Project Report

MGT 351, Sec: 2

Prepared For:
Md. Al-Amin (Mli)
Lecturer, North-South University

Prepared By:
 Mohammad Yeasin Maruf 1420377030
 Ayesha Feroz Roza 1711541630
 Md. Akib Javed 1510887030
 Sabrina Islam Trisha 1521042630
 Md Ali Mamun 1512516030

Project on: Different HRM practices in a company

Company Name: Prime Bank Limited

Different HR Practices of Prime Bank Limited

Different HR Practices of
Prime Bank Limited

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Different HR Practices of Prime Bank Limited

LETTER OF TRANSMITTAL

1st September, 2018

Mr. Md. Al-Amin (Mli)
Lecturer, Management Department,
North South University Bangladesh.

Subject: Submission of the project report on 'Different HR practices in Prime Bank Limited'.

Dear Sir,
It is an honor and a great pleasure for us to present our report on 'Different HR practices in
Prime Bank Limited' as the part of our MGT 351 Course. By this report we have got the
opportunity to experience and apply our theoretical expertise, sharpies our views, ideas,
communication skills and bride them with the real world of practical experience.

We shall be highly encouraged, if you are kind enough to receive this report. If you have any
further enquiry concerning any additional information we would be very pleased to clarify
that. We hope you will find the report paper presented in an appropriate manner. We deeply
appreciate your cooperation.
Thanking you and looking forward to receive your cordial approval of our submission.

With best regards,

Mohammad Yeasin Maruf
Ayesha Feroz Roza
Md. Akib Javed
Sabrina Islam Trisha
Md Ali Mamun

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Different HR Practices of Prime Bank Limited

Executive Summary

Finding the right man for a job and progressing him into a worthwhile resource is an
essential requirement of every organization. Proper recruitment helps an
organization to effectively achieve the objectives of the enterprise. In this report, we
explored about how PBL harness their human energies through the means of HR
management. We interviewed MD. Feroz Al Azad, the SEVP in PBL to learn
detailed HR functions. This report consists both primary and secondary data. We
studied articles and reports on PBL available online for further data.

Before going to the analysis, we gathered some knowledge about the bank. For this purpose,
an overview of the PBL has been made. Here the focus point was on history, product/service
offerings, operational network organogram and visions for the future.

PBL has been profitable from the very beginning of its journey and the crucial
reason behind it has been the employees. Firstly, the PBL’s recruitment process
and from it recruits is elaborated. Followed by, how the candidates are screen out
by passing written tests and reaches the interview is explained. Thirdly, after
workers are selected how training is utilized to make them more comfortable to
workplace is analyzed. Later, we talked about the performance appraisal methods
and benefits offered which are implemented to make employees awarded for their
services. In short, we tried to examine what PBL does to create trust with
personnel to obtain their service in this competitive environment.

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Different HR Practices of Prime Bank Limited

Table of Content

Serial number Content Page number

i. Introduction 5
ii. Methodology 5
iii. Background Information about the company 6
iv. Current HR activities
SHRM 7
Recruitment 8
Selection process 10
Training & Development 13
Performance Appraisal 14
Benefit offered 15
v. Recommendations 16
vi. Conclusion 17
vii. References and Appendix 18

Introduction

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Different HR Practices of Prime Bank Limited

To know about the HR activities of a well known organization it was mandatory to conduct a
face-to-face interview and to analyze the information got by conducting that interview. By
doing this project we got the opportunity to take an interview of the Vice President of Prime
Bank who helped us to increase our knowledge about the HR activities of the Bank. After
taking the interview when we analyzed the information got by the Vice President and also
from the internet, our view regarding HR practices and policies got improved. In this report
we've tried to analyze and discuss about Prime Bank's HR practices and policies so that we
can make a reflection of the knowledge that we gathered by doing this project.

Methodology

In order to carry out this report, we obtained information from two sources: primary and
secondary. Firstly, we had a face-to-face interview with MD. Feroz Al Azad- the EVP, Head
of Risk Management Division. Four of the group members, personally visited the head office
of PBL and inquired the interviewee to learn about HR functions, elaborately. He informed us
about the general and core activities like human resource forecasting, selection, recruitment,
interview, training and performance appraisal.
For further help, we visited PBL website for more information. Then we examined through
journals, articles and previous reports carried out on PBL. We attached some diagrams and
charts for increased knowledge.

