Human Resource Policy & Practices: A Study on National Bank Limited

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Human Resource Policy & Practices: A Study on National Bank
Limited.

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Letter of Transmittal
July 8th, 201
The Chairman
Examination Committee
Department of Management Studies
Faculty of Business Studies
Jahangirnagar University
Subject: Submission of Internship report on ‘Human Resource Policy & Practices: A
Study on National Bank Limited’.
Dear Sir,
As partial requirement for the achievement of BBA program, I am pleased to submit my
internship report on Human Resource Policy & Practices: A Study on National Bank
Limited. would like to thank my supervisor for giving me chance to prepare the
Internship report on this topic. Without the proper guidance of you, it was not possible
for me to prepare the report. It has been a worthwhile experience for me to get the
opportunity of understanding the real-life application of gathered classroom knowledge. I
had tried my best to compile the actual task as comprehensive as possible.
I hope you will assess this study considering the limitations and mistakes of the study,
and sincerely believe that you will find the study very interesting and informative.
Sincerely yours,
Examination Roll:
Registration Number:
Batch:
Session:

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Acknowledgement
At the very beginning, I would like to express my deepest gratitude to the Almighty Allah
for giving me the ability and the strength to finish the task successfully within the
scheduled time. This study on: Human Resource Policy & Practices of National Bank
Limited has been prepared to fulfill the requirement of BBA degree. I am very much
fortunate that I have received sincere guidance, supervision and co-operation from
various persons. I would like to express my heartiest gratitude to my supervisor of
Department of Management Studies, Faculty of Business Studies, Jahangirnagar
University, for his/ her continuous guidance, encouragement, and patience, and for giving
me the opportunity to do this work. His/ Her valuable suggestions and strict guidance
have made it possible to prepare a well-organized report. I am also indebted to Mr. Md.
Shahinur Islam (AVP), Mr. Md. Delwar Hossain Joy (SEO), Md. Hassan, Mehtaj
Mishu(SEO), Ferdoushi Akter(FEO), Ajmeri khan(EO) and all staff of National Bank
Limited who kindly spared much of their precious time in giving me support and
information. During the internship, I was treated so cordially by the National Bank
Limited officials and staffs that I feel the office like my second home. Finally, my
deepest gratitude and love to my parents for their support, encouragement, and endless
love.
Examination Roll:
Registration Number:
Batch:
Session:

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Executive Summary
Doing the internship at National Bank Limited, HR division has been an enriching at both
the personal and academic level. The project title for the internship report is Human
Resource Management of National Bank Limited. During my internship I gained
practical knowledge on how the human resource division of an organization as big as
National Bank Limited operates and coordinates its activities to ensure smooth
functioning of the organization at all levels by ensuring right number of people are
available at the right time to do the right job. Not only that I have also gained insight into
the working culture of the organization and observed how National Bank Limited handles
its employees with value and empowerment to ensure they are motivated to give their
best to the organization.
The report starts with an organization profile of National Bank Limited giving its
background, mission, vision, objectives, goals, its products and services, the hierarchy
and organogram of the organization. The next section is the largest which comprises the
project, Human Resource Management in National Bank Limited. The project
encompasses introduction to the topic, recruitment, selection, orientation, compensation
and benefit, training and development etc. Each chapter contains detailed discussion of
the HR functions with relevant examples followed by Organization Practice at National
Bank Limited which basically conveys how things are done in the HR Department of the
Bank. The next part of the project carries out SWOT Analysis that touches upon
strengths, weakness, opportunities and threats to the organization followed by results and
discussion on critical factors regarding HRM of National Bank Limited. Finally there is
the conclusion followed by references.

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I have tried to cover all the major functions of Human Resource Management-
recruitment, selection, compensation and benefits, performancr analysis. training and
development and convey my understandings of the different functions of HRM through
this project. I have added the practical examples under the heading of “Organization
Practice” at the end of relevant discussions. At the end of the project I have done a
SWOT Analysis on the HRM Practice of National Bank Limited followed by discussing
critical points. From my observational study during my internship of the Human
Resource Practices in National Bank Limited I have tried to provide some
recommendations based on my knowledge followed by the conclusion of my topic
analysis.

