Report Making Ific

INTRODUCTION

The territories that now constitute Bangladesh were integral part of Mughal

Empire and thereafter British India and then Pakistan. That’s why we have the

common historical background of banking and banking institutions as that of

Pakistan and India. For the beginning of banking in the territory now comprised

Bangladesh we must go back to the Calcutta Agency Houses. The important two

houses were Ms Alexander and Co. and Ms Fergusson and Co. Both the two

were the predecessors of the early joint stock banks in the then India. The Bank

of Hindustan was the earliest bank started under the direction of the British ruler

in British India.

After the partition of British India in to Pakistan and India, Bangladesh became

integral part of Pakistan. Immediately after independence in 1947 an expert

committee was appointed to study the issue of banking in the then Pakistan. On

the recommendation of the expert committee, the Reserve Bank of India

continued its functions in Pakistan up to 30th September 1948 and thereafter the

State Bank of Pakistan, having been established on 1st July 1948, started

functioning and assumed the full control of banking and currency. By the date

Bangladesh proclaimed independence, there were about 14 scheduled banks

with about 3042 branches all over the country. Some foreign banks were also

functioning in Pakistan on that date.

After the surrender of the Pakistani forces on 16th December 1971, the

government of the Peoples Republic of Bangladesh formally took over the charge

of the administration of the territories now constitute Bangladesh. In order to

rehabilitate the war devastated banking system of Bangladesh, the government

promulgated a law called Bangladesh Bank (temporary) Order, 1971(Acting

Presidents Order No 2 of 1971). By this order the State Bank of Pakistan was

declared as Bangladesh Bank and the offices, branches and assets of the said

State Bank was declared to be deemed as offices, branches and assets of

Bangladesh Bank. It was also declared by the aforesaid Order that all currency

notes and coins issued by the said State Bank and government of Pakistan and

were in circulation in Bangladesh shall be deemed to have issued by the

Bangladesh Bank. By the steps stated above, the banking system of Bangladesh

started with a legal shape.

The number of banks in all now stands at 49 in Bangladesh. Out of the 49 banks,

four are Nationalized Commercial Banks (NCBs), 28 local private commercial

banks, 12 foreign banks and the rest five are Development Financial Institutions

(DFIs). Sonali Bank is the largest among the NCBs while Bank Asia is leading in

the private ones. Among the 12 foreign banks, Standard Chartered and HSBC

has become the largest in the country. Besides the scheduled banks, Samabai

(Cooperative) Bank, Ansar-VDP Bank, Karmasansthan (Employment) Bank and

Grameen bank are functioning in the financial sector. The number of total

branches of all scheduled banks is 6,038 as of June 2000. Of the branches,

39.95 per cent (2,412) are located in the urban areas and 60.05 per cent (3,626)

in the rural areas. Of the branches NCBs hold 3,616, private commercial banks

1,214, foreign banks 31 and specialized banks 1,177. Bangladesh Bank (BB)

regulates and supervises the activities of all banks.

Private sector banks started functioning during the year 1983-84 with the

objective of government policy to make sure effective and meaningful

participation of the private sector in the overall national economy.

International Finance Investment and Commerce Bank Limited (IFIC Bank) not

only earned a good reputation in market but also performed well in terms of

financial performance. At present International Finance Investment and

Commerce Bank Limited (IFIC Bank) have ninety five branches all over country.

Most commercial banks show interest in business oriented proposals but IFIC

Bank have crossed barriers by introducing personal credit scheme and monthly

benefit scheme that enable middle class people to fulfill their dreams.

Human Resource Management (HRM) is concerned with the “people” element in

organizations. Since every organization is made up of people- acquiring their

services, developing their skills, motivating them to high levels of performance,

and ensuring that they continue to maintain their commitment to the organization

are essential to achieving organizational objectives. This is true regardless of the

type of organization- government, business, education, health, recreation, or

social action. Getting and keeping good people is critical to the success of every

organization, whether profit or nonprofit, public or private. But in today’s highly

competitive business environment, the issues of HRM are more crucial for a

business enterprise than for any other type of organization. Again within the

scope of business, the service organizations require HRM more than others. A

bank is a service organization which needs effective HRM to survive and make

good business in the long run. This report is a study on the Contemporary HRM

practices in Bangladesh Commercial Bank the International Finance Investment

and Commerce Bank Limited (IFIC Bank).

Origin of the Report

The internship report is a basic course requirement of the MBA Program. The

proposed topic is “Contemporary HRM practices in Bangladesh Commercial

Bank A Case Study of International Finance Investment and Commerce Bank

Limited (IFIC Bank)”. The topic has been allocated and supervised by Mahmudul

Hasan Fouji Lecturer, Department of Marketing, Jagannatth University Dhaka.

Objectives of the Report

The objectives of the study are as follows:

Broad Objective:

The broad objective of the report is to have an overview on the human

resource management practices at IFIC Bank Limited.

Specific Objective:

The specific objectives are as follows:

To develop Knowledge about the banking services provided by IFIC Bank

Limited.

To acquire practical knowledge on the human resource management

practices at IFIC Bank Limited.

SCOPE

Human resource management encompasses a wide arena of human

resource related activities in a firm. This report focuses mainly on the

three basic functions of HRM, that is, acquisition, development and

motivation at IFIC Bank Limited. Under acquisition function, recruitment,

selection, and socialization issues are highlighted. Employee training as

well as management development practices are discussed in the

development function. The discussion on motivation function includes

basic compensation and fringe benefits, incentive pay plans, voluntary

benefits and services, and promotion system at IFIC Bank Limited.

