months before he resign. If he fails to inform three months

before then he has to pay three months gross salary amount taka.




3.1 Bank’s Profile: HSBC Bank Bangladesh

3.1.1 General Background:

Opened first Bangladesh branch in December 1996

Network of 10 offices:9 branches, 1 sub-branch and an offshore banking unit

1073 employees as of 31 December 2009

Key business areas:

Personal Financial Services

Commercial banking

Corporate and institutional banking

Total asset : Tk. 64,583,724,210 in FY2009

Total liabilities: Tk. 56,661,970,197 in FY2009

Total offshore balance: Tk. 30,243,116,602 in FY2009

3.1.2 HSBC’s operations in Bangladesh:

In Bangladesh, the HSBC Group’s history dates back to 1996 when The Hong Kong and Shanghai

Banking Corporation (HSBC) Ltd opened its first branch. Today, the HSBC Group offers a

comprehensive range of financial services in Bangladesh including commercial banking, consumer

banking, payments and cash management, trade services, treasury, and custody and clearing.

HSBC has 9 branches and 1 sub-branch, 27 ATMs and 7 Customer Service Centers in Dhaka,

Chittagong and Sylhet and Business Development offices in Dhaka and Chittagong Export

processing Zones. HSBC offers a full range of personal banking and related financial services

including current and savings accounts, personal loans, time deposits, traveler’s cheques and inward

and outward remittances.

In case of commercial banking in Bangladesh, HSBC is a popular choice for customers because of

the Group’s international reach and a wide range of financial services and products HSBC has an

offshore banking unit (OBU) license and can therefore also provide foreign currency financing to

qualifying customers. In addition, there are 5 business development centers in the country’s major 5

EPZ areas including Dhaka, Chittagong, Adamjee, Mongla and Comilla.

3.2 Human Resource Practices in HSBC

HSBC is the bank where all the employees are monitored under an effective HR department. This

department of the organization playing the role of implied authority of HSBC. Internal and external

all the situations and considerations related to human is monitored and operated by the HR

department. Eventually this bank uses all the basic functions of HR to run the organizations. Among

those specifically:

Recruitment

Selection

Training and development

Compensation management

HRIS

HPWS is practiced

HSBC also applies some strategic HR methods for selecting the most logical and efficient candidates.

3.3 Size of the Work force

In the banking sector employees are not in a huge number in a firm. Banks need highly skilled

employees. HSBC is a large bank in Bangladesh. They have about 1073 employees in the total

organization. HSBC’s HR department is consisted about 43 employees who are controlled by 8

managers among that number. Every branch of HSBC is monitored by the HR department

employees. These employees are highly qualified and skilled in their respective job positions. Big

branches are monitored by minimum 15 HR personnel and small branches are controlled by

minimum 3 to 6 employees. So the whole organization runs in a stable way in terms of the HR

activities of the employees.

Name of the Department Number of employee

Finance

278

Accounting

246

Management

273

Marketing

128

HRM 63

Others 85

3.1 Number of Employee

3.4 HR Activities of HSBC:

HSBC bank has a strong HR culture in the organization, and it is maintained very tactically. As it is

said that HSBC practices all the HR basic activities, this bank also offers strategic training sessions

for its employees for the growth career. Let’s have a glance of the functions that HSBC applies:

International market competitive compensations

Personal and organizational benefits and rewards

European standard training sessions

Developing relationship among personnel

Participating in social activities

Performance metrics

Organizational charts

Diverse recruitment process

Proficiency development program (PDP)

Advanced HRIS (Human Resource Information System)

Four Step selection process

27%

22%25%

12%

6%8%

Number of employee in HSBC

Finance Accounting Management237 Marketing HRM others

3.5 Hierarchy of HSBC

3.2 Organizational Hierarchy

President and Managing Director(Bangladesh)

Deputy Managing Director (DMD)

Executive Vice President (EVP)

Senior Vice President (SVP)

Vice President (VP)

Assistant Vice President (AVP)

Senior Executive Officer (SEO)

Executive Officer (EO)

Senior Officer (SO)

Management Trainee (MT)

Officer

Junior Officer (JO)

Assistant Officer (AO)

Banking Officer (BO)



HSBC follows an established process for recruiting people. Their recruitment process is presented

below:

1. CV Submission: Potential candidates interested in joining the bank are required to send their

complete curriculum vitae. An acknowledgement of receipt is sent for all submitted applications to

the candidate's email.

