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Difference between domestic and Multinational Companies Human Resource practice in Bangladesh
BBA Program
Subject: Human Resource ManagementMGT-3122Section: C
Prepared ForMohd. H. R. JoarderSchool Of Business
Prepared By:
Mohammad Moinul Islam 111 061 087Farhana Bari 111 072 021
Md. Saiful Islam Mazumder 111 063 103Farzana Chowdhury 111 072 142Anika Hassan 111 071 219
United International University (UIU)
Letter of transmittal
ToMohd. H. R. Joarder Sir,United International University, Dhanmondi, Dhaka.
Sub: “Difference between domestic and Multinational Companies Human Resource practices in Bangladesh"
Dear Sir,
We hereby submit our Term Paper Report on Difference between domestic
and Multinational Companies Human Resource practices in Bangladesh. This
report has been prepared according to your authorization and as the
requirement of finishing the “Human Resource Management” course.
To, submit the report, we have tried our best to gather authentic information
and provide exact explanation of all the points of the specified task. We really
enjoyed working with you in preparing this report and hope this will fulfill
your satisfaction. In fine, we would like to express our heartfelt gratitude for
the keen interest and guidance, you have provided us in preparing this report
and hope you would be so kind as to ask us if you find any deviation from
what you thought.
Sincerely Yours
Mohammad Moinul Islaml Farhana Bari Farzana Chowdhury
111 061 087 111 072 021 111 072 142
Md. Saiful Islam Mazumdar Anika Hassan1111 063 103 111 071 219
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Acknowledgement
By the cordial mercy of Allah, now we are able to submit our research paper to our honorable sir Mohd. H. R. Joarder. We strongly believe that it would not be possible preparing such a paper without Almighty’s grace.
Now we would like to thank our honorable sir Hasanur Raihan Joarder for his keen efforts and invaluable guidance, which facilitated the successful completion of our research paper.
This acknowledgment will remain incomplete if we don’t thanks to those people who helped and being co-operate with us.
We would also like to express gratitude to my university faculty members. They should be remembered because they produced the platform of our knowledge.
Finally we are really grateful to the people who help us to gather information and give valuable advice. Again, we thanks to our honorable teacher for giving us such a chance in completion of the report
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Table of Contents
Acknowledgement3
Executive Summary5
Introduction7
Scope of the Report10
Objective and limitations of the report 11
Findings and Analysis 13
Recommendations17
Conclusions 19
IV
Executive Summary
This report is based on the topic “Difference between domestic and
Multinational Companies Human Resource practices in Bangladesh” is
verbally assigned by our honorable course instructor, Mohd. H. R.
Joarder Sir as a requirement of the course Human Resource
Management. Most of the things are similar among the two banks
except the factors related to the international employee which
separates the Standard Chartered Bank from City Bank. Among
similarities both the bank maintains the similar ways for recruiting
like giving advertisement in news paper and also in the internet in their
own and other job web side. But the main recruitment is made
internally in the both bank. Both the bank also recruits from employee
reference and from those who are doing internship. Both banks
maintain the vertical hierarchy and relationship among employees
in both the banks are quite friendly. When fresh candidates are taken,
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both the banks give three months training to the freshers’ then
training given at least once in a year to every employee to increase
their knowledge on products and other issue. Also when a senior post
is empty, training is given to an employee and then promoted to fill up
the post. Both the banks also give promotion based on the
performance of the employees. Both banks has sales target on the
basis of which they work and commission given according to that.
Among difference the Standard Chartered Bank recruit foreign
employee but City Bank doesn’t for selecting foreign employee
Standard Chartered Bank take only viva which City Bank doesn’t have
to. In the Standard Chartered bank every employees have to give an
examination in each and every month while in City bank the
employees doesn’t have to. The Standard Chartered bank gives
commission depending on the performance of the monthly
examination results but in City bank, as there is no monthly exam so
no such commission facility.
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Chapter one
Introduction:
Standard Chartered Bank:
The Standard Chartered Group was formed in 1969 through a merger
of two banks: The Standard Bank of British South Africa founded in
1863 and the Chartered Bank of India, Australia and China, founded in
1853.
Both companies were keen to capitalize on the huge expansion of
trade and to earn the handsome profits to be made from financing the
movement of goods from Europe to the East and to Africa.
