Introduction

A manual that gives HR policies of an organization along with a wide overview of different HR

procedures such as work force planning, enlisting, pay packages and profits, grooming,

employee governance, etc. is called an HR manual. It is usually fashioned for internal use in the

HR department only. An HR manual ought to result in the succeeding level of justification,

wherever necessary. HR manuals are complete compilations of policies and procedural

corroborations relevant to employees within the organization. The content of these manuals is

not to be interpreted as the policy but it is to be utilized along with the HR policies formulated by

the Department of Human Resource Management. The HR manual of any organization is

formulated to enable the managers and supervisors to accomplish the human resources

obligations meted out to them efficaciously. This is done by supplying parameters and guidance

for making decisions, along with supplying all staff members with user-friendly and

approachable data. HR manuals are usually developed and revised by Human Resources

Departments of various companies.

The HR manual usually deals with the company policies regarding the following areas of

operation. These include ways and categories of hiring support staff and academic staff,

guidelines for fixed-term employment, policies for selection and recruitment, position

descriptions, working hours of main and support staff, guidelines for annual leaves and sick

leaves and other forms of leaves, salary packages for the various positions, guidelines to staff

grievances, etc. Along with these, the other things such manuals deal with are: Selection and

Recruitment, Methods of employment and working hours, Flexibility of employment and

development of staff, Opportunity for equal employment, Superannuation and remuneration,

Leave, Safety and occupational health, Disciplinary procedures and termination of employment,

and other employment related provisions.

1

ABOUT BRAC BANK LIMITED

BRAC Bank Limited is a scheduled commercial bank in Bangladesh. It established in

Bangladesh under the Banking Companies Act, 1991 and incorporated as private limited

company on 20 May 1999 under the Companies Act, 1994. The primary objective of the Bank is

to provide all kinds of banking business. At the very beginning the Bank faced some legal

obligation because the High Court of Bangladesh suspended activity of the Bank and it could fail

to start its operations till 03 June 2001. Eventually, the judgment of the High Court was set aside

and dismissed by the Appellate Division of the Supreme Court on 04 June 2001 and the Bank

has started its operations from July 04, 2001. The Chairman of the Bank is Mr. Muhammad A

[Rumee] Ali. Now the Managing Director and & CEO of the bank is Mr. Mr. A.E.A Muhaimen.

The bank has made a reasonable progress due to its visionary management people and its

appropriate policy and implementation.

Goal of BRAC Bank

BRAC Bank will be the absolute market leader in the number of loans given to small and

medium sized enterprises through out Bangladesh. It will be a world - class organization in

terms of service quality and establishing relationships that help its customers to develop and

grow successfully. It will be the Bank of choice both for its employees and its customers, the

model bank in this part of the world.

Vision of BRAC Bank

Building a profitable and socially responsible financial institution focused on Markets &

Business with growth potential, thereby assisting BRAC & stakeholders build a "just,

enlightened, healthy, democratic and poverty free Bangladesh". BRAC Bank will be a unique

organization in Bangladesh. It will be a knowledge-based organization where the BRAC Bank

professionals will learn continuously from their customers and colleagues worldwide to add

value. They will work as a team, stretch themselves, innovate and break barriers to serve

customers and create customer loyalty through a value chain of responsive and professional

2

service delivery. Continuous improvement, problem solution, excellence in service, business

prudence, efficiency and adding value will be the operative words of the organization.

BRAC Bank will serve its customers with respect and will work very hard to instill a strong

customer service culture throughout the bank. It will treat its employees with dignity and will

build a company of highly qualified professionals who have integrity and believe in the Bank’s

vision and who are committed to its success.

BRAC Bank will be a socially responsible institution that will not lend to businesses that have a

detrimental impact on the environment and people.

Mission of BRAC Bank

Corporate Mission:

1) Sustained growth in 'small & Medium Enterprise' sector

2) Continuous low cost deposit growth with controlled growth in Retained Assets

3) Corporate Assets to be funded through self-liability mobilization. Growth in Assets

through Syndications and Investment in faster growing sectors.

4) Continuous endeavor to increase fee based income

5) Keep our Debt Charges at 2% to maintain a steady profitable growth

6) Achieve efficient synergies between the bank's Branches, SME Unit Offices and of

BRAC field offices for delivery Remittance and Bank's other products and services

7) Manage various lines of business in a fully controlled environment with no compromise on

service quality.

8) Keep a diverse, far flung team fully motivated and driven towards materializing the bank's

vision into reality

3

Corporate Values

Our Strength emanates from our owner - BRAC. This means, we will hold the following values

and will be guided by them as we do our jobs. Value the fact that we are a member of the BRAC

family.

1) Creating an honest, open and enabling environment.

2) Have a strong customer focus and build relationships based on integrity, superior service

and mutual benefit.

3) Strive for profit & sound growth.

4) Work as a team to serve the best interest of our owners.

5) Relentless in pursuit of business innovation and improvement.

6) Value and respect people and make decisions based on merit.

7) Base recognition and reward on performances.

8) Responsible, trustworthy and law-abiding in all that we do.

Long Term Strategy

Summed up in a single sentence, BRAC Bank’s long-term strategy is to go where the market

is. The SME market in Bangladesh is large. The report produced by the Shore Bank team,

[Ronald Grzywinsky, Mary Houghton and Lynn Pikholz] and the independent consultant, Kaiser

Zaman, indicates that the market size would be over hundreds of billions of Taka. He

quoted: "As a result of the achievements of the micro-credit providers, Bangladesh now has an

hour glass shaped banking market in which credit and other limited financial services are

valuable to both very large and very small businesses and very wealthy and very poor

individuals. While there is well–known informal system that provides credit to businesses,

virtually nothing is available from either banks or micro finance provider to the million the

middle – businesses and individual–who are severely constrained in their ability to produce and

save for lack of access to financial resources and services. Until modern, competitive financial

services are readily available–including credit in amounts, terms and conditions that small can

4

access, Bangladesh will not be able to create the large middle class that is a prerequisite to social

stability.

HR PLANNING & RECRUITMENT

BRAC BANK LTD. has a reputation of serving the best possible service to their clients. All of

their employees should have some unique qualities to keep going on with the reputation. They

believe that to maintain this reputation quality employee is must. To acquire employees they

have a staffing process. They have divided their staffing process in Employment planning and

job analysis, Recruitment, Selection process, Training (if needed).