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Table of Contents
Letter of Transmittal ............................................................................................................ii
Acknowledgement ..............................................................................................................iii
Executive Summary............................................................................................................iv
Table of Contents................................................................................................................vi
List of Figure.......................................................................................................................ix
List of Table........................................................................................................................ix
Chapter One: Introduction .................................................................................................. 1
1.1 Background of the Study........................................................................................... 2
1.2 Scope of the Study..................................................................................................... 3
1.3 Objective the Study................................................................................................... 4
1.3.1 Primary Objective............................................................................................... 4
1.3. 2 Secondary Objective.......................................................................................... 4
1.4 Limitation of the Study ............................................................................................. 5
Chapter Two Literarture Review ........................................................................................ 6
2.1 Human Resource ....................................................................................................... 7
2.2 Recruitment and selection......................................................................................... 9
2.3 Compensation and Benefits..................................................................................... 10
2.5 Training and Development................................................................................. 11
2.6 Performance Appraisal............................................................................................ 13
2.7 Major Activities of Human Resource Management................................................ 15
Chapter Three Research Methodology.............................................................................. 16
3.1 Area of the Study..................................................................................................... 17
3.2 Research Design...................................................................................................... 17
3.3 Sources of Data Collection...................................................................................... 18
3.4 Data Processing Procedure...................................................................................... 18
Chapter Four Organizational Overview ............................................................................ 20
4.1 Our History.............................................................................................................. 21

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4.2 Banking in Bangladeshi Perspective....................................................................... 24
4.3 Mission.................................................................................................................... 25
4.4 Vision...................................................................................................................... 25
4.5 Goal of Natinal Bank Limited ................................................................................. 25
4.5 Core values of National Bank Limited.................................................................... 26
4.6 Product & Service ................................................................................................... 27
4.6.1 Deposit Products of NBL.................................................................................. 28
4.7. Wings of NBL........................................................................................................ 28
4.8 Corporate Inforamtion at a glance........................................................................... 29
4.9 Board of Directors of National Bank Limited......................................................... 30
4.10 Organizational Structure ....................................................................................... 31
Chapter Five: Human Resource Practices at National Bank Limited ............................... 32
5.1 HR Planning............................................................................................................ 34
5.2 Job Analysis ............................................................................................................ 35
5.3 Recruitment ............................................................................................................. 35
5.3.1 Recruitment through Advertisement................................................................. 36
5.3.2 Interview Performance...................................................................................... 38
5.3.3 Flow chart of recruitment process .................................................................... 39
5.3.4 Probation and Confirmation ............................................................................. 39
5.3.5 Resignation ....................................................................................................... 40
5.4 Training and Development...................................................................................... 41
5.4.1 NBL training programs..................................................................................... 41
5.4.2 Training Authority............................................................................................ 42
5.5 Compensation & Benefits ....................................................................................... 43
5.5.1 Increment .......................................................................................................... 43
5.5.2 Bonus Policy..................................................................................................... 44
5.5.3 Provident Fund.................................................................................................. 44
5.5.4 Gratuity............................................................................................................. 45
5.5.5 Medical Benefits............................................................................................... 46
5.5.6 Rules & regulations .......................................................................................... 47
5.5.7 Reimbursement ................................................................................................. 48
5.5.8 Transport Policy................................................................................................ 48

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5.5.9 Category of Transport used in the Bank:......................................................... 49
5.5.10 Leave rules & regulations.............................................................................. 49
5.5.11 Leave encashment benefit (in case of resignation) ......................................... 50
5.5.12 Retirement....................................................................................................... 50
5.6 Peroformance Appraisal.......................................................................................... 53
5.6.1 Principal Officer ............................................................................................... 55
5.6.2 Criteria for Promotion of Non-Officers............................................................ 56
5.7 Disciplinary Action................................................................................................. 56
5.7.1 Disciplinary Authority ...................................................................................... 57
5.7.2 Suspension........................................................................................................ 57
Chapter SixConclusion, Findings & Recommendation ................................................... 59
6.1 Conclusion............................................................................................................... 60
6.2 Findings................................................................................................................... 60
6.3 Recommendation..................................................................................................... 61
References......................................................................................................................... 63

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List of Figure
Figure 1: Core Values of National Bank Limited ....................................................................26
Figure 2: Wings of National Bank Limited .............................................................................29
Figure 3: Board of Directors of National Bank Limited ...........................................................30
Figure 4: Organogram of National Bank Limited......................................................................31
Figure 6: Human Resource Division ......................................................................................34
Figure 5: Job Circular of National Bank Limited.....................................................................37
Figure 7: Recruitment Process...............................................................................................39
List of Table
Table 1: Major Activities of Human Resource Management....................................................15
Table 2: Primary & Secondary Sources of Data ......................................................................18

