Chapter : 1

Introduction

1.1 Research Problem Statement

Any academic course of the study has a precious value when it comes as practical application in
the real life, immense theoretical knowledge will be little important unless it is applicable in the
practice life. So we need proper application of our knowledge to make it more fruitful. We
should engage ourselves in such field to make proper use of our knowledge in our practical life.
The adage a problem well-defined is problem half-solved is worth remembering. This
emphasizes that a well-defined statement of the problem will lead the researcher

To formulate the research objectives;

To understand the background of the problem;

To isolate a research problem from a non-research problem;

To state the research questions and hypotheses;

To identify and define the key variables;

To construct a conceptual framework of analysis; &

To select a proper research methodology.

In addition, a clear and well-defined statement of the problem is considered as the foundation for
development of the research proposal. It enables the researcher to systematically point out why
the proposed research on the problem should be undertaken and what he hopes to achieve with
the findings of the study.

1.2 Objectives of the Study

There are various objectives lay in this proposed study. My main aim is to gather information on
HR Department of BDBL. The following are the objectives of this study:

Broad Objectives:
To examine the human resource management practice in Bangladesh Development Bank
Limited.

Specific Objectives:
The present study has been conducted with a view to achieving specific objectives :

To get overall idea about Human Resource Management Practices of BDBL;

To examine recruitment and selection process of BDBL;

To get an idea about the systems to employees Training & Development;

To identify the HR related problems in BDBL;

To examine how BDBL motivate the employee;

To recommend necessary steps to develop recruitment and selection processing;

1.3 Methodology of the Study

Correct and smooth completion of Internship report requires adherence to some rules and
methodologies. In order to conduct the report, the decision had been taken to collect various
types of primary data and secondary data. Data have been collect by questionnaire in a written
page which is personally filled up by the respondents and by oral interviewing of the responsible
officers.
After collecting data from the interview and material provided by them, data was first carefully
scrutinized. Then the data was organized as required. In order to make the study effective and
efficient, following two sources of data and information have been used widely.

Primary data collection procedure:

Target population : all the employees of Bangladesh Development Bank head office have been
taken as population. The total number of population (employees) in the HR department is 45.
Sampling procedure : I used probability sampling procedure and for this I picked up the names
of 30 employees from 45 employees in a lottery system.
Sample design : all employees of HR department in the head office branch of BDBL are my
target population. I took opinions of 20 employees of this department based on probability by a
questioned-answer based view point and also taking 10 other employee of various department
Then I have shown the opinions of the respondents in different charts.

Secondary data collection procedure:

Some secondary data have been collected by from statement of head office, annual reports, acts,
laws, magazines, journals, newspapers, various circulars send by Bangladesh Bank, BDBLs
operating polices and strategies, some selected books and other publications.

Methods of collecting data shown below at figure :

Source of Data

Primary Sources

Secondary Sources

Questionnaire filled up by the

respondents of HR department

Face to conversation with the

Practical work experience in the

of head office.

Communication

with

Website

of

the

Bangladesh

Development Bank Ltd.

different desk of the department

of Bangladesh

Development Bank Ltd.

respective officers and stuffs of

head office.

Annual report, 2010

Several

books

and

periodicals

related to the banking sector.

Prior research report

other

respective personnel of BDBL

Figure : Source of Data

1.4 Limitations of the Study

I am a student of Department of Management Studies have just completed my formal
education stage. This internship report is my first assignment outside course curriculum in
practical life. So in performing this report my lack of proper knowledge greatly influences in this
performance. Beside above, the other limitations of the study are as follows:

Three (03) months internship isnt sufficient to know about a research problem.

Reluctance of management regarding disclosure of internal information.

Limitation due to dependence on secondary data.

Management does not want to disclose internal information because may charge the bank.

Lack of available data relating to Human Resource Division.

All the employees are not equally interested to share their opinions because they as govt.
officials were in panic to expose all the information.

Confidentially is the main problem, as a result some confidential facts are not sufficiently
disclosed by the respective personnel.

Up-to-date information regarding recruitment and selection process is not available.

Time is limited that would mostly with stands a compressive study on the topic.

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

Improper combination among various departments.

Finally this is my first job experience. So lack of previous practical knowledge in such a
research study is limited.

Chapter : 2

Scenario Regarding the Main

Topic of the Report
in Bangladesh

2.1 Human Resources Scenario in Bangladesh

Basically, human resource management is the set of organizational activities directed at
attracting, developing & maintaining an effective work force. In the civilized world,
organization has given special importance on human resource because they think without proper
human resource management. Its impossible to run their business because human resource is the
blood cell of an organization. Human resources also count as internal customer of an
organization.
But in our country most of the company dont provide importance over human resource because
they think human resources are machine of profit nothing more else. But now a days by
following developed countries some organizations give importance on human resources. Because
in our country, now a days many multinational company operating their business for the interest
of their business, They have given special emphasis on human resources. But our local
organization recruit manpower from various sources & manpower is also available in our
country, only for that they are not provide importance on human resources. Most of the
organizations dont consider that human as a resource. They think human is a working machine
nothing more else.
But in banking sector, the situation is changing rapidly. Because, in Banking sector Bank recruit
skill & efficient manpower. The bank employees are aware about their rights. Manpower is
available in our country but job opportunities are limited in our country. Only for that most of the
companies dont provide importance on HR. Most of the organizations provide no extra benefit
for their employee. For that employee become frustrated and nepotism is also one of the major
causes of de-motivating for that cause in our country job rotation rate is very high. Most of the
employees arent also aware about their rights.
.

