HRM System of NRBC Bank

Topic : HRM System of NRBC Bank

MGT 351
Sec 15
Faculty initial :FSZ

NAME ID
1. Md. Ikramul Islam 1731373630
2. Tamanna Raisa Islam 1731700630
3. Rafid Haider 1813258030
4. Rakhshanda Mahjabin 1731288030

5. Chowdhury Alvi Ali 1731239630

Letter of Acknowledgement

18th of August, 2019

To

Mrs. Faseeha Zabir Suchi

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Lecturer

Department of Management

North South University.

Mam,

It is our honor to submit our HRM report to you. All the work that has been put into this report
has been done earnestly and we were driven to learn everything we could from overcoming this
massive hurdle. We are immensely grateful for having the opportunity to conduct this research
under your guidance and we would like to acknowledge our gratitude to you and Mr. Md.Haider
Akhlaque . All the members of our group worked with the utmost dedication and are proud to
present you with the testament of our combined efforts.

We have all tried our best to make this paper as precise as possible with the HRM knowledge we
have gained from this course and the information we have collected ourselves. We are extremely
thankful for all the hard work that everyone has put into the project and we wholeheartedly
apologize if any errors show up in our report.

Sincerely,

1. Md. Ikramul Islam

2. Tamanna Raisa Islam

3. Rafid Haider

4. Rakhshanda Mahjabin

5. Chowdhury Alvi Ali

Executive summery

This research has been entirely based on the HRM (Human Resource Management) process of

NRBC. The sole purpose of this project has been to figure out the process of HR (Human

Resources) department which are followed inside the organization. In this report we conducted

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our research mainly based on the interview we had with Mr . Md Akhlaque who is the HR Head

of the department. We vastly described all their strategies, their way of conducting their HR

system in the organization. Questions were strictly related to the relevant topic and to the point.

Here we collected information regarding details about over all HR system like their recruitment

and selection process, training and development opportunities, compensation and benefits etc .

Table of contents

Topic Page no

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Introduction 5-7

Methodology 8

Background information 9-10

Culture of inter personal relationship 11

Current HR system 12-18

Recommendation 19

Conclusion 20

Introduction

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Bank , a financial institution. Which is licensed to receive deposits and make loans. Banks may
also provide financial services, like wealth management, currency exchange, and safe deposit
boxes.

NRB Commercial Bank Limited an energized new generation bank . This is one of the popular
private bank of Bangladesh. Their mission is to devote in creating confidence for investment
among the Bangladeshi expatriates offering them desired services, attractive profitability through
their various financial products.

They wants to be the forerunner in exploiting new sources of fund for addressing the needs of
newly emerged financing areas such as SME financing, factoring, micro finance, IT based
products, housing financing etc.

Bangladesh requires great need for infrastructure development . However, as there are limited
local sources to finance these projects it looks to tap foreign funds mostly from multilateral
donors to implement development . NRBC is taking new ways to gather the foreign funders and
make a connection to our country which is a win situation for our development and economy
both.

They want to create an enabling environment, adopt and nurture carefully a steam-based culture
where people will be motivated to accept banking challenges and to face other competitors.

Their objective is to create opportunities for NRBs to invest their earnings, utilize their
professional expertise development of Bangladesh. They invest in the thrust sector for the overall
economic development.

They want to be a bank of loyal customers and employees by adding values in their financial
lives. They also want to enable humanity through banking by financially enabling mass people
with affordable and relevant financial services.

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They focus on the excellence of manpower efficiency through attractive compensation package
and career plan.

They accomplish the long-cherished dream to have a Bank of their own.

They also look after some core values. Such as,

1.Corporate Governance

2.Creativity-Technological innovation

3.Humanity

4.Trustworthy

5.Loyality

6.Sustainability

NRB Bank maintains a pleasant working environment in its organization. They have some silent
features.

They train their staffs to act with complete integrity towards customers, counter parties and
others with whom they may come into contact.

They set the service standard in a way for the organization that professionalism.

All the information that they use are handled with best care. They also focus on preventing and
avoiding potential conflict of interest that may influence one.

They serve their customers, counter parties and colleagues with due respect.

NRBC Bank wants to be one of the valuable brands in financial market of Bangladesh.

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The bank will focus on some certain issues in the subsequent years.

Will reduce cost of deposit by rearranging of existing deposit mix of the bank. Will also mitigate
credit risk through addressing of proper policy. Maintaining good governance to ensure long
term sustainability of the bank

Methodology

The data collected in this report was done through primary and secondary means.

