Internship Report on Human Resource Management Practices of Janata Bank Ltd: A Study on Gendaria Branch
Supervised By Sumon Kumar Mozumdar Lecturer, Department of Management Studies Jagannah University, Dhaka
Submitted By Md. Imran ID: M150202028 Section: A, 7th Batch Session: 2015-2016 Department of Management Studies Jagannah University, Dhaka
Date of Submission: 30-04-2017
Letter of Transmittal Sumon Kumar Mozumdar Lecturer Department of Management Studies Jagannath University, Dhaka Subject: Submission of Internship Report
Dear Sir With due respect that, I am delighted to submit my Internship report on Human Resource Management Practices of Janata Bank Ltd: A Study on Gendaria Branch, which is prepared by me. This report gives me a vast experience and valuable knowledge of how to analyze Human Resource Management related Operations. This report has been giving me the practical implement of HRM knowledge. I had tried my best to collect information on this report. Finally, I would like to thank you for your valuable guidance and supportive in preparing this report. I would be grateful for any clarification when required. I will be highly obliged if you are kind enough to approve this report and provide your valuable judgment on it.
Sincerely yours
Md. Imran Roll No: M150202028 Section: A, 7th Batch Session: 2015-2016 Department of Management Studies Jagannath University, Dhaka
Student’s Declaration
I do hereby solemnly declare that the report entitled “Human Resource Management Practices of Janata Bank Ltd: A Study on Gendaria Branch” embodies the results of my own effort after completion of 3 Months work at Janata Bank, perused under the supervisor of Sumon Kumar Mozumdar, Lecturer, Department of Management Studies, Jagannath University, Dhaka
I also confirm that, this report is only prepared for my academic requirement not for any other purpose. It has not been previously submitted to any other university/college/organization for an academic qualification/certificate/diploma or degree.
I further affirm that the work reported in this internship is original and no part has been previously submitted to any books or in any other universities.
Md. Imran Roll No: M150202028 Section: A, 7th Batch Session: 2015-2016 Department of Management Studies Jagannath University, Dhaka
Certificate of Supervisor
This is to certify that Md. Imran is student of MBA program, ID No: M150202028, has successfully completed his “Human Resource Management Practices of Janata Bank Ltd: A Study on Gendaria Branch” under my supervision as a partial fulfillment of the award of MBA degree.
He has done his job according to my supervision and guidance. He has tried his best to do this successfully. I think this program will help him in the future to build up his finer career.
I wish his success and prosperity.
Signature
Sumon Kumar Mozumdar Internship Supervisor Lecturer Department of Management Studies Jagannath University, Dhaka
Acknowledgement
At beginning I will start my report by showing respect and give praise to our almighty Allah who takes care about me to finished report successfully.
I give thanks to our honorable teacher Sumon Kumar Mozumdar, Lecturer, Department of Management Studies, Jagannath University whogave me such an attractive prospect to make a report on “Human Resource Management Practices of Janata Bank Ltd: A Study on Gendaria Branch” as well as helped me in every step to accomplish my report and try to provide me a fair practical knowledge as should as it possible.
I also will not miser to respect JBL that give me chance to obtain practical knowledge through their internship program. I thank the JBL Genderia Branch Manager, who helped me to do internship in his branch and provided me a fair idea about practical knowledge of banking activities. I will show appreciation to other Bank employees whose taught me as well as suggested me to do work.
Finally, I would like to thank authors of the books that I have taken help from, which had made my understanding clear during the making of the report.
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Executive Summary
This report is based on practical working experience at The Janata Bank Limited as a part of internship program. The Janata Bank Limited is a scheduled Bank under govt. sector. The Bank started commercial banking operations since inception. The main function of the bank is intermediation i.e. collecting funds from the surplus units of the economy in the form of deposit and mobilizing deposit to the deficit units of the economy in the form of credit. In internship program course students have to prepare an internship Report at the end of the MBA Program. This report based on activities of HRM Practice in Janata Bank Limited. I have tried to highlight the activities that are performed by Janata Bank Ltd. Gendaria branch and also the activities of whole Janata Bank Ltd. I have tried my best to highlight every department of different activities that I have learnt during the preparation of the report. But there is some limitations while collecting the brief information about each and every department. The Human Resource Management (HRM) literature suggests that HRM practices in an organization should be vertically aligned with its strategic choices, supporting the strategy of the organization, and horizontally aligned with other operational processes, facilitating the operations of the organization. Many have also argued that tight strategic alignment can damage the capacity of the HRM function to fulfill its historical role in balancing employee interests with managerial interests, and that each organization, and each HRM function, will be faced with dilemmas in this manner that need to be resolved. Project-oriented organizations make the strategic choice to adopt temporary organizations, such as projects and programs. Here I show the history and background of Janata Bank Ltd. its corporate social responsibility and most of the activities of overall banking system.
