INTERNSHIP REPORT ONHuman Resource Management Rules Practices of Bangladesh Krishi Bank.

Under the Supervision of Kazi Tareq Ullah Assistance Professor & Coordinator- EMBA School of Business

Prepared By MD. RABIUL ISLAM ID NO-M20611111002 BBA (9th Batch) School of Business

UTTARA UNIVERSITY

Acknowledgement

At first and foremost I would like to say thanks to almightily Allah for giving me strength

to complete this report. I would like to convey heartiest thanks to Mr. Masud Boss,

Senior Officer, BKB for his to lerance I got the opportunity to complete my BBA while

I have been working with BKB. I am thankful to all Senior Officials of BKB’s Particularly Md.Masudur Rahaman & Cashier Rosy Madum, for taking keen interest in the affairs of this report and would like to express my heartfelt gratitude to the esteemed officials of BKB for their co operation and support. Without Their help it would be very difficult to complete this report. I have been extremely fortunate to have Kazi Tareq Ullah, honorable Coordinator EMBA Program School of Business Administration , Uttara University, Dhaka-1230. I would like to convey thanks to him for giving me the opportunity to prepare such a report which could help to have an in depth knowledge about Human Resource Management Rules practice of BKB. Finally, I would like to thank my family and friends for their encouragement and support throughout the time.

Md. Rabiul IslamID#M20611111002BBA(9th Batch)

February 12,2010

Kazi Tareq UllahAssistant Professor & Coordinator-EMBASchool of Business AdministrationUttara University.

Sub: Request for transmitting the Internship Report.

I am pleased to inform you that I have completed the Internship on Human Resource Management Rules Practice of BKB. I am in high spirits that now I can present it. Through due to shortage of time, I face some difficulties to complete this report properly but I have tried my level best.

I therefore hope and pray that my report would quench your thirst and will leave up to your satisfaction.

Sincerely yours

Md.Rabiul Islam ID#M20611111002BBA (9TH Batch)

Executive Summery

This Internship Report covers the detail about Human Resource Management Rules Practices Of BKB. The report has been made writer’s observation, training, and practical job experience in Human Resource Management department of BKB. This report has mainly emphasized on the sequential activities involved in HRM Rules analyzing and approving processes. It has been incorporated an evaluation from the different aspects of its risk management ,SWOT analysis some recommendations on the basis of approving & implementation MRM Rules.

BKB’s HRM department Internally used to done, such as Employee recruitment, Employee performance evalution, Employee Train up, Salary increase & decrease, and Life living adjustment. It also helps to increase the employee’s working Motivation.BKB is not a completely Government Bank, but it is administrated by Government Rules & regulation which made by (Central Bank) Bangladesh Bank. It was basically made, the purpose of giving loan for poor farmers.

Usage of money is the main income giving loan for all farmers including Bangladesh Krishi Bank.It involves Risk & Profit. A sound approving and issuing Loan process supported by quantitative analysis, qualified judgments and a separate loan monitoring cell can reduce the risk to a certain extent. But sometimes, they give loan un-train up poor farmer by political leader, so the Bank does not get return money against certain loan. Otherwise, BKB will able to proper usage of money & also able to achieve its mission and vision effectively.

Chapter 1: Introduction

1.1 Origin of the study

The Internship program is prerequisite for the completion of the Bachelor of Business Administration Program of Uttara University. Each student has to work on a research Project Over the period of Internship. The assigned project for my Internship Program “Human Resource Management Rules practices of BKB”. The Project has been assigned by the organization’s honorable Chairman Sir and approved by the same. It has been completed during the organizational attachment period in BKB from October 25,2009 to January 24,2010.

1.2 Background of study

This report is submitted to Kazi Tareq Ullah, the Faculty & Coordinator-EMBA, of Uttara University as part of Internship Program. This is a mandatory part for the Bachelor of Business Administration (BBA) program and it is four credit course. As a part this program each intern has to prepare a report on his / her work during this Internship program. During the three months internship period at BKB, the writer of this report achieved practical knowledge about HRM Rules & loan section being the employee of BKB and worked on a project titled “Human Resource Management Rules Practices of BKB”.

1.3 Objective of the study

1.3.1 General Objective

The general objective of preparing this report is to fulfill the requirement of Internship program as well as completion the BBA program through achieving the practical job experience and view the application of theoretical knowledge in the real life.

1.4 Significance of the study

With the global slow down in the face rising competition, the customers faced with an increasing array of financial products and services and expecting more from provides in terms customers and minimizing shake are both major concern for financial service institution.

1.5. Scope of the studyThis study initially focuses on the factors related with the HRM Rules closing from the prospective of BKB .It also draws a competitive analysis with the core features offered by some other competitor banks. These are –

# Sonali Bank Ltd.

# Grameen Bank Ltd

# Agruni Bank Ltd.]

# Janata Bank Ltd.

Moreover, the study topic includes and discuses only HRM Rules related issues and activities.

1.6 Methodology of the study

1.6.1 Research Design

The research design is a framework for conducting any research. It specifies information on the type of information to be collected, the source of data and the data collecting procedure.

1.6.2 Type of research

The research in this study has considered as both exploratory and descriptive research.Initially, exploratory research was performed when little knowledge about the problem area existed. In order to Increase the knowledge about the reason behind the closing attitude of the loan taker, the secondary data was studied , as well as literature regarding theories relevant for the problem area.Before conducting the interview with the case study objects, knowledge within HRM Rules and its closer had been obtained. Thereby descriptive research was used when taking the interviews.

1.6.3 Research Approach

When conducting the research, there are two different approaches to consider, the deductive approach and the inductive approach. The deductive approach implies that a conclusion is derived from a known premise or something known to be true. In this study a deductive approach was chosen. This since the research starts with a literature overview based on which general ground for the study is prepared. In addition, qualitative research

approach will be followed as the problem of the problem of the study deals with words and observations rather than numbers.1.6.4 Research strategy

For undertaken study or research, two strategies will be followed .These are Primary data analysis and secondary data analysis. Because Primary data analysis will provide the existing situation of the in retaining the HRM Rules as described by the data source or respondents. Secondary data analysis is a review of data collection for another purpose to clarify in issues in the early stages of the research effort.

1.6.5 Data Collection and Analysis

Under this issue the classification of data, data collection method for and process of data analysis are discussed.

1.6.6 Classification Of data

The data collection can be classified as primary data and secondary data. Primary data is gathered and assembled specifically for the research project at hand . The secondary data has already been collected for the purpose other than the problem at hand.In this study, both primary and secondary data are used. The secondary data about the closer list of HRM Rules and loan in the last two years were collected from database maintained by the retention Unit of BKB, helps to give a clear picture of finding out the reason behind this Closing attitude. The Secondary data about overview of HRM rules has been collected from the external sources, such as Websites, Journals and Newsletters. Moreover, the basic data about the existing products and services offered by BKB were collected from its Annual Report, Newsletters & other available data sources.

1.6.7 Data collection Method

The following methods were used to collect the required information for the study-

Documentation:

Documentary information for the study includes written reports and administrative documents such as proposals, progress reports and internal documents.

Interview:

The primary data was collected through interview. The nature of the interviews conducted was both open-ended and close-ended. Theses interview were performed in a conversational manner and the respondent can answer in his or her own words. This interview from was provided by BKB and has been attached in the appendix section.

Direct Observation:

Different issues related to the service processing and internal record management has been collected through direct observation.

1.6.8 Data analysis

There are two types of analysis, the within case analysis and the cross case analysis. The within case analysis is performed within a case and the data collected is presented in relation to the theory. The cross case analysis is performed through comparative analysis. In this study, both analyses are conducted since the study findings are visualized in the light of the research objectives and theory discussed.

1.6.9 Limitation of the study

The overall study was conducted considering a number of limitations. Theses are below:

# The major Limitation of the study was confidentiality of the data. As part of the policy of BKB, some data could not be used to enhance the parameter of the analysis. Because of maintaining the secrecy, such data is important on the Bank’s interest that’s not revealed to the public.

#Limitation of time was one of the most important factors that shortened the present study .Due to time constraints, many aspects could not be discussed in the present study.

# Researcher insufficient experience is another limitation for the study.

CHAPTER 2: INDUSTRY AS A WHOLE2.1 Banking Industry in Bangladesh: An Overview

The gradual improvement in the over all policy environment has enabled Bangladesh to

improve its economic performance in recent years. Successive governments

In Bangladesh have been confronted with the problem of stimulating the economic

growth rate in a country where a substantial segment of the population lives below the

subsistence level. Economic policies are still guided by five year plans.

The prospect of economic growth in Bangladesh in the near future will depend on the

pace of economic reforms and the quality of macroeconomic management. Accelerating

the rate of economic growth will require higher levels of investment. This will primarily

come from private flows of foreign direct investment. This can be established by

reforming the financial system and continuing the process of financial deepening.