As we know from the theoretical part that the first step of developing employment-planning

system is job analysis, BRAC BANK LTD. also performs that. They also develop a set of clearly

defined job description and job specifications. In their job analysis, BRAC BANK LTD. focuses

on what the jobholder requires to do and the skills they needed to do it. In their job analysis they

also provide the analysis of the activities that an employee performs.

PLANNING AND RECRUITMENT

As BRAC BANK LTD. is one of the leading banks in Bangladesh; they follow an effective HR

policy. BRAC BANK LTD. recruits people both inside and outside of the bank; according to the

post and people they need for the bank. The Bank follows the best practice of 80/20 ratio,

meaning that 80 % of management population shall be home grown while 20% may be recruited

externally in order to infuse new skills and new thinking

RECRUITING WITHIN THE BANK

If the bank authority thinks that the people inside the bank are well qualified, they are offered for

the job, otherwise they go for external candidates. Authority always prefers internal candidates

for filling a position. To recruit internally they maintain ACR for evaluating an employee.

ANNUAL CONFIDENTIAL REPORT

Annual confidential reports are updated in BRAC BANK LTD. once in a year. BRAC BANK

LTD. does not follow the traditional rule of making ACR. Though the report is supposed to be

confidential, in BRAC BANK LTD. employees have right to see his points and evaluation in the

5

report and also to disagree with any matter written about him. Thus this report is prepared with

the agreement of both employee and supervisor by a mutual agreement.

RECRUITING OUTSIDE THE BANK

As BRAC BANK LTD. follows 80/20 rules to recruit employee they try to find external

candidate when they fail to fill up the vacant position by internally. According to the recruitment

policy of the bank the authority used some source to recruit outside the bank.

Advertisement

When the authority decides to hire employees they give advertisement. They give advertisement

in at least two papers.

Web site

Bank has its own web. They always up to date their web site. They give necessary information, if

they want to recruit people. Browsing web-site people applies for the jobs, then authority recruit

qualified people from them.

Bd-jobs.com

Alike their web site BRAC BANK LTD. also gives necessary information in www.bd-job.com

about a vacant position.

Educational institute

BRAC BANK LTD. takes this source as a very important one. It is an important source to fulfill

their need of white-collar employees. They take employees from some renowned institution like

IBA, BIBM and so on.

Employee referrals

It is another source for BRAC BANK LTD. to recruit employees. Current employees’ referrals

or recommend people for the vacant positions. BRAC BANK LTD. always prefer these kinds of

candidates.

Drop in Application

On need basis, whenever a vacancy arises. Recruitment at this level is made from the "Drop in

Applications" that the bank receives on a regular basis and which are retained in the Application

File. Recruitment at this level are made through a basic job related written test and interview

conducted by an Interview Panel.

6

JOB ANALYSIS

A job analysis is a systematic exploration of the activities within a job. It includes:

Task/work activities.

Human behavior.

Machine, tools, equipment and work aids

Performance standards

Job context

Human requirements/ skills.

Methods of collecting data about the job:

Interview: Three types of interview. It includes:

Individual interview with each employee

Group interview with group of employees

Supervisor of the concerned employee.

Observation: Directly observe the activities of the employee without asking him/her questions.

Job Description:

A job description is a written statement of what the job holder actually does, how he or she does

it, and under what conditions the job is performed. It includes:

Job Identification

Job summary

Relationship responsibilities and duties.

Working conditions etc.

Job Identification

It includes:

Job title: Probationary officer.

Job status: Entry level officer.

Job Code:

7

Date:

Written by: Human resource manager

Approved by: Managing director.

Department: General banking.

Immediate supervisors title: AVP

Grade: Second grade.

Pay range: 20,000-30,000.

Job Summary

For a probationary officer, in his probation period he moves from one department to another

department according to job rotation. Normally, he covers activities of three basic departments of

a bank. Departments are – General Banking

Foreign Trade

Credit

In General banking department, he does the basic customer related jobs. Such as account

opening, clearing, cash received cash payment etc.

In Foreign Trade department, he normally learns to work related to LC (Letter of Credit) opening

and documentation.

In the Credit department, he learns different types of activities related to different sorts of loan,

making proposal, client’s credit policy and facilities and also credit terms.

After this probation period, he has to attend a foundation training course that is organized either

by BIBM (Bangladesh Institute of Bank Management) or by bank’s own training institute.

Relationship

A probationary officer has to report his supervisor or his departmental head about his job.

He has to maintain relationship with all his colleagues.

8

Job Specification

Education

A probationary officer must have the academic background like BBA, MBA degree.

Experience

It is better if a probationary officer has experience in the relevant field. But, people without any

experience are also allowed to work in the bank if they have high educational background.

Knowledge

A probationary officer must have banking knowledge.

Skill

A probationary officer must have computer skill (MS Word, MS Excel, and MS PowerPoint, MS

Outlook, interpersonal skill etc.

Abilities

A probationary officer must have mathematical and analytical abilities for problem solving.

Job Description of employees of different departments

Account officers:

Checking bills & forwarding for payment approval.

Daily cash & Bank balance statement preparing.

Payroll preparing & cash disbursement.

Maintaining cheque issue register.

Keeping records of all documents.

Daily/ monthly reconciliation with bank ledger

Responsible for monthly/quarterly financial reporting

Assist external auditor in conducting annual audit of the company.

Assist in liaising with Bangladesh Bank and other Government agencies.

Other duties as assigned

9

Finance officers

Preparation of budget, forecasts, monthly, quarterly and other reporting

Analyzing and controlling expense

Maintaining accounts of Provided Funds, Pension Funds, Gratuity Funds and Workers' Profit

Participation Funds

Ensuring proper investment of funds

Financial analysis for various forecasting and budgetary management

Manager

Schedule the project in logical steps and budget time required to meet deadlines.

Prepare contracts and negotiate revisions, changes and additions to contractual agreements

with bank’s clients

Direct and supervise employees

Develop and implement quality control programs.

Plan, organize, and direct activities concerned with the bank and maintenance of equipments,

facilities, and systems.