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1.1 Background of the Study
We are living in an era where people are considered as the most significant
resource of an organization. Employees are considered as the most significant factor
behind every successful organization. And for this organizations puts at extensive efforts
in choosing candidates, training and development and so on. Most of the time, skills and
knowledge of an employee is supposed to be the most important thing behind success,
but one thing that is left behind is their satisfaction (Sunil, 2015).
Human Resource Management is associated with employee’s compensation,
performance management, benefits, motivation, organization development, safety,
training, wellness, and others. It plays a very dynamic role in not only managing human
resources but also maintaining the culture and environment within the workplace. It is
capable of contributing to the overall direction of the organization and the
accomplishment of its goals and objectives.
Banking sector is supposed to be the most important among all to run the
economical functions of a country. Among all economic systems, banking supposed to
play the most strategic role in planning and implementing financial policy. Even though it
is unable to create wealth, but its activities simplifies the production, distribution and
exchange of wealth. By this way it has created a reputation of being the most effective
sector for economic growth. It is important to keep employees of a bank satisfied for
being more productive and effective so that they can contribute more to our country’s
economy
There is no doubt that the world of work is rapidly changing. As part of an
organization then, HRM must be prepared to deal with the effects of the changing world

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of work. For them, this means understanding the implications of globalization,
technology changes, workforce diversity, changing skill requirements, continuous
improvement initiatives, contingent workforce, decentralized work sites and employee
involvement. We should look how this change is affecting HRM goals and practices.
The current challenge of HRM is to integrate programs involving human
resources with strategic organizational objectives. More and more, organizations are
under tremendous competitive pressure worldwide. HR managers must find ways to
develop effective programs to meet this challenge. Another important aspect of HRM is
the need to ensure cost effectiveness of programs and policies through the optimal
utilization of human resources.
1.2 Scope of the Study
The scope for this report basically surrounded with National Bank Limited. In this
report mostly focused on practical observation. There was interview and secondary data
sources from NBL and also from other Bank. Report scope was not that much easy going,
only bank branch and field operations of the bank could use for this paper as I was doing
internship in National Bank limited, Savar Branch.
When I started doing report this areas I have focused on area which are as follows:
a) Acquirement of employee or employer
b) Development of employee or employer
c) Facilities, benefits and compensation

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1.3 Objective the Study
This report has two different sort of objectives behind its fulfillment. One is
fundamental objective, which includes the primary reason why the report has been
prepared. And the other one is secondary objective, which includes benefits that are
derived from learning from practical experiences and enhancing the academic
knowledge.
1.3.1 Primary Objective
As a part of the fulfillment of Bachelor of Business Administration degree
internship is a must at the end of the completion of all the credit courses and this is one of
the fundamental objective behind this report. In addition with, to merge and enhance
academic knowledge with practical experience.
1.3. 2 Secondary Objective
The specific or the main objectives of this report will be:
 To focus on the HR practices, recruitment policies, selection techniques and
media.
 To focus on the compensation and maintenance of the employees
 To focus on employee evaluation for performance appraisal.
 To focus on the compensation, incentives, benefits & rewards.
 To focus on the short-term and long-term training and development programs
 To get overall idea about HR & gain practical knowledge about HR practice at
corporate world.

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1.4 Limitation of the Study
All the officers of National Bank Limited were very cooperative and helpful. But as
its a financial organization, so they had too busy with many responsibilities. For this
reason they couldn‟t manage proper time for serving the information to me properly and
to get clear knowledge .Furthermore, they have to deal with a very competitive
environment which is based on money related activities. Task and limitations related with
each other, every task has some limitation and problem. Though I didn‟t face any serious
problem, but therefore some limitations in the period of making report which are as
follows:-
 Lack of analytical ability and rational thought was the first limitation that I faced
during accomplish my task. As the time was not sufficient so I had to equalizer
with the quality. I couldn‟t go more depth of the organizational HR procedure
which is seemingly a limitation.
 Lacking of recent data and information also not disclosing the human resource
division data because of confidentiality was another drawback. This data could
helpful to complete my report properly.
 Office employee is always busy so it is difficult to collect information from the
employee.
 Lastly Limited time where I have to draw the whole HR procedure of national
bank limited within one month, which was tough for me because it‟s a big
organization. So one month is tough to understand whole procedure with
properway.