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Table of Content Part
Particulars Executive Summary
Chapter One
Chapter Two
ii
Introduction
1-6
1.1 Introduction
2
1.2 Objectives of the Study
3
1.3 Methodology
3
1.4 Literature Review
4
1.5 Limitations of the Study
6
Organizational Profile
7-11
2.1 An Overview of Janata Bank Limited (JBL) 2.2 Corporate Information
Chapter Three
Page No:
8 8
2.3 Vision of Janata Bank Limited
8
2.4 Mission of Janata Bank Limited
8
2.5 Core Value of Janata Bank Limited
9
2.6 Business Prospect of the Bank:
9
2.7 Hierarchy:
10
2.8 Five Year Comparative Financial and Operational Performance:
11
HRM Practice of Janata Bank
12-30
3.1 History of Human Resource Management
13
3.2 Definition of HRM
15
3.3 Objectives of HRM
15
3.4 Basic Principles of HRM
16
3.5 Approaches of HRM
16
3.6 Challenges of HumanResource Management
17
3.7 HRM Model & Theory
19
3.8 Importance of HRM
20
3.9 HRM Activities
22
3.10 Recruitment
23
Chapter Four
Chapter Five
3.10.1 Objectives of Recruitment Policy
24
3.10.2 Factors Affecting Recruitment
24
3.10.3 Sources of Recruitment
25
3.11 Meaning of Selection
26
3.12 Training and Development
26
3.12.1 Importance of Training
27
3.12.2 Training technique
27
3.13 Compensation and other benefits
27
3.14 Human Resource policy in Janata Bank
28
Analysis and Finding
31
4.1 Value Chain Activities
32
4.2 SWOT Analysis
34
4.3 From Overall HRM View
35
4.4 Graphical Presentation
35
4.5 Proposed Organogram
37
4.6. Departmental Human Resource Management Plans
38
Recommendation and Conclusion
44-47
5.1 Recommendation
45
5.2 Conclusion
46
5.3 Bibliography
47
Chapter One Introduction
1
1.1 Introduction: Today's business market is very complicated, due to diversified business world. Also importance of total quality management put emphasis on competition market. As a result the essence of HRM is introduced in today's organization and we know that. HRM sets up the job by virtue of job evaluation; job analysis & job design and also ensures the HR laws and keeps in organization's mind about government rules and regulations. The HR department of today's organizations deals with total systems of the organization. HR officer's job is to make the HRM system pretty much accurate, in order to ensure that, all other factors related to organization are handled quite effectively. Therefore, HR officer has to concern about dealing with HRM system as well as performance management due to the importance of cost. Furthermore, he has to make the image of the company more attractive, nice working condition, good benefit & compensation. Because, these are the part of HRM system. Some of the constraints have to be follow in the real world while setting up HRM system. We are trying to mention this in the following way: If the organization needs active employee, than the salary should be high to attract the candidate. If the organization has a better working condition, good applicant will be attracted. Compensation and benefit should be standardized. Technically sound people. Government rules and regulations should be in consideration. Motivation is always working for the employees. Economic condition of the overall economy should be in mind of HR officer.
These are the prime constraint or consideration be kept in mind or HR officer while dealing with HRM practice.
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1.2 Objectives of the Study:
To know the Human Resource Management Practices of Janata Bank Limited.
The study will help to develop models & apply them effectively in HRM system.
The study will help us to identify the type of problems that the bank usually faces & it will overcome the problems.
To analyze and review existing recruitment system of JBL.
To recommend for the improvement of existing recruitment and selection process of JBL
To know about the training and development policy of the JBL
To examine the current training & development program of JBL
1.3 METHODOLOGY: HRM system is indeed a tough job to find out. Because several people are involved with this process and they differ from each other by their perception, experience, interest etc. With this process, there is another part; the part is known as "Management", which is a healthy organization from employee’s point of view. To identify HRM practices we have to find out: a) Types of Study b) Target population c) Sample Size d) Sources of data
a) Types of Study: Human resource management (HRM) is concerned with managing people within an organisation to create value for the organization and positive work experiences for individuals. The range of functions covered include recruitment and selection of employees, performance management, compensation, training and development, career support, team development, communication and conflict, industrial negotiation, and resolution and HR strategy. 3
b) Target population: The target population was the employees of the HR department of Janata Bank Ltd. c) Sample Size: A sample size of 10 employees of Janata Bank Ltd. has been taken. d) Sources of Data: There are two types of sources of data. Those are:
Primary Data Source
In the primary source, data are collected directly from interviewing their employees and other related personnel. According to the oral communication to determine the responding factors that are extremely related with "HRM System".
Secondary Data Source
In the secondary source, different textbooks and journals relating to the theoretical frame work of the project was accessed to define and to determine "HRM System". Moreover, annual reports, company projects profile, related preserved data, financial statements, internet browse and brochure had been collected from the Janata Bank Limited.