Credit Officers

Responsible for managing payments from credit customers

Credit assessment, Communicating, setting payment date and collecting payment from credit

customers

Making outgoing and receiving incoming calls to facilitate collection and resolution of credit

accounts

Establish relationship and communication with allocated credit Customer.

Responsible for ensuring that pending invoices have all necessary support documentation to

facilitate payments.

Contact with appropriate individual regarding past due balance for collection.

Coordinate with Delivery, Sales and Finance team in collection effort.

Foreign Trade Officer

10

Handling L/C, make documentations; decide the credit limits of the customers.

General Banking Officer

Handling cash receipts & payments, depository products, personal banking products such as

ATM cards, Credit cards, foreign remittance etc.

SELECTION PROCESS

BRAC BANK LTD. thinks that the prosperity of the bank is depends on customer satisfaction.

They need that kind of employees who can give them quality full service. BRAC BANK LTD.

follows a procedure to select employees for any blank post .The steps are as follows:

Hiring decision

This is the first step of their selection process. When there is any vacancy in the organization, the

authority feels that they need employee for the post. Then they make the decision to recruit

people there. They also decide how many people they need in which post. Recruitment takes

place when there is

New position arising out of new business direction

Vacancy arising because of resignation/retirement

Annual Planned Recruitment of fresh graduates

Review for application and resumes

The second step they follow is to make a review of the resumes and applications of the

applicants. Then they assess those and see whether the applicants are actually eligible for the

post or not. They select those applicants for the next steps whose qualification meet their

requirements for the job.

11

Selection test

After the review The BRAC BANK LTD. take selection test of the applicants. In this step they

follow two different procedures. One is adopted for the fresher or new comers; another is for the

experienced applicants.

For the fresher or those who have no past experience for the job, they arrange a written test. They

give the responsibility to IBA or BIBM to make question set for them and take the test. Then

they select people for interview who pass the test.

They do not take any written test for the applicants who have past experience. Those employees

are directly called for the interview.

Employee interview

The applicants, who are qualified in the previous stage, are selected for this stage. In this stage

they have to face a whole day assessment program for the final selection. The interviewers assign

them different assignment and practical works for the whole day. Thus interviewers can

understand if the employees will be able to work in bank smoothly. They also seek information

about their academic achievement, personal qualities and skills.

Personal reference and background check

Some applicants attach some references with their applications. The bank authority sometimes

checks the references. If the bank authority thinks that they have some confusion about the

employee, then they go through the process.

Final decision

This is the last part they follow for the entire selection process. At this stage they make the final

decision about who will be the employees for their jobs.

12

EMPLOYEE ORIENTATION AND TRAINING

What is Employee Training

Training is a learning experience in that it seeks a relatively permanent change in an individual

that will improve his or her ability to perform on the job. Training can involve the changing what

employees know, how they work, their attitudes toward their work, or their interaction with their

co-workers or supervisor.

We differentiate between employee training and employee development for one particular

reason. Although both are similar in the methods used to affect learning, their time frames differ.

Training is more present-day oriented; its focus is on individuals’ current jobs, enhancing those

specific skills and abilities to immediately perform their jobs.

Employee development, on the other hand, focuses on future jobs in the organization. As any

career progresses and you move up in any field, new skills and abilities are required.

13

STEPS OF SELECTION PROCESSSTEPS OF SELECTION PROCESS

FINAL SELECTIONFINAL SELECTION

REFERENCES AND BACKGROUND CHECKSREFERENCES AND BACKGROUND CHECKS

EMPLOYEE INTERVIEWSEMPLOYEE INTERVIEWS

SELECTION TESTSSELECTION TESTS

HIRING DECISIONHIRING DECISION

REVIEW OF APPLICATIONS AND RESUMESREVIEW OF APPLICATIONS AND RESUMES

REJECTIONREJECTION

As you are “groomed” for positions of greater responsibility in the company, employee

development efforts will help prepare you for that day.

Irrespective of whether we are involved in employee training or employee development, the

same outcome is required- that is, these programs are designed ton enhance learning, so that

employees are more effective and efficient on the job. Since learning is critical to both these

efforts, let’s take a look at what I mean by learning.

Determining Training Needs and Priorities

Now that we have an understanding of what training should include, we can look at how to

assess whether there is a need for training. We propose that management can determine this by

answering few questions:

What are the organization’s goals?

What tasks must be completed to achieve these goals?

What behaviors are necessary for each job incumbent to complete his or her assigned tasks?

What deficiencies, if any, do incumbents have in the skills, knowledge or attitudes required

to perform the necessary behaviors?

These questions demonstrate the lose link between strategic human resources planning and the

determination of training needs. Based on my determination of the organization’s needs, the type

of work to be done, and the type of skills necessary to complete this work, my training program

should follow naturally. Once I can answer question 4, I have a grasp of the extent and nature of

my training needs.

Identification of Training Needs

The identification of a training need means that performance is not up to the level required and

this in turn means that both the existing level of achievement and that required have been

measured and assessed.

Training needs can obviously be many and various depending on the nature of the job to be done

and the people who have to perform the jobs. They can be expressed generally in terms of skills,

attitudes and knowledge. Some needs may cover this whole spectrum while other, perhaps may

concentrate on singular aspects only.

14

Whoever may identify the training need; the process of identification is similar and can be

expressed in the model shown in the following figure.

Employee Development

Employee development, by design, is more future oriented and more concerned with education

than employee training. By education we mean that employee development activities attempt to

instill sound reasoning processes- to enhance one’s ability to understand and interpret

knowledge- rather than imparting a body of facts or teaching a specific set of motor skills.

Development, therefore, focuses more on the employee’s personal growth.

Successful employee prepared for positions of greater responsibility have analytical, human,

conceptual, and specialized skills. They are able to think and understand. Training, per se, cannot

overcome an individual’s inability to understand cause-and effect relationships, to synthesize

from experience, to visualize relationships, or to think logically. As a result, I suggest that

employee development be predominantly an education process rather than a training process.

The words predominantly an education process should be noted. In contrast to what I have said

above, certain activities that employees engage in are programmable, and for these training can

be helpful. Potential managers need good listening skills, interviewing competence, and the

ability to read, analyze, and classify types of employee behavior. Training can improve these

types of skills. Unfortunately, effectiveness in jobs of greater magnitude requires considerably

more than the acquisition of any specific or specialized skills.