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The bank was founded by James Wilson following the grant of a Royal
Charter by Queen Victoria in 1853. Chartered opened its first branches
in Mumbai (Bombay), Calcutta and Shanghai in 1858, followed by Hong
Kong and Singapore in 1859. it had its traditional business in cotton
from Mumbai (Bombay), indigo and tea from Calcutta, rice in Burma,
sugar from Java, tobacco from Sumatra, hemp in Manila and silk from
Yokohama. Standard Chartered played a major role in the development
of trade with the East which followed the opening of the Suez Canal in
1869 and the extension of the telegraph to China in 1871. In 1957
Chartered Bank bought the Eastern Bank together with the Ionian
Bank's Cyprus Branches. This established a presence in the Gulf.
In African continent, Standard Chartered was founded in the Cape
Province of South Africa in 1862 by John Paterson. Commenced
business in Port Elizabeth, South Africa, in January 1863 was prominent
in financing the development of the diamond fields of Kimberley from
1867 and later extended its network further north to the new town of
Johannesburg when gold was discovered there in 1885. Then the
expansion was made in Southern, Central and Eastern Africa and by
1953 had 600 offices. In 1965, it merged with the Bank of West Africa
expanding its operations into Cameroon, Gambia, Ghana, Nigeria and
Sierra Leone.
In 1969, the decision was made by Chartered and by Standard to
undergo a friendly merger. All was going well until 1986, when a
hostile takeover bid was made for the Group by Lloyds Bank of the
United Kingdom. When the bid was defeated, Standard Chartered
entered a period of change. Provisions had to be made against third
world debt exposure and loans to corporations and entrepreneurs who
could not meet their commitments. Standard Chartered began a series
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of divestments notably in the United States and South Africa, and also
entered into a number of asset sales.
From the early 1990s, Standard Chartered has focused on developing
its strong franchises in Asia, the Middle East and Africa using its
operations in the United Kingdom and North America to provide
customers with a bridge between these markets. Secondly, it would
focus on consumer, corporate and institutional banking and on the
provision of treasury services - areas in which the Group had particular
strength and expertise.
In the new millennium we acquired Grindlays Bank from the ANZ Group
and the Chase Consumer Banking operations in Hong Kong in 2000.
Since 2005, we have achieve several milestones with a number of
strategic alliances and acquisitions that will extend our customer or
geographic reach and broaden our product range.
City Bank Ltd
City Bank Ltd started its operations on 28 March 1983 with an
authorized capital of Tk 200 million divided into 2,000,000 ordinary
shares of Tk 100 each and paid up capital of Tk 34 million, of which Tk
30 million was paid up by its promoters and the remaining amount by
the government of the People's Republic of Bangladesh. In 2000, the
bank's paid up capital rose to Tk 160 million, of which Tk 80 million
was subscribed by the sponsors/promoters and the remaining amount
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by the general public. On 31 December 2000, the bank's reserve fund
was Tk 263.1 million as compared to Tk 125.22 million in 1995. But
there was shortfall in total capital adequacy ratio of the bank during
1997-2000 as per BIS (Bank for International Settlement) standards to
be followed by banks operating in Bangladesh.
Methodology of the research
work
To build up a meaningful report we needed to collect some
information. And for the required information we are supposed to
collect two types of data which are-
(1) Primary data
(2) Secondary data.
But for some problems we were unable to collect Primary data. So we
only collect secondary data through below process--
A. Books
B. Internet
Sources of information-
Secondary: We get the secondary information through prospectus,
Web side etc.
Study Approach: Study Approach is survey type.
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Study Instruments: The instruments are questionnaire, paper,
pencil, phone, computer, printer, photocopier etc.
Scope
This report is based on the difference between domestic and Multinational
Companies Human Resource practices in Bangladesh. So after reading this
report, readers will have a clear picture about the basic differences
regarding the local and international bank in operating and also the
similarities in perspective of the HRM practices.
Objectives
Broad Objective
To know the difference between domestic and Multinational Companies
Human Resource practices in Bangladesh
Specific Objectives
To know about the recruitment and selection process of City and
Standard Chartered Bank
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The organizational hierarchy of both the bank by which they
operate
The relationship among the employees
The training and development process of both the bank
Extra facility or training (if any) for the foreign employee in case
of Standard Chartered Bank
Other HRM practices of both the bank
Limitations
As the interviewers were quite busy, so we had difficulty in
interviewing them as a result, more required information
regarding the research purpose was not collected.