2.2 Importance of Human Resource Management in Bangladesh

In modern age, Importance of human resource management is rather than fast. Because they are
the main workforce of an organization. Success of business depend on proper utilization and
controlling of HR. In case of a developing country HRM play a vital role for the developing of
the country. I have shown the importance of HRM in our country as a structured below :

Importance of HRM

Overall Performance of the organization

Appointment of Suitable Employee

Proper Utilization of Resources

Enhancing Efficiency

Vital Point of Management

Increasing Interest to Work

Creation of Discipline

Providing Motivation

Fixing Wages & Salary

Evaluation of Qualification & Recognition

Creation of Proper Environment

Reducing Discremination

Ensuring Spontaneous Participation

Figure : Importance of HRM

2.3 Function of Human Resource Management in Bangladesh

Human resource management is concerned with the people dimension in management. It is a
process consisting of the acquisition, development, motivation & maintenance of human
resources. The functions of HRM are given below as a structure :

Staffing :

Maintenance Functions :

Job Analysis

Safety & Health

Human Resource Planning

Maintenance of Cordial Labor

Recruitment

Selection

Relationship

Counseling & Welfare Activities

Functions of Human
Resource Management

Training, Development & Utilization :

Motivation & Empowerment :

Socialization

Job Designing

Training

Job Evaluation

Management Development

Performance Appraisal

Carrier Development

Providing Salary & Rewards

Figure : Functions of HRM

10

2.4 Objectives of Human Resource Management in Bangladesh

The main objective of HRM is to make efficient & balance manpower for achieving main vision
of the organization. The purpose of human resource management is to improve the productive
contribution of people to the organization in ways that are strategically, ethically & socially
responsible. The objectives of HRM are given below as a structure :
Main Objectives of Human Resource Management

To Build an Efficient & Disciplined Workforce

Selection & Recruitment of Qualified Personnel
Ensuring the Effective Use of Human Resources
Ensuring Excellence of Workers Efficiency
Maintenance of a Cordial Relationship among the Worker-Management-Owner
Ensuring Job Satisfaction
Performance Appraisal
To Pay Proper Compensation
Build Up of a Strong Morality
Maintaining Proper Co-ordination
Taking Labor Welfare Activities

Figure : Main Objectives of HRM

11

2.5 HRM problem in Bangladesh

As a developing country, in our country most of the organization has no human resource
planning. Because human resources isnt count as a resource in our country. Here Job facility is
limited. Higher management dont like to discuss with lower management. Higher management
takes the decision but lower management implements it. Most of the time without any kind of
reason they have been suspend the employee. Working environment & motivational factor is also
not fair in our country.

Working Environment

Motivational Factors

Participation in Decision Making

Technological Limitations

Legal Environment

Lack of Awareness of Employees

Corruption

Nepotism

Lack of Communication

Lack of Proper Training

Job Rotation

Lack of Skillful Manpower

Job Security

12

In a developing country, human resource is most effective for the development of the
organizations. If organizations provide better working environment & better job security then
employees become resource & they have take participation in development of the countries.

2.6 Motivational Factors in Bangladesh

Motivation is the act of stimulating some one or oneself to take a desired course of action.
Different organizations take different way to motivate the employees. The incentives of
motivation can be financial or non-financial. Both types of incentives are given below as chart :

Incentives of Motivation

Financial Incentive

Non-financial Incentive

Remuneration

Job Security

Bonus

Recognition

Profit Sharing Plan

Participation in Management

Fringe Benefits

Career Development

Minimum Supervision

Development of Working Condition

Training Facilities

Social Status & Dignity

Figure : Incentives of Motivation

13

Chapter : 3

An Overview of the Organization

14

3.1 Background
With the decision of the Government, Bangladesh Development Bank Ltd. (BDBL) was
incorporated on 16 November, 2009 as a Limited Company under the Companies Act, 1994 by
merger of former Bangladesh Shilpa Bank (BSB) and Bangladesh Shilpa Rin Sangstha (BSRS),
two Development Financial Institutions (DFIs) in the public sector.
Bangladesh Shilpa Bank (BSB) was established in October 31, 1972 for accelerating the
industrial pace of the country through providing loans and equity to the industrial projects as per
Bangladesh Shilpa Bank Order, 1972 (Presidents Order No. 129 of 1972).
With the same objective, Bangladesh Shilpa Rin Sangstha (BSRS) was also established in
October 31, 1972 as per Bangladesh Shilpa Rin Sangstha Order, 1972 (Presidents Order No. 128
of 1972).
In order to carry on business activities of BDBL, Bangladesh Bank issued banking licence on 1911-2009.
Two Vendor Agreements were signed between the Government of the Peoples Republic of
Bangladesh and the BDBL on 31 December, 2009 to acquire/and take-over all of their (BSB &
BSRS) assets, benefits, rights, powers, authorities, priv/{leges, liabilities, borrowings and
obligations and to carry on with the same business.
As a public limited company, BDBL formally embarked its journey on January 03, 2010. It
extends financial assistance for setting up industries and provides all kinds of commercial
banking services to its customers through its branch network in Bangladesh.
The BDBL also inherited membership of Dhaka Stock Exchange Limited (DSE) and Chittagong
Stock Exchange Limited (CSE). In order to contribute to the capital market, it acts as stock
dealer and operates two brokerage houses, one at Motijheel and the other at Karwan Bazar which
are providing services to investors - small and medium. The BDBL is also managing a close-end
Mutual Fund with paid up capital of Tk. 5.00 crore.
15

3.2 Corporate Information

Table : Corporate Profile

Name

Bangladesh Development Bank, a state-owned commercial

Bank (formed through merger of Bangladesh Shilpa Bank &
Bangladesh Shilpa Rin Sangstha)

Legal Status

Public Limited Company

Date of incorporation

November 16, 2009

Banking License obtained

November 19,2009 issued by Bangladesh Bank

Vendors Agreement Signed

December 31, 2009 between the Government and Board of

Directors of BDBL nominated by the Government.