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Primary Research

 The Harmonized Expectation Indicator (HEI) method is proposed to be used to process

the primary data. This factor in performance reviews for the foregone year, current
situation and expectations for the upcoming year.
 Interview
 Questionnaire

Secondary Research

 News article
 Previous statistics
 Business confidence index

Background Information of NRB Commercial Bank:

NRB means Non-Residential Bangladeshi. The board of directors in this organization are non-
residential Bangladeshis who had a dream to fulfil their love to their country by making it aware

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of modern banking thus they opened up this bank in our country after so many hardships. It was
the long desire of Bangladeshi expertise who lives in different nations all around the world. They
wanted to open this bank to use their hardly earned skills on this organization open up a new
banking system in a trendy way and get rewarded by the development of their own country
through their hard earned asset.

NRBC Bank started its journey on 2nd April, 2013.

By 31st Dec 2018 this bank had 68 branches in operation all across country. In this year bank can
spread its banking system through new branches, banking booth , land registration fee collection
booths etc .

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Culture of Interpersonal Relationship/Team leadership

After talking to the head of HR head of NRBC bank, we got to know that the relationship
between the employees is very friendly. He mentioned that their rules are not very rigid and that
they do not follow very strict rules, except a few. They can always go to each other if they need
any kind of help and they have an ‘open door’ policy. Which means the people in higher
positions always keep their room doors open so if their employees need any kind of help or want
to communicate, they can do it easily without any hesitation. They always encourage
participatory management, according to the head of HR. They have a small team of HR
compared to other banks, which is because they are still a new bank but they all work as a team
which helps them overcome the shortage of man power.

In the bank, when they work in teams they always have a team leader. The team leader initiates
and directs the tasks, helps the other people in the team and not only that, he also actively
participates in completing the task as efficiently as possible. The team leaders act like coaches or
mentors and the leader motivates his team mates to do their tasks properly and meet the business
target of the company. If a team leader wants to do the job all alone and take all the credits for it,
the team actually lags behind and it is not efficient at all. Therefore, NRBC bank has team
leaders for each department who not only works as a member but also as an active participant to
finish the tasks in due time with the rest of the team.

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Current HR system

 Recruitment process : Recruitment is defined as, “a process to discover the sources of

manpower to meet the requirements of the staffing schedule and to employ effective measures
for attracting that manpower in adequate numbers to facilitate effective selection of an efficient
workforce”. NRBC bank’s recruitment process is the most vital component of the organization,
because the nature of this business is service oriented. Quality relies upon the capability and the
nature of officers and officials. The selection and recruitment process should be thorough and
well structured

 Job Requirement of NRBC:

 Academic Qualifications: Applicant should have 4 years of graduation in

Finance/Accounting/ Management/ Marketing/ Banking/ Economics/ MIS/ Statistics/
Mathematics/English /IR/ Law/Engineering (EEE, Civil, Mechanics, Computer Science)
from reputed University.

 Applicants should have strong computer skills in MS office.

 Applicants should have proficiency both in Bengali and English.
 Applicant must have the mentality to work anywhere in the country.

For Professional/Experienced Bankers:

 An HR manager’s duty is to ensure that an appropriate manager and/or employee is selected
for a task. Selecting a wrong/right manager is important because a good manager can ensure
more customers, since a bank’s main competitive advantage stems from its manager’s ability
to retain and maintain loyal customers.
 Professional bankers are put through 2-3 interviews. These interviews often focus on how
many customers the manager can potentially handle/serve. Regional needs are often the basic
criteria of selecting an appropriate manager. The needs of a rural branch of the bank will be
different from the needs of a posh/sophisticated urban area branch. Therefore, it is necessary
to select a manager based on regional needs.
 Qualitative degrees from reputable universities are not necessarily preferred due to incidents
in the past where foreign university graduate working in the corporation produced subpar
results and had to be moved elsewhere eventually.

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 Selection process : The selection process of NRB is purely based on merit. After the
schedule is set, every applicant has to sit for a Competitive Written Test. The questions are from
general subjects such as, English, Mathematics, General Knowledge, and Critical Analysis. To
be eligible for the interview the candidate must earn the minimum requirement of 50% mark in
written Test. Total number of selected candidate for interview is determined by the selection
committee but it is usually four times the required available position. If the preliminary interview
is successful then the selected candidates have to face a final interview. For the final interview,
the candidates are evaluated in the following criteria:

 Appearance and Attitude such as dress up, grooming, body language and eye
contact.
 Interpersonal skills such as Communication, Language, Expression.
 Confidence, Enthusiasm, Personal selling.
 Creativity and Situational knowledge.