The banking industry in Bangladesh is one characterized by strict regulations and

monitoring from the central governing body, The Bangladesh Bank. As the government is

often the owner and regulator as well as the supervisor and customer of a bank, there has

been ample opportunity for mismanagement over the years. The banking sector is

plagued with a lack of credit discipline, archaic loan recovery law, corruption,

inefficiency, overstaffing, etc. Several reform measures of the financial sector have been

taken to improve the situation. Relative stability achieved by the support extended by

both the central bank and the Government of Bangladesh in the past has restored public

confidence in the country's banking sector. Moreover, Nationalized Commercial Banks

(NCBs) and old generation Private Commercial Banks (PCBs) would have to lower the

rate of NPAs in their portfolios. Failure to do so would mean re-capitalization, at least for

the NCBs. This may in turn lead to a further drain on the limited resources of the

Government of Bangladesh. At this time or in the immediate future this re-capitalization

would not be feasible. With these conditions in place, the World Bank anticipates the

likelihood of a situation where the ever-increasing burden of non-performing loans and

growing rate of debt servicing would place the economy under enormous strain and result

in a crisis in the banking sector in the long term.

5

The main concern is that currently there are far too many banks for the bank to sustain.

As a result the market will accommodate only those banks that can transpire as the most

competitive and profitable ones in the future.

Currently the major financial institutions under the banking system include

Bangladesh Bank

Commercial Banks

Islamic Banks

Leasing Companies

Finance Companies

Generally, the commercial banks and the finance companies provide myriad of banking

products/services to cater to the needs of their customers. However, the Bangladeshi

Banking industry is characterized by the tight Banking rules and regulations set by the

Bangladesh Bank. All banks and financial institutions are highly governed and controlled

under the Banking Companies Act 1993.

The range of banking products and services is also limited in scope. With the

liberalization of markets competitions among the banking products seems to be growing

more instances each day. In addition, the banking products offered in Bangladesh are

fairly homogeneous in nature due to the tight regulations imposed by the central bank.

Competing through differentiation is increasingly difficult and other banks quickly

duplicate any innovative banking service.

2.2 The Evolution of Schedule Banks in Bangladesh

After liberation, the banks operating in Bangladesh (except those incorporated abroad)

were nationalized. These banks were merged and grouped into six commercial banks. Of

the total six commercial banks, Pubali Bank Ltd. And Uttara Bank Ltd. was subsequently

transferred to the private sector with effect from January 1985. Rupali Bank was

transferred as public limited company from December 1986. The rest three State Owned

Bank's were operating as public limited company from the quarter October-December,

2007. The two Govt. owned specialized banks were renamed as Bangladesh Krishi Bank

and Bangladesh Shilpa Bank. In March 1987 Bangladesh Krishi Bank was bifurcated and

6

another specialized bank emerged as Rajshahi Krishi Unnayan Bank (RAKUB) for

Rajshahi Division. Bank of Small Industries & Commerce Bangladesh Ltd. (BASIC)

started its operation as a private bank from September 1988. Later on BASIC was

brought under direct control of the Government and was reckoned to as a specialized

bank with effect from June 1993. From July 1995 again the BASIC was categorized as a

private bank. In 1997, Government decided to treat this bank as a specialized bank again.

So in this booklet, the BASIC has been treated as a specialized bank. Standard Chartered

Grind lays Bank was merged with Standard Chartered Bank during the quarter (January-

March, 2003). The Oriental Bank Ltd. an Islamic private bank was renamed as ICB

Islamic Bank Ltd. from this quarter (April-June, 2008). Credit Agricole Indosuez, a

foreign private bank was renamed as Commercial Bank of Ceylon Ltd. the quarter

(October-December, 2003). It is mentioned that Shahjalal Bank Ltd. has started its

operation as Shahjalal Islami Bank Ltd. according to Islamic sariah from the quarter

(April-June, 2004) and EXIM Bank Ltd. has also started its operation according to

Islamic Sariah from the quarter (July-September, 2004). Shamil Bank is renamed as Bank

Al-Falah Ltd. from the quarter (April-June, 2005). American Express Bank merged with

Standard Chartered Bank during the quarter (October-December, 2005). Arab

Bangladesh Bank Ltd is renamed as AB Bank Ltd. from the quarter (January march,

2008). The branches of foreign banks operating in Bangladesh are being treated as

foreign private banks.

All such banks operating in Bangladesh with different paid-up capital and reserves

having a minimum of an aggregate value of Tk. 50 lacs and conducting their affairs to the

satisfaction of the Bangladesh Bank have been declared as scheduled banks in terms of

section 37(2) of Bangladesh Bank order 1972. In terms of section 13 of Bank Company

Act, 1991, the minimum aggregate value was Tk. 20 crores. From 30th March, 2003 it

was Tk. 100 crores. From 8th October, 2007 it has been raised at the minimum ceiling of

Tk. 200 crores (Amendment) Ordinance’ 2007 on October 08, 2007.

7

Figure 1: Percentage of different banking sectors in Bangladesh

The names of the scheduled banks whose operations are recorded in this volume are as

below:

A. STATE OWNED BANKS:1. Agrani Bank Limited.2. Janata Bank Limited.3. Rupali Bank Limited.4. Sonali Bank Limited.

B. SPECIALISED BANKS:1. Bangladesh Krishi Bank2. Bangladesh Shilpa Bank3. Rajshahi Krishi Unnayan Bank4. Bank of Small Industries and Commerce Bangladesh Ltd.5. Bangladesh Shilpa Rin Sangstha

C. PRIVATE BANKS :a) Foreign Banks:1. Standard Chartered Bank2. State Bank of India3. Habib Bank Ltd.4. City Bank, N.A.5. Commercial Bank of Ceylon Ltd.6. National Bank of Pakistan7. Woori Bank8. The Hongkong & Shanghai Banking Corporation Ltd.9. Bank Al-Falah Ltd. (Islamic Bankers)

b) Private Banks (Incorporated inBangladesh excluding IslamicBanks):

1. AB Bank Ltd.2. National Bank Ltd.3. The City Bank Ltd.4. International Finance Investment

& Commerce Bank Ltd.5. United Commercial Bank Ltd.6. Pubali Bank Ltd.7. Uttara Bank Ltd.

11. Southeast Bank Ltd.12. Dhaka Bank Ltd.13. Dutch Bangla Bank Ltd.14. Mercantile Bank Ltd.15. Standard Bank Ltd.16. One Bank Ltd.17. Bangladesh Commerce Bank Ltd.18. Mutual Trust Bank Ltd.19. Premier Bank Ltd.20. The First Security Bank Ltd.21. Bank Asia Ltd.22. Trust Bank Ltd.23. Jamuna Bank Ltd.24. BRAC Bank Ltd.

c) Islamic Banks:1. Islami Bank Bangladesh Ltd.2. ICB Islamic Bank Ltd.3. Al-Arafah Islami Bank Ltd.4. Social Investment Bank Ltd.5. EXIM Bank Ltd.6. Shajalal Islamic Bank Ltd.

8. Eastern Bank Ltd.9. National Credit and Commerce Bank ltd.10. Prime Bank Ltd.

Source: Bangladesh Bank

The banks play an important role in the economy of the country. Bangladesh Bank has

been collecting, compiling and publishing statistics on scheduled banks for the use of

researchers, planners and policy makers.

The statistical tables contained in this issue have been prepared from the returns

submitted by the individual bank branches of scheduled banks as on the last day of the

quarter ending 30th June 2008. At the end of the period under study the total number of

bank branches including local offices stood at 6747, which contains only 55 branches of

foreign banks.

For useful presentation of data, banks have been classified into several groups viz, “All

Banks”, “State Owned Banks”, "Specialised Banks", "Foreign Banks", and "Private

Banks" (Including Islamic Banks). A separate subgroup named as "Islamic Banks" has

been introduced consisting of six banks (Incorporated in Bangladesh), run on the basis of

Islamic Sariah with effect from quarter January-March, 19ss98. These banks are 1) Islami

Bank Bangladesh Ltd. 2) The Oriental Bank Ltd. 3) Al-Arafah Islami Bank Ltd. 4) Social

Investment Bank Ltd. 5) EXIM Bank Ltd. and 6) Shahjalal Islami Bank Ltd. The

publication provides a detailed analysis of bank deposits (excluding inter-bank) mainly in

the form of “by Types & Sectors", “by Rates of Interest & Types", “by Types of

Account” and outstanding advances and bills (excluding inter-bank transactions) mainly

in the form of “by Rates of Interest & Securities”, “by Securities”, “by Size of Account”,

“by Economic Purposes” etc.