Formal Inauguration

Janualy 03, 2010

Registered Office

BDBL Bhaban, 8, Rajuk Avenue, Dhaka-1000

Authorized Capital

Tk. 10000 million

Paid Up Capital

Tk. 4000 million

Reserve (As on 01.01.2010)

Tk. 2270 million

Total Assets (As on 01.01.2010)

Tk. 16747 million

Total Human Resource

757

Number of Zonal Office

04

Number of Branch Office

21

Corporate Tax Rate

42.5%

Membership

Dhaka Stock Exchange & Chittagong Stock Exchange Ltd.

Web Site

www.bdbl.com.bd

Bangladesh Development Bank Ltd : At a Glance :

(In Crore Taka)
SI

Description

Former BSB &

BDBLS

Increase /

16

No.

BSRS Position
As on
December, 2009

Position As
on
December,
2010

Decrease
(%)

01

Deposit

143.00

325.40

127

02

Loans & Advance

1027.00

990.60

(4)

03

DSL Paid

58.28

57.77

(0.87)

04

DSL Outstanding

316.22

261.06

(17)

05

Income

121.00

183.77

52

06

Expenditure

67.00

101.29

51

07

Profit Before Provision & Tax

53.55

82.48

54

08

Loan Sanctioned

109.84

77.32

(30)

09

Loan Disbursed

91.21

77.07

(16)

10

Loan Recovered

106.58

170.52

60

11

Recovered from Written-Off Loan

20.65

24.64

19

12

Balance of Written-Off Loan

2437.96

2387.23

(2)

13

Balance of Classified Loan

293.20

310.17

14

Rate of Classified Loan (Excluding 34.25%

Staff Loan)

38.50%

15

Shareholders Equity

*1563.72

142.87

643.86

* Included Asset revaluation Tk. 860.41 crore.

Capital Adequacy of the Bank :

Capital
Required

Year

Capital
Maintained

Excess Capital

2009 (BSB & BSRS)

400.00

650.19

250.19

2010 (BDBL) As per basel-II

400.00

1063.25

663.25

3.3 Organizational Hierarchy of BDBL

Management :
17

The management of BDBL is vested in a 11-member board of directors, including a chairman

and a managing director appointed by the government. The managing director is the chief
executive officer of the organization. It has 757 employees, including executive officers of
different cadres. BDBL has 27 operational departments under 4 divisions at its head office in
Dhaka and a commercial branch.

Board of Directors :
The Board of Director consists ofChairman
Managing Director &
Nine Directors

Management Hierarchy of BDBL :

Managing Director
Deputy Managing Director
General Managers
Deputy General Managers
Assistant General Managers
Senior Principal Officers
Principal Officers
Senior Officers
Officers
Figure : Management Hierarchy of BDBL

3.4 Organizational Structure

18

Human resources Department (HRD) manages centrally the manpower of the Bank at work
places through researching, placement, training, performance, discipline etc. it emphasizes on
strategic and value added Human Resources (HR) activities involving the designing, updating
and amending HR policies and procedures for continuous improvement. Besides these, this
department accomplishes the sanctions of loan to the employees, doing welfare activities,
providing gratuity among its employees and employer. To execute the above mentioned issue
HRDs function are accomplished under the following divisions:
1. Staffing division (Recruitment and Outsourcing Wing)
2. Office division (Development and Benefit Wing)
3. Disciplinary division (Performance, reward, punishment)
4. Welfare department (Gratuity, pension, bonus, allowance)
5. Policy section
Here the structure of Human Resource Department is shown:

Managing Directors & Chief

Executive Officer

Human Resource Manager / General Manager

Human Resource Officer

Development Officer

Assistant Officer

Assistant Officer

Assistant Officer

(Admin)

(Staffing)

(Training)

Assistant Officer
(Appraisal)

Figure : Human Resource Department

Chain of command of HR operation :

19

Recruitment and selection is one of the major parts of HR operation in any organization. So in
recruitment and selection cycle there need a chain of command meaning that who will report to
whom.

Managing Directors & Chief

Executive Officer

General Manager

Deputy General Manager

Human Resource Officer

Figure : Human Resource Operations

3.5 Number of Branches

20

On January 3, 2010 the bank started with 17 Branches, 4 zonal offices and 21 departments in
head office. But now at present, 6 new departments have been added management & they open 4
new branches. Two new departments namely Credit Risk Management Department and
International Banking Department have since been added. We plan to open gradually 11 more
branches in different commercially and geographically important places of the country and have
already got permission from the Central Bank for opening four new branches, Narayanganj and
Khatunganj in Chittagong which is under process.

3.6 Number of Employees

Bank approved last year a transitional Organogram with 975 employees as against existing 757
employees. It goes without saying that the most important resource of any institution, more so
for a bank, is its human resource. With this in mind, the Bank has adopted a strategy for new
recruitment of 150 officer ( 25 Senior officers for IT, 100 Senior officers for commercial
banking, and 25 cash officers) in different grades in FY 2011.

3.7 Vision Statement

To emerge as the countrys prime Financial Institution for supporting private sector industrial and
other projects of great significance to the countrys economic development. Also be active
participant in commercial banking by introducing new lines of product and providing excellent
services to the customers.
The vision of the bank is to become the bank of choice in the communities they serve. The banks
accomplish this by offering to their customers the financial services which are expected by their
customers while providing a return to their owners. To emerge as the countrys prime Financial
Institution for supporting private sector industrial and other projects of great significance to the
countrys economic development. Also be active participant in commercial banking by
introducing new lines of product and providing excellent services to the customers.

3.8 Mission Statement

21

To mobilizes financial resources from within and abroad to contribute to Agricultures, Industry
& Socio-economic development of the country and to pay a catalytic role in the formation of
capital market.

