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Human Resource Management is the process of developing, applying and evaluating policies, procedures, methods and programs relating to the individual in the organization. Human resource management includes Human Resource Planning, recruiting, selection, training and development, compensation, performance management and employee development. Effective human resource practices relate to company performance by contributing to employee and customer satisfaction, innovation, productivity, and development of a favorable reputation of the firm in the industry.
1.1
Objective:
The thesis has been undertaken to assess the Strategic Human Resource Management practices of Uttara Bank with the prime focus at formulation of strategies and tactics and how it contributes in implementing the strategies.
1.2
Methodology:
The information related to the project has been collected from the Uttara Bank, Motijheel Branch. The methodology adopted is as follows: Collection of data by conducting interviews of officials of the Bank Frequent visits
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A comprehensive study of the literature has been carried out the see the factors that help in achieving a competitive advantage in a dynamic banking environment.
1.3
Scope of Study:
As we know services are a growing industry of Bangladesh and many firms are striving to deliver value added services to the customers. In this regard banks are continuously focusing towards improving their services. Similar is the case with Uttara Bank. This Bank has evolved tremendously during the last couple of years and now has become one of the leading banks in Bangladesh.
Keeping this in view the study has been undertaken to identify the strategies and plans of the Bank and to identify the methods adopted by the Bank to train and motivate their people and work force.
HR Planning Recruiting Selection Training and Development Compensation Performance Management Employee Relations
World-class organization use performance measurement systems to determine whether they are fulfilling their vision and meeting their customer-focused strategic goals. Leading-edge organizations use performance measurement to gain insight into, and make judgments about, the effectiveness and efficiency of their programs, processes, and people. These best-in-class organization decide on what indicators they will use the measure their progress in meeting strategic goals and objectives, gather and analyze performance data and then use those data to drive improvements in their organization and successfully translate strategy into action. Thus in todays organizations, the use of Strategic Human Resource Management information is to help set agree-upon performance goals, allocate and prioritize resources, inform managers to either confirm or change current policy or program directions to meet those goals, and report on the success in meeting those goals.
Uttara is the nationalized leading emerging markets bank. It employs 3,476 people in over 2,153 offices and 207 branches all over Bangladesh. The bank is listed in the Dhaka Stock Exchange Ltd. and Chittagong Stock Exchange Ltd. as a publicly quoted company for trading of its shares.
3.1.1 Forecasting:
Forecasting is the major function of the banks HR department. The forecasting activities include:
1. Workforce numbers in sufficient detail to be useful. 2. Likely changes to the work of the bank. 3. Work force supply this involves forecasting the variations in the current work force estimated to occur over the following years. 4. Impact on budgets and funding.
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Relevant workforce data is readily available to inform management decision-making on human resource issues.
The structure of the Bank provides scope for the flexible deployment of people and to promote equity, job satisfaction, motivation and commitment to goals; as well as providing access to career development.
3.2
Development is critical to our future business success. Our banks performance will only continue to improve if we develop our people. To develop our people is
to invest in our future. We know you have the motivation to succeed, to be good at your job and progress as far as you can. As Uttara Bank, training is a partnership between the employee and the Bank. The Bank provides a framework within which the employee can identify the training and development needs. Such training provides a consistent standard of management learning throughout Uttara Bank. It also enables the employees to take all of the programs or study for individual modules according to their particular development needs.
1. Induction i.e. the processes that introduces the new entrant to the bank, the employees own business or function and particular department. 2. Training in specific products or technical skills. 3. Work-based assignments in respective business or function i.e. doing a job in a particular department for a period of time. 4. Cross-functional attachments experiencing short period of time spent in another business or support function.
studies and professional qualifications, and the bank also offers the opportunity to develop skills through externally accredited courses. These are designed in conjunction with top universities and business schools including postgraduate, MBA.
Accreditation
Internal
External Schools
Executive Development
MBA
Diploma in Management
Certificate in Management
Foundation Course
Induction Course
3.2.3 Orientation:
Every staff member joining Uttara Bank has to attend a 2-day comprehensive orientation to get a feel about the Bank and its business. This orientation program provides a good chance to meet with seniors & colleagues and to build up the team spirit.
3.2.7 Self-learning:
The bank sends out CDs and books to staff for them to study on trade knowledge , credit knowledge, etc. and staff will decide when he/she will attend the Trade Skill Assessment(TSA) and Credit Skill Assessment (CSA).
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3.3 Recruitment:
The Banks Management Trainee Development Scheme takes place in Dhaka, where they recruit management trainees. Alternatively, candidates can apply to their local cities. It is the aim of management to recruit young, bright, energetic and enthusiastic graduates and post graduates.