SOURCES AND METHOD OF COLLECTING INFORMATION

The information used in writing this report has been collected from both primary and secondary sources.

1. Primary Source: The primary source includes interviews withthe executives, officers, and employees of IFIC Bank Limited.

2. Secondary Source: Majority of the information was collected from

secondary sources, which include different books, publications, reading

materials, and finally various reports both from my branch and head office.

Report Preview

This report discusses mainly Human resource management practices at IFIC

Bank Limited. The First part of this report is The Organization Part. This part

discussed about the IFIC Bank Limited, its different services, Management, and

Financial Condition etc. The Second part of this report is The Project Part. This

part discussed about the three basic functions of HRM, that is, acquisition of

human resources, training and development and motivation and compensation

system of this organization are discussed in this section. Finally few

recommendations have been made. So this report discusses the following:

Part A- The Organization of IFIC Bank Limited.

Part B-The Project “Contemporary HRM practices in Bangladesh

Commercial Bank a Case Study of International Finance Investment and

Commerce Bank Limited (IFIC Bank)”.

Limitations of the Study

I have tried my best to provide with all necessary information about International

Finance Investment and Commerce Bank Limited (IFIC Bank) Supplied by the

manager’s and employees best abilities; but due to the exhaustive nature of this

study most secret & strategic ethics could not be brought in this reports. As

having the status of an empirical study, this research is subject to following

limitations:

To protect the organizational loss in regard of maintaining confidentiality,

some parts of the report are not in depth.

A worthwhile study requires the analysis of as much data as possible

covering various aspects of the study. But I did not have easy access to

the various types of information about HR policies, guide lines, Training

and Development, Compensation and other’s HR related confidential

information.

Some of the data for statement preparation were not available in the

computer-records of their standard practices and therefore it was difficult

to draw inferences and had to execute manually.

ORIENTATION TO THE ORGANIZATION

International Finance Investment and Commerce Bank Limited (IFIC Bank) is

banking company incorporated in the People’s Republic of Bangladesh with

limited liability. It was set up at the instance of the Government in 1976 as a

joint venture between the Government of Bangladesh and sponsors in the

private sector with the objective of working as a finance company within the

country and setting up joint venture banks/financial institutions aboard. In

1983 when the Government allowed banks in the private sector, IFIC was

converted into a full fledged commercial bank. The Government of the

People’s Republic of Bangladesh now holds 32.75% of the share capital of

the Bank. Directors and Sponsors having vast experience in the field of trade

and commerce Own 8.62% of the share capital and the rest is held by the

general public.

Bank's Mission.

Mission is to provide service to our clients with the help of a skilled and dedicated

workforce whose creative talents, innovative actions and competitive edge make

our position unique in giving quality service to all institutions and individuals that

we care for.

We are committed to the welfare and economic prosperity of the people and the

community, for we derive from them our inspiration and drive for onward

progress to prosperity.

We want to be the leader among banks in Bangladesh and make our indelible

mark as an active partner in regional banking operating beyond the national

boundary.

In an intensely competitive and complex financial and business environment, we

particularly focus on growth and profitability of all concerned all

Current Profile

The current profile of the bank can be summarized as follows:

Total number of branches is 95 spread all over the country. The bank has more than 2300 employees. It provides online banking services all over the country. The bank has an ATM service named “Q-Cash”.

Capital and Reserves

IFIC Bank has been consistently maintaining the ‘Capital Adequacy Ratio’, as prescribed by Bangladesh Bank. This has been made possible by a policy building up both capital and reserves. It started with an Authorized and Paid-up capital of Tk. 100 million and Tk. 63.20 million respectively in 1983. Authorized and Paid-up capital increased to Tk. 5350.00 million and Tk. 2179.80 million respectively in 2010.

Strength and performance

With the active support and guidance from the Government, Central Bank, Client

and Patrons, the Bank has been maintaining sound financial strength showing a

steady and impressive business performance. IFIC Bank is one of the few

mentionable banks which maintains Capital Adequacy ratio and his more then

required provision as per Bangladesh Bank criteria.

Starting with a modest deposit of only Tk. 863.40 million in1983, the Bank had

closed its business with a deposit of Tk. 54660.04 million as of December 31,

2010. Total credit stood at Tk. 47560.34 million as on December 31, 2010

against Tk. 33018.40 million last year. Bank has posted an operating profit (un-

audited) of Tk. 4183.50 million during the year ended December 31, 2010.

Branch Network

The branches of the Bank cover all the important trading and commercial centers

in Bangladesh. At present IFIC Bank has 95 branches within Bangladesh, in

additional has opened one SME centres as on the year 2010. All branches are

equipped with on-line facilities. Steps are underway to open new branches in

important in the country in the year 2011.

Ownership and Organization Structure

Nature of Company and Ownership Structure

The Government of Peoples’ Republic of Bangladesh now holds 32.75% of share

capital of the Bank. Reputed business people of the country having vast

experience in the field of trade and commerce and general public own the rest of

the share capital of the Bank.

Composition of the Board

Unlike other Banks in the private sector, Board of Directors of the Bank is a

unique combination of both private and Government sector experience. Currently

it consist of 14 (Fourteen) Directors. Of them nine represent the sponsors and

general public including one independent director and four senior officials in the

rank and status of Joint Secretary/ Additional Secretary represent Government.

Managing Director is the ex-officio Director of the Board.