From the very inception, the “Scheduled Banks Statistics” were being collected and

published on quarterly basis. Later on from December, 1988 the collection of data was

done on half yearly basis and publication made on annual basis ending December every

year. Subsequently, from December 1990 the data were collected on quarterly basis but

published on annual basis. Then it was decided to publish the brochure again on quarterly

basis from June 1992 and the present publication follows as a sequel to the change in the

policy decision.

The role of agricultural credit in fostering the economy of the country has gained

importance. To this end in mind agricultural credit statistics time series data were

collected and presented pertaining to the period from 1981-82 to 2007-08 (June, 2008).

10

The figures published in this booklet may differ from those contained in the statement of

position of Scheduled Banks released each week by the Bangladesh Bank due to

difference in timing and coverage.

From the quarter October-December, 2005, the Scheduled Banks were instructed to

follow the "Banking Statistics Guidelines" fourth edition, published in September, 2005.

In this brochure, all statistical tables have been prepared on the basis of returns, submitted

by the scheduled banks as per the booklet, published in September, 2005.

For taking into account, the remittances (in foreign Currency) by the Wage earners

abroad, two types of deposits 1) Wage Earners’ Deposits & 2) Resident Foreign Currency

Deposits have been introduced from the quarter ending on December, 2001.

2.3 A Review on Deposits & Advances of Scheduled Banks (as on end

June, 2008)

Banks' Deposits: Total deposit liabilities (excluding inter bank items) of the

scheduled banks increased by Tk. 12571.88 crores or 5.74% to Tk. 231604.92 crores

during the quarter April-June, 2008 as compared to increases of Tk. 7420.68 crores or

3.51% and Tk. 10767.24 crores or 5.84% in the previous quarter (January-March, 2008)

and the corresponding quarter (April-June, 2007) of the last year respectively. The

increase in deposits during the quarter was due to increases in urban deposits by Tk.

10381.44 crores or 5.45% to Tk. 200989.13 crores and in rural deposits by Tk. 2190.44

crores or 7.71% to Tk. 30615.79 crores. The share of urban deposits to total deposits at

the end of the quarter April-June, 2008 was 86.78% as compared to 87.02% at the end of

the preceding quarter (January March, 2008) and 86.53% at the end of the corresponding

quarter (April-June, 2007) of the last year. Bank deposits registered an increase of

Tk.36399.74 crores or 18.65% from end June, 2007 to end June, 2008 as compared to an

increase of Tk. 26473.24 crores or 15.69% from end June, 2006 to end June, 2007.

Banks' Advances: Banks' advances increased by Tk.11641.60 crores or 6.85% to Tk.

181552.55 crores during the quarter April- June, 2008 as compared to increases of Tk.

9892.27 crores or 6.18% and Tk.4892.49 crores or 3.45% respectively during the

preceding quarter (January-March, 2008) and the corresponding quarter (April-June,

2007) of the last year. Bank advances in urban areas increased by Tk. 10544.53 crores or

6.75% to Tk. 166701.25 crores and in rural areas increased by Tk. 1097.07 crores or

7.98% to Tk. 14851.30 crores during the quarter under review. Bank advances exhibited

an increase by Tk. 34979.21 crores or 23.86% from end June, 2007 to end June, 2008 as

compared to an increase of Tk. 17408.04 crores or 13.48% from end June, 2006 to end

June, 2007.

Bills: Bills purchased and discounted by the banks decreased by Tk. 1103.66 crores or

6.97% to Tk. 14721.63 crores during the quarter under review as compared to decreases

of Tk. 143.67 crores or 0.92% and Tk. 1354.29 crores or 8.40% respectively during the

preceding quarter (January-March, 2008) and the corresponding quarter (April-June,

2007) of the last year. 12

Interest Rates (Weighted Average): Weighted average rates on deposits and

advances were 6.94% & 12.29% respectively at the end of the quarter under review as

compared to 6.91% & 12.65% in January March, 2008 and 6.85% & 12.77% in April

June, 2007 quarter respectively. Quarterly position of banks deposits, outstanding

advances and bill is shown in Table-1.

TABLE-1: OVERALL DEPOSITS, ADVANCES & BILLS

(Taka in crores)

At the endof quarter

Deposits Advances BillsPurchased&Discounted

WeightedAverageRate ofInterestonDeposits

WeightedAverageRate ofInterestonAdvances

Urban Rural Total Urban Rural Total

2007Apr-

Jun.

168910.

16

26295.

02

195205.

18

133564.

79

13008.

55

146573.

34

17484.0

96.85 12.77

86.53% 13.47% 100% 91.12% 8.88% 100%

(5.88) (5.60) (5.84) (3.40) (3.97) (3.45) (8.40)

Jul-

Sept.

175000.

50

26346.

15

201346.

65

138098.

14

13032.

79

151130.

93

18482.0

26.76 12.91

86.92% 13.08% 100% 91.38% 8.62% 100%

86.92% 13.08% 100% 91.38% 8.62% 100%

(3.61) (0.19 (3.15) (3.39) (0.19) (3.11) (5.71

Oct-

Dec.

183612.

93

27999.

43

211612.

36

146593.

35

13425.

33

160018.

68

15681.6

26.77 12.75

86.77% 13.23% 100% 91.61% 8.39% 100%

(4.92) (6.28) (5.10) (6.15) (3.01) (5.88 (-15.15)

2008

Jan-

Mar.

190607.

69

28425.

35

219033.

04

156156.

72

13754.

23

169910.

95

15825.2

96.91 12.65

87.02% 12.98% 100% 91.91% 8.09% 100%

(3.81) (1.52) (3.51) (6.52) (2.45) (6.18) (0.92)

Apr-

Jun.

200989.

13

30615.

79

231604.

92

166701.

25

14851.

30

181552.

55

14721.6

36.94 12.29

86.78% 13.22% 100% 91.82% 8.18% 100%

(5.45) (7.71) (5.74) (6.75) (7.98) (6.85) (-6.97)

Note: Figures in parentheses represent rates of growth in percent over the preceding quarter.

Minor differences may be observed due to rounding off.

Source: Scheduled Bank Statistics, Bangladesh Bank, 2007-2008

CHAPTER 3 : THE ORGANIZATION

3.1 Bangladesh Krishi Bank: An Overview

The major occupation of the people of Bangladesh is “Krishi” Krishi is Bengali word

which means “Agriculture” 85% of the population depends directly or indirectly on

agriculture which contribution a significant portion to GDP. Bangladesh Krishi Bank has

been established under the Bangladesh Krishi Bank order 1973. BKB is banking

Company under the Banking Company ACT 1991.It head office located at Krishi Bank

Bhaban 83-85 Motijheel commercial area.Dhaka- 1000, Bangladesh.

3.2 Historical Background of Bangladesh Krishi Bank:

Bangladesh krishi Bank (BKB) is a state –owned banking institution. The board of Director of the bank appointed by the government of the Republic of Bangladesh consists of a chairman and ten Director consisting of eight officials including the Managing Director and two non-officials. Bank’s policy is formulated by the board of Directors. There is a three member Executive committee composed of the chairman, the managing

Director and a Director. The Executive committee deals with any matter within the competence of the board of Directors. Bank’s Head office is situated at Dhaka. There are five Division in Head office.(a) Administration Division (b)Planning Division (c)Operation Division (d)International Division(e)Vigilance &Audit Division. Each Division is headed by a General Manager. To strengthen the operational performance and to ensure better supervision control a monitoring ,the bank ,at present has four Divisional office headed by a general Manager at Barisal ,Comilla,Dhaka ,Khulna.The managing Director is the chief Executive of the bank.All general Managers in Head offices and field offices report to the Managing Director.There are seven Zonal offices at Barisal, Comilla,Chittagong,Dhaka,Khulna,Mymensingh,and Sylhet. These Zonal offices as arms and links of Divisional offices and operate under the control of Deputy general Manager. In each district headquarter, the bank has a Regional office.At present, there are 49 Regional offices mainly responsible for overall superintended and control of Bank branches. As of June 30, 1987, the Bank (BKB) has 90 urban and 710 rural branches, totals Being 800.

3.3 Objectives of the BKB:

# To help the poor farmers in rural area.# Giving loan all kinds of people in easy condition.# Mobilize deposit from the surplus economic unit to deficit economic unit.# Be a high quality distributor of products and services.# Serve the people of the country by providing financial assistance. # Help the nation in reducing the employment problem by securing services to a large Number of people.# Ensure balanced economic development throughout the country.

3.4 Management of BKB

The bank has in its management a combination o highly skilled and eminent bankers of the country and varied experiences and expertise successfully led by Khandokar Ibrahim Khaled, Chair man of BKB, a dynamic banker, as its Managing Director and well educated ,energetic and dedicated officers working with missionary zeal for the growth and progress of the institution.