15

(1) SUGGESTION OR SUSPICION THAT A PROBLEM EXISTS

(1) SUGGESTION OR SUSPICION THAT A PROBLEM EXISTS (2) RECOGNITION THAT

A TRAINING NEED EXISTS

(2) RECOGNITION THAT A TRAINING NEED

EXISTS

SYMPTOMS COME TO LIGHT

SYMPTOMS COME TO LIGHT

IDENTIFICATION OF THE PROBLEM

IDENTIFICATION OF THE PROBLEM

(4) CONFIRMATION OF THE TRAINING NEED

(4) CONFIRMATION OF THE TRAINING NEED

(3)DATA COLLECTION

(3)DATA COLLECTION

Evaluating Training and Development Effectiveness

Irrespective of the type of training or development effort underway, they must be cost effective.

Only by analyzing such programs can effectiveness be determined. For example, with whether

employment tests actually differentiated between satisfactory and unsatisfactory job performers.

This same concern for effectiveness arises when we discover training or development activities.

It is not enough to merely assume that any training an organization offers is effective; I must

develop substantive data whether my training effort is achieving its goals-that is, if it is

correcting the deficiencies in skills, knowledge, or attitudes that Ire assessed as needing

attention. The costs incurred alone identify evaluating the effectiveness.

It is easy to generate a new training program, but if the training effort is not evaluated, it

becomes possible to rationalize any employee-training efforts. To avoid the uncontrolled

expansion of training costs, management must insist on a thorough cost-benefit evaluation to

ensure that training money generates satisfactory returns.

Test-retest method

Pre-post performance method

Experimental-control-group method.

To conduct this analysis, we need to generate three measures: cost, change, and performance

results. The costs are those monetary outlays for providing the training-consulting fees, room

rentals, supplies, salaries of the training department, and overhead. We can then determine a cost

per trainee. But we must also be prudent, for it is estimated that more than 60 percent of my

training costs go for travel, lodging, and room fees. The change factors looks at the difference

between what one knows after the training compared with before the training. This knowledge

change can then be expressed as a ratio and can be obtained through pre-testing and post-testing.

The change factors could also be expressed in behavioral, attitudes, or performance terms. The

last factor, performance results, tries to show what changes was solely attributed to the training

program.

16

Socialization

Socialization is the process of adaptation. This process is mainly done to make the new employee

adopt the whole environment of the organization. Organizational entry socialization is perhaps

the most obvious socialization process that every new recruit should go through.

Elements of Socialization:

• The Organizational Culture

• Role

• Norms

Orientation is the first step towards the socialization process Orientation refers to the activities

that involve introducing the new recruit to the organization and his/ her work unit. It is the

beginning of the Socialization process. Afterwards the training and development process and the

socialization process are performed simultaneously.

Extensive Training

Some effective and efficient employees are sent for training in other countries. This is a

motivating factor. Each year ten to twelve employees are sent for the training with a higher

payment. The employees are selected based on their performance throughout the year. This

training program is mainly to make the employee learn about the working conditions of other

international branches. They observe the different ways and imply them afterwards in their

respective plant.

17

Sketch of Training Need and Evaluation Process

18

TRAINING NEEDSTRAINING NEEDS

IDENTIFY ERRORS AND OMISSIONSIDENTIFY ERRORS AND OMISSIONS

SUSPECT EXISTENCE OF A PROBLEMSUSPECT EXISTENCE OF A PROBLEM

CONSIDER JOB DESCRIPTIONCONSIDER JOB DESCRIPTION

CONDUCT JOB AND TASK ANALYSISCONDUCT JOB AND TASK ANALYSIS

PROCEDURE JOB DESCRIPTIONPROCEDURE JOB DESCRIPTION

DETERMINE MOST EFFECTIVE METHOD OF LEARNINGDETERMINE MOST EFFECTIVE METHOD OF LEARNING

TEST EXISTING SKILLS, KNOWLEDGE, ATTITUDESTEST EXISTING SKILLS, KNOWLEDGE, ATTITUDES

CONDUCT TRAINING EVENTCONDUCT TRAINING EVENT

IMMEDIATE REACTION TESTINGIMMEDIATE REACTION TESTING

SESSION, SECTION, DAY REVIEWSSESSION, SECTION, DAY REVIEWS

END OF COURSE TESTING OF SKILLS, KNOWLEDGE, ATTITUDESEND OF COURSE TESTING OF SKILLS, KNOWLEDGE, ATTITUDES

END OF COURSE VALIDATION REVIEWEND OF COURSE VALIDATION REVIEW

MID TERM EVALUATION FOLLOWUPMID TERM EVALUATION FOLLOWUP

FOURTH TESTING OF SKILLSFOURTH TESTING OF SKILLS

THIRD TESTING OF SKILLSTHIRD TESTING OF SKILLS

SECOND TESTING OF SKILL ETC.SECOND TESTING OF SKILL ETC.

LONG TERM EVALUATION FOLLOWUPLONG TERM EVALUATION FOLLOWUP

IDENTIFY CONTROL GROUPSIDENTIFY CONTROL GROUPS

TEXT EXISTING SKILLS ETC.TEXT EXISTING SKILLS ETC.

Employee Training & Developing Programs

After receiving the appointment letter the employee has to go through a minimum of two months

training program. BRAC BANK LTD. by recruiting the employee already came to know about

the employee’s knowledge about his own field. Therefore the initial recruiting process starts

from the other departments.

A newly recruited employee has to work in every single department in both the plants. They

actually observe the whole process and try to link every department together. Through such an

experience the new employee comes to know about all the departments, how they work and why

they are important. According to BRAC BANK LTD. this process is very effective because it

will make the employee clear of the whole system and he eventually come to know for which

information which department is liable. Apart from all these factors this training program will

make the new employee to know and meet with every other employee. A friendly and

cooperative environment can be created and maintain in this way

At last the employees get the training to work under their own department. The department head

select an employee to train the new one.

The total training program is set by the Human Resource Department.

Workers Training & Developing Program:

The manufacturing plant has different section. Each permanent workers need to pass through a

six weeks training program. Here the supervisor is responsible for the training. The workers look

the whole process and get acquainted with all the machines. They are taught how to use the

machines and also how to manage the raw materials. This training program is important for

effective use of resources.

