Background Information of Premier Bank Limited

Premier Bank Limited is one of the strongest and leading private banks operating in Bangladesh.
It offers a wide range of banking facility for its valued customers. One of the beneficiary services
for the Customer of Premier Bank Ltd. is deposit Scheme.
The Premier Bank Limited is incorporated in Bangladesh as banking company on June 10, 1999
under Companies Act.1994. Bangladesh Bank, the central bank of Bangladesh, issued banking
license on June 17, 1999 under Banking Companies Act. 1991. The Head Office of the Premier
Bank Limited is located at Banani, one of the fast growing commercial and business areas of
Dhaka city.

Corporate Information:
Authorized Capital: BDT 200 crore
Paid up capital : BDT 169 crore

Vision of the Bank:

The Bank has clear vision towards its ultimate destiny - to be the best amongst the top financial
institutions.

Mission of the Bank:

To be the most caring and customer friendly provider of financial services, creating
opportunities for more people in more places.
To ensure stability and sound growth whilst enhancing the value of shareholders
investments.
To aggressively adopt technology at all levels of operations to improve efficiency and
reduce cost per transaction.
To ensure a high level of transparency and ethical standards in all business transacted by
the Bank.
To provide congenial atmosphere which will attract competent work force who will be
proud and eager to work for the Bank.
To be socially responsible and strive to uplift the quality of life by making effective
contribution to national development.

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Company Profile:
Board of Directors: The Board consist of 12 (Twelve) Directors. The members of the Board of
Directors of the Bank hold very respectable positions in the society. They are from highly
successful group of Business and Industries in Bangladesh. Out of 12 members one is from
Taiwan. Each member of the Board of Directors plays a significant role in the socio-economic
domain of the country.

Services & Products:

Deposit Account I Fixed Deposit
MIS/MSS
Double Benefit Scheme
Education Saving Scheme
Special deposit Scheme
Loan I Consumer Credit Scheme / Personal loan
Lease Finance / Apartment finance I Housing Loan
Rural Credit Scheme I SME Finance
Doctors Loan / Student Credit Program

Branches: At present Premier Bank Limited have 31 existing branches and 8 proposed branches.
They are Agrabad, Ashugonj, Banani, Bongshal, Barishal, Bhairab Bazar, Dhanmondi, Dilkusha,
Elephant Road, Gulshan, Imamgonj, Joydebpur, Karwan Bazar, Khatungonj, Kakrail, Khulna.
Meghnaghat, Mohakhali (Islami Banking), Moulavi Bazar, Motijheel, Narayanganj. OR. Nizam
Road, Savar, Sylhet, Tongi, Uttara.

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 ORGANOGRAM OF POSITIONS

Figure: Organogram of the position of PBL

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 A Questionnaire on Compensation Strategy of Premier Bank Limited

1. How do you maintain your organizational Objective?

By Preserving core value
Extending equal opportunity
Strictly following organizational rules and regulations
All of the above

2. How your organization manages its employees according to their objectives?

Providing equal opportunity
Aligning employees with organizational core objectives
Supporting Recruiting motivation
Influencing employees determination

3. What kind of culture your organization follows?

Performance driven culture
Socially oriented
Job oriented
Flexibility

4. Whats your organizations design culture?

Technology Based
Sophisticated
Rigid

5. How your organization has designed its payment structure for employees?
Comparing competitiveness
Market Demand
By revising salary each year
Standard rate

6. Whats your organizations philosophy regarding employees compensation?

Pay of performance
Better performer better pay
All are paid equally
All of the above

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7. How your organization maximizes its employees contribution?
By frequent career aggression
Providing challenging job opportunity
Assigning them into frequent intellectual based task
Supporting their activities

8. How do you measure your employees performance?

360 degree feedback
Opinions from subordinates, peers
Simulation

9. How well do you think your management is managing its employees?

Very well
Moderately well
Not that well
Poorly

10. Whats your organizations management strategy?

Centralized
Modern technology supported
Transparent and open
All of the above

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Business Strategy of Premier Bank Limited

PREMIER BANK LIMITED has opened a quite few new branches outside and inside of Dhaka.
It means that they are following the low cost saving strategy by increasing their selling.
PREMIER BANK LIMITED has also considered of maintaining of effective information flow
system as part of their core strategy. The company has executed a consistent strategy over the
past decade by focusing on highly scalable, fee based securities servicing.