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Chapter Two
Literarture Review

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2.1 Human Resource
Human resource management is a unique term for the old version or Personnel
management or we can say that to deal with the staff or manpower this new term has
been evaluated. According to Murad A (2000) “Human resource management is regarded
as the method in which the activities of the staff are monitored or to provide them with
the best efficient way of working in a friendly and good environment and to coordinate
between themselves and with the higher management”. The HR department in any
organization is the core of its existence and hence it is proved by other researchers as well
that without the HR department the multinational companies won’t be in existence. In
addition to wages and salaries, organizations often spend a large amount of finances on
their human resources, selection and training and other major departments to enhance the
productivity of the company or organization. Taylor S (2002) Human resource functions
refer to those tasks and duties performed to provide for and coordinate human resources.
Human resource functions encompass a variety of different methods that are or have
influence on all the areas of the company or organization. There are six major functions
of human resource management: (1) Human resource planning, recruitment, and
selection; (2) Human resource development; (3) Compensationand benefits; (4) Safety
and health; (5) Employee and labour relations; (6) Human resource research.
This research mainly focuses on the first and second functions i.e. recruitment,
selection sources or procedures. Training and development of employees is the process or
requirements of the organization after the selection of new employee’s. In Kneeland J.
(2005), HR recruitment is defined as any practice or activity carried out

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HRM practices influence employee skills through the acquisition and development of
a firm’s human capital. Recruiting procedures that provide a large pool of qualified
applicants, paired with a reliable and valid se-lection regimen, will have a substantial
influence over the quality and type of skills new employees possess. Providing formal
and informal training experiences, such as basic skills training, on-the-job experience,
coaching, mentoring, and management development, can further influence employees’
development (Huselid 1995).
HRM has been argued to be a replacement of the term personnel management in
organizations. In this light, experts like Armstrong (1987) sees HRM as ‘old wine in new
bottles’; while Guest (1987) argued that human resource management is not a
replacement but somehow differs from personnel management. Practically, it suggests
that Human Resource (HR) tasks are majorly concern with the administrative activities
such as recruitment, reward systems, promotion, and so on. However, it does not make
HR administrators ‘having a seat at the table’ meaning that HR administrators is not
regarded as a strategic business partner, therefore does not contribute to the success of the
business.
(Storey, 1995) defines HRM as “a distinctive approach to employment management
which seeks to achieve competitive advantage through the strategic deployment of a
highly committed and capable workforce, using an integrated array of cultural, structural
and personnel techniques”; while (Lloyd L. Byars, 2004) see HRM as “activities
designed to provide for and coordinate the human resources of an organization.” In
addition, (Peter Boxall, 2000)argue that “HRM includes anything and everything
associated with the management of employment relationships in the firm.” The words

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anything and everything in the definition explains the wider range of issues comprising
policies such employment contract and ways in which employees may be involved and
participate in areas not directly covered by the employment contract thus ensuring
suitable work life. Further, it goes beyond employment relations or industrial relations,
which personnel management would not have been able to render in organizations.
The four key dimensions to HRM as postulated by Guest (1987) include; i)
Commitment: It is expected of employees to identify the interests and goals of the
organizations, and be aligned and committed in achieving these goals. ii) Flexibility:
Employees are expected to adapt willingly to change within the organizational structure,
without any strife or prejudice. iii) Quality: High levels performance attainment of
organization depends on the quality of members of staff and management of such
organization. iv) Integration: ‘It involves the matching
2.2 Recruitment and selection
Recruitment and selection is the best practice of human resource management
which help to identify the best and right person for the right job, many organizations are
facing this challenging situation and retain their high level of performing employees.
Recruitment and selection systems are the best tools of hiring decision, it also refer the
importance of workers to their management (Yang & Lin. 2009). Recruitment is a
process in individuals is invited in appropriate numbers with required qualification
and encourages them against available posts (R.Wayne Mondy, 1986)There are two
main sources of recruitment, one is internal and other is external source. The
organizational employees those are applicant against the available vacancies is called

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internal sources. Transfer, promotion, demotion and resignation are also under the human
resource management (Usman & Dugguh, 2014).
2.3 Compensation and Benefits
Compensation and benefits are beneficiary and has much importance for the
employees of an organization, it improve the working capacity and main source to
motivate the employees and workers of an organization, reward and compensation
motivate the worker in several ways to achieve the organizational objectives and goals. It
is provided evidence that based on compensation and develops the organization
(Allen & Helms,2002). . Reward and compensation support to the all kinds of pay
or reward which increase their employment opportunities (Khan, 2010).Examples of
employee compensation include the 1.Pay 2. Health benefits 3. Retirement benefits 4.
Stock purchase plans 5.Vacation time 6.Sick leave 7.Bonuses 8.Tuition reimbursement.
Rewarding expatriates is also known as international compensation in which HRM
activity is highly involved (Reynolds, 1997). It has been identified that international
compensation is complex and associated with a degree of risk arising from the
complexities for operating in multiple economic and culture; also from inappropriate
expenditure on international assignees (Cahill, 2002). Therefore, HR experts need to pay
more attention to this phenomenon before it goes out of control and subsequently leads to
dissatisfaction on the part of workers (Dwyer, 1999). In addition, Briscoe et al (2009)
argued that if multinational companies are able to achieve their objectives regarding
global compensation and benefits; amongst which include: i)Attraction and retention of
the best qualified talent to staff the Multinational companies, ii)Attraction and retention
of employees who are qualified for international assignments, iii) Establishment and