3.FUND MANAGEMENT OF BKB

Managers should envisage from his day to day business operations and experience of anticipated receipts by way of recoveries of loans & advances, fresh deposits and

anticipated withdrawals by way of loan disbursements and drawings on the deposit accounts.Only working fund sufficient to meet day to day requirements of fund and not idle funds should be kept in the branch. Fund in excess of 10% of authorized safe limit plus 5% with the authorized banks should be promptly remitted to local Principal office, Dhaka through the authorized bank under intimation to the Regional Manager.In reference to above, the following guidelines are to be complied with by the ManagerRegional Managers will fix the limit of cash in tills for the branches on the basis of average requirements of cash preceding 3 months based on 5% of the demand liabilities. The Regional Managers should analyze the weekly statement of cash position received from the branches in their area and carefully forecast the possible demand for and supply of fund of individual branches under his control with a view to ensure continuous flow of fund to the branches When necessary, the Regional Managers are authorized torequisite fund to the branches under his control. The RMs will be responsible for control, and management of fund in branches in his area.The Regional Managers are authorized to fix up cash holding limit of branches under their control depending on factors of demand for cash, availability of ready –resource and expected inflow of fund. For each branch, a cash holding ceiling is to be determined under information to the zonalManager and CA&FA Department of H.O The Principles for fixing branch cash holding limits are 5% of demand liability which includes:

a. 100% of current deposit;b. 15%of saving deposit ;c. Deposit from banks;

While determining cash holding of a branch, the under mentioned factors are to be taken into considerations:

3.6 ACCOUNTIG SYSTEM OF BKB

The accounts of the Bank are maintained on mercantile system. Every authorized Transaction undertaken in the branch and head office is vouched for, and are passed and Posted in the subsidiary book. Entries recorded in the subsidiary books are later summarized and posted in the control book from which data are furnished to the regions And head office through a statement of affairs of the Bank. The bank operates through a network of branches. All public business is transacted into branches. The function of the Division, Zonal and Regional offices are mainly administrative at supervisory. They do not transact any business for the public. Public business at stations where Regional Manager’s offices are located is transacted by the local branches of the bank. The branches of the bank operate as independent accounting units. They submit statement of affairs at the end of every quarter (end September, December march and June) and other returns prescribed, directly to the regions and Head office for the purpose of consolidation, in the form of statement showing the assets and liabilities of the bank as at the close of business on the list working day of each quarter, end of financial year (June 30) and when necessary. As per provision of BKB order, 1973, the accounts of the bank

shall be audited by not less than two auditors being chartered Accountants who shall be appointed by the Government. The bank has its own internal auditing system directly under the control of the Managing Director. The internal audit system is looked after by general Manager through a network of four Divisional Audit offices and 49 Regional Audit offices. The regional audits are engaged for auditing the branches on half yearly basis.

3.7 Authorized accounts And Accounting Procedure :

Bank’s accounting system are spread over 13 major accounting group:

Title of accounting group Code No No. of approved AccountsGroups

1) Capital &Reserves 1 6 2) Deposits 2 18 3) Loans payable 3 5 4) Other Liabilities 4 24 5) Deferred Credit to income 5 2 6) Contingent Liabilities 6 10 7) Cash & cash items 7 6 8) Due from other banks 8 159) Investment (Head office) 9 6 10) Loans & Advance 10 23 11)Inter office accounts 11 412) Customer’s liability 12 1013) Other assets 13 15 Each of the accounting group is again divided into different head of accounts. The major Heads of accounts are marked with consecutive numbers in the general Ledger. These Group accounts are maintained with separate nomenclatures and numbered as shown Above. The first digit and in some cases, first two digits of the number of the account indicate the number of group of the account within the group, the subsequent digit relates to the Number of account. Example, Account payable, has been numbered as 41 of which Refers to group of account and 1 to the number of account in the group. Where a head Have three digits, the first two digits is meant for group of account and third digits is the Number of account under the group. Similarly if account head is expressed by 4 digits, the First two digits will be for group and the last two digits for number of account.

3.8 Expenditure control

There is a distinction between pre-audit and concurrence by an expenditure control

authority. In case of pre –audit, the expenditure dose not require concurrence of audit at a proposal stage. While in case of expenditure control this essential. In other words, administrative sanction of expenditure may be given by a competent or authorized officer having jurisdiction of power as per delegation but expenditure sanction is to be accorded by the expenditure control department.Expenditure control has been introduced in Divisional/Zonal and Regional levels but not at the Branch offices. In Head office expenditure control has also been enforced. An expenditure whether capital or revenue, beyond the sanction limit of Managers are subject to concurrence/ authorization of the expenditure control. The exercise of financial powers exceeding the sanction limit of Branch Manager, which may be exercised by the Divisional/Zonal and Regional Managers, shall require concurrence/authorization of expenditure control.

r its valued customers are the evening banking facility. In this special service a customer

can do banking from 6.00 p.m. to 8.00 p.m. Now five branches of SCB is providing the

service and other branches will also provide the very special service in near future.

3.9 SWOT Analysis:

The acronym for SWOT stands for

The SWOT analysis comprises of the organization’s internal strength and

The SWOT analysis comprises of the organizations internal strength and weakness and

external opportunities and threats. SWOT analysis gives an insight of what an

organization can do in future and how they can compete with their existing competitors

through existing capabilities and constraints. This tool is very important to identify the

current position of the organization relative to others, who are playing in the same field

and also used in the strategic analysis of the organization.

Strengths:

BKB’s Banking Experience for more than 150 years provides BKB the strength of

being the market leader in the foreign banking sector. This strength of BKB is

totally unmatched by any other national & multinational bank in Bangladesh, as

the long term success of a bank heavily depends on its reputation while dealing

with very sensitive commodity like money.

StrengthWeakness

OpportunityThreat

BKB is the first bank in Bangladesh, which issues the poor farmer’s Loan. As the

market leader, they showed the most substantial corporate strength among the

national banks by grabbing the opportunity that exists the Irrigation .

In Bangladesh BKB has a wide range of poor farmer base and is operating

efficiently in this country.

BKB has a bulk of qualified, experienced and dedicated human resources.

BKB has the reputation of being the provider of good quality services to poor

farmer.

BKB has the ability to adapt to changes in line with local perspective.

BKB has a large capital support or backup.

Weaknesses :

BKB has fewer branches than its domestic demand loan of farmer.

Sometimes BKB face some political interfere to give loan.

BKB is more hierarchy-driven compared to other national banks. Despite

restructuring, the organization is yet to achieve flat-management structure.

Sometimes BKB give loan in Untrained up farmer, so that farmers are unable to

return loan.

37

Opportunity :

The country’s growing population is gradually and increasingly learning to

adaptation of farmer finance. As the bulk of our population is middle & low

class, different types of loan is very helpful to poor farmers.

Bangladesh has different huge consumer base for maintaining several accounts.

So BKB has the opportunity to keep these customers by reducing its current fees

and charges and positioning attractively in middle &low class segment.

BKB can grab the opportunity of SME Banking.

BKB has a flexible foreign policy.

BKB focuses on Industrial and private sector development.

Threat :

In today’s economy, substantial amount is remaining idle and currently the

investment in the secondary market by foreign is relatively low. These economic

situations of the country indicate political threats.

Increased competition by other for national banks is also another threat to BKB.

At present Sonali and Agruni Corp are posing significant threats to BKB

regarding retail and business banking respectively. Furthermore, the new comers

in private sector Prime Bank, Dutch Bangla Bank, Grameen Bank, BRAC Bank,

Rupali Bank, Mercantile Bank, Social Investment Bank, Islami Bank are also

coming up with very competitive force.

High-tech technological adaptation by the Local Bank and Financial Institution is

a threat for BKB.

3.10 STRUCTUER OF BANGLADESH KRISHI BANK :

  Bangladesh Krishi Bank (BKB) is a 100% government owned specialized Bank in Bangladesh. KRISHI means Agriculture. Since its inception, BKB is financing in agricultural sector remarkably.  BKB also  performs commercial banking. People working abroad can easily send money home through our Taka Drawing Arrangement.

 Career

  Schedule of Bank ChargesCircular

Web Mail Krishi Bank Bichitra

 

       

3.11. BRANCHES OF BANGLADESH KRISHI BANK:

Home | Overview of the Bank | Executive Profiles | International Banking | Deposit Scheme  | Foreign Correspondents | Guest Book | FAQ

 

 BRANCHES

Local Principal Office

Corporate Branches Other Branches

Home | Overview of the Bank | Executive Profile | Departments of Head Office | Field Offices | Credit Programs| Poverty Alleviation & Micro Credit Program |

Deposit Schemes | International Banking | ICT Desk | Asian Banking Award | Focus on New Millennium | Account Opening form | Frequently Asked Question |

Addresses of other Banks |Web Lin

3.10 BOARD OF DIRECTORS OF BANGLADESH KRISHI BANK :

:

  Sl.