Temporary and casual workers are usually trained in the same process as the permanent workers.

The training of the permanent workers is done under the supervisors whereas the temporary and

casual workers get trained under the permanent workers.

19

PERFORMANCE APPRAISAL

Performance appraisal means evaluating an employee’s current or past performance relative to

the person’s performance standard.

The major objectives of performance appraisal are:

Identifying employees for salary increases, promotion, transfer and lay off or termination of

services.

Determining training needs for further improvement in performance.

Motivating employees by indicating their performance levels.

Providing an opportunity for managers & subordinates to review his/her work related

behaviors. It also helps initiating corrective measures should there be any deficiency.

Providing an opportunity to review the person’s career plan in light of his/her strengths &

weaknesses.

Appraisals help managers better manage & improve firm’s performance.

Performance Appraisal at BRAC Bank Limited:

BRAC Bank practices performance appraisal to evaluate their employee’s performance. They

use measurable criteria for evaluating their employees.

The core purpose of BRAC BANK LTD.’s performance appraisal- is to promote or increase

salary of their employees whose performance is better comparing to other employees.

BRAC BANK LTD.’s practices performance appraisal by marking the employee’s office

attending time, interpersonal skill, desk watch performance, business performance etc.

It happens on- yearly basis.

It helps to:

Align employee objectives to the business goals. Enable strategic Performance Management

through Management by Objectives (MBO)

Measure and Assess employee performance periodically and provide feedback and support to

achieve quantitative, qualitative and process targets

Evaluate and track Hi-Performance and achievers based on Competency driven practices.

Enable Reward and Recognition

20

The evaluation is done by the supervisors of the particular employees. The evaluation sheet

should be signed by the both supervisor and the employee. If the employee is satisfied with his

evaluation then the supervisor signs and gives it to the HR department.

However, if the employee is not satisfied with the evaluation then he signs after writing on the

evaluation sheet that he does not agree. Moreover, managers are allowed to share the appraisal

information with the employees by sending them the filled evaluation sheet.

Process of Performance Appraisal:

Sample of Performance Appraisal Form:

Appraisal Year: 2009-2010.Name: Designation:Department: Jobs:Date Joining: Job grade (Assess by Responsibilities)Service: Y_M Age: Y_M Professional Training:Academic: (Last Degree)

Rating: Poor-1 Fair-2 Good-3 Very Good-4 And Excellent-5

21

ASSOCIATEASSOCIATE

SUPERVISORSUPERVISOR

ASSOCIATEASSOCIATE

HR DEPARTMENTHR DEPARTMENT

REJECTREJECT

ACCEPTACCEPT

REVIEWERREVIEWER

Excellent (E)= 5 points: It means an outstanding employee all the way (knows the job,

exceeds target and job objective consistently, initiative & drive, looks for new tasks without

waiting to be told, capable to shoulder higher responsibilities, multi-skilled, team workers,

creative, have passion to win, helps other, positive attitude & manner, punctual, co-operative,

produces services above self interest, and at the cost of self inconvenience, contribute new ideas,

keeps commitment, well manages time, high integrity/ honesty, commands respect from others

and a person to follow as role model) Clearly excellent performance exemplary and leading

edge.

Very good (VG) = 4 points: Definitely Superior to the standard expected of a competent

experienced and acceptable employee. Such employee must have at least 75% + of the

attributes/ quality as stated in Excellent grade- Clearly fully satisfactory performance

exceeding expectation.

Good (G) = 3 point: A good all-round employee well suited to his work and of the standard

expected. Such employee must have at least 65% + of the attributes & qualities as stated in the

Excellent grade- Clearly standard performance meeting expectation.

Fair (F)=2 points: Work is not fully considered satisfactory owing to one or few

deficiencies or weakness in standards of work, but considered Acceptable But Needs

Improvement & Development. Such employee must have at least 55% + + of the attributes &

qualities as stated in the Excellent grade.

Poor (P) = 1point: work is Unsatisfactory far below standard expected, necessary to take a

call for replacement after one or two changes or immediately. In this grading appraiser must

mention by a special note indicating the course of action.

22

Performance Rating Factors & Guideline

1. Summary of actual performance on the assigned job (State in brief, how was the

performance during this period, what was expected from him, how was the delivery

against job objectives, any significant achievement & value addition job by incumbent.

Also highlight* any critical weakness(es):

Factors Description 1 2 3 4 5

2. Job skill profile

coupled with

conduct,

attendance and

punctuality.

a)Required job skills & knowledge

are in place with the person & is able

to fully apply in job situation

b)Obedient to rules & regulation,

attendance & punctuality

3. Clarity on

business

a) Understands the totality of a

business situation and sees clearly

what needs to be done and how to do

it.

b) Ability to clearly identify goals,

sets priorities& able to make plans.

4. Practical

creativity

a)Demonstrate flexibility of thinking,

creates new business insights which

can be turned into realistic plans

b) Able to produce innovative

solutions to problems.

5. Objective

analytical power

a) Develop accurate, objective

assessment of the issues even in a

complex situation

b) Able to make realistic assessment

of opportunity & threats on a

demanding issue.

6. Customer focus a) Understands developments in the

external world & anticipates,

23

understands and addresses the

changing needs of consumers &

customers.

b) Able to focus internal & external

customers & to resolve their issues

7. Initiative &

drive

a) Is energetic & determined in

improving business results. Take

initiatives often involving calculated

risks.

b) One who is always driven towards

achievements & makes optimum

utilization of opportunity & find best

way of doing things.

8. Leading others a) Inspire others to high standard

performance. Is enthusiastic to get

the best out of people.

9. Developing

others.

a) Develop skills & competencies of

others & guides appropriate behaviors.

Creates opportunities for development

& growth of others.

b) Enhance team performance through

constructive feedback.

10. Influencing

others

a) Builds effective relationship with

colleagues, clients.

b) Understands his colleagues, adopts

right approach & builds rapport to gain

support & commitment without using

official authority to achieve goals.

Overall Rating: 50= 100%.#P=less than 50%, #F= 50%, #G=65% above, # VG=75%,

#EX=85%

COMPENSATION

24

There is no particular definition of compensation. From in depth research we have that

compensation is the benefit package for the employees that are offered by the organization, such

as flexible working schedules, insurance (health, dental, eye) etc.