To be competitive with other Banks and Financial Institutions in rendering services;

To contribute to the countrys socio-economic development by identifying new and

profitable areas for investment

To mobilize deposit for productive investment;

To expand branch network in commercially and geographically important places;

To employ quality human resources and enhance their capability through motivation and
right -type of training at home and abroad;

To delegate maximum authority ensuring proper accountability;

To maintain continuous improvement and up gradation in business policies and

procedures;

To adopt and adapt to new technology;

To maximize profit by strong, efficient and prudent financial performance ;

To introduce new product lines according to market needs.

3.9 Values
Customer focus

: Provide smart, efficient, transparent and courteous services.

Social Responsibility : Practice corporate social responsibility.

3.10 Strategic Priorities

Invest in Eco - friendly industries that help mitigate environmental degradation by

lending more for renewable energy, and effluent treatment plants and other projects that
employ energy efficient low-emission technologies including agro-based industries, small
power projects, ICT, transport and infrastructure projects.

22

Select and invest industrial projects where locational advantages like local availability of
raw materials, good infrastructural facilities (road communication, transport facilities,
etc.) and utilities (power, gas, water, etc.) shall be available.

Limit project loan to Tk. 15 crore maximum and Tk.2 crore minimum (for large projects).
Arrange and participate in syndicated loan for projects above Tk. 15 crore.

Identify prospective and potential entrepreneurs and investors / clients and motivate,
guide and help them select profitable industrial venture for investment.

Regularly publish financial disclosures.

Undertake from time to time SWOT (Strength, Weakness, Opportunity and Threats)
analysis for reviewing banks market position.

3.11 Product / Service Scheme

A) Development Banking :
1. Industrial loan with emphasis

on syndicated

agreement (Power & energy,

telecommunication, fiber optic cable, etc.)

2. Public

private

partnership

(PPP)

project

(Port

development,

transport

&

communication like Road, water & air ways etc.)

3. Small & Medium Enterprise (SME like IT industries i.e. development of hardware &
software)
4. Agro-based ventures depending on indigenous (Raw materials - like jute twin/yam and
other industries)
5. Green Banking (Environment & Eco-Friendly industries like automatic brick kiln,
renewable energy, effluent treatment plant, etc.)
6. Lease financing
7. Real Estate business (Including Housing loan)

B) Commercial & Foreign Exchange Business :

1. Deposit Banking :

Current Deposit
23

Savings Deposit

Short Term Deposit

Fixed Deposit

Deposit Pension Schemes

Other Special Savings Deposit:

(i) 5-Year Term BDBL Sanchay Scheme (BDBLSS)
(ii) 10- Year Term Shikkha Sanchay Scheme (SSS)
(iii) 10- Year Term Chikisha Sanchay Scheme (CS S)

2. Short Term Loan :

Cash Credit (Hypothecation)

Cash Credit (Pledge)

Secured Advances (General)

Secured Advances (Financial Obligation)

Retail Banking :
(i) Consumers Credit
(ii) Personal Loan

Trade / Foreign Trade Financing :

(i) Export Cash Credit
(ii) Packing Credit
(iii) Purchase of Local & Foreign Documentary Bills
(iv) Payment Against Documents (PAD)
(v) Loan Against Imported Merchandise (LIM)
(vi) Loan Against Trust Receipt (LTR)

24

3. Foreign Exchange :

Local L/C

Import L/C

Export L/C

Back to Back L/C

Foreign Remittance

Foreign Exchange Buy & Sale

4. Other Banking Service :

Demand Draft Issue

Payment Order Issue

Selling of Prize Bond

Selling of Savings Certificates, etc.

C) Capital Market Operation

1. Share/Securities Trading
2. Underwriting of Public Issues
3. Brokerage House Services
4. Mutual Fund Operation
5. Bankers to the Public Issues

3.12 Principle activities

In 2011, Bangladesh Development Bank Ltd. continued its operational activities as was done by
former BSB & BSRS to make an effective contribution towards industrial development of the
25

country. It gave emphasis on providing financial assistance for setting up of viable projects
having comparative opportunities, export prospects, forward and backward linkages and local
technology as well as indigenous raw material based and eco-friendly projects. Commercial
banking and capital market operation were also other area of businesses.
Besides, top priority was given to realization of its loans for augmenting and recycling of the
invest able funds and maintaining satisfactory loan portfolio for increasing profitability. For
regularization of loan accounts of the projects, the Bank undertook some laudable steps towards
replacement/ rescheduling of sick /closed/ stuck-up projects with waiver facilities where deemed
appropriate. Apart from this, initiatives were also taken to bring down the amount of classified
loan during the year. The Bank prepared a manual on Lending Policy and Procedures afresh in
congruence with Credit Risk Management (CRM) manual of Bangladesh Bank and Industrial
Policy, 2011 in order to make the credit management of the Bank more pragmatic and strong.
The activities of Bangladesh Development Bank are given below in figures:

Activities of BDBL

Operational

Others

Profit and loss

Advisory services

Deposit mobilization

Training

Loan application receive

Computerization

Term loan sanctions

Human news

Committed & disbursement of term loan

Board news

Working capital sanction

Annual General Meeting

Other implementation

Loan portfolio

Loan recovery

Legal action for recovery loan

Loan written off

26

Figure : Activities of BDBL

3.13 SWOT Analysis

SWOT analysis is the detailed study of an organizations exposure and potential in perspective of
as strength, weakness, opportunity and threats. This facilitates the organization to make their
existing line of performance and also foresee the future to improve their performance in
comparison to their competitors. As though this tool, an organization can also study its current
position, it can also be considered as an important tool for making changes in this strategic
management of the organization.
Structure of SWOT Analysis of BDBL :

Structure

Internal environment

Strengths

Weakness

Elements :

External environment

Opportunities

Elements :

Resource & ability

Technical

Capital

Economic

Skill

Legal

Technical knowledge

Political

& technology

Threats

Socio cultural

27

Figure : Structure of SWOT Analysis

Strengths:

BDBL as stated owned specialized commercial bank is going to establish a favorable

reputation in the banking industry of the country. It is one of the newly introduced public
sector commercial banks in Bangladesh. The bank has already shown a tremendous
growth in the profits and deposit and sectors.