No. Photo Name

Designation and Date of appointmen

t

Contact Address Phone

1 2 3 4 5 6

01 Khondkar Ibrahim

Khaled Chairman

27-01-2008

House No # 76Flat No. #103Road No. # 8/ADhanmondi  R/A 

Dhaka-1205

88-02-7174399(Office)88-01-711563961 (Mobile)

E-mail: chairman@krishib ank.org.bd

02 Md. Mukter Hussain

Managing Director

28-01-2008

Bangladesh Krishi BankHead OfficeKrishi Bank Bhaban83-85 Motijheel C/A

Dhaka-1000

88-02-7162614(Office) 88-02-9558607(Office)88-02-8857720 (Res)Fax: 88-02-9561211

E-mail: md@krishibank.org.bd

03C. Q. K. Mustaq

Ahmed Director

13-12-2006

SecretaryMinistry of Agriculture Bangladesh

Secretariat, Dhaka

88-02-7160470, 7167474 (Office) 88-02-9355978(Res)88-01-713043123(Mobile) 88-02-9888414 (Fax)

04 Md. Shamsul Alam Director 

27-11-2007

Director General (LPR)Directorate of Agriculture Extension Khamarbari, Farmgate, 

 Dhaka-1215

88-02-9140857(Office) 88-02-8836910(Res)88-01-713063569(Mobile) 88-02-9140850 (Fax)

88-02-9111502 (Fax)

05 Mosharraf Hossain Director 22-03-2009

Joint Secretary Ministry of Fisheries and LivestockBangladesh Secretariat

Dhaka

88-02-7166263(Office)88-02-9331625 (Res)88-01711736679 (Mobile) 88-02-7161117 (Fax)

06   Md. Humayun KhalidDirector

28-05-2009

Director GeneralBangladesh Rural Development Board"Palli Bhavan" 5 Kawran Bazar

Dhaka

88-02-9115376(Office)8801733552212 (Mobile)

88-02-8114343 (Fax) humayunkhalid87@yahoo.com

07 Alauddin A. Maiid Director 14-09-2009

Ex- Managing Director, BASIC Bank Limited

88-01-711-524260 (Mobile)

08 Mahbubur Rahman Bhuyan

Director

14-09-2009 Social worker & Politician

88-01-711646127 (Mobile) 

Abul Kalam Azad Secretary

Board Secretariat DepartmentBangladesh Krishi BankHead OfficeKrishi Bank Bhaban 83-85 Motijheel C/A

Dhaka-1000

3.12 Mission of BKB in Bangladesh

Bangladesh Krishi Bank in Bangladesh operates with the same mission as the Group

BKB subscribes to Bangladesh. The bank in Bangladesh has the best and dedicated

human resource in the private sector banking. With an experience of 36 years, the bank

has a surprising efficiency in the operational areas. The bank has a mission to build and

grow on its 36 years of experience and the positive image that it has earned over the

years. The underlying factor of its business mission is manifested by its five values -

Responsive

Trustworthy

Responsive and

Courageous

As a bank, Bangladesh Krishi Bank gratify to the Middle level & Low Level of the

society, its operational strategies relies on trust and confidence building with the

customers and offer them the highest sense of security and confidentiality. It has a

dedicated attitude towards the community in which it operates and wants to grow and

flourish along with its customer and community.

3.13 Human Resources Division:

This department manages a recruitment, training and career progression plan.

Bangladesh Krishi Bank highlights the importance of developing its people to create a

culture of customer service, innovation, teamwork and professional excellence.

3.14. Planning

BKB now follows a top down planning approach. The top managers have the authority to

decide how they will achieve their goal because BKB nationally decides the rural area..

The Business Bank mainly does planning and Retail Bank Division, IT Department

provides all the assistance and information that is required to create and execute long

term and short term planning. Planning and IR Department provides all the assistance and

IT and other infrastructure in order to reduce the paperwork IT has taken a plan to

achieve the long tern plan.

3.15. Organization

BKB’s all branches are being managed by one branch manager in each of it. The

performance of each branch is solely dependent on the branch manager.

3.16. Staffing

BKB’s recruits people by two ways. One is a “Management Trainee” that has a probation

period of 1 year and after the probation period the trainees will be counted as an officer

and they will do the different kinds of managerial works and another is “Non-

Management Trainee” which does not have any fixed probation period. Time required for

training is dependent on the recruited person’s performance. In case of non-management

trainee, two ways of recruitment is taken place. They are (a) taken by signing a contract

with some outside organization for the 1year and after 1year the contract may be

renewed or not depending on his/her performance. These people coming through outside

contract are called “Outsource”. (b) Taken by signing a contract with the bank for the 1

year and after 1 year the contract may be renewed or not depending on his/her

performance. These people coming through bank contract are called “In source”.

3.17 Customers of BKB

Two of the business target specific customer groups:

Consumer banking meets the needs of individual customers.

Corporate and institutional banking meets the needs of companies, banks and

other financial institutions.

Figure 3.1: The Relationship between Respective Customers to Different Departments of

BKB

Companies Banks and other

Financial Institutions

This focus allows the business to develop an in-depth understanding of the banks

customer’s evolving requirements. This in turn enables us to develop the products and

Individual Organization

Consumer Banking Corporate & Institutional Banking

Treasury

services that help BKB stand out from the competition. Treasury provides support to the

customers of both these business and develops customers (both individual and

organizational) of its own.

3.18. Banking Services of the BKB in Bangladesh:

There are four types of services provided by the BKB

1) Business or Corporate Financial Services

2) Retail or Consumer Financial Services

3) Correspondent Services and

4) Phone Services.

These services can be classified further by the following ways:

Figure 5: Banking Service of BKB

Banking Services of Bangladesh Krishi

Bank

Corporate

Banking

Consumer Banking

Correspondent Banking

Services:

■ Personal Banking■ Consumer Finance

Services:

■ Operation of Accounts over Phone

Services:

■ Merchant Banking ■ Commercial Banking ■ Quasi Government Banking■ Institutional Banking

PhoneBanking

Product:

■ Trade Finance■ Letter of Credit■ Bid/ Performance Bonds■ Working Capital Loans■ MoneyTransfer /Remittances

Product:■ Chequess Purchase■ Guarantee■ Risk Exposure

Services:

■ Inter Bank Transaction

Product:■ Investment Management■ Wage Earner’s Scheme■ Lockers■ Deposit services Services■ Deposit Products

Product:■ Account Balance■ Fund Transfer

3.19 National Network Service

BKB has an easy access to national network through its banking correspondence. The bank

offers different facilities like trade finance facilities including advising, confirming exports L/Cs

and issue of import L/Cs backed by national sales and service center of the bank and

correspondent bank network, bonds and guarantees. It also offers its foreign correspondent

customers with current account services where Taka settlement is necessary, the ability to issue

bonds and guarantees in support of their customer’s business, advising of LC and negotiation

documents, market intelligence and status report.

3.20. BKB Foreign Exchange and Money Market:

The bank arranges to provide information on foreign exchange and money market rates

on daily basis. BKB’s daily treasury newsletter provides information of Foreign

Exchange rates, key stocks, bonds, and interest rate indices, highlights form international

financial markets and information on technical chart points. In addition, the bank

automatically provides premium service customers with a clear and concise market

commentary, in the form of a weekly treasury newsletter, which covers the major

financial events of the week and provides information on movements in major currencies,

stock indices, commodities and USD Money Market rates.

CHAPTER 4: PROJECT PART

4.1 INTRODUCTION

HRM in the BANGLADESH KRISHI BANK:HRM in the BANGLADESH KRISHI BANK:

When we contacted in the Bangladesh krishi Bank. we came to know that the organization

has a department called ADMINISTRATIVE DEPARTMENT, which is actually their

Human Resource Management department. This department, in the organization, performs a

wide range of tasks, though all of the HRM practices are not in the organization. All the

branches of the bank do not have the HRM or such department. Sony the head office has it;

so this one department has to keep track of all the employees in al the branches. This

department performs the duty of recruiting, selecting, training and development, motivating,

job designing, performance appraisal and rewarding and giving benefits etc.

Function of HRM

HR managers are performing a variety of functions. The functional areas of HR

managers are changing as the time goes on. The main HRM functions include:

• Human resource planning is an important activity that involves estimating the

size and makeup of the future work force. It is a process by which an organization

ensures that it has the right number and kinds of people, at the right places, at the

right time. Capable of effectively and efficiently completing those tasks that will

aid the organization in achieving its overall objectives. Planning of human

resources is the life-blood of the firm. Without the right people in the right place at

the right time, the firm could go out of business.