Management Structure

The thirteen members of the Board of Directors are responsible for the strategic

planning and overall policy guidelines of the Bank. Further, there is an Executive

Committee of the Board to dispose of urgent business proposals.

Besides, there is an Audit Committee in the Board to oversee compliance of

major regulatory and operational issues.

The CEO and Managing Director, Deputy Managing Director and Head of

Divisions are responsible for achieving business goals and overseeing the day to

day operation.

The CEO and Managing Director is assisted by a Senior Management Group

consisting of Deputy Managing Director and Head of Divisions who supervise

operation of various Divisions centrally and co-ordinates operation of branches.

Key issues are managed by a Management Committee headed by the CEO and

Managing Director. This facilitates rapid decisions.

There is an Asset Liability Committee comprising member of the Senior

Executives headed by CEO and Managing Director to look into all operational

functions and Risk Management of the Bank.

Hierarchy of the Management of this bank

.

Managing Director↓

Deputy Managing Director↓

Senior Executive Vice President↓

Executive Vice President↓

Senior Vice President↓

First Vice President↓

Vice President↓

Senior Assistant Vice President↓

First Assistant Vice President↓

Assistant Vice President↓

Senior Staff Officer↓

Staff Officer↓

Officer Grade -I↓

Officer Grade -II↓

Officer Cash↓

Selection Grade↓

Office Assistant

Milestones in the development of IFIC Bank

1976 - Established as an Investment & Finance Company under arrangement of joint venture with the govt. of Bangladesh.

1980 - Commenced operation in Foreign Exchange Business in a limited scale.

1982 - Obtained permission from the Govt. to operate as a commercial bank.

- Set up a its first overseas joint venture (Bank of Maldives Limited) in the Republic of Maldives (IFIC's share in Bank of Maldives Limited was subsequently sold to Maldives Govt. in 1992)

1983 - Commenced operation as a full-fledged commercial bank in Bangladesh.

1985 - Set up a joint venture Exchange Company in the Sultanate of Oman, titled Oman Bangladesh Exchange Company (subsequently renamed as Oman International Exchange, LLC).

1987 - Set up its first overseas branch in Pakistan at Karachi.

1993 - Set up its second overseas branch in Pakistan at Lahore.

1994 - Set up its first joint venture in Nepal for banking operation, titled Nepal Bangladesh Bank Ltd.

1999 - Set up its second joint venture in nepal for lease financing, titled nepal Bangladesh Finance & leasing Co. Ltd. (which was merged with NBBL in 2007)

2003 - Overseas Branches in Pakistan amalgamated with NDLC, to establish a joint venture bank: NDLC-IFIC Bank Ltd., subsequently renamed as NIB Bank Ltd.

2005 - Acquired MISYS solution for real time on-line banking application.

- Core Risk Management implemented.

2006 - Corporate Branding introduced.

- Visa Principal and Plus (Issuer and Require) Program Participant Membership obtained.

2008 - Observing 25th Anniversary of Customer Satisfaction.

2009 - 64 Branches offering Real Time On-line banking facility.

2010 - All 87 Branches & SME Service Centers of IFIC Bank is operating under state-of-art world class Real Time On-line Banking Solution.

Dinajpur Branch

IFIC Bank Limited came into the headlines and attention of every People of

Dinajur when it was open a branch of IFIC Bank Limited Dinajpur , Maldapatti,

Dinajpur. The breakthrough was possible for some visionary decision-makers

and also dedicated team of professionals who are constantly putting all their best

efforts to establish the bank as one of the leading concern in the industry.

Organ gram Of Dinajpur Branch

Number Of Staff In Dinajpur Branch:

Position Number

Manager 1

Operation Manager 1

Grade-1 2

Grade-2 5

Cash Officer 4

Office Assistant 2

Total 15

ManagerSVP

Hade of Credit Hade of Gen. Banking & Trade Finance

Cash & Acct Credit Reception

Foreign Exchange

Locker Customer Ser. & Remittance

Teller

Products and services 0f IFIC Bank Limited:

IFIC Bank Limited offered some financial products and services under different

categories as mentioned below:

Q- cash banking service.

Term deposit lone

Inward and Outward remittances

Import finances

Export finances

Working Capital Finances

Loan syndications

Trade finances

Industrial finances

Foreign currency deposit

Lease finance etc.

Trade Financing

After open of Dinajpur Branch, IFIC Bank Limited added new strength in its trade

financing activities. Previously Bank Limited was not facilitated with “SWIFT”

which is very crucial in efficient modern banking correspondence. Now the

Branch Dinajpur has correspondence with over 200 financial institutions

worldwide. Dinajpur Branch provides L/C payment, L/C advising, negotiation,

reimbursement, shipping guarantee, export bill collection services to its valued

clients. Dinajpur Branch becomes, in effect, IFIC Bank limited one of the

strongest Domestic banking arms, helping to serve their clients through its global

network.

Private Banking

The Private Bank at IFIC Bank Limited, IFIC Bank Limited Branch meets

client needs with a line of discretionary portfolio management, custodial services,

foreign exchange, deposit services, credit facilities, and personal banking

services.

Corporate Banking

IFIC Bank is providing a wide range of financial services, offering

specialist advice and product to corporate clients to meet diverse demand of

changing market scenario. We have expertise to customize product and services

to meet specific requirements of our clients. We are committed to serve our

customer with extensive branch network all over the country to expedite our

client’s business growth. We facilitate your business to face the challenges and

realize opportunities, now and in the future. Our main focus is relationship based

banking and understanding corporate and institutional business environment.

