1.1 Introduction of Report
Bank Asia Limited is a scheduled commercial bank in the private sector established under the Banking Company Act 1991 and incorporated in Bangladesh as a public limited company under the Companies Act 1994, on September 28, 1999. Bank Asia Limited is a new entrant in the private banking scenario of Bangladesh. The bank started its journey on November 27, 1999 when the Honorable Prime Minister, Sheikh Hasina inaugurated Bank Asia's corporate office at Rangs Bhaban, on the Old Airport road. Bank Asia has been launched by a group of successful entrepreneurs with recognized standing in the society. The initial paid up capital of the Bank is over Tk. 218.00 million. The management of the Bank consists of a team led by senior bankers with vast experience in national and international markets. Bank Asia Limited conducts all types of commercial banking activities. The core business of the bank comprises of import, export, working capital finance and corporate finance. The bank is also rendering personal credit, services related to local and foreign remittances. The “Personal Credit” scheme of the bank, which is designed to help the fixed income group in raising standard of living is competitively priced and has been widely appreciated by the customers. The bank’s strategy is to gradually cover the total arena of banking.
Within a short span of time, Bank Asia Limited has established itself as one of the fast growing local private banks. It has at present a network of 44 branches serving many of the leading corporate houses, small and medium enterprises and individuals. In 2001, the bank set a milestone by acquiring the business operations of the Bank of Nova Scotia in Dhaka, first in the banking history of Bangladesh. Again in 2002, the bank acquired the Bangladesh operations of Muslim Commercial Bank Ltd. (MCB) of Pakistan. In the year of 2003, the bank went public by offering shares to the general investor and in 2004 the bank listed itself with the stock exchange.
1.2 Objectives of the Report
To learn about the performance appraisal system of Bank Asia.
To know the inner side of the Bank Asia banking culture.
Provide information on Bank Asia Limited.
To find out the corporate social responsibility of Bank Asia.
1.3 Rationale of the Study
The study was conducted to know about the different functions of performance appraisal system of the Bank Asia Limited. Around 450 employees are work here, so we try to find how the HRM department in the Bank Asia Limited evaluates their employee performance and motivate their employee to perform better. We also try to find out what type of performance appraisal system active in Bank Asia Limited, some of the past HR strategies and information that I collected from the organization.
Data sources: The primary data has been collected from face to face interview, and the secondary data has been collected from their annual reports and from web sites. The main source of data was secondary though primary data sources were also utilized.
Personal observation of the manufacturing process.
Informal interview with the machine workers.
Various records of the bank.
Different Types of brochures.
Website of Bank Asia Limited.
Different newsletters of Bank Asia.
Personal files of the employee’s
1.5 Scope of the Study
There are some confidential things in performance appraisal system. So the scopes are limited. The first scope of this report is to have practical experience about how HRM is work to motivate their employee in Bank Asia Limited. It has the scope to cover different aspects of Human Resource Management, which include learn about performance appraisal system, reward, training and development. I discuss only one organization throughout this report on Bank Asia limited. The scope of the report was to get a real life exposure. We have got the opportunity to observe what is actually happening in a company, how they are using the performance appraisal system and also influence them can have over the development of the employee performance in the organization.
The following are the limitations faced by me during the course of the study.Short of time:
Time shortage is a big constrains. So the time constraint of the study hindering the course of vast area and time for preparing a report within the mentioned period is really difficult.
Busy working environment:
The officials had some times been unable to provide information because of their huge routine work. Lack of enough cooperation due to high workload.
Due to conservatism in sharing data due to high information Security of the organization, any statistical data or other relevant data cannot be included since survey is quite restricted. Some desired information could not be collected due to confidentially of business like compensation & some of the training. Sensitive company information cannot be displayed in this report.