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maintenance of a consistent and reasonable relationship between the compensation of
employees both at corporate headquarters and subsidiary; and iv) Maintenance of
compensation that is reasonable in relation to the practices of competitors (Briscoe, et al
(2009);
2.5 Training and Development
According to Clinton O. Longenecker ,‘‘Training leads to better performance;
ineffective training creates problems; training must be a managerial priority; managers
must create a system for training that is tied to actions that ensure effective outcomes and
educating workers to see the big picture is paramount’’. He mentioned that in all the
organizations, the people in charge of the employees is very keen to make training
available to their people and make it an absolute necessity (Income Data Services. &
Institute of Personnel, 1993). Examples of training programs might include the i) Job
skills training, such as how to run a particular computer program ii)Training on
communication iii)Team-building activitiesiv) Policy and legal training, such as sexual
harassment training and ethics training
According to an article by Barnerjee D (2006), employee development, in sharp
contrast to training, is more future oriented and more concerned with education than
employee training. Development focuses on planting a sound reasoning process in
employees. It enhances their ability to understand and interpret knowledge rather than
imparting a body of facts or teaching a set of skills. A development path for an employee,
imparts in him analytical, human, conceptual and specialized skills. It makes him able to
think and analyze in different situations. Development, therefore, focuses more on the

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employee’s personal growth. It is important to consider one critical component of
employee development: All employees, at no matter what level, can be developed.
Training and development is one of the activities HR practitioners engage in
managing human resources in organizations. Also, this activity is extended to the
management of international employees, having selected the expatriates to be posted to
the host country; it is therefore essential providing training programmes that will assist in
developing their skills so as to increase job performance. Often expatriates are engaged in
various capacities either on short-term or long-term; amongst which include acquisition
of knowledge, managing subsidiary, intermediary between subsidiary and the
headquarters, transferring knowledge, etc. Black and Mendenhall (1990) identified that
for expatriates to be successful in their assignments, there is need to provide adequate
Cross-Cultural Training (CCT). Similarly, Sanchez, Spector, and Cooper (2000) argued
that since expatriates are relocated from their parental cultural environment to a new and
unfamiliar culture, it tends to pose challenges regarding the need to learn the host country
language, cope with new culture, understand host country government policies, and learn
how to interact with host country nationals. As obtained in the literature, workers
(expatriates), the subsidiary, and the headquarters will face some challenges if the
expatriates are unable to cope with this cultural shock; which tilt towards poor
performance and inadequacies. For instance, expatriate tends to loss his confident and
prestige among his colleagues, while the subsidiary’ image is being damaged, and the
headquarters company tends to lose business opportunities (Caligiuri, 1997; Aycan, 1997;
Mendenhall and Oddou, 1985).

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Having established training goals for the assignees, the next phase is to develop
and identify the contents and delivery mode of the training regarding the achievement of
the highlighted goals. However, as identified by (Philip R. Harris, 1991) the training
content includes both general and specific cultural orientation. Generally, it enables
assignees to have adequate information, and understand the importance of cross-cultural
interactions. Also, specifically, assignees will learn the host country’ history, customs,
diversity, and language in order to enhance their performances in the host country.
2.6 Performance Appraisal
According to Murad A (2000), “Performance appraisal is the process of
determining and communicating to an employee how he or she is performing on the job
and, ideally, establishing a plan of improvement”. When properly conducted,
performance appraisals not only let employees know how well they are performing but
also influence their future level of effort and task direction. Effort should be enhanced if
the employee is properly reinforced. The task perception of the employee should be
clarified through the establishment of a proper plan for improvement.
Prformance management provides an avenue in setting targets for employees,
provide constant and up-to-date feedback on progress towards achieving organizational
set goals, and connects results with compensation. Therefore, there is need to discuss
performance management regarding expatriates. (Anne-Wil Harzing, 2004) argued that
managing the performance of international staff in multinational companies is more
complex than managing domestic staff, because it cuts across cultural boundaries. The
first technique of performance management that is goal setting requires the inputs of both
employees and the employers. However, it is essential noting that distance exists between