Recruitment is the process of finding and attracting qualified or suitable

applicants to fill vacancies. Recruiting is important because the best-

qualified applicants must be found to fill vacancies. The methods and

procedures used to acquire an understanding about jobs are called job

analysis. This is discussed next. There are mainly two sources of recruitment:

internal and external. Promotion from within an organization is called

internal source and recruiting new people from outside the organization is

known as external source.

Job analysis is the process of determining the tasks that make up the job ands

the knowledge and skills and abilities an employee needs to successfully

accomplish the job. From job analysis, job description and job specification

can be prepared. Job description is a written statement of what the jobholder

does how it is done and why it is done. Job specifications state the

qualifications necessary for a job.

Selection is a process of hiring suitable people for job. Right man for right

job is the main goal of selection. The selection process involves many steps

such as preliminary reception of application, interviewing, test, medical test,

references and final decision of hiring.

Placement is the assignment or reassignment of duties to employee. It may

take different forms such as promotion, transfer, demotion, and termination.

Orientation is a process of getting new employees acquainted with the

organization, its culture, rules and regulation, objectives and supervisors and

other employees. It is the act of introducing new employees to organization

and their work units. It is important because it helps new employee to adapt

with new situation.

Training is a continual process of helping employees to perform at a high

level. It is a process of acquiring new skills to do job properly. Training

changes and modifies employee attitudes and behaviors that will improve his

ability to perform on the job. To be effective, a training program must

accomplish a number of objectives. First, it must be based on both

organizational and individual needs. Second, the objectives of training should

spell out what problems will be solved. Third, all training should be based on

sound theories of learning. Finally, a training program must be evaluated to

determine whether it is working.

Job evaluation is a process of measuring and determining the value of each

job in relation to all jobs within the organization. Jobs are ranked in order to

arrive at each job's appropriate worth. It is the basis of designing a well-

balanced compensation program. The widely used methods of job evaluation

are ranking method, classification method, point rating method, and factor

comparison method.

Performance appraisal is a process in an organization whereby each

employee is evaluated to determine how he or she is performing. Employee

may be appraised against absolute standards, relative standards, and

objective. The appraisal process consists of six steps: establish performance

standards, communicate performance expectations to employees, measure

actual performance, compare actual performance with standards, discuss the

appraisal with the employee, if necessary and initiate corrective action.

Compensation is the reward or price for labor. The goal of compensation

administration are to design the lowest-cost pay structure that will attract,

motivate and retain competent employees, and that also will be perceived as

fair by these employees.

Discipline refers to a condition in the organization when employees conduct

themselves in accordance with the organization's rules and standard s of

acceptable behavior. For the most part, employees discipline themselves. But

not all employees will accept the responsibility of self-discipline. Some are

problem employees. These employees require some degree of extrinsic

disciplinary action. This extrinsic is labeled punishment. The most frequent

discipline problems can be classified as related to attendance, on-the-job

behavior, dishonesty, and outside criminal activities. Disciplinary actions

available to the manager include oral warning, written warning, suspension,

demotion, pay cut, and dismissal.

Trade union is an organization of workers, acting collectively, who seek to

protect and promote their mutual interests through collective bargaining. The

goals of unions include

o Influencing the wage and effort bargain,

o Establish a security system for members,

o Influencing the administration of rules,

o Obtaining political power in the state and over the economy.

Collective bargaining is negotiation, administration and interpretation of a

written agreement between two parties; at least one of, which represents a

group that is acting collectively, that, covers a specific period of time.

Importance of HRM:

With the increase in the size and complexity of business organizations, the most

important, factor in business. Business needs people as owners, employees, and

consumers. Organizations need people to make them operate. Business may be

operated differently and the objectives of business may differ, but the universal

element in all business activities is people. An organization is nothing without

human resources. Any human organization a factory, a hospital or and association

consists of people working together. According to economists, the factors of

production are land, labor, capital and entrepreneurship. Of all the resources, the

most important one is human resource because human being plays a dual role- as

resource, as well as a motive force for all other resources by manipulating them

by way of developing, utilizing, commanding and controlling. It is the most

important of all other resources. This is because manpower is that resource

through which management wants to control and direct all other resources like

machines, materials, money and others. An organization is nothing without people.

Employment of Personnel

4.1.1 Meaning of Human Resource Planning:

Planning is the most important and primary function of management.

It is a process of selecting the organizational objectives and taking action to

achieve those objectives.

Planning is looking ahead.

Planning must be realistic and workable.

Planning of human resources is a major managerial responsibility.

It is important because human resources provide a firm the competitive

advantage.

Human resource is a primary resource without which other resources cannot

put into use.

In the age of competition, firms are focusing their attention on employee

knowledge and skill.

Obviously, human resources are going to occupy the central stage of human

activities, especially in the field of industry and business.

In view of its importance in the organizational effectiveness, separate HRP

departments have been set up in most of the important business organizations.

Certainly, many organizations have voiced the idea that their human resources

differentiated them from their competitors. The significance of human

resources as a core competency was confirmed in a study of 293 U.S. firms.

The study found that HR management effectiveness positively affected

organizational productivity, financial performance and stock value Huselid

1997).

To achieve any goals, Hr requirement needs to be assessed, located and

amassed.

HRP is not mere assessment of the number of human resources required.

An organization has to categorize HR as per their knowledge and skills and

also ensure their balanced allocation.

Improper HRP may lead to overstaffing increasing direct cost, cost of training,

amenities. Under staffing also affect a production, morale and productivity.

An organization does not own person as it does capital and physical assets; this

resource is seldom given proper attention. Many managers gave failed because

they have taken their human resources for granted. It is one of the most critical

management undertakings of this decade.

HRP is a process by which an organization can move from its current

manpower position to its desired manpower position.

It, then, translates the organization’s objectives and plans into the number of

people needed to meet those activities.

Through planning management makes a balance between demand for and

supply of right number and kinds of people at the right time.

It is a supply and demand calculation.

Manpower is an asset, it is an asset which appreciates-which grows over time.

Machines depreciate as time goes on.

Some popular definitions of HRP are given below :

Robbins (1998) defines HRP as “the process by which an organization ensures

that it has the right number and kinds of people at the right places, at the right

time who are capable of performing their assigned tasks effectively and

efficiently.

In the worlds of Coleman Bruce (1997), HRP is the process of determining

manpower requirements and the means of meeting those requirements in order

to carry out the integrated plan of the organization.

According to the above definitions, HRP consists of the following elements.

Establishing and recognizing the future job requirements.

Identifying deficiency in terms of quantity.

Identifying deficiency in terms of quality and specification.

Identifying the sources of right type of man.

Developing the available manpower.

Ensuring the effective utilization of work force.

A manpower plan must be a set of two plans.

A manpower demand plan and a manpower supply plan.

4.1.2 Job Analysis :

Over the past fifty years, an enormous number of methodologies have been developed for

use in measuring and understanding the nature of jobs. Part of the discipline of job

analysis of focuses on these traditional methods. Within this traditional approach, the

goal of research and practice has been to identify better methods and measurement

procedures to desirable the content of jobs. In the traditional view, there is a

straightforward assumption that jobs exist and can be measured. In contrast to the

traditional view are the job extinction proponents, who argue that jobs no longer exist in

modern organizations due to the dynamic nature of work in rapidly changing business

environments. The job extinction view argues that much to what we now know as job

analysis is no longer meaningful and must be replaced with drastically different means

for understanding what employees do in organizations.

On day of appreciating these two different views of job analysis is to compare how

the two perspectives define “a job.” Traditionally, a job has been defined using

four concepts that have a hierarchical relationship to one another. Thus, a job is

comprised of several similar positions. Each position is made up of a set duties,

which are comprised of several distinct tasks. A definition for each of these four

concepts is given below :

A task is “a meaningful unit of work activity generally performed on the job by

one worker within some limited time period. It is a discrete unit of activity

and represents a composite of methods, procedures, and techniques.

A study is a loosely defined area of work that contains several distinct tasks

that are performed by an individual.

A position is the set of tasks and duties performed by a single individual in an

organization. Each person in an organization has a position.

A job is “a group of positions that are identical with respect to their major or

significant tasks and sufficiently alike to justify their being covered by a

single analysis.

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

technical procedure used to define the duties, responsibilities and accountabilities

of a job. This analysis “involves the identification and description of what is

happening on the job accurately and precisely identifying the required tasks, the

knowledge, and the skills necessary for performing them, and the conditions

under which they must be performed.

4.1.3 Job Description and Job Specifications:

A job description is a written statement of what the job holder does how it is done,

under what conditions it is done, and why it is done. It should accurately portray

job content, environment, and conditions of employment. A common format for a

job description includes the job title, the duties to be performed the distinguishing

characteristics of the job, environmental conditions, and the authority and

responsibilities of the jobholder. An example of job description for a Benefits

Manager is provided in Exhibit 1.