WHAT IS A COMPENSATION PACKAGE?

It’s easy to think “dollars per hour” when thinking about compensation. Successful

compensation packages, however, are more like a total rewards system, containing non-

monetary, direct and indirect elements. Non-Monetary Compensation can include any benefit an

employee receives from an employer or job that does not involve tangible value. This includes

career and social rewards such as job security, flexible hours and opportunity for growth, praise

and recognition, task enjoyment and friendships. Direct compensation is an employee’s base

wage. It can be an annual salary, hourly wage or any performance– based pay that an employee

receives, such as profit–sharing bonuses. Indirect Compensation is far more varied, including

everything from legally required public protection programs such as Social Security to health

insurance, retirement programs, paid leave, childcare or housing.   

Employers have a wide variety of compensation elements from which to choose. By combining

many of these compensation alternatives, progressive managers can create compensation

packages that are as individual as the employees who receive them.   

The general consensus of recent studies is that pay should be tied to performance to be effective.

However, with traditional farming operations, that is not easily done. Business performance can

be affected by many factors over which employees have no influence, specifically — weather.

Successful managers must search for things employee’s influence and base performance

objectives on these areas. Your operation may benefit from the following: tenure bonuses for

long–time employees, equipment repair incentives to encourage good equipment maintenance, or

bonuses for arriving to work on time. The more production information data your business has,

the easier this is to accomplish. Measures such as feed conversion rates, somatic cell count or

mortality can offer great sources for performance incentive.

25

AFTER RETAIRMENT BENEFITAFTER RETAIRMENT BENEFIT

FINANCIAL COMPENSATOINFINANCIAL COMPENSATOIN

NON-FINANCIAL COMPENSATIONNON-FINANCIAL COMPENSATION

DIRECT PAYDIRECT PAY

COMPENSATIONCOMPENSATION

INCENTIVESINCENTIVES

SALARYSALARY

PROVIDENT FUNDPROVIDENT FUND

GRATUITYGRATUITY

MEDICAL FACILITIESMEDICAL FACILITIES

HOLIDAYHOLIDAY

VACATIONVACATION

INSURANCEINSURANCE

BONUSBONUSCOMMISSION

COMMISSIONMERIT PAY

MERIT PAY

TYPES OF COMPENSATION

There are different types of compensation benefit. Mainly 2 type’s compensation, one is

Financial and another one is Non- financial: -

Financial Benefits

Pay for performance (incentive system) reward employee performance on the basis of three

assumptions

Individual employee and work teams differ in how much it contribute to the firm not only in

what they do but also in how they do it.

Firms overall performance depends to a large degree on the performance of individuals and

groups within in the firms.

To attract, retain and motivate performers and to be fair to all employees.

26

DIRECT PAY

Salary

The amount of money an employee gets monthly for his or her job.

INCENTIVES

Merit Pay

Any salary increase awarded based in his or her individual performance. It normally given once

in a year or it may be twice or thrice.

Bonus

A financial incentive that is given o a onetime basis and does not raise the employees base pay

permanently.

Commission

Commission is usually paid to the sales people according to the employee’s performance.

After Retirement Benefits

Provident Fund

Provident fund is a benefit in which employees are paid after doing a minimum service for the

company. Here they will get a certain amount of money like 3 or 5 percent from his own basic

salary and from the company’s stock.

Gratuity

Gratuity is another financial benefit that is offered to the employees after retirement. If an

employee works for certain number of year (the number varies from company to company) he

gets a monetary benefit of one basic salary for each year he or she worked in the company.

NON-FINANCIAL BENEFITS

Insurance

A contract that provides compensation for specific losses in exchange for a periodic payment. An

individual contract is known as an insurance policy, and the periodic payment is known as an

insurance premium.

Award

A one-time reward, usually given in the form on tangible prize. It may be like certificate,

testimonials, air ticket etc.

27

Vacation

Company provides different kind of vacation to its employee for recreation. This includes

systematically increased paid vacation period, Casual leave, Earn leave etc.

BRAC BANK LTD.’S HR COMPENSATION

BONUS

BRAC BANK LTD. offers its employees both regular and surprise bonuses. Regular bonuses are

given in two Eid as festival bonus. Beside this BRAC BANK LTD. offers bonuses for good

performance and as goal completion reward.

AWARDS

HR of BRAC BANK LTD. offers certificates for outstanding performance of their employees.

Normally per year minimum 6 to 8 employees are awarded with certificates and some other non-

financial reward like air tickets of Dhaka-Bangkok-Dhaka for their outstanding performance.

INCREMENT

BRAC BANK LTD. provides increment to their employee that depends on their performance

and sometimes seniority. When an employee shows outstanding performance, he is offered an

increment. Sometimes BRAC BANK LTD. cannot give promotion to its employees in time and

then they offered them an increment in their salary.

Salary

HR of BRAC BANK LTD. offers different salary packages for its employees. The amount of

salary depends on both seniority and performance. Thus two employees in the same position can

get different salaries and incentives for their different performance. These variations occur only

in the case on senior employees. The entry-level employees who join BRAC BANK LTD. as

management trainee usually get the same amount of salary.

In BRAC BANK LTD., starting salary of an employee is tk.20, 000. Salary of a probationary

officer is tk. 30,000-35,000. Salary of mid level officer is tk.80, 000-1, 20,000 and salary of top

level officer is tk.1, 50,000-3, 00,000.

28

HYPOTHETICAL SALARY STRUCTURE OF BRAC BANK LTD.

PROVIDENT FUND

BRAC BANK LTD. employees get the opportunity of PF. For this every month 10% of

employee’s salary is saved in the bank account of BRAC BANK LTD.