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multinational companies and their subsidiaries, which stands as a barrier in achieving
organizational goals, because it can lead to ineffective observation and supervision
(Harvey, 1989). HR experts need to bridge the gap of distance that exists between
achieving set goals and assignees in order to make performance management timely,
relevant, and effective.
Promotion, termination, test validation, and performance improvement are the
common types and applications of performance appraisal. For everyone to improve the
performance appraisal must be highly priorities for current organization and performance
improvement (Saeed et al. 2013). A periodic and systematic process which evaluate
and assess the employees productivity and individual’s performance in accordance
with organizational objectives and pre-settled standards (Manasa & Reddy,2009). Much
has been discussed on what role HR departments play in organizations. However, HR
units can perform several roles, which depend on the nature and terms of reference
provided by the decision makers on one hand; and competencies earlier demonstrated in
the line of their duties. Torrington (1992) identified four roles of HR practitioners.
However, these roles are summarized into three (3) types by (Robert L. Mathis, 2006) i)
Administrative role, ii) Operational and Employee Advocate role iii) Strategic role.

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2.7 Major Activities of Human Resource Management
 Manpower planning (determine and quantify future manpower requirements,
linked to organization objectives, requires both external and internal
information for planning, for short and long term view)
 Recruitment, selection, interviewing
 Induction (new employees with information to function effectively in the
organization)
 Training (maintaining and improving current job performance)
 Re-training and counseling
 Education and development (develop skills for future jobs)
 Industrial relations
 Remuneration and incentive
 Pension and superannuation schemes
 Health, safety, welfare
 Gathering Statistical data both for internal and external use.
 Job evaluation (assessment of the job to set proper salary, review grade
structure, etc)
Table 1: Major Activities of Human Resource Management

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Chapter Three
Research Methodology

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Methodology is the systematic, theoretical analysis of the methods applied to a
field of study. It comprises the theoretical analysis of the body of methods and principles
associated with a branch of knowledge. Typically, it encompasses concepts such as
paradigm, theoretical model, phases and quantitative or qualitative techniques.
According to Rajaseka et al. (2006). Researchmethodology is a way to
systematically solve the research problem. It may be understood as a science of studying
how research is done scientifically as research methodology has many dimensions and
research method to constitute a part ofit. The chapter is designed to describe the
methodology used in this study. The study areas, sampling method, size and type of
research are described here.
3.1 Area of the Study
The study was conducted on the Human Resource Policy and Practices of “
National Bank Limited”.
3.2 Research Design
This report is a descriptive type of research in nature and it administered by
collecting both primary and secondary data. It has tried to use both the primary and
secondary sources of collecting information and some are to make the report presentable
with as less abstraction as possible.
Elaine (2008) mentioned that descriptive research is an effective way to obtain
information used in devising hypotheses and proposing associations. Descriptive research
is often illustrates a relevant but nonqualified topic involving a well-focused research
question. Once the research topic is identified, the research design is determined, the
protocol is carefully developed, and a pilot study is undertaken.

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Research design is the concept and a structure within which the research is
conducted. According toSelltizet.al.(1962) “A research design is the arrangement of
conditions for collection and analysis of data in a manner that aims to combine relevance
to the research purpose with economy in procedure.”
3.3 Sources of Data Collection
The information was collected from two sources of data such as primary source
and secondary sources.
Primary Sources Secondary Sources
 Face to face communication
 Appointment with the top officials
of the bank
 By interviewing clients of the bank
 Telephone interview
Internal Sources
 Annual reports of National Bank
Limited
 Files and folders
 Documents
 Memos & Circulars
External Sources
 Different Books
 Articles
 Newspaper and Magazines
 Online Sources
Table 2: Primary & Secondary Sources of Data
3.4 Data Processing Procedure
Computer software like Ms Word, Ms Excel, Ms Power Point, and Snipping Tool
have been used for analysis and reporting.

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Before preparing this assignment face-to-face communication was conducted
among the employees of the National Bank Limited.
First I have visited various departments and worked in various areas of those
departments. During my job I talked to the Departmental heads and employees. I tried to
collect their viewpoint or opinion which would help me to prepare this report. I collected
valuable data from various sections. Then I tried to match with their banking regulations,
website information and annual report.

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Chapter Four
Organizational Overview