2.1 History of Bank Asia Limited
Bank Asia has been launched by a group of successful entrepreneurs with recognized standing in the society. The management of the Bank consists of a team led by senior bankers with decades of experience in national and international markets. The senior management team is ably supported by a group of professionals many of whom have exposure in the international market. It set milestone by acquiring the business operations of the Bank of Nova Scotia in Dhaka, first in the banking history of Bangladesh. It again repeated the performance by acquiring the Bangladesh operations of Muslim Commercial Bank Ltd. (MCB), a Pakistani bank. In the year 2003 the Bank again came to the limelight with oversubscription of the Initial Public Offering of the shares of the Bank, which was a record (55 times) in our capital market's history and its shares commands respectable premium. The asset and liability growth has been remarkable. Bank Asia has been actively participating in the local money market as well as foreign currency market without exposing the Bank to vulnerable positions. The Bank's investment in Treasury Bills and other securities went up noticeably opening up opportunities for enhancing income in the context of a regime of gradual interest rate decline. Bank Asia Limited started its service with a vision to serve people with modern and innovative banking products and services at affordable charge. Being parallel to the cutting edge technology the Bank is offering online banking with added delivery channels like ATM, Tele-banking, SMS and Net Banking. And as part of the bank's commitment to provide all modern and value added banking service in keeping with the very best standard in a globalized world.
2.2 Mission Statement of BAL
To assist in bringing high quality of service to customers and to participate in the growth and expansion of our national economy. To set high standards of integrity and bring total satisfaction to clients, shareholders and employees. To become the most sought after bank in the country, rendering technology driven. Innovative services by dedicated team of professionals.
2.3 Vision Statement of BAL
Bank Asia’s vision is to have a poverty free Bangladesh in course of a generation in the new millennium, reflecting the national dream. Our vision is to build a society where human dignity and human rights receive the highest consideration along with reduction of poverty.
2.4 Values of BAL
Placing the interests of clients and customers first.
A continuous quest for quality in everything the company does. Treating everyone with respect and dignity.
Conduct that reflects the highest standards of integrity.
Teamwork from the smallest unit to the enterprise as a whole.
2.5 Corporate Objective of BAL
Highly personalized service
Customer driven focus
Total commitment to quality
Contribute in the economy
Commitment to its clients at each level
2.6 Corporate Slogan of BAL
“For a better tomorrow”
2.7 Product and Services, Schemes and Special Features
Product & Services
Foreign Currency Account
Bonus Savings Schemes
Deposit Pension Scheme
Double Benefit Plus
Triple Benefit Plus
Monthly Benefit Plus
Real-time Online Banking
Table 2-1: Product and Services, Schemes and Special Features
2.8 Bank Asia Limited at a Glance
Date of Incorporation
September 28, 1999
Date of Commencement of Business
November 27, 1999
Tk. 800.00 million
Paid up Capital
Tk. 218.00 million
Number of Branches
Number of ATM’s
Commercial Bank (Local Commercial Bank)
Chairman of the Board of Directors
Chief Executive Officer (CEO)
Mr. Erfanuddin Ahmed
Both Conventional and Islamic Shariah
Motto of the Bank
“For A Better Tomorrow”
For online banking Bank Asia use STELAR
and My Bank
Service Coverage & Customer
Serves individual and corporate customers within Dhaka and outside of Dhaka. Website
Table 2-2: Overview of BAL
2.8.1 Hierarchy of Bank Asia Limited
Deputy Managing Director
Senior Executive Vice President
Executive Vice President
Senior Vice President
First Vice President
Assistant Vice President
First Assistant Vice President
Senior Executive Officer
Figure 2.1: BAL Hierarchy
To manage and operate the bank in the most efficient manner to enhance financial performance and to control cost of fund. To strive for customer satisfaction through quality and control and delivery of timely services. To identify customers credits and other banking needs and monitor their perceptions towards our performance in meeting these requirements. To review and update policies, procedure and practices to enhance the ability to expand better services to customers. To train and develop all employees and provide them adequate resources so that customers needs can be responsibly addressed. To promote organizational effectiveness by openly communicating company plans, policies, practices and procedures to all employees in a timely fashion. To cultivate a working environment that fosters motivation for improved performance. To increase direct contact with customers in order to cultivate a closure relation between the bank and its customers.