2. Application Evaluation: The Human Resources department evaluates all incoming applications,

against prerequisite abilities and skills set for all current openings. All applications are kept based on

strengths and specialization, for future reference.

3.3 process of recruitment

3. Ability Tests: Potential candidates will be invited to participate in aptitude tests i.e. numerical,

verbal, English and psychometric, when deemed necessary.

4. Capability Based Interviews: To ensure that our recruitment process is fair and consistent, all

candidates who are successful at the exams are invited for a capability based interview. Interviews

are based against capabilities, required for each position for which the candidate is interviewed for. A

capability or competency is an ability described in terms of skills & behaviors that are essential to

effectively perform within a job

1• CV Submission

2 • Application Evaluation

3• Ability Tests

4• Capability Based Interviews

5• Reply Letters

6• Job Offer

5. Reply Letters: At all stages of the process candidates are kept informed of the status of their

application with an email reply letter.

6. Job Offer: If a candidate successfully reaches the final stage, a position offering is made in

conjunction with a competitive reward package.

Internal selection is done through competency based recruiting, succession process. HSBC uses some

external sources for recruitment. These are:

Internet

Off shoring

College recruiting

Referrals

Advertising

Internal recruiting is very high in HSBC. HSBC’s training and development activities are very high

in quality so the recruiters emphasize to recruit internal capable candidates for the respective post.

HSBC also uses HRIS for succession planning. It also a method of the internal recruitment of HSBC.


HSBC believes that primary competitive advantage comes from our employees. It is their ability to

provide a superior customer experience to its customers that sets it apart from other financial services

companies. In the ever changing financial services industry, all of us must continuously upgrade our

skills and knowledge in order to maintain this competitive advantage.

HSBC’s goal is to attract, retain and motivate the very best, and to do that it supports training,

development, and business education through the following:

3.7.1 Internal Training Programmers:

Seminars, workshops and locally tailor made training on a variety of topics are offered directly by

HSBC Training and Development Department at our training centre located at Motijheel.

3.7.2 External Courses:

Job related courses, seminars, workshops and conferences developed and presented at HSBC Offices

in Asia and also at Group Training and Management Development Centre at Bricketwood, UK.

3.7.3 Distance Learning:

Web-based and multimedia self-study programmes available through our Intranet and multimedia

Learning Centers located in our HSBC offices.

3.7.4 Resident Management Trainee Programme (RMT Programme):

The Resident Management Trainee programme (RMT) aims to select a group of high potential

executive trainees and provide them training and development opportunities. The RMT programme

gives potential executives effective and systematic training to acquire an excellent understanding of

the commercial operations and business functions.

The RMT programme ensures that successful applicants, with the right training, will have the ability

and potential to reach the highest level of management within HSBC Bangladesh, and possibly

beyond.

3.7.5 European training programme:

Providing a comprehensive insight into our retail and commercial banking businesses, it is designed

to help employees develop the skills and experience you need to embark on a management career

with HSBC in your home country through different placements overseas. This training is a part of

HSBC’s performance management appraising process.

Programme Structure: In total, the programme lasts approximately 20 months, commencing at

the beginning of September 2009, with a two-week local induction course followed by a two-week

UK induction course on 14th of September 2009.

Following the induction, you will undertake three four-month placements overseas and the last

placement is for a six-month period in the home country.

2 weeks – Home country induction (Greece)

2 weeks – UK induction 14-25 Sept 2009

4 months – 1st overseas placement

4 months – 2nd overseas placement

1 week – UK training

4 months – 3rd overseas placement

6 months – Home country placement (Greece)

Typically these placements will take place in Europe, Canada, India, Sri Lanka or the United Arab

Emirates.