Company Background

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Different HR Practices of Prime Bank Limited

As a fully licensed bank, PBL has a successful journey for 23 years starting on 19 th April
1995. All its initiatives are reputed in the field of trade and commerce. Together with its
subsidiaries, PBL offers a range of commercial products and services- consumer banking,
Islamic banking, wholesale banking, MSME banking, NRM banking- both in Bangladesh and
internationally. Due to very low employee turnover, PBL is managed by trustworthy and
highly professional team. PBL is greatly prosperous in understanding and anticipating
consumer needs. The bank has been marked as the top-class bank in the country through
internationally accepted CAMELS rating. From the beginning in order to reach the maximum
customers, they gave significant importance on technology.

VISION
To be the best Private Commercial Bank in terms of efficiency, capital adequacy, asset
quality, sound management and profitability having strong liquidity.
MISSION
To build Prime Bank Limited into an efficient, market-driven, customer focused institution
with good corporate governance structure. Continuous improvement of its business policies,
procedure and efficiency through integration of technology at all levels.
HR VISION
Managing an organizational culture where employees enjoy working with pride and are
strongly motivated to gain and maintain professional excellence to convert human resource to
human capital.

Strategic Human Resource Management (SHRM)

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Different HR Practices of Prime Bank Limited

The strategies for Human Resource Management generally indicates the formulation and
execution of human resource policies and practices to achieve organization's goals by
producing employee competencies and behaviors that the company need. Prime Bank has
some strategies to maintain its HRM processes which aligns its business strategy with the
company's human resource practices. To strategically align the goals and human resource
practices the company introduced some HR principles.

 Talent Resourcing
The first thing that come up with their HR practices is the talent based resourcing of
employees. Prime Bank always look for candidates who have a high potential and a
wide shoulder to undertake the future leadership of the Bank. Their careful selection
criteria involve fair policy and a set of steps to find the right candidate they look for.
To develop their employees they have different programs covering on-the-job and off-
the-job training at home and abroad. After joining in any stream of banking well-
balanced job rotation and training are ensured.

 Fair Evaluation System

The evaluation system that the company follows clearly links individual performance
to their business goals and priorities. By the open and fair evaluation system almost
each employee has well defined reporting relationships. The company always
promote self rating by which is a part of their process. They have managed to bring an
evaluating system which is based on the records of periodic counseling and
achievements of the employees tracked over the year.

 Compensation Package
Prime Bank offers a rewarding system with a higher compensation and benefits
package which matches the desire of the employees. The rewarding system includes
basic salary, provident fund, gratuity, housing allowance, medical allowance,
conveyance allowance, group insurance, employees welfare fund, etc. The
competitive compensation package match individual job role and designation as per
the banking policy.

 Working Environment

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Different HR Practices of Prime Bank Limited

The bank always value team collaboration. They believe that the world has been
shifted to team success from individual brilliance. Sometimes a target is easy for a
team where it is tough for an individual. So, because of giving importance to the team
work a brotherhood remains in the working environment of the bank.

 Sharing of Knowledge
The employees of Prime bank follows a tradition to share knowledge among
themselves for the improvement of the company decisions. Prime Bank promote,
recognize and execute great ideas. They believe that the employees are the source of
innovative ideas. So the bank has a system of knowledge sharing, suggestion box,
open house discussion and employee-management meets to source the ideas.

Recruitment Process of Prime Bank Limited

The recruitment process is very important for any successful organization. If the recruitment
process is not good enough then a company can end up having a lot of inefficient employees
and workers who will not be able focus on the organization's goals. Prime Bank follows a
very unique and efficient recruitment process by which they get finest employees for their
branches and offices.

The recruitment process of Prime Bank starts with advertisements in newspapers which
include Job Description and Job Specification. Before such advertisements Prime Bank
conduct personnel planning by which they get to know how much employees they need and
what should be their qualities. For personnel planning Prime Bank use Trend Analysis
techniques.

