INTRODUCTION

The territories that now constitute Bangladesh were integral part of Mughal Empire and thereafter British India and then Pakistan. Thats 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 todays 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 with the 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 Part A- The Organization of IFIC Bank Limited. 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 managers 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 others 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 Peoples 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 Peoples 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 Paidup 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 (unaudited) 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 Manager SVP Hade of Credit

Hade of Gen. Banking & Trade Finance

Cash & Acct

Credit

Reception

Foreign Exchang e

Locker

Customer Ser. & Remittance

Teller

Number Of Staff In Dinajpur Branch: Position Manager Operation Manager Grade-1 Grade-2 Cash Officer Office Assistant Total Number 1 1 2 5 4 2 15

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 clients 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 Banks 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 onthe-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 banks 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 Probationary Officer Grade II Officer Education Qualification Post Graduate in any discipline including at least two(2) first class at any level Post Graduate in any discipline including at least two(2) first class at Cash Officer Senior Executives any level Graduate in any discipline including at least two(2) first class at any level Post Graduate in any discipline including at least two(2) first class at any level Experience No experience required No experience required No experience required 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 biodata 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 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Officers 61 152 264 303 334 369 465 512 506 617 600 912 964 1009 1088 1081 1124 1151 1189 1201 1266 1294 1415 1430 1402 Staffs 35 89 168 322 404 458 480 480 556 626 720 513 601 540 526 543 535 549 548 554 602 601 575 584 595 Total 96 241 432 625 738 827 945 992 1062 1243 1320 1425 1565 1549 1614 1624 1659 1700 1737 1755 1868 1895 1990 2014 1997 Female Officer and Staffs 16 21 26 29 38 50 63 74 78 96 106 119 132 154 154 162 176 188 200 213 238 248 273 275 291

2008 2009 2010 Source Primary

1480 1585 1688

631 608 617

2111 2195 2315

297 322 344

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 banks 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 weeks 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 weeks. The training programme for the Cash officers are based on cash transaction, inward and outward remittance, basic knowledge of banking software, online bills payment and receives. Here also on the on-thejob 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:

 b.

Leadership workshops Development conferences Seminars and group discussions. Frequently the bank sends its

Training at Other Institutions.

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. 01. 02. 03. 04. 05. 06. 07. 08. Programmes Course on Branch Management Foundation Course of Beginners(For newly recruited Officers other then Pos) Foundation Course of Probationary Officer(Credit & F.EX ) Workshop on Bangladesh Electronic Fund Transfer Network(BEFTN) Basic Course for Cash/Computer Officers Foundation Course of Probationary Officer(Credit & F.EX ) Workshop on Customer Service & Care Workshop on Payment of Inward foreign Remittance Period Jan 8-10 Jan 25-27 Jan30-Feb15 Feb 22 Feb 23-24 Feb 23-Mar16 Mar 20-21 March 24 Duration 3 Days 3 Days 3 Weeks 1 Day 2 Days 3 Weeks 2 Days 1 Day

09. 10. 11.

Course on International Trade Payment & Finance Workshop on reporting SBS 123 and returns of the Bank Workshop on Dialogue between ICC and CCU at Branch level Implementation of Guidelines on ICC & Strengthing of ICU Workshop on Basic Telephone Etiquette Foundation Course for Officers Grade II Workshop on Payment of Inward foreign Remittance Workshop on Prevention of Money laundering & Combating Financial Terrorism Workshop on card operation & Marketing Comprehensive Course on Accounting for Banker Workshop on NPL-Recovery and implication of related laws Workshop on Management of AssetLiabilities Course on Credit Risk Management Workshop on Micro & SME Financing Workshop on An overview of Finance &

March 26-30 April 3 April 7

5 Days 1 Day 1 Day

12. 13. 14. 15.

April 9 April 10-28 May 8 May 10

1 Day 3 weeks 1 Day 1 Day

16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26 27. 28. 29.