Our corporate Banking services are

Working Capital Finance

Project Finance

Term Finance

Trade Finance

Lease Finance

Syndication Finance

Retail Banking

Retail Banking at IFIC Bank Limited, Dinajpur Branch provides all types of

clients with typical banking services such as, savings accounts, current accounts,

call and short-term deposit accounts, fixed deposit accounts, time deposits,

foreign currency accounts and secure locker services.

HR Practices at IFIC (International Finance Investment and

Commerce) Bank Limited

HR Philosophy of IFIC Bank Limited

The IFIC Bank Limited management is well aware of the need for human

resource training and development. This can be understood from its corporate

manual:

“Function of the management of the bank is not only to cope with the situation

prevailing but also to ensure best of services to the clientele and society at large

as well as profitable returns to the owners and shareholders. These objectives

may be fulfilled only when enlightened management coexists with skilled and

motivated members of staff. Different levels of employees require different skills.

An organization with people having technical, human and conceptual skills can

serve and cope with the fast changing environment. Some of the traits and skills

may be inborn in human beings. But most of the skills can be acquired and

cultivated provided that there is willingness on the part of the employees and

there is an organized effort for planned change in management and

organizational development.”

Human Resource Development (HRD)

Human Resources Development is focused on recruitment and in-house

training for both on the job and off the job Bank staff members through the

Bank’s Academy. IFIC Bank Academy – the oldest institution in the private sector

– was conceived of as an in-house training center to take care of the training

needs of the Bank internally.

Academy is fully equipped with a professional library, modern training aids

and professional faculty. Library has about 4941 books on banking, economics,

accounting, management, marketing and other related subjects.

Main training activities consist of in-depth foundation programmes for entry level

Management Trainees. Specialized training programmes in the areas like

general banking, advance, foreign exchange, marketing and accounts etc. are

also organized by the Academy depending on need.

Frequently outreach programmes are organized to meet demand for new and

specialized skills.

During its 23 years of existence, Academy not only conducted courses,

workshops and seminars as required by the Bank, but it also organized training

programmes for the Bank of Maldives, Nepal Bangladesh Bank Limited and

Oman International Exchange LLC. In addition, Academy has also the credit of

organizing system of Bank of Maldives.

In addition to conducting courses internally, The Academy also selects

candidates for nomination to various courses conducted by distinguished training

organizations in the country including Bangladesh Bank Training Academy and

Bangladesh Institute of Bank Management.

The Academy also re-designs its courses, programmes etc, regularly to

meed the requirement of new skills arising out of various directives, guidelines of

the Central Bank and significant changes in the banking sector from time to time.

The objectives of the academy are:

To make available adequately trained and motivated manpower

with skills within the shortest possible time by required for on-

the-job training.

To develop understanding about banking and give theoretical

background to the employees.

To impart technical skills to the operational level of officers for

efficient desk operations through case studies or

demonstrations.

To develop analytical and decision making skills of the

employees.

To develop understanding about human or conceptual skills and

organizational culture.

To impart managerial skills to groom future executives and to

keep existing executives up-to-date with management

knowledge.

The Academy holds need-based training courses, workshops, seminars,

which are finalized by the HRD&R Division in consultation with various

departments and senior executives. Training inputs are constantly reviewed or

modified in pursuance of the bank’s objectives and needs. Methods adopted by

the academy include discussions, case studies, business games, role-playing,

simulation, etc.

HR FUNCTION- ACQUISITION OF HUMAN RESOURCE

IFIC Bank Limited was set up initially by hiring bankers directly from

different public and private banks. Later on, the organization developed its own

human resource acquisition system. At present the HRD&R Division is

responsible for the acquisition of human resource for the organization. The

acquisition process is discussed below:

Recruitment.

The Bank recruits its employees from external sources and internal

source. The recruitment is conducted for different levels of employment including:

(1) Grade I Officers.

(2) Grade II Officers.

(3) Cash Officer .

(4) Senior Executives above the level of Assistant Vice Presidents (AVP).

The Bank also conducts recruiting for third and fourth class employees.

For recruiting the Bank goes for advertising in the print media like the national

dailies. A typical advertisement seeks the following requirements from the

applicants:

Age Limit:

Not over 30 years of age on Advertisement month.

Educational Qualifications

OFFICER Education Qualification Experience

Probationary

Officer

Post Graduate in any discipline

including at least two(2) first class at

any level

No experience

required

Grade II Officer Post Graduate in any discipline


any level

No experience

required

Cash Officer Graduate in any discipline including

at least two(2) first class at any level

No experience

required

Senior Executives Post Graduate in any discipline


any level

6-10 years of

experience is

mandatory

Candidates having 3rd Divisions/Class or equivalent CGPA in any Examination

need not to apply.

Salary Range.

The advertisement also informs the applicants about the salary ranges at

the required levels of employment.

Other Personal Information.

Like age, address, marital status, etc are asked to be given in a full bio-

data including an application.

Selection.

A Selection Committee is formed by the Board of Directors to select the

competent applicants. The selection criteria and methods vary with the nature of

jobs and job vacancies. Normally the selection process for the officer grades is a

discrete one having five different steps as shown in Chart 2:

CHART 2: SELECTION PROCESS AT IFIC BANK LIMITED

INITIAL SCREENING

EMPLOYMENT TESTS

COMPREHENSIVE INTERVIEW

BACKGROUND INVESTIGATION

FINAL EMPLOYMENT DECISION

SOURCE: PRIMARY

a. Initial Screening.