To know about the demand of the future human resources, the HR division of Prime Bank
usually provides a general form to all of the divisions and branches at the beginning of the
year. By collecting the information from these forms, the HR division can make an
estimation of the human resource requirement for the year. There is no long term human
resource forecasting done by Prime Bank.

Trend Analysis for Recruitment:

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Different HR Practices of Prime Bank Limited

Year Number of Branches Number of Employees

2008 70 1551

2009 80 1639

2010 84 1844

2011 86 1978

2012 90 2158

Sources of Recruitment:

Prime Bank generally recruits employees from two sources. It recruits employees both
internally and externally.

Internal Recruitment:

Prime Bank recruits most of its employees by internal recruitment. The internal recruitment is
basically done by promoting employees. When an employee get employed in an organization
he/she hopes for promotion if he/she is working for a long period of time. In Prime Bank
promotion is only given to employees who worked hard for the organization. Sometimes it is
also given by looking at the working period and experience gathered by the employee.

Internal recruitment is only possible when an upper level employee retires or leave the job.
When a upper level position is vacant or ready to vacant the bank immediately plans to
promote someone from the existing employees. If the candidates are not qualified enough or
cannot meet the requirement that post then only the bank recruit externally. The bank conduct
succession planning to fill up any upper level vacant post. By succession planning the bank
analyze who will be perfect for which post and who are going to get promotion in those posts.

External Recruitment:

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Different HR Practices of Prime Bank Limited

External recruitment is basically done when the lower level posts get vacant because of
promoting the upper level employees or when the bank opens up new branches. From
previous data we can see that the bank usually opens up new branches in every year and as
the number of branches increase the number of employees also increase because of the
creation of new vacancies.

To recruit externally Prime Bank generally follows the traditional recruitment policy. That is
giving advertisements in the national newspapers. Another way can be putting advertisements
in the job hunting websites. When Prime Bank put any advertisement for hiring it includes
the job description and job specification with the advertisement so that the candidates can get
to know what qualifications they will need to compete for that job.

Now a days it is less likely to put advertisements in the job hunting sites by the renowned and
well reputed organizations. Because the employment rate in Bangladesh is very low and there
are thousands of unemployed people out there who need job. When an organization give
advertisement in the job hunting sites thousands of people apply for a single job. So it
become so difficult for the organization to decide which candidates will be perfect for them.

The Selection Process of Prime Bank

To select the best candidates from the applicants Prime Bank has its own unique strategy. To
select the candidates the bank follows a process of selection. The overall process is divided
into many steps. The steps of selection process are as follows:

 Applying for the job by the candidates:

To get a job the first thing we need to do is to apply for that job. When Prime Bank
advertises its vacancies they get thousands of applications. The candidates first send
their CVs for a specific vacancy. The HR division of Prime Bank collects all job
applications and reserves them for sorting and screening.

 Screening of Application and Informing the Candidates:

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Different HR Practices of Prime Bank Limited

The next step that is done by the HR division is screening of the applications and
short listing the most appropriate applications. This is done because not all applicants
are suitable for the interview and the Bank cannot take tests or interview thousands of
applicants. When the candidates are short listed for the test or interview they get
notified by the bank authority. Normally a date is announced for test or interview.

 Written Tests:
The bank take a written exam of the candidates who are willing to get the job and
successfully got short listed by the bank. Generally the test measures the candidates'
verbal ability, numerical ability, reasoning ability etc. The written test is designed by
IBA/BIBM on behalf of the Bank and the HR division of the bank provide them the
information about the academic qualification needed for the job so that they can make
test questions depending on the criteria.

 Interview:
The candidates who successfully pass the written test are welcomed for the interview.
Very few candidates get the chance to seat for an interview compared to the total
number of applicants. The interview done by the HR division is basically structured
and interview type is panel interview. The interview board consist of the Managing
Director, Deputy Managing Director and Head of HR. The top level managers are
also present even in the selection of fresh graduates.

 Selection of Candidates for the Job:

After conducting the interview the candidates are finally get selected for the job. The
HR of Prime Bank only select the best candidates from the interviewees. The
interviewers are so experienced that they can successfully identify the best candidates
from all. The persons who have a great speaking ability in both Bengali and English,
have a greater personality, have an ambition to be successful in life and hard working
are selected for the job. The person who are selected by the bank get an 'Offer Letter'
form the bank. If the candidates accept the offer an 'Appointment Letter' is given to
each of them.