29

MANAGING DIRECTOR (3, 00,000tk)MANAGING DIRECTOR (3, 00,000tk)

SENIOR EXECUTIVE VICE PRESIDENT (SEVP) (2, 50,000tk)SENIOR EXECUTIVE VICE PRESIDENT (SEVP) (2, 50,000tk)

EXECUTIVE VICE PRESIDENT (EVP) (1,50000tk)EXECUTIVE VICE PRESIDENT (EVP) (1,50000tk)

SENIOR VICE PRESIDENT (SVP) (1,20000tk)SENIOR VICE PRESIDENT (SVP) (1,20000tk)

VICE PRESIDENT (VP) (80,000-1,20000tk) VICE PRESIDENT (VP) (80,000-1,20000tk)

FIRST VICE PRESIDENT (FVP) (80,000-1,00000tk)FIRST VICE PRESIDENT (FVP) (80,000-1,00000tk)

ASSISTANCE VICE PRESIDENT (AVP) (80,000-1,00000tk) ASSISTANCE VICE PRESIDENT (AVP) (80,000-1,00000tk)

FIRST ASSISTANCE VICE PRESIDENT (FAVP) (80,000tk)FIRST ASSISTANCE VICE PRESIDENT (FAVP) (80,000tk)

SENIOR EXECUTIVE OFFICER (70,000tk)SENIOR EXECUTIVE OFFICER (70,000tk)

EXECUTIVE OFFICER (55,000-65,000tk)EXECUTIVE OFFICER (55,000-65,000tk)

JUNIOR OFFICER (35,000tk)JUNIOR OFFICER (35,000tk)

OFFICER (40,000tk)OFFICER (40,000tk)

SENIOR OFFICER (45,000tk)SENIOR OFFICER (45,000tk)

ASSISTANCE OFFICER (30,000tk)ASSISTANCE OFFICER (30,000tk)

TELLER (20,000tk)TELLER (20,000tk)

BANKING OFFICER (25,000tk)BANKING OFFICER (25,000tk)

The condition says if employees work for at least 5 years in BRAC BANK LTD., they will get

the whole amount saved every month for their PF and also bank will provide the same amount of

money, which will be added, with their actual amount. After this a certain amount of interest will

be added with this total amount. All these will happen when the employees will work at least for

five years in the bank. Otherwise they will get only the saved amount of their PF. If an employer

wants he or she can take up to 90% loan from their provident fund with a minimum interest rate,

which varies.

Example

If Mr. X has worked for 12 years total in BRAC BANK LTD. and now want to retire then he will

be given his provident funds in according to this calculation: (Assuming his base salary was

12000/-) His monthly PF charge is 12000*10% = 1200/-. After twelve years he will be given his

(1200*12years*12months) =172800/- plus BRAC BANK LTD.’s same amount of money as PF

policy and upon the whole amount, 12 %( assuming it as it varies from time to time) Govt.

interest which makes a total of: (172800+172800)*1.12 = 387072/- Tk. If an employee leaves his

or her job after 3 yrs he or she will get (1200*12months*3yrs) = 43200/- + bank rate @ 12% of

the total (5184/-) = 48384/-

GRATUITY

Gratuity system is active in BRAC BANK LTD.. To get this kind of incentives, employees will

have to work at leas for 10 years. After 10 years if they quit from the job they will get an amount

that is equal to their last basic multiplied by ten.

Example

If an employee starts working in BRAC BANK LTD. with the salary of 10,000 and after ten

years he gets 35,000 and decides to leave the job, he will get his gratuity which is equal to

(35,000*10)= tk350,000.

INSURANCE

BRAC BANK LTD. provides life insurance coverage for its employees with its own risk. They

don’t go for any agreement with any insurance company. They maintain a separate fund in their

bank for this policy. BRAC BANK LTD provides health insurance for each employee once in a

30

year, which is equal to 3 times of their salary (if needed). In the life insurance package BRAC

BANK LTD. pay a certain amount of money for damage of body. This amount varies depending

on the damage of body.

TRANSPORTATION FACILITY

BRAC BANK LTD. provides transportation facility to the officers of the upper mid level to the

top level. Bank provides them credit facility for buying car at 6% interest rate only.

LEAVE PROVISIONS

Causal Leave

15 days. An employee can take this leave yearly. And, if he does not utilize the leave properly

then next year he will not get any advantage.

Earned Leave

30 days. An employee can take this leave yearly. If he takes it for 15 days this year, then he will

get 45 days Earned leave next year.

Sick Leave

3 days. An employee must give an application to his supervisor for sickness leave. These 3 days

will be cut from his causal leave. And. If it is more than 3 days then it will be cut from his

Earned Leave.

Maternity Leave

4 months

GENERAL REGULATION OF LEAVE

An employee shall not remain absent himself from duty or leave his place of posting on any

ground what so ever without obtaining prior leave from the competent authority.

No employee shall remain absent himself from duty on sick ground without applying for sick

leave based on doctor’s advice.

No employee shall overstay against his sanctioned leave, without obtaining additional leave

from competent authority. No Employee who overstays without obtaining prior permission

thereof shall not draw get salary for the period of such overstay unless post fact to sanction is

obtained.

31

Application for leave should reach General Manager (Admin & HR) with the

recommendation of the departmental a head 48 hours for casual leave and 5 days a head for

respect of earn leave. Management reserves the right approve/disapprove the application of

leave. Maximum living of casual and earn leave will be 3 days & 5 days respectively.

HOLIDAYS

Government holidays and specially bank holiday that is the 1st July.

EMPLOYEE RELATIONS

This employee relations section of the Human Resources Department is responsible for liaison

with employee representative bodies, monitoring procedures, and developing proposals for the

management consideration. Sound employee relations should be based on effective mechanisms

for communication and participation. A safe and effective work environment requires

commitment and motivation of all staff.  All the following should be addressed to the HR by the

employees in a professional manner.

Employee Representation

Victimization/Coercion

Collective Bargaining

Communication and Consultation

Grievance Resolution

Discipline

Poor Performance

Employee Relations Training

There should be professionalism and persistence in all communications. Both HR and employees

are required have a positive behavior and outcomes, problem-solving approach, work together to

anticipate problems, recommend solutions and be able to offer sound advice to senior managers

about implementation. Most importantly all acts should be done to ‘fit’ policies and practices and

to suit the organization’s goals and the character of its workforce.

32

A staff member is required to maintain certain standards of performance. A staff member who

fails to maintain laid-down standards of performance in accordance with his/her employment

contract, specific job requirements and/or the bank rules, renders himself/herself liable to

corrective action.