Training & Development

Training can differ depending on the training requirements, the work environment and the
preference of the employer and employee. The primary objectives of training are the following:

 Develop managers and leaders

 Help employees develop technical skills
 Train all employees globally in one cohesive way
 Support career development for employees

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The benefits of continued education compound with time. It’s through long-term employee
training and development programs that companies reap the most significant return.

 Employee Orientation

Employee orientation is part of a long-term investment in a new employee. It is an initial process

that provides easy access to basic information, programs and services, gives clarification and
allows new employees to take an active role in their organization. Successful employee training
and development programs go beyond the standard new hire orientation. They aren’t sporadic
courses that employees occasionally take as needed. It’s taking a strategic, organized, systematic
approach to training that aligns individual growth with business goals. Employee orientation is
an excellent tool to:

 Introduce new employees to their new environment

 Make new employees feel welcome and comfortable
 Retain a pool of new, capable employees

NRB Commercial Bank Ltd. arranges its orientation program in a very formal way. The newly
selected employees are invited at the corporate branch of this bank. Here the new employees are
informed about their job objectives, job goals, job responsibilities, job hours and the rules and
regulations to follow. They are also informed about what actions would be taken if they violate
these rules. They are provided with a handbook manual which cover up the organization
orientation of this bank. From it the employees get to know about the company’s history, culture,
philosophy, goals, procedures and rules. It also includes the HR policies of the bank.

Training Procedures

NRB provides both the management trainee officer and probationary officer with foundation
course in which it covers the general and specific training of the bank. This training is about the
task that the organization has to handle. The training duration is about 30-45 days. After training

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the both management trainee officer and probationary officer assigned with their specific task
which they are going to perform and the tasks that are assigned is mainly based on their
performance which is measured by their supervisor in terms of interviewing the trainee daily at
the end of the day and even the trainees are asked to provide a weekly or monthly report. NRB
also offer both management trainee officer and probationary officer to do BIBM (Bangladesh
Institute of Bank Management) training which is conducted by BIBM itself.

 Employee training method:

NRB has two types of Training Method. These are –

1. On the Job Training

2. Off the Job Training

 On the Job Training:

After joining, the employees obtain their job and position description and experience on the job
training process. In this process, workers determine how to do their activities by actually
performing. Employees get co-operation from their peers and supervisors to ensure satisfactory
performance.

 Job Rotation: In NRB Commercial Bank, the employees move to different positions in an
organization in an effort to expand their knowledge, skills and abilities. For example, an
employee who previously worked in the accounts department might be rotated to foreign
exchange department.

 Experimental Exercises: Sometimes employees participate in simulations, role playing and

other face-to-face types of training.

 Classroom training: In NRB, there are well equipped classrooms where employees get to
attend lectures designed to convey specific information

Off the Job Training:

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Outsourcing: NRB offers off the job training for the both Management Trainee Officer and
Probationary Officer when BIBM conducts a training session to be updated on specific task. To
learn the updated task, NRB sends its employees. This type of training mostly held at the end of
each year.

 Need Based Training: This kind of training is determined after assessing employee’s current
knowledge and organizational performance. After that, the employees are engaged with specific
training programs according to their needs. The employees are also trained to be acquainted with
the latest trends and advancement in the field of technology and product innovation.

 For managerial training/succession planning:

An annual/after Eid program is hosted for employees who want to become, or has the potential to
become, managers, such as Managers or Operations Manager.

Training is not only provided to office workers and Operations Managers, but to Managers as
well. As a result, succession becomes easier especially if a new manager has to replace an older
one, a smoother process could be implemented.

 Internship: Every year, NRB Commercial Bank recruits students from well-known
universities in Bangladesh who are further hoping to land permanent position in the company.
NRBs understudies and internship give them a chance to increase their hands-on experience that
gives them a chance to put their knowledge and education to use. After the internship period,
students are offered jobs based on their performance and academic accomplishments.

 Performance Appraisal

NRB Bank Limited used to follow and implement an Annual Confidentiality Report, which is a
conventional way of grading employees. As per this report, grading occurs as follows for the
employees:

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 Candidates with a:- Masters Degree – 5 points; Bachelor’s Degree – 4 points;

 Employees that meet and fulfill business targets.

 Most importantly, grading based on Manager’s opinion and recommendation of the

employee.

However, due to shortcomings and narrow-sightedness of the process, a newer and more
advanced method of performance appraisal is implemented called Key Performance Indicators.
This process is strictly job based, for example, how many files/clients an employee can handle in
a given time. The process solely relies on the performance of the employee and not how well the
employee copes with organizational culture and impressing their superiors.