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Different HR Practices of Prime Bank Limited

The Selection Process

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Different HR Practices of Prime Bank Limited

Training and development Process of Prime Bank

Prime Bank basically trains its employees in two ways. The first way is on the job training
and the second way is off the job training.

On the Job Training

The bank provides on the job training to its senior employees and managers on the job sites
of the bank. By on the job training employees get to know how to perform job and they are
allowed to it under the supervision of the trainers. Prime Bank provides three kinds of on the
job training.

 Job Instruction Training:

With job instruction training Prime Bank let its employees to learn how to perform a
job. A detail instruction is given by the trainers to the trainees during the job so that
they can do the same thing again and again to become perfect.
 Job Rotation:
Job rotation is the common form of on the job training for the employees of Prime
Bank. By job rotation an employee learn different jobs in a work unit and perform
them for a period of time. One example of Job Rotation can be the rotation of officers
from the General Banking Department to Investment Department.
 Apprenticeship Training:
Apprenticeship training is basically provided to the new employees of the Bank. The
bank employs some persons as apprentice so that the bank can train them in its own
way. The person who survives well as an apprentice he/she can be made permanent
by the bank authority.

Off the Job Training

Prime Bank gives importance to off the job training as well as on the job training. It provides
its employees off the job training to develop their work standard. The corporate world is
changing faster than before. There are a lot of things an employee should know to survive in
the industry. When Bank don't have enough ability and resources to train the employees on
the job only then the bank arranges off the job training.

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Different HR Practices of Prime Bank Limited

 Conferences and seminars:

Conferences and seminars both inside and outside country take place to train the
employees of the Bank. Only the officers who need to join the conference get the
opportunity to attend. Not all employees can attend the conferences and seminars. In a
conference or a seminars the experienced senior officers shares their knowledge and
experience with comparatively less experienced employees.
 HR Training and Development Center:
Prime Bank has its own training and development center to give training to its
employees. With this training and development centers they give training to both their
new and old employees.

Performance Appraisal

A performance appraisal is a review of an employee’s job on the basis of pre-set standards. A

supervisor monitors the periodic work of a subordinate and looks out for their skills,
achievements, quality of work, quantity of work, absenteeism and mistakes made. This
annual review helps organization to provide feedback to workers on the areas they need to
improve, feeds into organizational annual pay and grading decisions, and also helps in
deciding who needs to be promoted, demoted or sacked-off.

Like all other banks, PBL also evaluates their employee on yearly performance against the
year-end target. At the beginning of the year, employer informs them about the milestone’s
workers need to acquire. These targets are aligned with the strategic mission and objectives
of PBL. After turning the overall firm goals to departmental goals, supervisor further
converts them to individual targets which includes project deadlines and standards. This
overall process to appraise is known as Management by Objectives (MBO). Besides this,
Alteration Ranking Method is applied too. It is where personnel are ranked from best to
worst. It helps bank to select employee easily in case of an important project. Other than this,
employees are able to self-rate.

A panel is opened online where workers rank themselves. To ensure more proper assessment
higher level supervisor counsels the periodic employee track, guided by Human resource

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Different HR Practices of Prime Bank Limited

Division. Later, this ranking is used for classifying who will get what percent of the annual
performance bonus. Bell Curving is also put in action of assessing personnel. Here, PBL has
5 bands for workers- Excellent, Very Good, Good, Satisfactory and Marginal. Top 15% in a
group are marked as ‘Excellent’ and bottom 15% as ‘Marginal’. These all helps for deciding
pay increase and promotion.

However, as per the interviewee many vital helpful methods are not yet implemented which
are already in use in MNCs like SCB, HSBC. PBL HR management is on the verge of
introducing them, shortly.