BDBL has provided its banking service with a top leadership and management position.
The board of Directors headed by its managing directors is a skilled person in business
world. The advisor of the bank is a reputed senior chartered accountant having vast
experience in accounts, audit, and finance and banking at home and abroad. Managing
Directors of the bank is the leader of management team. The top management officials
have all worked in reputed banks and their years of banking experience, skill and
expertise will continue to continue towards further expansion of the bank.

BDBL has already achieved a high growth rate. The number of deposit is increasing
rapidly.

BDBL has an interactive corporate culture. The working environment is very friendly,
interactive and informal and there are no hidden barriers or boundaries while
communicate between the superior and the employees. This corporate culture provides as
a great motivation factor among the employees.

BDBL has the reputation of being the provider of good quality services to its potential
customers.

Weakness:

The main important thing is that employees of the BDBL are losing their interest to
perform the tasks attentively because they are too melancholic not to be promoted. The
banks not have any long term strategies of whether it wants to focus on retail banking or
28

become a corporate bank. The path of the future should be determined now with a strong
feasible strategic plan.

The bank failed to provide a strong quality recruitment policy in the lower and some mid
level position. As a result the services of the bank seem to be dues in the present days.

The poor service quality has becomes major problem for the bank. The quality of the
service at BDBL is higher than the Dhaka Bank, Prime Bank, or Dutch-Bangla Bank etc.
however; the bank has to compete with the multinational bank located here.

Some of the job in BDBL has no growth or advancement path. Therefore, lack of
motivation exists in persons filling those positions. This is a weakness of BDBL that it is
having a group of unsatisfied employees.

In terms of promotional sector, BDBL has to more emphasize on that. They have to
follow aggressive marketing campaign.

The loan and advances of the BDBL is reducing during this year because now it focuses
on collecting the existing loan than those of financing the new projects. This effect is
going to be long-lasting.

Poor IT infrastructure.

Poor collection of foreign remittance.

Poor product line.

Adverse work environment.

Opportunity:

In order to reduce the business risk, BDBL has to expand their business portfolio the
management can consider options of starting merchant banking.

BDBL has also a mutual fund that was derived from the Bangladesh Shilpa Bank. The
mutual fund of the BDBL has no future whether it is operated or not.

Opportunity in retail banking lies in the fact that the country has increased population is
gradually learning to adopt consumer finance. The bulk of our population is middle class.

29

Different types of retail lending products have grate appeal to this class. Os a wide
variety of retail lending products has a very large and easily pregnable market.
Competitive environment, BDBL must expand its product line to enhance its sustainable
competitive advantage, in the product line; they cannot introduce the ATM to compete
with the local and the foreign bank. They also cannot introduce credit and debit card
system for their potential customer.

In additional those things, social investment bank can introduce special corporate scheme
for the corporate customer or officer who have an income level higher from the service
holder. At the same time, they can introduce scheme or loan for various service holders
and the scheme should be separate according to the professions, such as engineers,
lawyers, doctors etc.

Threats:

All sustain multinational banks and upcoming foreign, private banks posses enormous
threats to BDBL. If that happens the intensity of competition will rise further and banks
will have to develop strategies to compete against an on slough of foreign the banks.

The default risks of all terms of loan have to be minimizing in order to sustain in the
financial market. Because, default risk leads the organization towards bankrupt BDBL
has to remain vigilant about this problem so that proactive strategies are taken to
minimize this problem it not elimination.

The low compensation package of the employees from mid level to lower level position
threats the employee motivation. As a result, good quality employees leave the
organization and effect the organization as a whole.

No accountability of the directors & management.

Political influence.

30

Drawing a Conclusion of SWOT :

BDBL started their journey as commercial banking on 3 rd January, 2010. Before commercial
bank BDBL was a specialized bank. For that cause when I analyze their SWOT. I get lot of
possibilities & problem of the bank. But as a government bank they get huge support from the
government. The weakness of the bank is not so competitive as private bank at the present
competitive world. This is not at a tolerate level. Proper steps should be taken to remove the
weakness & facing threats. If the opportunities get by the bank is properly used it has vast
possibility in future. By there efficient management they can remove the threats & make strong
position in the market. Private bank is the main threats for the bank. The bank should develop
strategies to overcome the threats.

Short Term Action Plan for BDBL :

After carefully reviewing and evaluating the success and limitations of 2010, the Bank chalked
out the following priorities for 2011 in consultation with the Management Committee and the
Board of Directors of the Bank :

Reduce the rate of classified loan to 25% through sanctioning of good quality loan
recovering of the said loan.

Mobilize investable fund from various sources.

Provide term and working- capital loan to projects attaching due importance to SME and
environment friendly projects.

Enhance business activities through increasing Branch Networking of the Bank.

Retain Bank-Client relationship and serve them with professional excellence &
innovative ideas

Remodel the retail banking business in line with customers financial needs

31

Explore and grow Foreign Exchange & International Trade/business

Enhance professional excellence and skill of the employees through imparting need based
training.

Improve consistently IT backbone of the bank complying with the instructions of the
Central Bank in order to provide customer with technology driven services.

Separate and establish another subsidiary company to perform capital market operation to
focus more in the core banking business.

Manage credit risk through diversification of credit concentration.

Manage expenses efficiently in order to reduce the cost- to- income ratio to the average
level.

Engage in CSR activities basing on the Triple Bottom Line Approach: People, P and the
Profit.

