Title A comparative study of HRM practices of banks in

Bangladesh

Presented by,Bablu Chakma

Introduction Bank is the means performer for the financial sector of

Bangladesh as well as for the economy; Bank comprises with human resource which is the most

important and essential assets of an organization; In human resource the human beings take part in a dual role-

as resource and as a motivation force for all other where they can make or break the fortunes of an organization;

Main objectives of an Human Resource is placing the right people in the right position;

Purpose of the Study The main purpose of the study is to know the recent trend of

Human Resource Management and understanding its contribution in banking sector. This study is based on a,

A government bank - Agrani Bank Limited; A multinational bank - HSBC Bank; An Islamic Bank - Shahjalal Islami Bank Limited; A private bank - Mutual Trust bank and; A Non-banking financial institution - IDLC Finance Limited.

Objectives of the study To review the Human Resource policy system of various kinds

of bank; Identify the constraints in implementing Human Resource

Policies; To identify the Effectiveness of HRM practices in different

kinds of banks; To know the job performance of the employees of selected

banks; To know whether the HRM practices of these banks is relevant

with their organizational activities and is it is international standard or not;

To address the association between HRM practices and job satisfaction;

Background of the BanksAgrani BankAgrani Bank is a state-owned commercial bank of Bangladesh established in

1972. Its headquarters is situated at Motijheel in Dhaka, the capital city of Bangladesh.

HSBC BankThe Hongkong and Shanghai Banking Corporation Limited is a bank

established and based in Hong Kong since 1865, when Hong Kong was a colony of the British Empire. It is the founding member of the HSBC Group and, since 1990, is a wholly owned subsidiary of the London-based HSBC Holdings P.L.C.

Shahjalal Islami Bank Limited (SJIBL)Shahjalal Islami Bank Limited (SJIBL) commenced its commercial operations

in accordance with principle of Islamic Shariah on May 10, 2001 in Bangladesh under the Bank Companies Act, 1991.

Mutual Trust Bank LimitedThe Company was incorporated as a Public Limited Company in 1999,

under the Companies Act 1994, with an Authorized Share Capital of BDT 1,000,000,000 divided into 10,000,000 ordinary shares of BDT 100 each.

IDLC Finance LimitedIDLC Finance Limited one of renowned non banking financial institution in

Bangladesh. It started its operation at 1985 and it is the pioneer financial institution in Bangladesh. IDLC Finance Limited has different kinds of products and services.

Methodology

Methodology of Information Collection Sample design; Questionnaire development; Data collection and Data analysis

Questionnaire Survey Analysis and Overall Survey Analysis

Which is the most important management function in your bank in your opinion?

Agrani Bank HSBC Bank SJIBL MTBL IDLC

Planning 0.32 0.36 0.28 0.32 0.28

Organizing 0.24 0.16 0.2 0.28 0.12

Staffing 0.16 0.12 0.24 0.16 0.24

Leading 0.0800000000000001 0.24 0.2 0.0800000000000001 0.28

Controlling 0.2 0.12 0.0800000000000001 0.16 0.0800000000000001

3%

8%

13%

18%

23%

28%

33%

38%

Which media is used by your bank for recruitment and selection?

Agrani Bank HSBC SJIBL MTBL IDLC

Newspapers 0.4 0.12 0.32 0.36 0.640000000000001

Internet 0.28 0.6 0.4 0.28 0.24

Recruitment Agencies 0.24 0.24 0.24 0.24 0.08

University Notice Board 0.08 0.04 0.04 0.12 0.04

5%

15%

25%

35%

45%

55%

65%

Which source is used by your bank to hire new employees?

Agrani Bank HSBC SJIBL MTBL IDLC

Internal 0.4 0.36 0.68 0.36 0.36

External 0.6 0.640000000000001 0.32 0.640000000000001 0.640000000000001

5%

15%

25%

35%

45%

55%

65%

75%

Do you think that the organization is used the structured and standardized interviews?

Agrani Bank HSBC SJIBL MTBL IDLC

Strongly Disagree 0.08 0.08 0.08 0.04 0.24

Disagree 0.08 0.04 0.24 0.2 0.16

Neutral 0.32 0.24 0.16 0.12 0.28

Agree 0.36 0.6 0.32 0.44 0.2

Strongly Agree 0.16 0.04 0.2 0.2 0.12

5%

15%

25%

35%

45%

55%

65%

What is the main focus of staffing in your bank?