1.4 Literature Review: Schuler (Patterns of strategic change in the development of human resource management. British Journal of Management-1992) suggests that Human Resource Management (HRM) has many different components, including policies, culture, values and practices. Strategic business needs of an organization are influenced by its internal (which mainly consist of factors such as organizational culture and nature of business) and external characteristics (consisting of the nature and state of economy in which the organization is existing and critical success factors, i. e., opportunities and threats provided by the industry), which are influenced by HR activities. Thornhill, Lewis, Millmore, and Saunders (A Human Resource Strategy Approach: Managing Change. Harlow: Pearson Education, 2000) found a potential role for HR-centered strategies to be used to change or realign the culture of an organization. An organization can change its culture through its recruitment strategy of replacing managers with those from outside, restructuring the organization, downsizing the workforce, training programs, new reward 4
strategies and performance management to alter employee behaviors or reinforce emergent ones. The potential value of the employees is to be increased by collectively enhancing and linking their skills and capabilities in tune with the contemporary requirements of the market, and to be faster than the competitors. The success of the HRM will be determined by its ability to harness the intelligence and spirit of people by creating a learning climate. Bangladeshi organizations normally direct their HRM efforts towards the development of competencies, culture and effectiveness among employees individually or in groups Organizations may use many mechanisms to achieve their HRM goals as without competent and committed employees, an organization can achieve very little even it has excellent technological and other resources at its command. Such an assertion gains better credibility in the context of developing countries like Bangladesh, that is, typically in early growth stages in terms of economic development and growing more rapidly than the traditional developed economies of Japan, North America and Europe. This also includes most South East Asian, South Asian and some Latin American countries. Selection in organizations is based on non-job related criteria like attractiveness, goal orientation, and interpersonal skills: a general lack of concern for value congruence. The dominant emphasis has been on the universal practice of identifying and improving on existing performance strategies. This practice would require a complete reversal where congruencies of values should find a place in selection and training. In order to make an organization effective, the values of the society and the cultural milieu should be synthesized with those of the organization and its functioning. Fombrun Tichy and Devanna (Strategic Human Resource Management. New York: Wiley, 1984) expanded these premises and developed the model of SHRM, which emphasizes a ‘tight fit’ between the organizational strategy, organizational structure and HR system. Political, economic and cultural forces are responsible for an organization’s mission and strategy. This explains these causal relations, which form the ‘tight fit’ between strategy, organization structure and HR policies and practices. On the basis of mission and strategy, the shape of organization is structured, i.e., people are organized to carry out different tasks to achieve the organization’s mission. Hendry and Pettigrew (Patterns of strategic change in the development of
human resource management. British Journal of
Management - 1992) proposed that a number of internal factors such as the organizational culture, structure (positioning of HR), leadership, level of technology employed and business output directly contribute to forming the contents of HRM. HRM could be seen as a menu of 5
strategic choices to be made by human resource executives in order to promote the most effective ‘role behaviors’ that are consistent with the organization’s strategy and aligned with each other (Sparrow and Hilltrop, European Human Resource Management in Transition- 1994).
1.5 Limitations of the Study: The present study suffered from certain limitations noted below: Lack of website information to reach on any nice ending. Facing hassle also to make communication with employees of the organization. Within this limited period it is a bit tough to track all the facts accurately. However, omitting the limitations, the report will help to understand the Foreign Exchange Operation of the Bank.
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Chapter Two Organizational Profile
7
2.1 An Overview of Janata Bank Limited (JBL): Janata Bank Limited is the leading sector bank in Bangladesh offering full range of Personal, Corporate, International Trade, Foreign Exchange and Lease Finance. Janata Bank Limited is the preferred choice in banking for friendly and personalized services, cutting edge technology, tailored solutions for business needs, global reach in trade and commerce and high yield on investments, assuring Excellence in Banking Services.
2.2 Corporate Information: Name:
Janata Bank Limited Registered Address:
Janata Bhaban, 110, Motijhil commercial area Dhaka-1000, Bangladesh
Legal Status:
Public Limited Company
Date of Incorporation as PLC:
May 21, 2007
Authorized Capital:
Tk. 30,000 million (as on 31.12.14)
Paid up Capital:
Tk. 19,140 million (as on 31.12.14)
No. of Branches:
Almost 904
2.3 Vision of Janata Bank Limited: To become the effective largest commercial bank in Bangladesh to support socio-economic development of the country and to be a leading bank in South Asia.
2.4 Mission of Janata Bank Limited: Janata Bank Limited will be an effective commercial bank by maintaining a stable growth strategy delivering high quality financial products. Providing excellent customer service through an experienced management team and ensuring good corporate governance in every step of banking network.
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2.5 Core Value of Janata Bank Limited:
2.6 Business Prospect of the Bank: Maintaining required capital adequacy Business expansion in capital market Gradual expansion of branch network Progressive automation of the branches Real online banking software will be in function soon Expansion of ATM and credit card
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2.7 Hierarchy:
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2.8 Five Year Comparative Financial and Operational Performance: TK in Million Authorized Capital
200000
200000
200000
200000
30000
Paid Up Capital
50000
8125
11000
19140
19140
Deposits
2257732
3661677
409464
478535
516010
Loans and Advances
225732
257801
305340
2885747
319773
Investment
57514
90906
108342
195312
198861
Import
1883344
197285
188283
176671
144556
Export
118515
153758
156525
153252
154079
Foreign Remittance
72285
52640
100089
103982
106677
Operating Profile
12037
15722
14534
12127
10683
Revenue
30614
40635
49515
240711
316505
Deposit Advance Ratio
78.77%
71.21%
74.52%
59.71%
61.97%
Return on Investment
4.89%
7.72%
8.04%
9.39%
8.47%
Current Ratio
1.10
1.06
1.03
1.2
1.3
Income per Share
98.16
60.45
148.00
63.36.