After the programme: At the end of the programme, a candidate is ready to take up a

management position with HSBC in his/her home country.

3.7.6 Performance Management:

HSBC has a strong HR culture in their organization. Being a multinational company (MNC) it has

their own way of daily evaluation. Through different formats of evaluation they measure their

employees’ performance. Participant diary and observation these two methods are applied for

evaluation. After evaluation using some metrics comes out the performance appraisal of employees.

Then it is decided whether the employee need more training sessions or developments. Succession is

a very common practice in HSBC. It helps to reduce cost as well as determine the employee

performances that are being ready for the expected post.


An employee first joins in the Human Resource Department (HRD) in the Corporate Office. After

accept his/her joining s/he is posted to Branch Office. Before to get the posting order employee

doesn’t know in which Branch s/he will be posted.

All jobs are transferable in this HSBC. The Competent Authority has the right to transfer employees

of the Bank from one department to anther department or from one branch to another branch of the

Bank. Human Resource Department keeps one copy of posting in employee’s personal file and the

copy of posting order distribute among employee, the FVP and manager of employee’s branch, DMD

and head of Corporate Affairs and Administration, Managing Director’s Secretariat Bank Asia

Limited, the FVP and manager of branch where employee will be posted and IT Department .


HSBC continually evaluates and reviews its employee benefits to ensure that benefits are competitive

and in line with its employees needs and to manage their diverse life.

3.9.1Rewards:

Salaries: Market competitive remuneration package subject to annual review where individual

performance is recognized.

Performance Bonus: Market competitive annual bonus based on results and individual

performance.

Incentive Schemes: Market competitive incentive schemes in specific business areas.

Share saves: Employees are entitled to buy HSBC shares at a 20 per cent discount on the market

price.

Achievement Shares: HSBC shares may be granted annually, depending on position and

individual performance.

3.9.2 Benefits:


Private medical plan for employees and dependents


Medical check ups

Banking products with preferential pricing




Market competitive remuneration package and annual cash bonuses.


Short and long-term disability coverage, as well as life insurance.

Paid leave for marriage, maternity, sickness and vacation.

Staff banking privileges, including special interest rates for car loans, sundry loans and

home loans.




3.10 Promotion

The criteria for promotion to a specified post usually merit-cum-seniority. A person will be eligible

for promotion if he has the satisfactory records of service, meets the criteria for promotion, and has

clear recommendation for promotion in his/her Annual Confidential Report(ACR). If there is any

departmental proceeding in underway against him/her or any penalty other than censure or warning

has been imposed on him/her within the last three years then the employee will not be promoted.

3.11 Leave

HSBC grants different kinds of leave for their employees. But all of the leave must be logical and

necessary. HSBC grants only limited leave. The bank mainly offers earn Leave, disability leave,

study leave, maternity leave and casual leave.

If an employee enjoys excessive leave or without prior notice, he/she will have to show cause to the

proper authority. He/she even may be punished by cutting salary .

3.12 Resignation

In case of resignation, an employee has to inform to Human Resource Department. He/she should

notice Human Resource Department before a proper time period. If he/she fail to inform before a

proper time period then his/her salary would be cut.




4. Conclusion

Human resource department is a basic part of the banks now days. So to run a bank well, this

department has a lot of activities to do. The HR department of the Banks of Bangladesh is the

department from where the organization is actually monitored and controlled over time.

In Bangladesh the HRM departments of Banks are highly organized and well equifed with necessary

number of personnel and others. Almost all of the banks practise almost the same kind of HR

activities like compensation; arrangement of training program and seminar and so on.

Bibliography

References:

Annual Report of SJIBL

Annual Report of HSBC

www.shahjalalbank.com.bd

www.hsbc.com.bd

www.bangladesh-bank.org

http://www.shahjalalbank.com.bd/

http://www.hsbc.com.bd/

HRM Practices of BB, SJIBL, HSBC Bank

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