Agrani Bank HSBC SJIBL MTBL IDLC

Manual skill 0.16 0.12 0.52 0.16 0.56

Technical Skills 0.32 0.36 0.32 0.6 0.2

Problem solving Skills 0.52 0.52 0.16 0.24 0.24

5%

15%

25%

35%

45%

55%

65%

Is there any policy of giving training to temporary workers in your bank?

Agrani Bank HSBC SJIBL MTBL IDLC

Yes 0.8 0.68 0.48 0.36 0.760000000000001

No 0.08 0.08 0.16 0.56 0.16

Don't know 0.12 0.24 0.36 0.08 0.08

5%

15%

25%

35%

45%

55%

65%

75%

85%

Are you satisfied with the role expected by the management to be performed by you?

Agrani Bank HSBC SJIBL MTBL IDLC

Yes 0.48 0.24 0.24 0.36 0.6

No 0.24 0.36 0.6 0.44 0.28

Don't know 0.28 0.4 0.16 0.2 0.12

5%

15%

25%

35%

45%

55%

65%

What do you think the management of the bank can do to help you handle work-related stress better from below?

Agrani Bank HSBC Bank SJIBL MTBL IDLC

Training 0.24 0.44 0.2 0.28 0.36

Motivation 0.08 0.28 0.08 0.36 0.24

Independency 0.36 0.08 0.08 0.12 0.16

Leave 0.12 0.12 0.28 0.16 0.08

Compensation 0.2 0.08 0.36 0.08 0.16

3%

8%

13%

18%

23%

28%

33%

38%

43%

48%

Do you think the bank management system is very fair in incentives practices and aimed at rewarding to those who

accomplish their goals?

Agrani Bank HSBC Bank SJIBL MTBL IDLC

Strongly Disagree 0.12 0.2 0.28 0.08 0.12

Disagree 0.12 0.12 0.24 0.28 0.28

Neutral 0.32 0.28 0.08 0.24 0.2

Agree 0.4 0.36 0.36 0.36 0.2

Strongly Agree 0.04 0.04 0.04 0.04 0.16

3%

8%

13%

18%

23%

28%

33%

38%

43%

Dose your organization used performances based appraisal?

Agrani Bank HSBC Bank SJIBL MTBL IDLC

Strongly Disagree 0 0.12 0.28 0.08 0.24

Disagree 0 0.2 0.36 0.04 0.36

Neutral 0.32 0.32 0.12 0.2 0.08

Agree 0.12 0.2 0.2 0.44 0.2

Strongly Agree 0.56 0.16 0.04 0.24 0.12

5%

15%

25%

35%

45%

55%

Is your banks HR department maintaining all "Employee Act" as well for justifying employee's facilities?

Agrani Bank HSBC Bank SJIBL MTBL IDLC

Strongly Disagree 0.04 0.16 0.04 0.12 0.36

Disagree 0.12 0.12 0.2 0.08 0.24

Neutral 0.16 0.36 0.12 0.16 0.12

Agree 0.28 0.2 0.28 0.28 0.2

Strongly Agree 0.4 0.16 0.36 0.36 0.08

3%

8%

13%

18%

23%

28%

33%

38%

43%

Findings of the Study Management functions & Recruitment System Career Development Training Performance appraisal Insufficient manpower Organizational Relationship Working environment Effective HR Practice

Limitations of the study It was difficult to communicate with the officers of all

departments of bank; most of them were busy with their respective jobs;

Information that is collected from bank website was not detailed;

Sufficient records, publications, facts and figures are not available. These constraints narrowed the scope of the real analysis;

Finally this is my first experience in human resource management part. So my knowledge especially in such a research study is limited.

Recommendation First of all the main important thing for an organization is the

Recruitment process, which exists in my selected banks, is not well designed. In this case what they can do is that they can go for campus recruitment; hire recruiting agencies for recruiting people or follow the online recruitments process;

A proper evaluation system is very essential for the banks or any organization. If the evaluation process does not reflect the real scenario all other efforts will be ruin miserably. So, employee evolution process must be significant;

Formulating a succession planning and better salary package;

Finally, the authority should be delegated to the lower level with adequate measures for the necessary control and follow-up for making the lending decision and recovery.

THANKS TO ALL