Contrast of Strategic Mapping between Premier Bank Ltd. & Microsoft

Figure: Strategic Mapping between Premier Bank Ltd. & Microsoft

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Dimension of Premier Banks Compensation Strategy
Based on Performance Appraisal the compensation / increment of the employees are selected.
PBL gives increment, promotion and other facilities to the employees whose are in better
position according to Performance Appraisal. Again they give demotion to the employees who
are below standard according to Performance Appraisal. If employees have lack of knowledge or
something, then a training program is arranged.
Sometimes better performance employees are awarded by Promotion. Promotion is given after 2
years. The Promotion of the higher executives is maintained by the Promotion Committee Board
but the promotion of the lower executives is maintained by the Branch Management Committee.
Generally promotion of the employees depends on the result of the Performance Appraisal and
high recommendation.
Though maintaining a routine job high practiced in PBL, various types of incentives are being
driven towards the employees performance. Performance reward, appreciated reward,
promotions, holiday bonus, outstanding performance bonus, for example can be seen as strong
incentives to employees routine job.

Objectives:
Support the business objectives.
Support recruiting motivation and is an Equal Opportunity Employer. They will extend
equal opportunity to all without regard to race, religion, color, gender, creed, national
origin, age, disability or handicap status.
All line managers should keep record of employees attendance.
Preserve Premier Banks core objectives.

Internal Alignment:
Integral part of Premier Banks corporate culture.
Support performance driven culture
Sophisticated and technology based organization design structure.

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Competitiveness:
Pay according to market rate but competitiveness and salary structure are revised each
year.
Philosophy is to Pay or Performance,
Meet base pay and bonus.
All regular employees are entitled to contributory provident fund. The provident fund
shall be deducted at a rate of 9% of basic salary per month after successful completion of
90 days probationary period.

Contribution:
Bonus and salary increase is based on the current employee performance and current position.

Management:
Always open, transparent and honest
Centralized administration.
Modern technology supported

Compensation System:
Premier Bank Limited follows the performance base pay structure and pays for their
performance and work output. Compensation is the total returns, which an employee gets against
his or her work. It maybe: Base Wages & Salaries Group Life Insurance. Hospitalization. Out
Patient Medical Practice. Dental Treatment. Preventive Measures.
There are others like (Employee Leave, Employee Retirement Income Security Act, Executive
Compensation, Maternity and Paternity Benefits, and Pension and Retirement Plans.
Increments: The increments are totally based on the performance of the employees and their
seniority level. If the scale is Tk. 15000-20000 then the increment is 20% of the base pay, but if
any employee shows better performance, then this may increase up to 35% to 50%.

Recognition of the Work: The employees who have been working in Premier Bank Ltd for
seven years or more than seven years get cash rewards, trophy, badges and other things.

Overtime: All employees are entitle to overtime for more than 130 hours per month For
overtime Premier Bank Ltd has specific formula that applies on the employees gross salary, due
to which every employee has different per hour overtime rate.
Children education allowance: 1 gross salary per year.

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Provident Fund: All permanent and confirmed employees are eligible for membership of
Premier Bank Ltd Employee Provident Fund Scheme. An employee contributes 8.33% of his
monthly basic salary in a year and the employer contributes an equivalent amount.
Travel Policy: Revised and categorized different levels such as the senior level, the middle level
and the junior level staff enjoy travel benefits.

Other Compensations:
Disability income continuation.
Deferred Income:

From Salary : 10%

From Bank : 10%
Total Savings for future : 20%
Health, Accident, Liability protection
15 days : Compulsory/Refreshment leave
10 days : Casual leave.
15 days : Sick leave

Conclusion: Evaluation of Whether Id like to work for them or not

After Evaluating their strategy and compensation and benefits, it would be an attractive
opportunity if we got a job offer for them. But after getting some confidential information while
visiting the Bank, we prefer not to work for them. Because of this following reasons.

Some employees think that top management should change because they are not
cooperative and also biased.
Employee selection process is eye wash maximum employees are recruited depend on
personal linkage.
Our reference source said that there is more nepotism. Around 80% of employees are
from Barisal.
If an employee wants to leave, he should replace someone for doing his responsibilities.
Sometime it is very difficult for them. They think this type of replacement is duty of top
management. But top management ignores those responsibilities.
Office start at 9 but other banks start at 10 am.
If an employee performs well & works hard, still he will not get any promotion. But if a
bad performer has a relation with top management then he gets promotion earlier even
twice a year.

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