Employee Service Benefits

Employee benefits are also known as perks or fringe benefits which are indirect and non-
salary compensation, varying from company to company. Some are mandated by law and
others are offered by firms for enhanced employee satisfaction. The following facilities are
provided by PBL:

 BONUS
FESTIVE BONUS: All regular employees are entitled to 3 festival bonuses- 2 on the
Eid occasions and 1 on the Pohela Boishakh. These are paid irrespective of the
religion being performed by the personnel. The Eid bonus worth a month’s basic pay,
whereas the incentive in Pohela Boishakh is only 20% of basic payment.
PERFORMANCE BONUS: Based on some criteria like team’s success and individual
performance, the high performers’ are awarded a part of the overall bank’s
profitability. Even this performer’s profiles are made visible company-wide.

 PROVIDENT FUND
It is where any employee saves a small part of monthly salary, in PBL 10% of basic
salary, and the same amount is also injected in this incentive by bank. In addition to it,
PBL provides interest too higher than usual customers. It is then provided when one
leaves or retires. If the employee leaves after 3 years then receive 50% from bank of
one what he saved, and enjoys full contribution exiting after 5 years.

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Different HR Practices of Prime Bank Limited

 GRATUITY
After serving PBL for5 years, employees are liable to this fund. It is a monetary
benefit awarded for the workers service on the time of retirement. After 5 th year
service, it is calculated by multiplying the amount of last drawn monthly basics with
the number of years served while retiring.

 MEDICAL ALLOWANCE
Besides monthly dispense of medical expenses, PBL also grant a lump-sum amount in
case of any major operation or unwanted accident.

 HOLIDAYS, VACATION& LEAVE

Employee enjoy all the government holidays. Apart from these, they are allowed to
take 12 consecutive days leave which is known as mandatory leave or annual leave.
The casual leave includes of around 12-14 days for sickness, accidents and family
issues. All of these leaves are paid.

 PARENTAL LEAVE
Women workers who are expecting are eligible for 6 months leave along with full
salary and after joining they will hold the same position. Recently, PBL entitles male
workers of 12 days leave too after birth of their child.

 STAFF HOUSUE BUILDING & CAR LOAN

All staff are allowed to take loan at a very preferential rate of 5% for housing and car.
Whereas, customers are charged 10% of interest rate.

Recommendations
Prime Bank looks like a perfect bank in a general overview. But there is no organization in
the world which is hundred percent perfect. There are some lacking in the strategies and
practices of an organization which are not open to all. Prime Bank also have some lacking in
understanding its employees need and providing effective solutions to problems related to
employees. Its HR division is not performing effectively. There are some recommendations
for the bank so that they can perform well.

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Different HR Practices of Prime Bank Limited

 The bank should make the training mandatory for its employees and their must be
some kind of evaluation of the training program.
 It is seen that most of the time the employees are not ready for the training program.
In a training program not all things can be discussed due to lack of time. Employees
need to have some basics to understand the training program. The bank should
provide resourceful update and understandable material prior to training so that the
employees can practice some basics at home and get ready for the actual training.
 The training program should be more participating. If some of the employees don't
participate in the discussion session then they will not be able to learn everything
well.
 The training and development program should conducted in routine basis.
 The reward system should be made more effective so that every employee can feel the
need to develop their skills and knowledge and try to perform well.

Conclusion

The success of any bank depends on the performance of its employees. To perform well the
employees need to be more knowledgeable, challenge loving and hard working. Who will be
the best candidates to work for the bank is decided fully by the HR department of that bank.
If the HR department is well organized and can plan everything well and can do everything as
their plan then they will end up having good quality employees who will help the bank to
achieve its goals at the end of the day.

By this report we got the opportunity to learn how an HR department works. The HR
department of Prime Bank is not well organized enough like more of the country's other
organizations but it is improving day by day. As the importance of HR is realized by most of
the organization, they are trying to form their own effective HR. So learning about HR
activities became more important. By doing this project we've learned about the HR activities
more precisely.

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Different HR Practices of Prime Bank Limited

References

1. https://www.primebank.com.bd
2. http://www.assignmentpoint.com/business/banking/recruitment-and-selection-process-of-
prime-bank-limited.html
3. https://www.slideshare.net/MDTOUFIQHASANANIK/hr-selection-process-of-prime-
bank-bangladesh

Appendix

Picture With the Vice Pesident

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