May 12 May 21-22 May 24 May 26 Jun 5-9 Jun 13 Jun 15

1 Day 2 Days 1 Day 1 Day 5 Days 1 Day 1 Day 2 weeks 1 Day 1 Day 1 Day 1 Day 1 Day 1 Day

Accounting and deduction of VAT & Tax etc Refreshers course for Officer Grade I Jun 19-29 Workshop on Green Financing &Carbon July 3 Trading Workshop on Bangladesh Electronic Fund Transfer Network(BEFTN) Familiarization with Mysis for Relationship Managers Workshop on Agricultural Financing and Rural Banking Workshop on Strategic Human Resource July 5 July 7 July 11 July 13

Management in Bank Workshop on Risk Based Capital Adequacy July 20

30. 31. 32. 33. 34.

according to BASEL II Workshop on Issues with Credit

July 24

1 Day 1 Day 1 Day 1 Day 1 Day

Administration requirement of disbursement Seminar on SME Financing Central Bank July 28 Perspective Seminar on Law and Legal Affairs of the Bank Workshop on Developing Negotiating skill Workshop on Prevention of Money laundering & Combating Financial Terrorism Workshop on Mortgage formalities Workshop on Islamic Banking and Finance Workshop on Card operation /Business Foundation Course of Probationary July 28 July 30 Aug 6

35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48.

Aug 11 Aug 16 Aug 25 Sep 4-22

1 Day 1 Day 1 Day 3 weeks 1 Day 1 Day 2 Days 1 Day 1 Day 1 Day 1 Day 1 Day 1 Day 1 Day

Officer(GB ) Workshop on CF(other then Credit Card ) Sep 26 Workshop on Money Laundering: CAMLCO Sep 28 & BAMLCO. Basic Course for Cash/Computer Officers Seminar on Brand Management Workshop on Automated Clearing House operation Workshop on Basics considering a credit proposal Workshop on Risk based Audit & Inspection of the Bank branches Workshop on Insurance for Bankers: related issues Workshop on Financial Inclusion in Bangladesh Workshop on: Operation Control and Monitoring in Mysys Banking Solution(ICC Official) Workshop on Reporting System on Risk based Internal Audit & Inspection of Branches/Division of Head Office for ICC Oct 2-3 Oct 9 Oct 11 Oct 13 Oct 16 Oct 18 Oct 20 Oct 24

49.

Oct 26

1 Day

50. 51.

Official Foundation Course of Probationary Officers: General Banking (GB ) Workshop on Prevention of Money laundering & Combating Financial Terrorism Workshop on presentation & Communication skill Workshop on Risk based Internal Audit & Inspection of Branches/Division of Head Office in line with Core Risk Management for branch Official Course on Branch Management Workshop on Bangladesh Electronic Fund Transfer Network(BEFTN)

Nov13-30 Dec 3 1 Day

52. 53.

Dec 3 Dec 8

1 Day 1 Day

54. 55.

Dec 10-12 Dec 15

3 Days 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 Banks 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 Banks 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 ce
MD DMD I II III IV V VI VII VIII IX X XI XII XIII XIV XV.B XV.A XVI XVII XVIII SEVP EVP SVP FVP VP SAVP FAVP AVP SSO SO GR-I PO GR-II CO O.Ass tt(SG) O.Ass tt Driver Secur Staff Offic Att

Conve yance Allowa nce

_ _ 0 0 0 0 2500 2400 2300 2200 2000 1800 1600 1500 1000 950 900 850 800 750 700

Entertai nment Allowan ce

_ _ 18000 17000 16000 14000 12000 9000 7500 6000 4000 3500 3000 2000 1000 0 0 0 0 0 0

Medical Allowan ce
_ _ 10% of basic 10% of basic 10% of basic 10% of basic 10% of basic 10% of basic 10% of basic 10% of basic 10% of basic 10% of basic 10% of basic 10% of basic 10% of basic 10% of basic 10% of basic 10% of basic 10% of basic 10% of basic 10% of basic

Negotiable Negotiable
65000-9500-112000-EB-10750-176500 60000-6000-9000-EB-9400-146400 54000-5400-81000-EB-10750-117000 47500-4750-76000-EB-5400-108400 43500-4350-69600-EB-4750-102850 38000-3800-64600-EB-4350-95050 34500-3450-58650-EB-3800-89050 31000-3100-55800-EB-3450-83400 25000-2500-45000--EB-3100-72900 22000-2200-41800--EB-2500-64300 19000-1900-36100--EB-2200-58100 16000 12500-1250-25000--EB-1600-41000 11000-1100-22000--EB-1100-35750 9500-950-19950--EB-1100-32050 8600-860-18060--EB-950-29460 6700-670-14740--EB-860-25060 5900-590-12980--EB-670-21020 5700-570-12540--EB-590-19620

_ _ 50% of basic 50% of basic 50% of basic 50% of basic 50% of basic 50% of basic 50% of basic 50% of basic 50% of basic 50% of basic 50% of basic 50% of basic 50% of basic 50% of basic 50% of basic 50% of basic 50% of basic 50% of basic 50% of 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 todays 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.