The selection committee scrutinizes the applications received from the

applicants and prepares a panel of candidates for selection basing on the

selection criteria like age, qualification, and experience if necessary. Then admit

cards are issued to the candidates selected through the initial screening for

employment tests.

b. Employment Tests. The Bank conducts three types of tests to

select the employees:

(1) GMAT Test. A written test based on GMAT system is taken to judge the

candidates’ knowledge and aptitude. The questionnaire for the test is set in

consultation with the Institute of Business Administration (IBA), University of

Dhaka, and Bangladesh Institute of Bank Management (BIBM).

(2) General Knowledge Test. Another written test is conducted on

general knowledge which includes subjects like current affairs, history, science

and technology, literature, etc.

(3) Computer Literacy Test. This test is conducted to judge the applicants’

proficiency in computer application programmes like word processor,

spreadsheet, and data base management system. More emphasis is given on

this test in case of selecting for the posts of Junior Officers and clerical positions.

c. Comprehensive Interview. The candidates who qualify in the

employment tests are then called for an interview. The panel of interview is

composed of some of the members of Board of Directors and the Managing

Director of the Bank. There is no pre-structured questionnaire for the interview.

d. Background Investigation. The police verification of the applicants

is carried out especially for the positions having financial responsibilities.

e. Final Employment Decision. The final decision and approval on the

selection of candidates rests with the Board of Directors. The finally selected

candidates receive the appointment letters from the bank authority.

3. Orientation and Initial Socialization. The selected candidates first join

at the Corporate Head Office of the Bank. Then they are placed under the

HRD&R Division for orientation and initial socialization. But the organization does

not follow any pre-planned orientation programme for this purpose. The new

employees are brought into the culture of the organizational through off-the-job

and on-the-job training.

Workforce Position

Total manpower stood at 2315 as on December 31, 2010. Out of them

1688 were officer and 617 were non-officer employees. Workforce position of the

Bank from 1983 to 2010 is given in the following table:

Year Officers Staffs Total Female Officer

and Staffs

1983 61 35 96 16

1984 152 89 241 21

1985 264 168 432 26

1986 303 322 625 29

1987 334 404 738 38

1988 369 458 827 50

1989 465 480 945 63

1990 512 480 992 74

1991 506 556 1062 78

1992 617 626 1243 96

1993 600 720 1320 106

1994 912 513 1425 119

1995 964 601 1565 132

1996 1009 540 1549 154

1997 1088 526 1614 154

1998 1081 543 1624 162

1999 1124 535 1659 176

2000 1151 549 1700 188

2001 1189 548 1737 200

2002 1201 554 1755 213

2003 1266 602 1868 238

2004 1294 601 1895 248

2005 1415 575 1990 273

2006 1430 584 2014 275

2007 1402 595 1997 291

2008 1480 631 2111 297

2009 1585 608 2195 322

2010 1688 617 2315 344

Source Primary

HRM FUNCTION- TRAINING AND DEVELOPMENT

Human resource training and development assumes great significance in a

service-oriented industry like banking. It is very important for a commercial bank

that the clientele is satisfied with the bank’s service and remain so in the long

run. And better service can be ensured only through better personnel equipped

with the right skills and the right attitude. Adequate human resource training and

development for is thus essential to instill the required skills and attitude within

the employees.

IFIC Bank Limited makes all out effort to develop a highly motivated workforce

and to equip them with the latest skills and technical efficiencies. Its human

resource development programme has the following dimensions:

1. Employee Training.

These training programmes are designed for the Grade I officers and the

Grade II officers. The details are as follows:

a.Training for the Probationary Officers.

The candidates selected for the posts of Grade I Officers are called the

probationary officers. The foundation level training is imparted to the newly

recruited probationary officers as they are unfamiliar to the profession and job of

banking. This training programme includes on-the-job as well as off-the-job

training for them:

(1) On-the-job Training.

One interesting fact about the training system of IFIC Bank Limited is that

here the practical on-the-job training is followed by theoretical off-the-job training.

Trainees are first acquainted with the real world applications of the banking

procedures before they learn the underlying theoretical concepts. At first a

trainee is posted to a branch. He/she learns the mechanics of the job there

under the supervision of senior officers. Job rotation is applied so that the

trainee learns the job duties in each area. The duration of the on-the-job training

is usually three months.

(2) Off-the-job Training.

Then the trainees are sent to the IFIC Bank Limited Academy for acquiring

theoretical professional knowledge. The probationary officers spend a total of

seven week’s time in off-the-job training. Off-the-job training is conducted mainly

through the use of class lectures and discussions. Tests are taken on the lessons

imparted to assess the trainees’ performance. The subjects and areas of training

include economic and banking systems of Bangladesh, general banking and

accounts concepts and procedures, business and banking laws, customer

service development and human relations, organizational behavior and

communication, financing, credit management, auditing, foreign exchange, risk

analysis and other banking related topics.

b. Training for the Grade II Officers.

The newly recruited Grade II Officers have to go through a training

programme spanning seven weeks. The first phase of the training lasts three

weeks. The duration of the second phase is six weeks. The training programme

for the Grade II officers is much similar to that for the Probationary Officers. Here

also, on the on-the-job training comes before the off-the-job training programs.