Bangladesh Development Bank Limited will be able to attain its goals through well- defined
strategy and targets by a dedicated line of human resources who with a special care, concern and
consciousness.

Long Term Action Plan for BDBL :

The service quality of the bank should be developed as like private Bank.

Priority should be given on customer satisfaction.

They need to increase their branch network over the whole country.

Basically, they need to follow their main HR principal right person, right place & right
time.

The bank should create long term strategies to motivate employees & provide more
bonus as like private bank.

The bank should emphasis strong quality recruitment policy in the all level.

32

Need to start Online Banking, ATM & Mobile Banking.

Their interest rate is almost same to private bank. But as a government bank they should
reduce interest rate.

They should given emphasis on foreign exchange to collect foreign remittance quickly
they need to collect swift machine for better foreign exchange documents transactions.

The compensation package of the employees to all level should be increased to attract
quality employees.

The need to provide loan in proper way & reduce loan default.

They should increase technological infrastructure.

It should focus on consumer banking.

33

Chapter : 4

Analysis

34

4.1 Analysis
Throughout my internee period I have worked seven department of Bangladesh Development
Bank Limited, the theoretical aspects, that is what should be the procedures and requirements
maintained from first to last, and actual practices as well as the ultimate gain for the company in
conducting financial activities and try to help at my level best to help them in their work.
Basically I know more about Human Resources Management Practices.

Bangladesh Development Bank Limited has a prepared internship program for internees.
Although it is rarely followed, it served as a guide for me. I was rotated across 10 different
departments in the past 3 months.

It was very interesting working at Bangladesh Development Bank Limited. The people there are
really nice and talented. The things that I have noticed and observed are:

Work is never left pending for the next day unless it is absolutely necessary

A good job performance is rarely praised, hence lacking motivation of the employees

There is always a rush of customers so there is no standard on what the employees do

throughout the day. The work activities of an employee is set, but what to do when varies
along the day

The work activities are always set and divided for each of the employees. This is the way
it should be, but when I saw it firsthand it was remarkable. Each and every employee has
a certain set of responsibilities. He/she carries out those responsibilities throughout the
day. It is also easy to assign duties that way. Even though this is the case, I often saw
other staff members helping each other out.

35

The Human Resource Management Department (HRMD) was formed to make skilled manpower
for the organization. This department is usually handle all types of employee, recruitment,
promotion, related policy, welfare of the officers, leave, advantage, reward, treatment, retirement
etc.
The department of Human Resource Management is modernizing the structure of the
administration of the bank and development the skill of the human resource and reducing
operating cost of the organization.

4.1.1 Section of human Resources Management Department:

Sections

Activities

Fixing principle relating of human resources activities/position

General Administration

Fixing principle relating to organization

& policy section

Fixing principles relating to delegation of power

Activities relating to trade union

Provide employment policy

Provide transfer policy

Provide promotion policy

Fixing pay scale

Fixing annual increment policy

Mitigate the complaint against personnel

Provide scholarship policy

Assist the helpless personnel

Provide retirement benefit

Provide medical facility & allowance

Provide vacation opportunities

Provide conveyance facility & allowance

Management Section

Disciplinary Section
Welfare Section

Leave & Medical Section

36

Figure : Section of human Resources Management Department

4.1.2 HR Training :
A Training Institute of the Bank is in the offing. However, in 2010, a good number of needbased training programs as indicated below were designed and implemented for the incumbent
employees:
SI.

Subjects

No.

Number of Training Institute

Participants

1.

Training Course(s)

Elementary English Language Course

120

The British Council

Commercial Banking

89

BIBM & DBIT

Computer Course

40

BIM

Foreign Exchange &

20

Janata Bank & Sonali Bank

International Trade Financing

(On-The-Job)
E

Risk Management & Corporate Affairs 69

Management

BIBM

Different Short Courses Relating to 70

Banking Affairs

BIBM, BB Training

Basel-II

In House Training Institute

40

Institute, Planning Academy

Training programs have also been designed for developing skills and proficiency of the new
recruits as well as of the existing employees.

4.1.3 Functions of Human Resource Management Department:

To assess & collect compatible personnel who will be perfect for the bank.

To prepare & implement policy about human resources & related activities.

37

To take program & implement for developing human resources.

To control the administration of human resources of the bank.

To make appointment, promotion & appraising skill of officer and staff

To make serve rules, correction, expansion, administration rules, sub rules, orders, notice
etc. for controlling staff

To give scholarship to the brilliant student of the university for appointing & finding
skilled officer.

To give general scholarship to the brilliant & daughter of staff

To communicate with trade union scrutinizing their demands, open discuss, developing
the relationship with administration proper implementation of labor law.

To give loan for house building, by cycle, motorcycle & ensure their proper utilization.

To assess & grant retirement facilities at the time of retirement.

To give medical facilities to the staff

To maintain relationship with retired or dead stuffs & their families to know their
conditions.

To maintain & grant leaves without regular leave.

To co-ordinate & evaluate the branch & regional staff activities.

To step & implement for opening new branch office.

To maintain relationship with government & other institution.

To control the activities to the staff of the banks & take proper step to implement
computer technology.

To perform the activities assigned by the department head.

4.1.4 Human Resource Policies & Practices:

38

Effective Human Resource of an organization depends on the specified rules and policies which
provide a guideline to solve any problem arise in this department. For this reason the policy
should be prepared in such a way so that it can be used for long term as well as flexible for
changing environment. HRD of Bangladesh Development Bank Limited has the written Human
Resource Policies (Bangladesh Development Bank Limited, Service Rules-1991) contained the
followings:
A. Recruitment and Selection
B. Training and Development
C. Performance Appraisal
D. Motivation of Employee
E. Leave & Vacation
F. Discipline
G. Retirement

A. Recruitment and Selection:

Job Analysis: job analysis is the first step of selecting and recruitment the employee of an
organization. It is the procedure through which you determine the duties of these positions and
the characteristics of the people who should be hires for them.