1. Bright, young graduate or a postgraduate, who cannot wait to start his/ her career in the financial services industry. 2. Consistent academic performer throughout his/her education. 3. Career-oriented person. 4. Energetic, ambitious, innovative and business-oriented person.
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3.4 Selection:
Uttara Bank selects employee based on knowledge, skills and talent. They are committed to providing equality of opportunity to all employees, regardless of gender, race, nationality, age, disability, ethnic origin, or marital status. They are committed not just to providing equality of opportunity to all employees, but also identifying what unique strengths each individual brings to the roles they carry out and the development of these strengths.
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3.6 Compensation:
At Uttara Bank, the compensation package provided to the employees can be divided into two categories. One comprises of the sales personnel who are compensated on their ability to meet their targets. Second is compensating the executives who are responsible for the overall functions of the Bank.
1. Clearly defining sales goals that are realistic but challenging. 2. Tracking and measuring performance against goals. 3. Rewarding achievement with competitive and motivational compensation.
Sales compensation packages typically comprise one or more of the following components:
1. Base Salary. 2. Periodic incentives tied to short-term goals. 3. Annual Incentives tied to longer-term sales activities.
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1. Base Salary. 2. Annual Incentives. 3. Long-Term Capital Accumulation. 4. Deferred Compensation Arrangements. 5. Supplement Benefits and Perquisites. 6. Special Severance and Retirement Arrangements. 7. Employment and Change of Control Agreements.
3.7
Uttara Bank aims to reward the talented and high performing employees competitively. They regularly conduct salary surveys to ensure that the reward package remains competitive in the market place. They encourage continuous discussion; encourage regular review of employees performance and
development. This provides feedback to the staff about how they are doing. The management links this to both financial and non-financial recognition.
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In addition to this, the bank provides various incentives in the form of bonuses to encourage the employees and motivate them to continue with their high performance. These include:
1. Spot Award + Rs. 5000 as cash prize. 2. Surprise Award. 3. Best Performer Award. 4. Service Quality Award. 5. YES (Year of Excellent Services) Award.
3.8
This means a job that not only is reasonably safe but also for which the pay is equitable. At Uttara Bank every employee in confident of his job security and has the assurance that he would remain on the job for the agreed period. In addition to this, the workload is equitable divided between the employees and therefore, they work with peace of mind and tranquility, resulting in the overall enhanced performance of the employees.
3.9
Mutual Commitment:
Both the employees and the management try to meet the common objectives. They coordinate their activities to ensure that they are heading towards achieving the established goals and meeting the set targets within the specified time frame.
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1. Spot Award + Rs. 5000 as cash prize 2. Surprise Award 3. Best Performance Award 4. Service Quality Award
3.11.6 Ergonomics:
Ergonomics is the study of work. It deals with building a good interface between the man and the machines. Keeping this in view, the Bank has been designed in such a way so that the employees are comfortable working there.
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Performance management is the process through which managers ensure that employee activities and outputs are congruent with the organizations goals. It is central to gaining competitive advantage.
Who: All employees work under the supervision of managers. Therefore, the manager is the best person to do performance appraisal of his subordinates.
What: The appraisal at the organization includes appraisal of current performance as well as the future potential. It also includes evaluation of human traits such as behaviors, interaction with other staff members etc.
Why: It is concerned with creating and maintaining a satisfactory level of performance of employee in the present job, highlighting his needs and potential for personal growth.
When: It is carried out on yearly basis. The manager uses good work as opportunity to provide positive thrust and uses poor work as a basis for training.
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1. Senior officials are recruited to a unified career structure known as Grade A, which incorporates most top-level positions. 2. On the basis of evaluation, the senior position employees are paid a performance bonus.
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Chapter 4: Analysis
4.1 HR Planning:
HR Planning process consists of forecasting, goal setting and strategic planning, and program implementation and evaluation.
HR managers should attempt to ascertain the supply of and demand for various types of human resources. The primary goal is to predict areas within the organization where there will be future labor shortages or surpluses.
As the Bank operates in a dynamic environment where new and advanced practices are frequently emerging resulting in changing customers requirements. Not only this, the demands on existing staff resources fluctuate in order to maintain the provision of services, it becomes even more critical that all managers contribute to HR planning in a structure way.
4.2 Recruitment:
Human Resource Recruitment is defined ad any practice or activity carried on by the organization with the primary purpose of identifying and attracting potential employees.
The goal of an organizational recruitment program is to ensure that the organization has a number of reasonably qualified applicants (who would find the job acceptable) to choose from when a vacancy occurs.