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4.1 Our History
National Bank Limited has its prosperous past, glorious present, prospective
future and under processing projects and activities. Established as the first private sector
bank fully owned by Bangladeshi entrepreneurs, NBL has been flourishing as the largest
private sector Bank with the passage of time after facing many stress and strain. The
members of the board of directors are creative businessmen and leading industrialists of
the country. To keep pace with time and in harmony with national and international
economic activities and for rendering all modern services, NBL, as a financial institution,
automated all its branches with computer networks in accordance with the competitive
commercial demand of time. Moreover, considering its forth-coming future, the
infrastructure of the Bank has been rearranging. The expectation of all class businessmen,
entrepreneurs, and the general public is much more to NBL. At present, we have 200
branches. In addition, our effective and diversified approach to seize the market
opportunities is going on a continuous process to accommodate new customers by
developing and expanding rural, SME financing and offshore banking facilities.
The emergence of National Bank Limited in the private sector was an important
event in the Banking arena of Bangladesh. When the nation was in the grip of severe
recession, the government took the farsighted decision to allow the private sector to
revive the economy of the country. Several dynamic entrepreneurs came forward for
establishing a bank with a motto to revitalize the economy of the country.
National Bank Limited was born as the first hundred percent Bangladeshi owned
Bank in the private sector. From the very inception, it was the firm determination of
National Bank Limited playing a vital role in the national economy. We are determined

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to bring back the long forgotten taste of banking services and flavors. We want to serve
each one promptly and with a sense of dedication and dignity.
The then President of the People's Republic of Bangladesh Justice Ahsanuddin
Chowdhury inaugurated the bank formally on March 28, 1983, but the first branch at 48,
Dilkusha Commercial Area, Dhaka started commercial operation on March 23, 1983. The
2nd Branch was opened on 11th May 1983 at Khatungonj, Chittagong.
At present, NBL has been carrying on business through its 200 branches & Agri
Branches spread all over the country. Since the very beginning, the bank has exerted
much emphasis on overseas operations and handled a sizable quantum of homebound
foreign remittance. It has drawing arrangements with 415 correspondents in 75 countries
of the world, as well as with 37 overseas Exchange Companies located in 13 countries.
NBL was the first domestic bank to establish agency arrangements with the world famous
Western Union in order to facilitate quick and safe remittance of the valuable foreign
exchanges earned by the expatriate Bangladeshi nationals. This has meant that the
expatriates can remit their hard-earned money to the country with much ease, confidence,
safety and speed.
NBL was also the first among domestic banks to introduce international Master
Card in Bangladesh. In the meantime, NBL has also introduced the Visa Card and Power
Card. The Bank has in its use the latest information technology services of SWIFT and
REUTERS. NBL has been continuing its small credit program for disbursement of
collateral free agricultural loans among the poor farmers of Barindra area in Rajshahi
district for improving their livelihood.

23
National Bank, has now acquired strength and expertise to support the banking
needs of the foreign investors. NBL stepped into a new arena of business and opened its
Off Shore Banking Unit at Mohakhali to serve the wage earners and the foreign investors
better than before.
Since its inception, the bank was aware of complying with Corporate Social
Responsibility. In this direction, we have remained associated with the development of
education, healthcare and have sponsored sporting and cultural activities. During times of
natural disasters like floods, cyclones, landslides, we have extended our hand to mitigate
the sufferings of victims. It established the National Bank Foundation in 1989 to remain
involved with social welfare activities. The foundation runs the NBL Public School &
College at Moghbazar where present enrolment is 1140. Besides awarding the
scholarship to the meritorious children of the employees, the bank has also extended
financial support for their education. It also provided financial assistance to the Asiatic
Society of Bangladesh at the time of their publication of Banglapedia and observance of
400 years of Dhaka City.
The Transparency and accountability of a financial institution are reflected in its
Annual Report containing its Balance Sheet and Profit & Loss Account. In recognition of
this, NBL was awarded Crest in 1999 and 2000, and Certificate of Appreciation in 2001
by the Institute of Chartered Accountants of Bangladesh.
The bank has a strong team of highly qualified and experienced professionals, together
with an efficient Board of Directors who play a vital role in formulating and
implementing policies.

24
From the starting period ,National bank limited follows conventional banking
system .Well Conventional banking system based on the fundamentals on the creditor-
debtor relationship while the interest acts cost of money borrower and reward for the
money who deposited while Islamic Bank only work on the sharing relationship between
Bank and the customers. In Islamic banking system riba or interest is strictly prohibited
under Shariah hence profit and risk sharing relationship exist only in between customer
and with bank. On the other hand conventional banking system offer predetermined
returns, Islamic Bank offers variable returns. Even if an entrepreneurs faces loss Shariah
banking system share the losses.
4.2 Banking in Bangladeshi Perspective
Banking is the backbone of the national economy. All sorts of economic &
financial activities revolve round the axis of the bank. As the industry produces goods &
commodities, so does the banks create & control the money market & promotes the
formation of the capital. From the point of view banking a technical profession can be
termed as industry. Services to its customers are the products of the banking industry
besides being a pivotal factor in promoting capital formation in the country. As all
economic & fiscal activities revolve round this important industry, the role of banking
can hardly be over emphasized.
Circumstances being such, it becomes imperative to find out the role of banks
now playing in the country & analyze its operational aspects so as to ascertain the
importance of this fragile financial sector & its overall impact on the national economy.
To do this a through study as to its distribution, expansion & contribution is essential to