The course contents are more or less the same but the courses are more basic

in nature. The training periods for the Grade II Officers are longer than that of

Probationary Officers. This has valid reasons. The learning time is a trade-off for

their selection time. The selection procedure for Grade II Officers is less

competitive and less rigorous. So, that is made up by the time spent on training.

c. Training for the Cash officer.

The newly recruited Cash Officers have to go through a training

programme spanning one week’s. The training programme for the Cash officers

are based on cash transaction, inward and outward remittance, basic knowledge

of banking software, online bill’s payment and receives. Here also on the on-the-

job training comes before the off-the-job training programs. The course contents

are more or less the same but the courses are more basic in nature.

2. Management Development.

The organization has adequate management development programmes to

impart managerial skills and knowledge, and to instill managerial attitudes within

the senior executives. The management development at IFIC Bank Limited has

the following programmes:

a. In-House Programmes.

These are conducted at the IFIC Bank Academy on a non-routine basis.

The in-house management development programmes are designed for the

branch managers, group executives, and senior staff officers including the top

officials. The programmes include:

Leadership workshops

Development conferences

Seminars and group discussions.

b. Training at Other Institutions. Frequently the bank sends its

executives to Bangladesh Institute of Bank Management (BIBM) and other local

training institutes for specialized training on bank management.

c. Foreign Training. A number of officers have been sent abroad to pursue

higher training on corporate banking and international finance.

3. Other Training and Development Programmes. IFIC Bank Academy

runs other training programmes, which are non-routine in nature. Some of the

programmes are:

The foundation course and advance course on foreign

exchange for the executives of Foreign Trade Operations

Division.

The course on audit and inspection for the executives of Central

Accounts Division and Bank Examiners’ Division.

The elementary course on general banking and accounts for the

tellers.

The courses on credit management, lending risk analysis, loan

classification procedures, and preparation of returns for the

officers of General Credit and Project Finance Division.

Knowledge Update

It is now well recognized that neither classroom training nor on-the job

training is enough for imparting skills. Training and Research Division published

and circulate ‘Knowledge Update’ on monthly basis among the officials of the

Bank. In view of this , steps were taken to improve ‘Knowledge Update’-a

monthly publication in terms of coverage ,quality and content.

TRAINING SCHEDULE -2011

In 2011 the academy will conduct 55 programmes of various frequencies

and duration for different levels of officers. The Academic Calendar-2011

includes programme covering all strata of personnel i.e junior- level, mid- level,

senior- level and Top- level officials. There are in total 14 Courses, 03 Seminar

and 38 workshops with various frequencies. Foundation Courses and some

specialized Courses are meant for junior/ mid-level officers. This year attempts

have been made to incorporate more workshops and seminars of smaller

duration on specialized and new skill areas in order to accommodate senior

officers in the programme. Academic Calendar 2011 detailing program, titles,

frequency, duration, level of participants, etc. are shown on the following table

Sl.NO. Programmes Period Duration

01. Course on Branch Management Jan 8-10 3 Days

02. Foundation Course of Beginners(For newly

recruited Officers other then Pos)

Jan 25-27 3 Days

03. Foundation Course of Probationary

Officer(Credit & F.EX )

Jan30-Feb15 3 Weeks

04. Workshop on Bangladesh Electronic Fund

Transfer Network(BEFTN)

Feb 22 1 Day

05. Basic Course for Cash/Computer Officers Feb 23-24 2 Days


Officer(Credit & F.EX )

Feb 23-Mar16 3 Weeks

07. Workshop on Customer Service & Care Mar 20-21 2 Days

08. Workshop on Payment of Inward foreign

Remittance

March 24 1 Day

09. Course on International Trade Payment &

Finance

March 26-30 5 Days

10. Workshop on reporting SBS 123 and

returns of the Bank

April 3 1 Day

11. Workshop on Dialogue between ICC and

CCU at Branch level Implementation of

Guidelines on ICC & Strengthing of ICU

April 7 1 Day

12. Workshop on Basic Telephone Etiquette April 9 1 Day

13. Foundation Course for Officers Grade II April 10-28 3 weeks

14. Workshop on Payment of Inward foreign

Remittance

May 8 1 Day

15. Workshop on Prevention of Money

laundering & Combating Financial

Terrorism

May 10 1 Day

16. Workshop on card operation & Marketing May 12 1 Day

17. Comprehensive Course on Accounting for

Banker

May 21-22 2 Days

18. Workshop on NPL-Recovery and May 24 1 Day

implication of related laws

19. Workshop on Management of Asset-

Liabilities

May 26 1 Day

20. Course on Credit Risk Management Jun 5-9 5 Days

21. Workshop on Micro & SME Financing Jun 13 1 Day

22. Workshop on An overview of Finance &

Accounting and deduction of VAT & Tax etc

Jun 15 1 Day

23. Refreshers course for Officer Grade I Jun 19-29 2 weeks

24. Workshop on Green Financing &Carbon

Trading

July 3 1 Day



July 5 1 Day

26 Familiarization with Mysis for Relationship

Managers

July 7 1 Day

27. Workshop on Agricultural Financing and

Rural Banking

July 11 1 Day

28. Workshop on Strategic Human Resource

Management in Bank

July 13 1 Day

29. Workshop on Risk Based Capital Adequacy

according to BASEL II

July 20 1 Day

30. Workshop on Issues with Credit

Administration requirement of disbursement

July 24 1 Day

31. Seminar on SME Financing –Central Bank

Perspective

July 28 1 Day

32. Seminar on Law and Legal Affairs of the

Bank

July 28 1 Day

33. Workshop on Developing Negotiating skill July 30 1 Day



Terrorism

Aug 6 1 Day

35. Workshop on Mortgage formalities Aug 11 1 Day

36. Workshop on Islamic Banking and Finance Aug 16 1 Day

37. Workshop on Card operation /Business Aug 25 1 Day


Officer(GB )

Sep 4-22 3 weeks

39. Workshop on CF(other then Credit Card ) Sep 26 1 Day

40. Workshop on Money Laundering: CAMLCO

& BAMLCO.