When we discuss employee recruitment, selection, and performance appraisal, we

will find that the job description acts as an important resource for: (1) describing

the job (either verbally by recruiters and interviewers or in written advertisements)

to potential candidates; (2) guiding newly hired employees in what they are

specifically expected to do; and (3) providing a point of comparison in appraising

whether the actual activities of a job incumbent align with the stated duties.

Furthermore, under the Americans with Disabilities Act, job descriptions have

taken on an added emphasis in identifying essential job functions.

Exhibit:1

Job Title Benefits Manager Occupational code:

Reports To: Director,Human resources Job no:

Supervises:staff of three Date :

Environmental condition: None

Function:Manages Employee benefits program for organization.

Duties and Responsibilities:

plans and directs implementation and administration of benefits programs

designed to insure employees against loss of income due to illness.injury

layoff.or retirement.

Direct preparation and distribution of written and verbal information to

inform employees of benefits programs,such as insurance and pension

plans,paid time off,bonus pay,and special employer sponsored activities:

Analyzes existing benefits policies of organization ,and prevailting practies

among similar organization ,to establish competitive benefits programs.

Evaluates services,coverage ,and options available through insurance and

investment companies,to determine programs best meeting needs of

organization.

Plan modification of existing benefits programs ,utilizing knowledge of

laws concerning employee insurance coverage and agreements with labor

unions ,to ensure compliance with legal requirements.

Recommends benefits plan changes to management ,notifies employees and

labor union representatives of changes in benefits programs.

Directs performance of clerical function,such as updating records and

processing insurance claims.

May interview,select,hire and train employees.

Job Specifications:

The job specification states the minimum acceptable qualifications that the

incumbent must possess to perform the job successfully. Based on the information

acquired through job analysis, the job specification identifies the knowledge, skills

education, experience, certification and abilities needed to do the job effectively.

Individuals possessing the personal characteristics identified in the job

specification should perform the job more effectively than those lacking these

personal characteristics. The job specification, therefore, is an important tool in the

selection process, for it keeps the selector's attention on the list of qualifications

necessary for

Job Characteristics:

>Successful incumbent will have knowledge of policies and practices involved in

personnel /human resource management function –including recruitment ,

selection, training, and promotion regulations and procedures: compensation and

benefits packages :labor relations and negotiations strategies; and human resource

information systems.

>Excellent written and verbal communication skills as well as deductive and

inductive reasoning skills are critical.

4.1.4 Job Analysis Methods

The basic methods that HRM can use to determine job elements and the essential

knowledge, skills, and abilities for successful performance include the following :

Observation MethodUsing the observation method, a job analyst watches employees directly or review films of

workers on the job. Although the observation method provides firsthand information, worker

often do not function most efficiently when they are being watched, and thus distortions in the job

analysis can occur. This method also requires that the entire range of activities can occur. This

method also requires that the entire range of activities be observable. This is possible with some

jobs, but impossible for many for example, most managerial job.

Individuals interview Method:

Using the individual interview method, a team of job incumbents is selected and

extensively interviewed. The results of these interviews are combined into a single

job analysis. This method is effective for assessing what a job entails, and

involving employees in the job analysis is essential.

Group Interview Method:

The group interview method is similar to the individual interview method except that a number

of job incumbents are interviewed simultaneously. Accuracy is increased in assessing jobs, but

group dynamics may hinder its effectiveness.

Structured Questionnaire Method:

Under the structured questionnaire method, workers are sent a specifically designed questionnaire

on which they check or rate items they perform on their job from a long list of possible task

items. This technique is excellent for gathering information about jobs. However, exceptions to a

j0b may be overlooked, and there is often no opportunity to task follow-up questions or to clarify

the information received.

Technical Conference Method:

The technical method uses supervisions with extensive knowledge of the job.

Here, specific job characteristics are obtained from the “experts.” Although a good

data-gathering method, it often overlooks the incumbent workers’ perceptions

about what they do on their job.

Dairy Method:

The diary method requires job incumbents to record their daily activities. The

diary method is the most time consuming of the job analysis methods and may

have to extend over long periods of time all adding to its cost.

These six methods are not meant to be viewed as mutually exclusive; no one

method is universally superior. Even obtaining job information from the

incumbents can create a problem, especially if these individuals describe what

they think they should be doing rather than what they actually do. The best results,

then, are usually achieved with some combination of methods with information

provided by individual employees, their immediate supervisors, a professional

analyst, or an unobtrusive source such as filmed observations.

4.2 Recruiting:

4.2.1 Meaning of Recruiting

Recruiting is the process by which organizations locate and attract individuals to

fill job vacancies. Most organizations have a continuing need to recruit new

employees to replace those who leave or are promoted, to acquire new skills, and

to permit organizational growth. Recruiting is an even more important activity

when unemployment rates are low and economic growth is strong, as firms

compete to attract the qualified employees they need to succeed. Recruiting can be

quite expensive. Companies spend, on average, over $1,000 recruiting each

nonexempt employee, about $7,000 recruiting each exempt employee, and over

$23,000 recruiting each executive from the external labor market.

Recruitment follows HR planning and goes hand in hand with the selection

process by which organizations evaluate the suitability of candidates for various

jobs. Without accurate planning, organizations evaluate the suitability of

candidates for various jobs. Without accurate planning, organizations may recruit

the wrong number or type of employees. Without successful recruiting to create a

sizable pool of candidates, even the most accurate selection system is of little use.

It also focuses on the job applicant and the ways in which candidate looks for and

choose a job. an incumbent to perform the job and assists in determining whether

candidates are essentially qualified.

4.2.2 Method:

Recr Recruiting

Advertising

Search Firms

Employment agencies

Employee referrals

Networking

College recruiting

Internal posting

Internet

Campus recruiting

4.2 Employee 4.2 Employee Recruitment of BKBRecruitment of BKB

For recruitment the organization follows al the possible ways of recruitment.

External Search:External Search:

First of all, the Administration Department searches for the capable person for any vacant

post without the organization. It means that, they give advertisement in the newspaper for

certain post to certain qualifier candidate. Then they do CV analysis and send admit card to

attend Examination. The secleted person under written, they perfect for interview, if able to

select finally he appointed for the job. There have needed some quality these are below:

(a) The employee must have a certain degree to be appointed.

(b) S/he must be perfect or fit in physical position.

c) She/he must be needed as Bangladeshi by birth.

d) Experience is not essential need if remain he will get extra benefit.

4.3 Employee Referrals/RecommendationsEmployee Referrals/Recommendations:

Reference is not more important, but if have, he get over opportunity to get job. Although

Bangladesh bank manages all recruitment policy. Sometimes the political leader influenced

on the recruitment policy

4.4 Advertisement:4.4 Advertisement:

When the organization requires quite a large number of workers at one time, they go for

advertisement in the national dailies. Normally service or junior level officers, but

sometimes, senior officers are also recruited through this process. Candidates with the

required qualification apply with a full bio-data and with a hand-written application. The

application is not granted if it is not written by the applicant himself.

4.5 Selection:Selection:

The bank selection procedure is as follows:

4.6. Initial Screening:

First, through the initial screening process, they sort out the applications of those who have

the actual qualifications [Degree, age, experience (if necessary)] for the post. Then these

candidates are sent the admit card for the employment test.

4.7. Employment Test: 4.7. Employment Test:

The BKB. has a two step employment test- the written test and the interview. The bank

contacts with some other organizations, like IBA, BIBM or any other institute, to conduct the

written test for them. The bank sails the boat in that organization, where their cost will be

minimal. The selected organization then takes the written test, screens out the answer sheets

and sends the number-sheet to the bank. The bank has a preset standard score and those who

have scored more than or equal to that score are called for the interview. The bank itself

conducts the interview. The bank hires reputed banking specialists within the country for

conducting the interview. After the interview the total marks of the written test and the

interview are added. Those who are at the top of the final list get the opportunity to serve in

the organization. The background checkingbackground checking of the employee is done at the interview time

and through the bio-data the candidates submit.

4.8 Final Selection:

The candidates who pass both the written test and the interview are considered for final

appointment. Within those candidates the required number of employees are taken and given

the final appointment. These employees have to fill up an appointment form at the time of

joining). Those of them, who are currently employed, do not have a previous banking

experience have to go serve as a trainee for at least two years. Those who have previous

experience are not necessarily need to be trained. Sometimes the selected employee has to

submit a bond that, s/he will not leave the organization before certain years of service.