Lack of time, always a constraint as due to lack of information,
other information’s related to HRM practices is not sufficiently
collected
Also we were unable to provide more required information
regarding the topic as some of the information was confidential.
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Chapter Two
Finding and Analysis
The similarities between the City (local) and Standard Chartered (international) bank
Recruitment
Both the bank maintains the similar ways for recruiting. If they want to
recruit, they give advertisement in news paper and also in the internet
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in their own and other job web side. But the main recruitment is made
internally in the both bank. Both the bank also recruits from employee
reference. Another way they recruit is taking eligible candidates from
those who are doing internship.
Selection
In case of local bank those who applied, first they have to sit for a
written examination. Then few of them got initially selected and then
finally in Viva the required people are selected. In case of international
bank the applicants give CV to the bank and bank initially choose their
desired candidate and call for viva from where they finally select their
employee. Both the bank also select employee internally. Also some
applicants were selected among the interns.
Organizational Hierarchy
Both the banks have vertical hierarchy as lots of different posts are
there in both the banks and so limited span of control.
Organizational Relationship
Both the bank has very good relationship among the employees and
call sir to their seniors.
Training and development
When fresh candidates are taken, both the banks give three months
training to the freshers so that the new employee’s will find it easier to
adjust with the environment and know how the banks operate. Then
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training given at least once in a year to every employee to increase
their knowledge on products and other issue so that they can motivate
the consumer as well as the employee in building up their career. Also
when a senior post is empty, training is given to an employee and then
promoted to fill up the post. Both the banks also give promotion based
on the performance of the employees. Both banks has sales target on
the basis of which they work and commission given according to that.
The difference between the City (local) and Standard Chartered (international) bank
Recruitment
Only difference in recruitment is in case of local bank they recruit only domestic candidates but in case of international bank they recruit both domestic and international candidates.
Selection
In case of City bank their selection process is both written and viva but in case of Standard Chartered bank only the viva foreign employee has to give to get selected.
Organizational Relationship
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In City bank the same level employees call each other ‘sir’ but in
Standard Chartered bank the same level employees call each other
‘brother’.
Training and development
In the Standard Chartered bank every employees have to give an
examination in each and every month while in City bank the
employees doesn’t have to give examination in each and every month.
The Standard Chartered bank gives commission depending on the
performance of the monthly examination results but in City bank, as
there is no monthly exam so no such commission facility. Foreign
employee gets one more extra training regarding the local countries
culture which Standard Chartered Bank gives but City Bank doesn’t
have to.
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Chapter Three
Recommendations
Based on our findings, our recommendation is as follows:
City Bank should also recruit foreign employees in order to
develop their network globally and also so that local employee
will learn more about the foreign environment.
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City Bank can also include monthly exam and give commissions
in order to motivate employee and also evaluate their
performance regularly.
Standard Chartered Bank should be careful about designing
facilities in case of both foreign and local bank so that it doesn’t
vary much between foreign and local employee in order to keep
both grouped employee satisfied.
Sometime the target given to the employee regarding sale for
getting commission as their performance output is almost
impossible to achieve. So Standard Chartered Bank should give
such a target which can be achievable which will also make the
employee motivated.
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Chapter Four
Conclusion
Though both the City Bank and Standard Chartered Bank apply the
similar HRM practices like the recruitment, training etc. yet the
difference between them is clearly noticed according to expectation as
domestic and international bank can’t run in exactly the similar way,
keeping in mind that both are bank. Mainly the difference between the
banks is the international factors like whatever the difference, it is
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because one is domestic and another one is international. The facilities
vary in case of international as most of the foreign employee’s family
members live outside Bangladesh. Training is also given to them to
adopt Bangladesh’s culture and characteristics which domestic bank
doesn’t have to give as they hardly have any foreign employee. Other
than the international factors, the banks hardly have any other
difference suggests that most banks operate in a similar manner.
Doesn’t matter whether bank is local or international, bank mainly
focuses on the basic issues of HRM by means of recruitment, selection,
training etc. in order to achieve the right number and kind of people at
the right place and at the right time for efficient performance of the
required tasks in order to achieve the organizational goals and
objectives.
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