Sep 28 1 Day

41. Basic Course for Cash/Computer Officers Oct 2-3 2 Days

42. Seminar on Brand Management Oct 9 1 Day

43. Workshop on Automated Clearing House

operation

Oct 11 1 Day

44. Workshop on Basics considering a credit

proposal

Oct 13 1 Day

45. Workshop on Risk based Audit &

Inspection of the Bank branches

Oct 16 1 Day

46. Workshop on Insurance for Bankers:

related issues

Oct 18 1 Day

47. Workshop on Financial Inclusion in

Bangladesh

Oct 20 1 Day

48. Workshop on: Operation Control and

Monitoring in Mysys Banking Solution(ICC

Official)

Oct 24 1 Day

49. Workshop on Reporting System on Risk

based Internal Audit & Inspection of

Branches/Division of Head Office for ICC

Official

Oct 26 1 Day


Officers: General Banking (GB )

Nov13-30



Dec 3 1 Day

Terrorism

52. Workshop on presentation &

Communication skill

Dec 3 1 Day

53. Workshop on Risk based Internal Audit &

Inspection of Branches/Division of Head

Office in line with Core Risk Management

for branch Official

Dec 8 1 Day

54. Course on Branch Management Dec 10-12 3 Days



Dec 15 1 Day

E. HR FUNCTION- MOTIVATION AND COMPENSATION

Like any other organization, at IFIC Bank Limited, a psychological contract

exists between the employees and their organization. The organization desires

that the employees will perform to their utmost for achieving the organizational

goals. On the other hand, the employees also expect that the organization will

reciprocate according to their performance. As such, the Bank has a well-defined

system to compensate the outputs of the employees. The compensation system

of IFIC Bank Limited has the following dimensions:

1. Base Wage and Salary System.

The employees at IFIC Bank Limited are well paid. The Bank pays quite

handsome amount of salaries to its employees. The pay structure of the Bank

has as many as 21 steps for the officer grades. IFIC Bank’s Officers’ basic pay

scales are given at Table II.

2. Fringe Benefits.

The Bank provides a multitude of benefits to its employees:

a. House-building Loan.

The Bank has a provision of house-building loan for the employees at an

interest rate, which is 1% more than the Bank’s prime rate. Employees can get

this loan at 6% annual interest rate, which is an extra-ordinary welfare for them.

For instance, even House Building Finance Corporation (HBFC) gives housing

loan at 13% of annual interest.

b. Car Loan.

The officer grades of Assistant Vice President and above can avail car

loan amounting minimum of Taka 900000. The Bank adjusts the loan from the

car maintenance allowance of Taka 2,000 given to the individual officer receiving

the loan.

c. Medical Allowance.

All employees get monthly medical allowances at different rates for

different ranks.

d. Other Benefits.

The Bank provides other financial benefits to the employees, which

include conveyance allowances, internal insurances and benevolent funds.

e. Pension Policy.

The Bank has no pension programme for the employees once they go for

retirement.

Table II

Gra

de

Posit

ion

Scale House

Rent

Allowan

Conve

yance

Allowa

Entertai

nment

Allowan

Medical

Allowan

ce nce ce ce

MD Negotiable _ _ _ _

DMD Negotiable _ _ _ _

I SEVP 65000-9500-112000-EB-10750-176500 50% of

basic

0 18000 10% of

basic

II EVP 60000-6000-9000-EB-9400-146400 50% of

basic

0 17000 10% of

basic

III SVP 54000-5400-81000-EB-10750-117000 50% of

basic

0 16000 10% of

basic

IV FVP 47500-4750-76000-EB-5400-108400 50% of

basic

0 14000 10% of

basic

V VP 43500-4350-69600-EB-4750-102850 50% of

basic

2500 12000 10% of

basic

VI SAVP 38000-3800-64600-EB-4350-95050 50% of

basic

2400 9000 10% of

basic

VII FAVP 34500-3450-58650-EB-3800-89050 50% of

basic

2300 7500 10% of

basic

VIII AVP 31000-3100-55800-EB-3450-83400 50% of

basic

2200 6000 10% of

basic

IX SSO 25000-2500-45000--EB-3100-72900 50% of

basic

2000 4000 10% of

basic

X SO 22000-2200-41800--EB-2500-64300 50% of

basic

1800 3500 10% of

basic

XI GR-I 19000-1900-36100--EB-2200-58100 50% of

basic

1600 3000 10% of

basic

XII PO 16000 50% of

basic

1500 2000 10% of

basic

XIII GR-II 12500-1250-25000--EB-1600-41000 50% of

basic

1000 1000 10% of

basic

XIV CO 11000-1100-22000--EB-1100-35750 50% of

basic

950 0 10% of

basic

XV.B O.Ass

tt(SG)

9500-950-19950--EB-1100-32050 50% of

basic

900 0 10% of

basic

XV.A O.Ass

tt

8600-860-18060--EB-950-29460 50% of

basic

850 0 10% of

basic

XVI Driver 6700-670-14740--EB-860-25060 50% of

basic

800 0 10% of

basic

XVII Secur

Staff

5900-590-12980--EB-670-21020 50% of

basic

750 0 10% of

basic

XVIII Offic 5700-570-12540--EB-590-19620 50% of 700 0 10% of

Att basic basic

3. Incentive Pay Plan.

The organization recognizes high performance and outstanding service of

the employees through giving incentive pays. The Bank has two types of

incentive pay plans:

a. Individual Incentives.