Work Activities: information is usually collected n the actual work activities performed, such as
cleaning, selling teaching or painting. Such a list may also how, why and when the worker
performs each activity.

Human Behaviors: information on Human Behaviors likes sensing, communicating and

decision making and writing may also be collected. Included here would be information
regarding products made, materials processed, knowledge dealt with or applied (such as finance
or law) and services rendered.
39

Performance Standards: information is also collected regarding standards (in terms of quantity
or speed for each job duty for instance) by which an employee in this job will evaluated.
Job Context: included here is information about such matters as physical working conditions,
work schedule, and the organizational and social context for instance, In terms of the number of
people with whom the employee would normally have to interact. Also included here might be
information regarding incentives for during the job.

Job Analysis

Recruiting and

Job Specific

Selection Decisions

Training Requirements

Job evaluating
Wage and salary

Performance
Appraisal

Figure : Recruitment and Selection

Recruitment and Selection Process:

1. Doing employment planning and forecasting to determine the duties of the positions to be
filled.
2. Building a pool of candidates for these jobs by recruiting internal or external candidates.

40

3. Having the applicants fill out application forms and perhaps undergo an initial screening
interview.
4. Utilizing various selection techniques and such as test, background investigations and
physical exams and identify variable job candidates.
5. Sending to the supervisor responsible for the job one or more variable job candidates.
6. Having the candidates go through one or major selection interviews with the supervisors
and other relevant parties for the purpose of finally determining to which candidates and
offer should be made.

B. Training and development:

Any attempt to improve current or future management performance by imparting knowledge,
changing attitudes or increasing skills.
Managerial on the job training:

Job rotation

Coaching/under approach

Junior board

Action learning

Managerial off the job training:

Case study method

Management game

University-related programs

Role playing

Behavior modeling

In house development centers

Organizational development

41

Survey feedback

Team building

Developing employees by BDBL:

Internal training: BDBL has a training department to build the skilled manpower. One year
period training for confirmation of the job, they use the classroom lecture and conference
techniques to develop the knowledge of employees. They provide training on the following area:

Orientation computer training appraisal

Auditing

Accounting

The training department evaluates the effectiveness of the training program through the
performance in test. The employees sometimes are sent to the outside for training. They are sent
outside for training. The sent to:

BIBM

BMDC

ICMAB

Computer Center

Foreign training:
Scholarships for short-term courses are provided by the following organization.

World Bank

IDI (International Development Ireland Ltd)

42

ADB (Asian Development Bank)

Banking Diploma:
BDBL encourage the employees to complete the banking diploma given by the IBB (Institute of
Bankers of Bangladesh). The employees get the following benefits for his achievements of
Banking Diploma.

Remuneration (Cash)

Promotion benefit

Study leave

Increment

C. Performance Appraisal:

To appraise the following methods can be used

Graphic rating scale: a scale that lists a number of traits and a range of performance for
each. The employee ID then rated by identifying the score that best describes his or her
level of performance for each trait.

Alternation ranking method: ranking employees from best to worst on a particular trait.

Paired comparison method

Ranking employees by making a chart of all possible of the employees for each trait and
indication which is the better employee of the pair.

Management by objectives (MOB): involves setting specific measurable goals with each
employee and then periodically reviewing the progress made. The performance is
evaluated by the department head or immediate boss in quarterly for all employees. They
evaluate annually for permanent employees.

D. Motivation of Employees:
The following methods and techniques are used to motivate the employees:

43

Promotion

Financial incentives

Job rotation

Work sharing

Benefits and services for the employees:

House rent A

Leave with pay (staffs)

Childrens education facility

Home furnishing allowance (MD & GM)

House loan

Sick leave

Maternity leave

Ordinary leave

E. Leave & Vacations:

Ordinary leave

Leave on half pay

Advance leave

Leave without pay

Special disability leave

Study leave

44

Quarantine leave

Maternity leave

Casual leave

Pay Scales:
BDBL has no pay scales for its own employees. It follows the pay structured of Bangladesh
Govt.

Promotion policies:
It is done on the basis of

ACR

Training Report

Qualification

Viva

Seniority

F. Discipline:
If anybody pays any role against the BDBL, or banking rules or govt. service rules, an inquiry
committee will be formed. If the price proves un-doubtfully, the BOD will punish him or her.
The punishment may be

Held up increment

Held up promotion

Demotion (removed from service)

Dismissal from service

G. Retirement:
45

BDBL maintains the rules and regulation of the Govt. for retirement benefits of the employees.
They approve 1 (one) year leave for preparation of Retirement (LPR) the pension will by
calculated in the following wayAt the time of retirement :

Basic salary x 80 % x 200

2

Basic salary x 80 %
2
Up to death of employee and after his death his wife will get during her whole life.
Monthly :

One Time :

Basic salary x 80 % x 300

2

Chapter : 5

Findings of the Study

46

5.1 Findings of the Study

I have completed my internship within the limited period of three months and gotten a friendly
behavior from many concerned officer of BDBL. The cooperation of BDBL employee has
encouraged me to collect more relevant information, to analyze collected information and to give
a concrete solution after evaluating the results.
During the internship program the following finding have been found out from my study:

Bangladesh Development Bank Limited has some skill manpower such as engineer,
economist, business executives, lawyer and so forth.

Maintaining good relation with Borrowers or Sponsors.

There is a few chance of promotion. The workers are in the same position for a long time.
There is no promotion for them. They work traditionally not take the job as a challenge.

There is no team speed of workforce. They work as usual. Sometime, the important file
and work in freeze if any officer does not give importance on it.

Most of the personnel are not as much experienced and skilled to operate banks activities
in proper way.