2.8.3 Trends of Branches Expansion
Bank Asia Ltd starts its journey not for very long. Till now it has only thirty three brunches. But Bank Asia Ltd had twenty nine brunches at end of year 2007. The Bank had a tendency to open new branches every year; they had a average 20 growth of expansion. So Bank Asia Ltd had a very good branch expansion rate. The expansion rate was 21% during 2003 to 2004, 12% during 2004 to 2005, 26% during 2005 to 2006 and 21% during 2006 to 2007.
The numbers of branches are given bellow:
Table2-3: Branches expansion of Bank Asia Ltd.
2.8.4 Number of Employees
Bank Asia Ltd creates new employment every year by opening new branches and expanding their existing departments. Bank Asia Ltd has a very good Growth rate of Employees the growth rate is increasing dramatically. The growth rate was 21%, 20%, 30% and 35% for the year 2004, 2005, 2006 and 2007 respectively.
2.9 HR Department of Bank Asia Limited
Each and every organization is composed of people. Acquiring their services, developing their skills, motivating them to high level of performance and ensuring that they continue to maintain their commitment to the organization are essential to achieve organizational objectives. Getting and keeping the desirable people is the most important thing for any organization. HR department of any organization ensure this things. BAL invests extensively in its human resource development to build its employees capabilities. The goal is to empower staff and create a culture that encourages and rewards staff for their commitment, creativity and team work in order to respond rapidly to the ever changing customer needs and the market place. Human resources Department of BAL is one of the most valued departments with the responsibilities of staffing, training and development, organization development, performance appraisals, rewarding, control and maintenance etc. With the start of BAL’s banking operation, the Human Resources Department (HRD) was not as strong and structured as it is now. The Human Resources Department of BAL consists of nine competent and experienced executives to carry out the whole responsibilities. The Human Resources Department of BAL stands in its Head Office at Purana Paltan under the direct supervision of the top management. The mission statement of HR Department is; “Employee of Choice, they will inculcate high performance culture where we will work with fun and pride”. Now the BAL is trying to apply all sorts of modern HR activities related to their organization in order to achieve its mission.
2.9.1 The HRM Functions in BAL
HR department of BAL performs variety of activities Such as: Recruitment and Placement
Training and Development
Asserting Smooth Workflow in the Organization
Performance Appraisal System.
Supervise the Employees
Offer Attracting Compensation and Benefit Packages
Maintain the Daily Attendance
Provide Intrinsic Benefit
Review the Salary Structure
Review and Propose the upcoming Budget
Perform the Administrative Activities for Smooth Functioning Create a Good Working Environment
Implement the Disciplinary Action and so on.
2.9.2 The Structure of HR Department in BAL
In BAL enough to have a HR or personnel department, the personal director and his or her staff will play a key role in the designing and monitoring of human resources system. BAL is more likely to help design and implement HR system. A full-time specialist tends to emerge when organization have about one hundred employees. A standard structure of HR department in BAL is shown below:
Figure 2.2: Structure of HR Department in BAL
2.9.3 Responsibilities of Employees under HRD in BAL
The Responsibilities of Employees under HR Department in BAL are given below: Position
VP , HR
Executive committee, Organization planning, HR planning, Policy, Organization development AVP, Recruitment & Employment
Recruiting, Interviewing, Testing, Placement & Termination
AVP, Compensation & Benefits
Job analysis and evaluation, Surveys, Performance appraisal, Compensation administration, Bonus, Profit sharing plans, Employee benefits. AVP, Training & Development
Orientation, Training, Management development, Career planning & Development. AVP, Employee Relation
EEO relations, Contract compliance, Staff assistance programs, Employee counseling. Table2-4: Responsibilities of Employees under HR Department
2.9.4 Activities of HR Department in BAL
The activities performed by HR Department of BAL are given below: To control the administration of human resources of the bank. To access and collect compatible personnel who will be perfect for the bank. To take program and implement for developing human resources. To make appointment, promotion and appraising skill of officer and staff. To make service rules, correction, expansion administration rules, orders notice etc. for employees. To maintain relationship with government and other institution. To access and grant retirement facilities at the time of retirement. To give general sip to the brilliant student of the university for appointing and finding skilled officer. To communicate w...