55.82
Net Profile
4907
4445
16280
9608
3831
No. of Branches
861
873
884
900
904
Source: Annual Report 2010-2014 Table: Five Years at a glance of JBL
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Chapter Three HRM Practice of Janata Bank
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3.1 History of Human Resource Management: Key principles and practices associated with HRM date back to the beginning of mankind. Mechanisms were developed for the selection of tribal leaders, for example, knowledge was recorded and passed on to youth about safety, health, hunting, and gathering. More advanced HRM functions were developed as early as 1000 and 2000 B.C. Employee screening tests have been traced back to 1115 B.C. in China, for instance. And the earliest form of industrial education, the apprentice system, was started in ancient Greek and Babylonian civilizations before gaining prominence during medieval times. Since the inception of modem management theory, the terminology used to describe the role and function of workers has evolved from "personnel" to "industrial relations" to "employee relations" to "human resources." While all of these terms remain in use, "human resources" most accurately represents the view of workers by contemporary management theory: as valuable resources managed in the same manner as other valuable resources, according to the authors of Human Resource Management. Between the 1880s and the 1940s, immigration rose significantly and remained robust until World War II. Advertisements circulated throughout the world depicting the United States as the land of opportunity where good-paying industrial jobs were plentiful. As a result, the country had a steady stream of low-skill, low-cost immigrant workers who occupied manufacturing, construction, and machinery operation positions. Even though these employees performed largely routine tasks, managers faced serious obstacles when trying to manage them since they spoke different languages. While some companies paid attention to the "human" side of employment, however, others did not. Therefore, other factors such as hazardous working conditions and pressure from labor unions also increased the importance of effective management of human resources. Along with the manufacturing efficiencies brought about by industrialization came several shortcomings related to working conditions. These problems included: hazardous tasks, long hours, and unhealthy work environments. The direct cause of employers seeking better HRM programs was not poor working conditions, but rather the protests and pressures generated by workers and organized labor unions. Indeed, labor unions, which had existed as early as 1790 in the United States, became much more powerful during the late 1800s and early 1900s. There were two other particularly important contributing factors to the origination of modem HRM during that period. The first was the industrial welfare
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movement, which represented a shift in the way that managers viewed employees—from nonhuman resources to human beings. That movement resulted in the creation of medical care and educational facilities. The second factor was Frederick W. Taylor's (1856-1915) Scientific Management, a landmark book that outlined management methods for attaining greater productivity from low-level production workers.. During the 1930s and 1940s the general focus of HRM changed from a focus on worker efficiency and skills to employee satisfaction. That shift became especially pronounced after World War II, when a shortage of skilled labor forced companies to pay more attention to workers' needs. Employers, influenced by the famous Hawthorne productivity studies and similar research, began to emphasize personal development and improved working conditions as a means of motivating employees. In the 1960s and 1970s the federal government furthered the HRM movement with a battery of regulations created to enforce fair treatment of workers, such as the Equal Pay Act of 1963, the Civil Rights Act of 1964, the Employee Retirement Income Security Act of 1974 (ERISA), and the Occupational Safety and Health Act of 1970. Because of these acts, companies began placing greater emphasis on HRM in order to avoid lawsuits for violating this legislation. These regulations created an entirely new legal role for HRM professionals. Furthermore, during the 1970s, HRM gained status as a recognized profession with the advent of human resource programs in colleges. By the end of the 1970s, virtually all medium-sized and large companies and institutions had some type of HRM program in place to handle recruitment, training, regulatory compliance, dismissal, and other related issues. HRM importance continued to grow during the 1980s for several reasons. Changing workforce values, for example, required the skills of HRM professionals to adapt organizational structures to a new generation of workers with different attitudes about authority and conformity. Shifting demographics forced changes in the way workers were hired, fired, and managed. Other factors contributing to the importance of HRM during the 1980s and 1990s were increasing education levels, growth of service and white-collar jobs, corporate restructuring (including reductions in middle management), more women in the workforce, slower domestic market growth, greater international competition, and new federal and state regulations.
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3.2 Definition of HRM:
Human Resource Management (HRM) is to refer to the philosophy, policies, procedures and practices related to the management of people within an organization. It is the staffing function of the organization. Sometime identified as personnel management, it includes the activities of human resources planning, recruitment, selection, orientation, training, performance appraisal, compensation, and safety. HRM is the design of formal system in organization to ensure effective and efficient utilization of human talents to accomplish organization goals. It is a set of inter related policies, practices, and programs whose goal is to attract, socialize, motivate, maintain and retain an organization employees. HRM is a part of every manager’s job. Each individual manager performs each of these basic human resource management activities.
3.3 Objective of HRM: The objective of HRM can be described as follows To hire the right person for the job To reduce employee turnover To motivate people to perform at high effort levels. Not to waste time with useless interviews. To remove unfair labor practices. To maintain a high morale & better human relations inside the origination. To maintain organizational peace.
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To attract competent people and retain them in the organization. To recognize and satisfy individual needs.
3.4 Basic Principles of HRM: Treat people with respect and dignity; Treat people as adults; Deal with people as complete individuals. Treat all employees with justice. Provide people with justice. Provide people with opportunities for growth and development. Make people feel that they are most valuable asset for the organization. Rewards should be earned, not given. Provide people with all relevant information.
3.5 Approaches of HRM: Strategic approach People are the strategic asset of an organization. People have core competency, the basis of competitive advantage.
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Human resource approach People are human beings with a lot of potentials and intellectual abilities.
Commodity approach People are commodity. They are viewed as a cog of a machine.
Proactive approach Anticipate challenge of problem before they arise. Preventive is better than curative.
3.6 Challenges of Human Resource Management: The HR Managers of today may find it difficult because of the rapidly changing business environment and therefore they should update their knowledge and skills by looking at the organization's need and objectives. The HRM challenges are
1. Managing the Vision: Vision of the organization provides the direction to business strategy and helps managers to evaluate management practices and make decisions. So vision management becomes the integral part of Man management in future.
2. Internal environment: Creating an environment which is responsive to external changes, providing satisfaction to the employees and sustaining through culture and challenging task systems is a. 17
3. Changing Industrial Relations: Both the workers and managers have to be managed by the same HRM Philosophy and this is a daunting task for the managers.
4. Building Organizational capability: Even in the adverse circumstances the employees have to be made to live in psychological state of readiness to continually change.
5. Job Design & Organizational structure: Instead of depending on foreign concepts we need to focus on understanding the job, technology and the people involved in carrying out the tasks.
6. Managing the large work force: Management of large workforce poses the biggest problem as the workers are conscious of their rights.