47

The Human Resources Management Department recommends the training department

only their regular work. But only regular work does not ensure the proper utilization of
organizational researchers. The moral learning is also necessary for ensuring their duties.

No appropriate performance procedure is applied to measure the managerial performance

of BDBL.

Employees are not interested to provide the relevant Information that is necessary for
analyzing the performance of BDBL.

Finally contribution of BDBL is the highest in the industrialization of Bangladesh though there
are some problems.

Chapter : 6

Conclusions
&
48

Recommendations

6.1 Conclusions
Overall situation of HR practices Bangladesh Development Bank Limited is not so good. Its HR
policies and practices are different from the private bank. My present study on human resources
practices in BDBL, I have found some positive and negative aspects human resources practices.

The employees get highest level of job security.

They get also leave facilities as per govt. rules.

They dont have specific deposit & loan recovery target for that they always work easily.

After retirement they get 3 years LPR facilities & provident fund.

Most o the employee of BDBL is not satisfied with the present compensation policy.

The working environment of the bank is not much favorable to employee.

Most of the employee doesnt like political influence in management.

Higher management has no commitment to the employee because they have been
appointed by government.

49

The employees are disappointed for lengthy & seniority based promotion they want
promotion as per efficiency

The employees are not properly motivated as like private bank they also dont get bonus
as like private bank.

They cant participate in decision making just they follow higher management direction.

6.2 Recommendations
For effective Human Resource Management Practices, the following issues should be considered
by the respective authorities:

Although we know BDBL is an autonomous body of the organization but the employees
capabilities are deteriorating for lack of proper working environment and unexpected
political pressure. In some cases they are not able to work independently, so Govt.
interferes should be reducing from bank.

Lengthy chain of command procedure should be reducing. Every departmental head

should take the power of authority to work.

Same financial benefits shall be provide to zonal offices and branches offices, if branch
and zonal offices have same benefits and allowances as like office then employee can go
outside frequently over the country where he/she will be posted.

50

Employees are not motivate because there is no motivation techniques and poor incentive
benefit, so facilities should be enhanced and opportunity should be given as like private
bank

Training arrangement of BDBL is insufficient. It is required to enhance arranging more

training facilities. Training supervisor should be more innovative creative and smart who
have effort to motivate the others employees and provide time to time training system to
employees which are very effective and efficient of BDBL s development.

Evaluation the performance of employee is not appropriate because there is a possibility

of business by the senior of particular dept. so independent body is required to evaluate
the performance of employee.

Here promotion of employee depends on the basis of employees seniority. As a result

employees are not motivated to reform his or her activities very well. For this reason
promotion should be given not only on the basis of seniority but also performance basis.

There is another problem is that the managing director of BDBL is changed frequently
which creates problems to implement the long term policies. Do managing directors
should be appointed at least 3 years.

Higher management should evaluate the opinion of the subordinate and need to take
decision as quick as possible and the employee emphasis on good work environment

To ensure the good and comfortable atmosphere in the work field for the employee.

51

References

Donald R Pamelas. Schindler, Business Research Methods, 8 edition, tata megraw-Hill

publishing company limited. New Delhi.

Henz Weihrich Harold Koontz management, a global prospective, 10 edition McGrow

international editions, Management and Organization Series.

Devis, Keith, Human Behaviour and work, 7th Edition.

Willian G. Zikman Business Research Methods, 7 edition, Thomson. South Western.

Jamal, Nasimul & Hossain, Akhter Human Resource Management, 1 st Edition, 2006,
Grontho Kutir, Dhaka.

Chowdhury, A. K. Fundamental of Management, 2nd Edition reprint verson, Gyan

Bikash Publications.

52

Islam, M. Nurul An Introduction to Research Methods, 2nd Edition, 2011, Mullick &
Brothers.

BDBL annual report 2010-11

BDBLs seniority report 2010-11

www.bdbl.com.bd

Manual for Human Resource Department of BDBL.

Bangladesh Development Bank Limited, employee rules provision, 1991, published by

Bangladesh gadgets.

Appendix
Questionnaire
(For Human Resources Management Department)
01. What are the functions of your department?

Recruiting

Training

Posting

Promotion

Retirement benefit

53

Employee welfare

Leave record and sanction

02. How do you perform the job analysis and job description?

Department function wise job analysis

03. How do you determine the number of employee for any particular department?

Structural is constituted at the beginning of BDBL.

Volume of work

04. From which sources you collect your human resources?

Internal :

Promotion

Transfer

Employee reference

Rehiring

External:

Public employee agencies

Private employee agencies

Advertising

Field trips

Educational institution

Labour union

Monitory groups

Computer uses sources

54

Evaluation
Interview
Final selection
Placements
05. Do you maintain rules and regulations guided by your own of Govt.?

As per organization policy

As per Govt. Rule

% of labour union

% of monitory

06. Which techniques of selection do you maintain?

Reference checking

Written

Viva

Psychological

Medical

Attitude test

Experience

07. Which one is important in selection a people?

Experience

Interview

Special reference

08. How much it takes to appoint a person after selection?

On the job interview

55

1-6 months

6-12 months

More than 1 year

09. How do you evaluate your employee performance?

Specific form

Recorded base

Unrecorded base

10. Which procedure is used in evaluating performance?

Ranking comparison method

Special evaluation

Others

11. Which types of appointment your organization followed for promotion?

Permanent

Temporary

Probation

12. Which type of criteria does your organization promotion?

Performance based

Seniority

Ability

Seniority and ability

13. In the deciding to promote people, does your organization use criterion that may work against
deserving candidate?

56

Yes

No

14. What type of performance your organization?

Vertical

Horizontal

Both

15. What fringe benefit provider of your employee?

As per policy

Bonus

House rent

Medical

Mobile phone

Launch

16. How do you develop and trained up your employee?

In house

Local

Overseas

57