4.9 employee Training and Development of BKBemployee Training and Development of BKB

The BKB has a system of training the employees on a regularly basis, particularly the newly

appointed employee. The bank has a training institute of its own with high computer

facilities, where every year some training courses are completed. The bank sometimes sends

its employees to Training institution in Dhaka Mirpur for more training. In the last year

(1998) the bank trained 391 employees in 15 courses in its own institute and also got 81

employees trained in various 30 courses conducted by the Bangladesh Institute of Bank

Management (BIBM). In the current year the bank has also taken some training program.

4.10 Motivation:4.10 Motivation: One of the main criteria for effective human resource management is motivation. For the

desired result of any organization, motivating the employees is very important. So the BKB

also tries to motivate its employees. But the bank does not have a standard motivational

process. It motivates only with the help of increment. One thing about this increment is that it

has no specific period. The increments may be annual, semi-annual or quarterly, depending

upon the overall performance of the workers and the bank itself.

The human resource officer informed us that they believe in McGregor’s “Theory Y” and

emphasize the safety and love need for all employees. So besides the increment, the bank

sometimes tries to motivate the employees by full-filling their required needs of the

employee. But as it is a centralized organization, management plays a big role with the

administrative department in determining these motivating factors. The bank is always

cautious that all the hygiene factors are present in the environment and that if the employees

are not motivated at least they are not de-motivated.

4.11 Performance Appraisal:4.11 Performance Appraisal: Unlike the selection, training and motivation process the BKB does not have a standard

performance appraisal process. Though it has a system but it is not very effective according

to Mr.Masudur Rahaman. Actually the problem is that the bank does not have a standard set

of performance evaluation System. The performance evaluation and appraisal is therefore

done mostly by the observation on how the employee is doing or dealing with a client. The

BKB has a special unit, under its Administrative Department, to conduct this performance

evaluation and appraisal. This unit keeps its eyes on the performance of all the employees

throughout the year and suggests necessary actions (Reward or Punishment) where it is

necessary. Sometimes special task committee visits any branch without any precaution. In

this way the bank conducts its performance measurement and appraisal process.

4.12 Reward System:4.12 Reward System: As the bank does not have any specific performance evaluation and appraisal system it does

not provide any standard reward system. If any employee can really impress the authority by

his/her extra-ordinary performance s/he is then usually financially rewarded, which

comparatively has a low effect on the employee who is in quite a higher level of the

organizational ladder. On the whole, increment is the only reward that the bank uses for

motivating or appreciating its employees.

4.13. Benefit Package:4.13. Benefit Package: Though the BKB does not have a satisfactory performance appraisal or reward system, it has

a very good benefit package. Firstly, for the staff level workers the bank provides uniform

and its maintenance expenditure (Officials and managers don’t need any uniform). The bank

also has a package of different types of leaves for all level of employees. The bank provides a

satisfactory annual leave, sick leave and casual leave. The bank has provided the opportunity

for the employees to have extra leave for emergency situation. Female workers get three

months long maternity leave twice in their working lives in this organization. Besides this

leave package the bank provide an opportunity for the employees to have a provident fund,

which the bank and the employee share equally (5% contributed by both the worker and the

employer). The bank provides “Fringe Benefits” for its executive level employees.

4.14 Compensation Administration:4.14 Compensation Administration:

The bank thinks that its compensation package is very sensitive and confidential and cannot

be exposed to the people from outside. Here we are again very grateful to Mr. Masuduur

Rahaman for providing us with some portion of this confidential information. The bank’s

pay structure is pretty much dependent on job evaluation. It means that the bank tries to

compensate according to the job difficulty or in other words job hierarchy.

The bank compensate firstly by ‘classification method’ of job evaluation and then by

‘ranking method’. While compensating any worker, the bank first determines the class of

that post. (BKB has four classes of employees – Executives, Officers, Service Workers and

Staffs). After classifying, the bank, determines the rank of the post within the classification

and compensates according to the compensation scale. The Administrative Officer could not

provide us with the pay scale because of some internal problems but informed us that the

compensation scale is attractive enough for the employees working in the bank.

Besides this normal pay scale, the bank has special compensation system for the higher level

employees (the Executive Level employees). The bank provides these employees not only

according to the standard scale but also some additional services.

CHAPTER -5

5.1 Poverty alleviation and Micro-credit Programs/Projects

Bangladesh Krishi Bank was established under BKB Order`1973 with the objective of strengthening rural economy by extending credit support to agricultural and agro-based sectors. In consideration of the importance of Micro-Credit and with the objective of generating employment as well as encouraging social development BKB has undertaken several Micro-Credit programs of its own and also in collaboration with local and foreign agencies. The programs have been designed to cover all segments of poor population whether skilled or unskilled such as small and marginal farmers, landless labourers, destitute women, disabled, unemployed youth and rural artisans etc.  About 1417047 beneficiaries have been provided with Tk. 14469.90 million since its inception (upto 30 September,2008).

Considering the needs of the target groups since late seventy`s BKB has been implementing a series of Micro-Credit programs out of which 10 programs have recently been completed and 31 programs are in operation at present. These diversified micro-credit programs are being implemented by BKB to achieve the following objectives:

*         To create employment opportunities through income generating activities.  *        To empower the rural women to establish their own rights.  *        To improve the living standard of the rural people.  *        To alleviate poverty of the poor people. *        To make easy access to institutional credit facilities and resources.  *         To mobilize rural savings.  *         To make optimum utilization of rural resources. *         To engage inactive human resources of the rural areas in productive/economic activities.  *         To engage rural people in development process of the country.  *         To eliminate exploitation done by the money lenders

5.2 A sailent feature of BKB’s on going Micro – Credit program under poverty alleviation is given below.

1) Credit Program for the landless and Marginal farmers.2) Beef Fattening Joint program.3) Swanirvar Credit program.4) Small Farmers & Landless laborers Development Project.5) South Asia poverty alleviation program. 6) United nation Capital Development fund.7) Rural woman Employee Creation project ADB loan .8) BKB NGO Micro credit program. 9) Credit Under nation poverty alleviation program through goats reuring.10) Miching Cow Credit program for woman. 11) Special Micro Credit program for the disabled.12) Monipuri Small traders credit program. 13) Special credit program for the Rakhains under the district of cox’s Bazar.14) Tree plantation program In 2002 and 2003 BKB has launched 8 tree plantation

program VIZ.15) Establishment of Breeding Farm of Black Bengal goat program.16) Community based resource mama gent project.17) Poverty alleviation through production and improvement of sheep.

CHAPTER-6FINDINGS&RECOMDATIONS

FINDINGS

1) The working environment is not congenial & appropriate. The working desk provides sound pollution. It looks like a hall room.

2) The record keeping system is also backdated, not followed computerized system properly.

3) Delayed government order and postponed the training program by ministry must create negative impact towards the employees motivation and also destroy the lucrative training opportunities for the employees of Bangladesh bank.

4) BBTA and BIBM are providing dynamic contribution to train the employees of Bangladesh Bank.

5) BB is an autonomous body but practices the govt. pay scale for compensation, but not pay on the basis of market price and cost of living. But the pension policy and the payment of pension to the employees are very fair and transparent.

6) The transfer and promotion process is fair but the promotion is not faster.

7) Loan facilities are very attractive to the employees of Bangladesh bank.

8) Medical /accommodation facilities are almost eligible in the context of our country. But the quantities of accommodation system and medical facilities are not fulfilling the demand of the employees.

9) Extra productivity will not provide extra financial benefit, only give ‘thank you’

10) Most of the policies are backdated. Only the authority amends the policy but preserve the old policy.

11) There is no policy to build up harmonious relationship among the employees. The employees cannot protest the injustice of the authority because the pure trade union is absent there.

RECOMMENDATIONS

To increase the efficacy in customer service the Bangladesh Krishi Bank should try to develop the process of providing services. To get a perfect process of delivering services, the customers should be asked. The other suggestions are as follows:

Personal relationship should be build with the customers. Customers are satisfied with the price charged by Bangladesh Krishi Bank, but

they are not too much aware about the pricing strategy. Customers’ awareness should be build over pricing strategy.

The offices should be decorated with the help of interior design companies. Customers are the heart of the organization. They should provide more space in

the office and if possible they should have some entertainment facility. The employee of the branch should be trained continuously. The Bangladesh Krishi Bank should recruit more employees having commerce

backgrounds. Bangladesh Krishi Bank should apply to transform the branch as an AD Branch to

facilitate the foreign transactions or trade as the Foreign Exchange is the most profitable department of each branch.

BIBLIOGRAPHY

Annual Report of Bangladesh Krishi Bank Limited ( 2006, 2007, 2008, 2009).

Several Booklets from Bangladesh Krishi Bank Ltd.

Several Newsletter’s from Bangladesh Bank Ltd.

Bangladesh Krishi Bank web site.

Credit Operational Manual of Bangladesh Krishi Bank Limited.