7. Psycho-Social environment: Nowadays employee’s participation required not only in performing job but also in democratizing and humanizing the institution.
8. Employee Satisfaction: Managers should be aware of techniques to motivate their employees so that their higher level needs can be satisfied.
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9. Modern technology: There will be unemployment due to modern technology and this could be corrected by assessing manpower needs and finding alternate employment.
10. Computerized Information System: This is revolutionary in managerial decision making and is having impact on coordination in the organization.
11. Legal environment: To meet the changes in legal environment, adjustments have to be made to the maximum utilization of human resources.
12. Managing Human Relations: As the workforce comprises of educated and uneducated, managing the relations will be of great challenge.
3.7 HRM Model & Theory: Human Resource Management (HRM) includes all management decisions and practices that directly impact or influence the people who work for an organization. HRM recognizes that employees enable an organization to reach its goals, and the management of employees (human resources) is critical to organizational outcomes (survival, competitiveness, growth and profitability).
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The goal of human resource management is to help an organization to meet strategic goals by attracting, and maintaining employees and also to manage them effectively. The basic premise of the academic theory of HRM is that humans are not machines; therefore we need to have an interdisciplinary examination of people in the workplace. Fields such as psychology, industrial, engineering, industrial, legal/Paralegal Studies and organizational psychology, industrial relations, sociology and critical theories: postmodernism, post structuralism play a major role.
3.8 Importance of HRM: HRM involves all management decisions and practices that directly influence the people and human resources, who work for the organization. Obviously HRM is concern with the people’s dimension in organization. The core points are: Hire the right person for the jobs: Human resources management hires the right person for the specific job. Specialized people can done their specific work very properly than any other unspecialized people. 20
Lower turnover: It reduces turnover, HRM look after the benefits, incentives, compensation, which results reduce the turnover. Make the people of the organization do their best: When an employee is more skilled & knowledgeable his devotion will be higher & his performance can give the benefits to the organization much effectively. Save time: If wrong people are selected for organization than organization have to higher new one that is more time wasted process. But HRM practice can save this time by hiring the right person for the right job. Avoid discriminatory actions: HRM obey the discriminatory rule regarding on the employee rights. Fair remuneration/ Compensation: HRM determine the salary, wages & compensation fairly according on the basis of position, nature of the duty, responsibility, work time etc.
Identify training needs: HRM decide the appropriate training for employee that is done by on the orientation or other ways can be on the job training & of the job training.
Lower unfair labor: HRM fairly design compensation, so the person who is competent & who has requirement get the proper compensation.
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3.9 HRM Activities: Simply put, HRM is a management function that helps managers’ recruit, select, train and develops members for an organization obviously. HRM is concerned with people’s dimension in organization.
Human resources planning: HRP systematically forecasts an organization future demand for & supply of employee. HR planning is also called to develop staffing plans that support the organizations strategy by allowing it to fill job openings proactively.
Recruitment & selection: Recruitment is the process of finding & attracting capable applicants for employment. The process begins when new recruits are sought & ends when their applications are submitted. The result is a pool of applicants from which new employees are selected.
Placement: Placement decision is taken offer the selection process. This is the process of put the right person for the right place according to their skills & qualification.
Orientation & training: Employee should be oriented about the organization. How the work is performed that process is called training. It’s the teaching about gaining the practical knowledge.
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Performance evaluation: Performance evaluation is a way to measure how well employees perform his work. That is important for increase the effectiveness of the employee’s performance.
Compensation & protection: Employee should be compensated by the wages, salary & fairly. If the compensation is too low then employee face dissatisfaction & if the compensation is too high than it could be against of company low. Deciding appropriate compensation can motivate the employee’s performance.
Employee relation & assessment: It maintains the relationship between whole unions of organization & assesses the work activities.
3.10 Recritment: Recruitment is the process of finding and attracting qualified or suitable applications to fill vacancies. This is the process of locating potential candidate for selection. It is the discovering of potential candidate for selection. It is the discovering of potential candidates for actual or actual or anticipated organizational vacancies. During this process, efforts are made to inform the applicants fully about the selection criteria, i.e. the required competences, which will lead to effective performance and the career opportunities the organization can provide for them. Dale Yoder (1986) defines recruitment as a process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organization. The process begins when new recruits are sought and ends when their applications are submitted. The result is pool of 23
qualified applicants from which new employees are selected. Recruiting is important because the best- qualified applicants must be found to fill vacancies.
3.10.1 Objectives of Recruitment policy: Objectives are targets and goals. According to Yoder, following are the main objectives of recruitment policy: To find and employee the best qualified person for each job. -To retain the best and most promising ones. -To offer promising careers and security -To provide facilities for growth and development -To minimize the cost of recruitment -To reduce scope of favoritism and malpractice.
3.10.2 Factors Affecting Recruitment: There are many factors affecting recruitment. These factors may be considered in to two broad groups:
Internal factors:These are the factors with in organization. These factors are listed down here: - Image of the organization: An origination with poor image cannot attract a large number of applicants. For example, among most university graduates Dhaka University has a positive image. - Image of job or attractiveness of the job: If the job to be filled is unattractive, recruiting a large and qualified pool of applicants will be difficult.