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Uttara Bank recruits the most talented individuals from the external market to supplement our internal pipeline of talent. Their Human Resources department provides guidance on the use of psychometric tests and has robust recruitment criteria to ensure that all candidates are treated fairly, equally and with respect. It has a global Graduate Recruitment Program.
4.3 Selection:
Any organization that intends to compete through people must take the utmost care with how it chooses organizational members. Personnel selection is the process by which companies decide who will or will not be allowed into their organization. Several generic standards should be met in any selection process, which are reliability, validity, generalized ability, utility, and legality.
Uttara Bank selects employees based on knowledge, skills and talent. They are committed to providing equality of opportunity to all employees, regardless of gender, race, nationality, age, disability, ethnic origin, or marital status.
Uttara Bank provides a framework within which the employee can identify the training and development needs. Such training provides a consistent standard of management learning throughout Uttara Bank. It also enables the employees to take all of the programs or study for individual modules according to their particular development needs.
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Development Programs are carried out in the first two years of joining, applicable to all management trainees, across the Bank. Each business and function would decide the appropriate development needs for each individual, within this overall framework.
Performance management is the process through which managers ensure that employee activities and outputs are congruent with the organizations goals. It is central to gaining competitive advantage.
A well-executive performance management plan enables an organization to achieve critical goals such as:
1. Recognize the efforts and contributions of current staff. 2. Reward staff with compensation directly linked to performance. 3. Motivated staff to improve performance. 4. Orient staff towards goal achievement. 5. Retain key employees through the use of competitive compensation programs. 6. Attract quality employees with an effective performance management system.
1. A Formal Compensation Philosophy Statement 2. Salary Administration Program 3. Job Evaluation System
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4.5.2.2 Validity:
According to the employees , the appraisal procedure used to measure their performance lacks in one aspect. This aspect relates to the deficiency element of
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validity. This means that as one standardized formant is used to evaluate performance, therefore it ignores many of the job specific aspects.
4.5.2.3 Reliability:
At Uttara Bank the performance management criteria resembles test-retest reliability. According to this the employees are evaluated on annual basis and those employees who have somewhat similar ratings from year to year have greater chances of getting promotion, bonuses etc. Therefore, the Bank checks the consistency of performance of employees in this manner and determines that which employees have the potential to grow and better serve the customers.
4.5.2.4 Acceptability:
Diverging opinions prevail about the acceptability of the performance appraisal. Some employees accept them to be fair while others believe them to be biased and predetermined. In addition to this the views regarding fairness are perceived differently within the three category including:
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4.5.2.5 Specificity:
One of the major lacking in the performance appraisal method of Uttara Bank is in the area of specificity. Amongst the various levels of employees the performance evaluation is believed not to provide specific guidance about what is expected of them and how they can meet these expectations.
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Employees should be involved in the appraisal process, i.e. information should be taken from them. The process should result in effective outcomes by telling the employees that how can they improve their performance. This would not only benefit the Bank, but would also help the employees in their personal development.
4.6
Compensation:
Being a leading Bank Uttara presents itself to its corporate as well as individual customer as dependent upon the ability of its sales force. These are the individuals who take an active approach in getting the message out about the Banks products and services. How effectively the sales team markets the Bank, and in turn, how successful it is, is directly related to the sales compensation program. A sound sales compensation package enable Uttara Bank to focus sales activities towards desired results, and rewards these outcomes with compensation tied directly to the level of achievement.
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4.7
Uttara Bank rewards the talented and high performing employees competitively. They regularly conduct salary surveys to ensure the reward package remains competitive in the market place. They encourage continuous discussion; encourage regular review of employees performance and development. This provides feedback to the staff about how they are doing. The management links this to both financial and non-financial recognition.
In addition to this, the bank provides various incentives in the form of bonuses to encourage the employees and motivate them to continue with their high performance. These include
1. Spot Award + Rs. 5000 as cash prize. 2. Surprise Award. 3. Best Performance Award. 4. Service Quality Award.
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Chapter 5: Recommendations
Based on the study, several recommendations have been made. These include:
1. In order to successfully conduct the performance measurement process, Uttara Bank should formulate effective internal and external
communication mechanism. 2. A conceptual framework understood by all levels of the bank should be developed. 3. Accountability for results must be clearly defined and well understood. 4. Performance measurement system must provide intelligence for decision makers rather than just compiling data. 5. Compensation, rewards and recognition should be linked to performance measurements. 6. Performance evaluation should be positive and not punitive. 7. Employees should be specific as to what is expected from them so that they direct their efforts towards achieving those expectations. 8. Feedback on the evaluation should be provided to the employees so that they can improve their performance. 9. Lastly, performance measurement systems should not be seen as an end, but a beginning.
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