For higher-ups, such as Regional Managers and such, usually a yearly deposit target is provided,
for example: Tk. 1 crore during a given fiscal period.

Benefits offered

The NRBC bank also provides quite a few benefits for their employees. Their benefit policies are
listed as follows:

 Reward: This is based on their performance on achieving the business targets. :

Employees and Managers who perform the best are rewarded with cash benefits as well
as accelerated promotion option. Usually, a promotion is awarded every 3 years.
However, exceeding performance standards results in employees receiving promotion
much sooner than 3 years, where, for example, 10 employees received promotions both in
2018 and 2019 due to exceeding achievements.

 Incentives: In a 15/30 days campaign where employees are given tasks of collecting
certain amounts of deposits for the bank, where cash benefits are provided.
 Annual rewards: Incentives and rewards in terms of profit maximization targets.

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 Bonus: on festivals/ religious holidays

 Leaves: Yearly 15 days compulsory leave provided, 6 months maternity leave for
women, men are provided with parenthood leave as well, 13 days casual leave and they
also have sick leaves
 Privileged leave: If an employee does not take a 3 day leave in a month, that leave’s
worth of payment is provided to the employee.
 Vacation: Employees get twice their basic salaries during paid vacations(no fixed
timings)
 Insurance: health insurance for employees
 Severance pay: 3 month’s salary is paid to the employees on early termination of
contract
 Provident fund: If the basic is Tk. 200,000 then Tk. 20,000 from the employee salary
goes to a savings account and the firm adds the same amount of money.
 Gratuity fund: 4 months’ worth of salary is provided for 5 years of work time
 Subsidized childcare: This is provided on the recommendation of Bangladesh bank.
Motijheel branch (Headquarters) gets Tk. 450, 000 per year allocated for up to 4 children.

 Punishments: Although NRB Bank has to avoid “inhumane” forms of punishment where
an employee could be humiliated or could face problems in their career, certain forms of
consequences are placed for employees who are constantly under-performing. In most
cases, these employees are encouraged or nudged to leave the company in a given period
of time. Otherwise, in the job market, the company could establish a negative image to its
job-providing facilities as being an overly-harsh company where employees are fired due
to shortcomings instead of being given chances or trainings.

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Recommendation

 They should to extend the recruitment process to pull a competent pool of candidates
using business-situated social networking services like LinkedIn to abstain from hiring
employees that are less equipped.

 An HR counseling cell can be established by the HR department to provide counseling

and information to the employees regarding to HR issues. This will certainly increase the
motivation and confidence level of the employees.

 Modernization and amendment of the HR policies and strategies are vital for any
association as the world is getting progressively broadened step by step. The HR
department of NRBC is limited. they should consistently screen the progressions
occurring around and alter the approaches to coordinate the changed situation

 Increase the promotional appearance frequency in the electronic media.

 Should follow-up on the basis of market response research.

 The overall revenue increment can be increased to motivate employees more and that
increases the chance of be market leader within shortest possible time.

 They should expand the HR department and employ more employees

 Before ending probationary period HR department should keep contacts that are more
frequent with the line manager to ensure the new employees are on the right track.

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Conclusion

NRB Bank is a comparatively, moderately new bank in Bangladesh. Although lately, due to an
economic downturn, the financial sector of the country has been underperforming, NRB Bank
has been successfully running their businesses smoothly, especially without any major setbacks
or reputational damages.

The HR Department of the company, although relatively small compared to other large banks in
the country, has been a significantly important factor that helped shape the company to what it is
today, and will be continuing to do so in the future, given that they keep innovating and
improving at the rate that they have been in the past few years. The department has been doing
many things right and better than most competitors, especially regarding recruitment, training
and performance appraisal. Following up on their small shortcomings could help them achieve
much more than the company already has, and shape a much more successful and competitive
future where graduates will be looking forward to working both in the company, as well as in the
HR department.

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References :

Annual report of NRBC bank 2018

https://www.nrbcommercialbank.com/

Work performed by group

1.Md. Ikramul Islam : Methodology , Recommendation , letter of

acknowledgement , online Research ,executive summery .

2. Tamanna Raisa Islam : Culture of Interpersonal Relationship/Team leadership,

Benefits offered, Attended the interview.

3. Rafid Haider : Research ,Some HRM systems parts, Conclusion, performance

appraisal

4. Rakhshanda Mahjabin : Introduction , Back ground info

5. Chowdhury Alvi Ali : Current HRM system , Attended the interview , Merging/
formatting , table of contents , overall system checking and adding contents .

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