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-Size and growth potential of the organization: Higher the size and growth potentials, higher the advancement opportunities. -Internal policies: Internal organizational policies such as promote from within will give priority to individuals inside the organization. Such a policy will usually ensure that all positions will be filled form within the ranges. -Trade union requirements. -Recruiting budgets
External factors: These are the factors over which organization has little or no control. Some of these are given below: -Demographic factors: gender ratio, age group, and educational level. -Government requirements. -Industrialization: industrialization within the geographical area and geographical concentration will have influence on employment market in recruitment. -labor market: supply of labor may be plenty or shortage. In Bangladesh, supply of labor of unskilled labor is abundant but there is shortage of skilled labor. The right type is difficult to find.
3.10.3 Sources of Recruitment: There are basically two sources of supply from where potential employees can be drawn. These are internal sources and external sources.
Internal sources:
internal source indicate recruiting qualified people from within the
organization itself (from the present working force). When reference is made to the number of employees already employed by the organization we speak of the internal supply. Whenever any
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vacancy occurs, someone from within the organization is upgraded, prompted or transferred to another department.
External sources: recruitment form outside the organization is known as external source. All firms more or less rely on external sources.
3.11 Meaning of Selection: Once a pool of suitable applicants is created through recruiting, the process of selecting applicants begins. Selecting means choosing form those applicants who are most likely to succeed in the new job. It is the technique of choosing a new member of the organization from the available candidates. The selection process is a series of steps used to decide which recruits should be hired. Dale Yoder (1972) defines selection as a process by which candidates are divided into class-those who will be offered employment and those who will not. The process begins when recruits apply for employment and ends with the hiring decision.
3.12 Training and Development: Training is continues 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’s attitude and behaviors that will improve his ability to perform on the job activity. The main purpose of training is given below: Training mainly focus on current job Its short term and long term oriented. Training is given at the beginning of job. The reason of training is employee development.
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3.12.1 Importance of Training: Economy in operation Minimization of supervision Better performance of employees Increase morality Uniformity in performance Effective cont.
3.12.2 Training technique: There are two type of training basically given on organization. They are: on the job training: off the job training
3.13 Compensation and other benefits: Compensation and salary is an amount of money which is given by organization to their employees for performing the recent job. Well compensation structure is help to increase employee’s motivation, and attention to give better performance to their organization. Every organization should select the proper compensation structure for their employees. Compensation or salary amount is depending on the employees post, work activity, work place etc. Benefit is indirect financial payment given to the employees for their employment in their organization. Example: health and life insurance, vacation, pension, education plans and discounts on company products etc.
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3.14 Human Resource policy in Janata Bank:
Janata Bank has well renowned reputation in the Banking sector of Bangladesh. They try to follow some structural criteria in H.R activities, as they mentioned-
Recruitment
> Training & Development > Equal employees opportunity > performance
appraisal
Recruitment policies for territory manager:
Territory managers play vital role in an organization to expand its activities. Janata Bank follow some rules to assign them in their perfect position, such as-
Advertisement in the media Advertisement in the web
Purposes of Training Recruitment: Janata Bank trains their employees for the purpose to increase their knowledge &skills.
Assess Training Recruitment & Development Need: Janata Bank assesses training courses for the improvement of their employee’s skills.
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Training policy use in Janata Bank: To assess training & development need, the organization follow need analysis.
Types of trainer: To organize the employees, the organization usually follows in-house training & External training.
Performance Appraisal Program: Trainers plays effective roles in the organization, they use internal &External trainers.
Methods of Communication: Yes, the organization follow structural performance appraisal program.
Employee’s performance evaluated: Employee’s performance is evaluated yearly.
Employee’s performance: Employee’sperformance is evaluated on the basis of Appraisal by immediate boss.
Communication Methods: In the field of communication JanataBank used staff briefing & other methods like circulars, letters etc. 29
Determinants of pay rates: Pay rates distributed among the employees by following the pay structure of the government of Bangladesh.
Methods & techniques to motivate employees: To motivate their employees they maintain financial, promotions techniques.
Following bases of promotion: To increase the skills of their employees JanataBank use Seniority & Efficiency in the field of promotion.
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Chapter Four Analysis and Finding
31
4.1 VALUE CHAIN ACTIVITIES: This system is used for internal analysis. Human Resource is the internal asset of the organization. So, I have chosen this system for analysis. The system is given below according to Janata Bank Limited.
Primary Activities (a) Research and Development
Janata Bank has no any Research and Development department. So, this value creating level activities is not effective for the organization.
(b) Production Inbound Logistics.
Though the Bank is a big organization and it has own cash 800 core BDT. From product side it has got the competitive advantage. According to the view point of HRM it has less efficient system, because of organized HR model. Operations.
In this section the JanataBank follow traditional style. Outbound Logistics.
Here the organization follows the government rules and regulation.
(c) Marketing and Sales In true customer orientated fashion, at this stage the organization prepares the offering to meet the needs of targeted customers. This area focuses strongly upon marketing communications and the promotions mix. But this organization is not practicing as need as much. 32
(d) Customer Service
This includes all areas of service such as installation, after-sales service, complaints handling, training and so on. From the point of view the organization can not satisfy their customers and also the internal customer cannot be satisfied.
Support Activities (a) Procurement
This function is responsible for all purchasing of goods, services and materials. The aim is to secure the lowest possible price for purchases of the highest possible quality. They will be responsible for outsourcing (components or operations that would normally be done in-house are done by other organizations), and E-Purchasing (using IT and web-based technologies to achieve procurement aims). Janata Bank Limited is trying but lack of participate management the organization can meet with that.
(b) Technology Development
Technology is an important source of competitive advantage. Companies need to innovate to reduce costs and to protect and sustain competitive advantage. This could include production technology, Internet marketing activities, lean manufacturing, Customer Relationship Management (CRM), and many other technological developments. They are much updated from technical as needed.