The employees displaying high performance receive such incentives

mostly in the form of cash. Normally branch managers receive individual

incentives for the operating performance of their branches.

b. Organizational Incentives.

These are given in the form of bonuses to all employees when the Bank

makes a big profit in overall operations. For instance, in the last financial year all

employees of this bank received three bonuses for overall organizational

performance.

4. Voluntary Benefits and Services.

In addition to the above mentioned compensation benefits, the employees

at IFIC Bank Limited enjoy some more benefits and services which include the

following kinds of leaves and recreational amenities:

a. Casual Leave.

In case of necessity, an employee can get a casual leave of 10 days

sanctioned by his branch manager.

b. Study Leave or Sabbatical. Employees can avail study leave for

pursuing higher studies provided they have completed at least 5 years of service.

c. Sick Leave. An employee gets sick leave of a maximum duration of 15

days as per requirement. The management grants such leaves under their

discretion.

d. Maternity Leave. The organization gives a maternity leave of Six

months to the female employees who become expectant mothers.

e. Recreational Activities. Organized office parties, annual picnics and

pleasure trips are the examples of other motivational activities that employees

enjoy at IFIC Bank. The social interactions among the employees through these

recreational activities enhance employee morale, and motivation and

commitment towards the organization.

5. Promotion System. Though promotion relates to some financial

benefits, it mainly results in certain non-monetary significances like elevated

status, added social respect, and above all, scope of self-actualization through

challenging job performance and personal growth. At IFIC Bank Limited

promotion of the employees are subject to the following:

Seniority

Performance evaluation report

In some cases, contribution to the organization.

FIYNDINGS OF CONTEMPORAR HR PRACTICE IN IFIC

BANKLIMITED

The human resource management practices at IFIC Bank Limited have many

positive sides as well as many limitations. An evaluation is imperative to

ascertain the existing limitations and to devise effective measures for overcoming

those. The major limitations in the HRM practices of this organization can be

summarized as follows:

a. No Sound HR Planning. Though IFIC Bank Limited has a separate

department to look after HRM aspects, this department hardly carries out any

future planning to meet its HR needs. In fact this department has little liberty or

authority to make HR plans for the whole organization. As such, the HRD&R

Division follows a reactive approach to deal with the HR requirements rather than

planning ahead.

b. Limited Scope of HRD&R Division. The scope of responsibilities for

the HRD&R Division is very limited. This department carries out only the

acquisition and training functions for the organization whereas in the today’s

concept, HRM encompasses many more HR aspects than these.

c. Absence of Orientation and Socialization Programme. There is no

organized and pre-planned programme for the orientation and initial socialization

of newly recruited employees at IFIC Bank Limited. As such, the new entrants

face difficulty in getting acquainted with the organization, its culture, working

environment, code of conduct, rules and regulations, and the organizational

ethics. This limitation significantly affects their motivation, performance and

professional attitude at the beginning of their careers.

d. Absence of Well-defined Career Planning. IFIC Bank Limited does not

seem to maintain its personnel inventory with a long-term vision and goal. This is

evident from the lack of well-defined career plans for the employees. The

employees are also not aware about their future roles and career paths. Sound

career planning is essential for long-term sustainability and operating

performance of any business organization.

e. No Organized Promotion Policy. There is no organized promotion

policy in this organization. Even the promotion criteria are not well-defined. The

Bank has no succession plan supported by an up-to-date management inventory.

This causes difficulty in placing the right individual to the right place in case of

any termination or turnover.

RECOMMENDATION

Despite the above mentioned limitations, the HRM practice at IFIC Bank Limited

portrays an organizational success story. This is evident from the outstanding

business performance of the Bank within twenty seven years only since its

inception in the banking sector. This organization has already created a

professional workforce through its sound recruiting and selection systems as well

as through effective training and management development programmes. The

employees at IFIC Bank Limited are well-motivated and committed to the

organizational cause which is an outcome of its excellent compensation system,

employee benefits and incentive plans.

Yet the organization should address the limitations in its HRM practice in order to

survive better in the face of growing competition and maintain business

profitability in the long run. By overcoming these limitations the Bank would attain

competitive advantage over its rivals in the business. The following

recommendations may help the organization to overcome its HRM limitations:

The organization should practise strategic HR planning to meet the HR requirements. The HRD&R Division should be given more liberty and authority to make sound HR plans and to implement those.

The size, scope, and responsibilities of the HRD&R Division should be expanded further in order to meet growing HR requirements.

The organization should give adequate emphasis on the career planning for the employees.

There should be a well-defined promotion policy and succession plan supported by an up-to-date management inventory.

The top management at IFIC Bank Limited should endeavour to build gradually a strong organizational culture and devise plans to bring the new employees to this culture through proper orientation and socialization programmes.

The implementation of these strategies and measures will require a considerable time and effort. Initiative and careful planning at the top management level is essential to implement them. The sooner this will be done; the better will be the operational excellence and business profitability of the firm in the long run.

Report Making Ific

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