DRESS CODE

The employees have to follow the company stated dress code. All employees have to wear a light

colored shirt and a deep colored pant.  Wearing a tie is mandatory especially for the front desk

employees. Also front desk employees are required to wear a coat at all times.   During public

holidays, annual leave and if he/she is ill shall dress casually in business casuals. Shoes of black /

brown color can be worn only. Wearing sandals to office is prohibited during work.  Cleanliness

in dress and appearance is mandatory. All male employees must maintain a proper hair dress and

shave / trim beard. 

DOS AND DONTS/CODE OF CONDUCT

The employee must maintain strict discipline in the office during work hours. The staff member

is required to maintain certain standards of conduct. Any staff member who fails to maintain

acceptable standards of conduct in accordance with his/her employment contract, specific job

requirements and/or the bank rules, renders himself/herself liable to disciplinary action. Such

disciplinary action is designed to be corrective and to improve conduct (other than where

dismissal is warranted) and should be taken as soon as possible after the event.

WORKING HOURS

The staff is entitled to work for 48 hours a week. This applies to working days from Sunday to

Thursday. Weekend shall be on Friday and Saturday. The working hours are 10 a .m to 6 p.m.

The employee must work much longer when required. The company maintains a strict

attendance policy. Late entry, early exit and absence on work shall be reportable to the

management. Disciplinary action shall be taken if the situation requires so.

Weekly working days: From Saturday to Thursday of the week.

Weekly holiday: Friday of the week.

Late attendance: Three days late attendance will be treated 1 day’s absent.

33

SMOKING HOURS

Smoking inside the office premises is prohibited. Disciplinary action shall be taken against a

staff for such act. 

SITUATIONS OF DISCIPLINARY ACTIONS

In BRAC BANK LTD., if any employee violates the code of conduct then management will take

the decision. All employees are expected to meet performance standards and behave

appropriately in the workplace. Disciplinary or corrective action shall be taken against the

employee to improve unacceptable behavior or performance. Disciplinary action shall be taken

only when other methods such as coaching and performance appraisal have not been successful.

In cases of serious misconduct, straight to disciplinary action shall be taken. In extreme cases,

such as job abandonment, theft, or an act that endangers others, the offense may be so grave that

management forgoes progressive discipline.

PROCEDURES OF DISCPLINARY ACTIONS

A staff shall face the following disciplinary actions

Suspension without Pay: Suspension will prevent work for a number of working days, as

specified in the letter, and pay is docked accordingly. Length of a suspension without pay will be

influenced by policy or contract requirements.

Reduction of Pay within a Class: The reduction of pay is for a specific period of time,

related to the seriousness of the performance discrepancy or work rule violation, and noted in the

letter.

The disciplinary letter will incorporate the same elements included in a suspension letter.

Demotion to a Lower Classification: This action will involve movement of the employee to

a lower level position, and may be temporary or permanent.

Dismissal: This shall be selected after performance counseling and progressive discipline

have failed to get the employee's attention to the problem.

In extreme cases, such as job abandonment, theft, or an act that endangers others, the offense

may be so grave that we forgo progressive discipline.

34

Miscellaneous

In cases, any other important matter is not included in this service code. Company’s decision in

all matters will be treated as final. Time to time addition authorization and amendment will be

added to this code.

Employee Safety & Health

Safe computer screens

Quarterly fire drills

Code of Conduct and Chain of Command

Every employee of the bank must abide by the rules & regulations of the Bank as described

in this code.

Every employee of the Bank will follow Chain of Command of his immediate supervisor the

service code.

He should prove worthy of his employment by his honesty, sincerity and devotion to his

duty.

His services will be governed by the job description and responsibility as defined in it.

In no circumstance he should take active part with any political party and shall not be

involved in any activities subversive to the state or of discipline.

Without the prior permission of his supervisor he shall not leave office & not encourage

other to do so.

No employee is entitled to take any bribe from any person or any business partner of the

Company.

No employee of the company is allowed to lodge any personal problems to companies

Directors without the consent of the authority concerned.

No employee is entitled to press the company management for any demand by him or with

the association of others.

No employee of the bank is allowed to meet media/outsiders to leak out bank’s internal

matters without the prior permission of management.

At the end of the financial year i.e. June, Departmental head will prepare annual confidential

report of all employees under his supervision.

35

Ground of Punishment

In the opinion of the management, if any employee is found guilty on the following:-

Negligence of duty.

Misconduct/Insubordination

Absence from duties / run away from duty place.

Inefficient / incapable to perform duties.

Dishonest / corrupt.

Associates with misappropriation of fund / theft.

Detrimental to company’s affairs.

Engaged in subversive activities against the state or of discipline.

Other allegations as recorded by the Company management.

Punishment

As and when, allegations of the aforesaid manner are brought against any employee; these will

be investigated in a systematic way as described in this code. Based on the investigation report

and recommendations of the inquiry committee, the top management may award the following

punishment:

I. Minor Punishment:

Warning Letter.

Deduction of Salary.

II. Major Punishment:

Demotion to lower grade/Post.

Realizing financial loss from his salary or other source.

Removal/Dismissal from service.

PROCEDURE OF DISCIPLINARY ACTIONS

In case of disciplinary actions, at first branch will conduct enquiry and then audit will conduct

enquiry and finally management will take decision about disciplinary actions.

36

CBA ELECTIONS

Not applicable in BRAC Bank limited since it is a private bank.

CBA AGREEMENT

Not applicable in BRAC Bank limited since it is a private bank.

TERMINATION LETTER

BRAC Bank gives termination letter to those employees who are involved with any kinds of

fraudulent, negligence of responsibilities and violation of the code of conduct.

Conclusion:

At the end of the HR manual of the Brac Bank Ltd, it can be said that the manual will play an

important role in the organizations for its smooth functioning. Though the manual is well-

designed, it also needs to be reviewed and revised time to time. For this purpose, the

management of the company keeps up with the changing trends and also keep tract of new legal

acts that may be enforced upon the working of organizations. BBL always tries to maintain HR

practices and stick to it in each and every respect regardless of being certain limitations.

This report is a comprehensive picture through which we can get view of how HR practice is

observed and followed, what it’s importance and also it can be a set example of HR practice to

other companies who are still also lagging behind to this issue and intend to incorporate HR

practice in their organization.

37

Bibliography

1. www.wikipedia.com

2. Chowdhury Md. Asad Al Zubary; CSM Agrabad Branch

3. Gerry Dessler

4. www.google.com

5. www.bracbankbd.com

38