(c) Human Resource Management (HRM)
Employees are an expensive and vital resource. An organization would manage recruitment and selection, training and development, and rewards and remuneration. The mission and objectives 33
of the organization would be driving force behind the HRM strategy. From point of view the organization have the more efficiency from other organization. But they are not practicing as better as need.
(d) Firm Infrastructure
This activity includes and is driven by corporate or strategic planning. It includes the Management Information System (MIS) and other mechanisms for planning and control such as the accounting department. This department is basically very new in the organization. So, they cannot find out any situation.
From the value chain activities, the organization is not in the competitiveness advantage. The real scenarios are not creating the value chain for the organization.
4.2 SWOT ANALYSIS
Strength
From HRM view the organization has more than 11345 employees and 867 branches all over Bangladesh. Its products are service is very low.
Weakness
From HRM view it has no well-organized management plan. So, the organization practices HRM in the organization properly. They are not also technologically up dead.
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Opportunity
It has enough resources to develop managerial system.
Threat
The organizational system of the organization is only the threat for the organization. From the SWOT analysis the organization have all types of opportunity. So, they need change as corporate world competition.
4.3 FROM OVERALL HRM VIEW They are practicing traditional HRM strategy. They do not want to change the strategy. They never meet their strategically thinking. The employees are practicing their job and task illegally. There has no motivation in the organization. The working environment also does not match with organization. There has no a research and development for the specific survey. For this reason there also create problem to find new thing. The compensation strategy is good but sometimes the employees can not motivated be that the management of organization practice less performance appraisal and motivation system. As a result sometimes employees are become discourage. Overall the organization is playing good HRM practice and in a word there is only traditional management system.
4.4 Graphical Presentation: This chapter is based on the analyzing and interpretation of data collected during the study. To measure HR Practices of HR department, a survey was conducted on ten employees of Janata Bank HR. The collected data through questionnaire are analyzed with the objective of drawing valuable conclusion and recommendation. The main objective of this research will be fulfilled with the outcome derived from analysis of the data. All the questions are analyzed through frequency distribution table which are briefly interpreted in the following segment with graphical 35
representation. To derive data from the statement 1-11, 5 Point Scale has been used with assumed weights which are Strongly Disagree- 5. Disagree- 4. Neutral 3. Agree 2 and Strongly Agree 1.
Question
Strongly
Disagree
Neutral
Agree
Strongly
No:
Disagree
1
0
1
0
6
3
2
1
0
2
5
2
3
0
0
3
1
6
4
0
1
4
5
0
5
0
1
0
5
4
6
1
2
1
5
1
7
1
2
1
1
6
8
4
4
1
1
0
9
1
0
1
5
3
10
1
0
3
4
2
Agree
Table: Data elements for graphical presentation
36
7 6 Strongly Disagree 5 Disagree 4 Neutral 3 Agree 2 Strongly Agree
1 0 1
2
3
4
5
6
7
8
9
10
Figure: Graphical Presentation
4.5 Proposed Organogram: From analysis part and literature review I have suggested an ORGANGRAM. It basically creates, after a survey. But on project I am facing limitation with survey. And other hand it can be create by using the Nominal group method or Delphi technique methods. But those are basically used in internally. So, I have chosen a method. By analyzing other company’s organogram and HRM model, I have proposed a plan for HRM of Janata Bank Limited.
Proposed Organogram For Janata Bank Limited
The organization have carried their business by using 7 Circle offices, 30 Divisions in head office, 52 zonal offices and 904 branches including 10 corporate and 40 AD (authorized dealer) branches. From the proposed ORGANOGRAM I have omitted the divisional practice.
37
ORGANOGRAM For Head Office
Janata Bank Limited
RESEARCH & DEVELOPMENT
FINANCE
ACCOUNTS
MARKETING
AUDIT
MIS
HRM
In the organ gram the Head office works for basically works for planning through strategic view and making decision to match with mission, vision, motto and credo. For other offices, to gather information and analyze those according to various factor such as; demography, gender etc. toward subordinate offices. It can create better practice participative management. From Head offices planning the other offices follow that and try implement in the rural areas.
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4.6 Departmental Human Resource Management Plans:
This diagram shows that the HRM plan must have the combination with strategic view and also match with all factors of the organization. Human Resource Management will be organized and managed in the department. Due to the importance of the subject, an officer at the directorate 39
level should normally be assigned the responsibility for Human Resource Management in the department. An officer at this level should have the broad understanding of the department's mission, values and objectives. It needs to be considered what the relationship should be between managers and administration staff, and/or officers charged with specific human resource management responsibilities, e.g. training officers.
The plan needs only be as detailed as the department determines is appropriate, and may not necessarily show specific activities in all areas of Human Resource Management. However, the component areas are:
Manpower Planning
Manpower planning enables a department to project its short to long term needs on the basis of its departmental plans so that it can adjust its manpower requirements to meet changing priorities. The more changing the environment the department is in, the more the department needs manpower planning to show:
The number of recruits required in a specified timeframe and the availability of talent. Early indications of potential recruitment or retention difficulties. Surpluses or deficiencies in certain ranks or grades. Availability of suitable qualified and experienced successors.
Recruitment
Before a department takes steps to employ staff, it should work out the type of staff it needs in terms of grade and rank, and the time scale in which the staff are required. The general principles underpinning recruitment within the civil service are that recruitment should: 40
Use procedures which are clearly understood by candidates and which are open to public scrutiny. Be fair, giving candidates who meet the stipulated minimum requirements equal opportunity for selection. Select candidates on the basis of merit and ability.
Performance Management
Performance management is a very important Human Resource Management function. Its objective is to improve overall productivity and effectiveness by maximizing individual performance and potential. Performance management is concerned with:
Improving individual and collective performance. Communicating management's expectations to supervisors and staff. Improving communication between senior management, supervisors and staff. Assisting staff to enhance their career prospects through recognizing and rewarding effective performance. Identifying and resolving cases of underperformance. Providing important links to other Human Resource Management functions, such as training.
Training and Development
The objective of training and development is to enable civil servants to acquire the knowledge, skills, abilities and attitudes necessary to enable them to improve their performance. Staff training and development should focus on the department's objectives and goals and staff's competencies in achieving them. A strategic approach has the following characteristics:
Commitment to training and developing people. 41
Regular analysis of operational requirements and staff competencies. Linking training and development to departmental goals and objectives. Skilled training personnel. Regular evaluation. A continuous learning culture. Joint responsibility between managers and staff for identifying and meeting training needs. A variety of training and development methods for different circumstances and learning styles.
Staff Relations
The purpose of staff relations is to ensure effective communication between management and staffs, to secure maximum cooperation from staff, and to motivate staff to give their best by ensuring that they feel fairly treated, understand the overall direction and values of the Civil Service and those of their departments, and how decisions that affect them have been reached. The principles that govern staff relations are that, where possible: Management should communicate regularly and openly with staff. Staff should be consulted on matters that affect them. Problems and disputes should be resolved through discussion and consultation. The Government should uphold the resolutions of the International Labour Organization conventions. Management should devise and encourage activities that contribute to staff's well being.
Management Information Systems
An effective management information system enables various levels of information to be systematically collected about human resource matters so that departments, policy branches and 42
Civil Service Branch can monitor and predict the effectiveness of Human Resource Management practices. Accurate management information enables forward looking Human Resource Management by providing the means to:
Monitor and improve on-going Human Resource Management performance. Provide up-to-date information on which to base policy development. Verify and demonstrate departmental effectiveness in Human Resource Management. Create service-wide checks and balances to safeguard delegation and provide true accountability for Human Resource Management
If the Janata Bank Limited practices this model, the organization can get easily competitiveness advantage from the HRM view. It is cost effective for the organization and also the knowledge each every employees through management information system.
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Chapter Five Recommendation and Conclusion
44
5.1 Recommendation:
To change the Traditional Management System.
To leave the Divisional practice.
To follow the Departmental HR practice in the organization.
Make the department more participative.
Emphasizing on more motivation.
To introduce the new technology.
To practice sharing knowledge.
Team based work environment.
Increase flexibility.
To crate opportunity participate with strategy.
To build knowledge based organization.
To increase the opportunities participate in the management.
To increase the word of mouth.
Make Relationship with the Media.
Make the flexible environment in the organization.
To recruit active, knowledgeable and experienced person in the organization.
Increase the Research based work.
To practicing the TNA (Training Needs Assessment).
To thinking always corporate view.
Maintain relationship with other department.
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5.2 Conclusion:
From the overall analysis Janata Bank Limited has vast opportunity to create a corporate environment. Without HRM Practice this organization cannot change present situation, because the HRM practices are for employees. The employees are internal customers. Without satisfying them no organization can get the competitive advantage.
So, from my point view the Janata Bank Limited can became milestone for the history Bangladesh Banking system. It has vast opportunity to create a value for and also create a competitive advantage through practicing the HRM.
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5.3 Bibliography: Book:
Bangladesh Bank (1997), Guideline for HRM Practices, Dhaka
Human Resource Management by D. Fisher.
A Human Resource Strategy Approach: Managing Change by Thornhill, Lewis, Millmore, and Saunders (2000)
Journal:
Fombrun Tichy and Devanna in “Strategic Human Resource Management. New York: Wiley” (1984)
Schuler in “Patterns of strategic change in the development of human resource management - British Journal of Management” (1992)
Hendry and Pettigrew in "Patterns of strategic change in the development of human resource management - British Journal of Management" (1992)
Annual Reports:
Annual Reports of JBL 2010-2014
Websites:
www.Janatabank.org
http://www.press.uillinois.edu
http://www.business.ualberta.ca
http://academic.emporia.edu
http://www.allbusiness.com
http://www.bls.gov
http://www.uaw.org
https://www.msu.edu
http://www.entrepreneur.com 47
Appendixes: Questionnaires
Jagannath University Department of Management Studies
Topic Name: Human Resource Management Practices of Janata Bank (The Research is conducted for academic purpose only. So please do not hesitate to answer. Your information will be kept confidential.)
Personal Information: Name:............................................
Gender: Male
Female
Designation: ................................. Age: 20-30
31-40
QN Issues 1
2
3
Our organization places the right person in the right job. Adequate and relevant information about the organization and job is provided to the candidate at the time of recruitment. Training in our organization includes social skills, general problem solving skills and broader knowledge of the organization and business.
41-50
51-63
Strongly Disagree Neutral Disagree
Agree
Strongly Agree
4
5
6
7
8
9
10
The training needs of the employees in our organization are assessed on the basis of their performance appraisal. Our organization makes all payments due to us in time Rewards in our organization are strictly linked to employee performance In our organization good performers get promoted first. Our organization is a recommendable place to work We do not work under the threat of loosing our jobs Each employee is treated with genuine respect
Thank you for your kind information.
Signature of Responder
Signature of Researcher
..................................................
..........................................
Date:.......................................
Date:.............................................