25
comprehend its past, present & future bearings for the growth & development of the
banking sector of the country.
In global context, the role of banks is far reaching & more penetrating in the
economic & fiscal discipline, trade, commerce, industry, export & import et5c all are
carried through the banks. Banks are the only media through which the international trade
& commerce are being carried out .Moreover the entire credit transaction, both national
& international is done through the banks.
4.3 Mission
Efforts for expansion of our activities at home and abroad by adding new
dimensions to our banking services are being continued unabated. Alongside, we are also
putting highest priority in ensuring transparency, accountability, improved clientele
service as well as to our commitment to serve the society through which we want to get
closer and closer to the people of all strata. Winning an everlasting seat in the hearts of
the people as a caring companion in uplifting the national economic standard through
continuous upgradation and diversification of our clientele services in line with national
and international requirements is the desired goal we want to reach.
4.4 Vision
Ensuring highest standard of clientele services through the best application of
latest information technology, making due contribution to the national economy and
establishing ourselves firmly at home and abroad as a front-ranking bank of the country
are our cherished vision.
4.5 Goal of Natinal Bank Limited
National Bank Limited has an exclusive goal from the other private banks such as

26
“To act as a caring companion in uplifting the national economic standard through
continuous gradation and diversification of its clientele services in line with
national and international requirement”.
4.6 Core values of National Bank Limited
National Bank’s core values consist of six elements. These values bind people
together with an emphasis that people are essential to everything being done in the bank.
Figure 1: Core Values of National Bank Limited
Integrity
 NBL protects and safeguards all customer information.
 NBL treats everyone in an equitable and consistent manner.
 NBL creates an environment, which earns and maintains customer trust.
 NBL offers a full line of products and excellent service.
Open Communication
 NBL builds customer relationships based on integrity and respect.

27
 NBL is committed to the prosperity of the customers and shareholders.
Performance Driven
 In NBL, customers and employees are judged in terms of their performance.
Continuous Self Improvement
 Continuous learning, self- challenges and strive make ways for self improvement
of workforce at NBL.
Quality
 NBL offers hassle free better service timely
 NBL builds-up quality assets in the portfolio.
 Team Work
Interaction, open communication, and maintaining a positive attitude reflect NBL’s
commitment to a supportive environment based on teamwork.
4.7 Product & Service
National Bank Ltd. has been continuing its banking business with excellent product line
including supreme quality products. NBL has 3 major products in their product line and a
bunch of services.
NBL’s 3 major products are:
 Deposit
 Credit
 Card

28
4.7.1 Deposit Products of NBL
Under the Deposit category NBL has the common deposit account as other banks.
They are shown below:
 Savings Deposit
 Current Deposit
 Term Deposit
 FC DepositNBL
 Monthly Savings Scheme (NMS)
 Monthly Earning Scheme
 Double Benefit Account
 Millionaire Deposit Scheme (MDS)
 Apon Thikana Shanchoy Prakalpa (ATSP)
 Luxury Savings Deposit Scheme (LSDS)
 Shadhinota Product
 Century Deposit Scheme
4.8. Wings of NBL
National Bank Limited has been continuing their banking services in some
major divisions. They are shown below:

29
Figure 2: Wings of National Bank Limited
4.9 Corporate Inforamtion at a glance
Registered Office : 18, Dilkusha commercial Area, Dhaka-1000,
Founded : 23 March 1983
Deposits : Tk. 102,471.83 million
Foreign trade : Tk. 144,255.00 million
Investment : Tk. 92,003.56 million
EPS : 4.40
Return on Equity (ROE) : 77.84%
Branch : 203
ATM Booth : 40
Director : 14
Chairman : Mr. Zainul Haque Sikder
Managing Director : Md. Choudhury Moshtaq Ahmed
Cable : Nation Bank, Dhaka
Tel: PABX : 9563081-5, 7168729-31

30
Telex : 642791 NBL HO BJ
642410 NBL HO BJ
E-mail : nblho@citechco.net
URL/Website : www.nblbd.com
SWIFT : NBLBBDDH
4.10 Board of Directors of National Bank Limited
Figure 3: Board of Directors of National Bank Limited
Zainul Haque Sikder
Chairman
Moazzam Hossain
Director
Parvin Haque Sikder
Director
Prof. Mahbub Ahmed
Director
Ron Haque Sikder
Director
Rick Haque Sikder
Director
Zakaria Taher
Director
Mabrur Hussain
Director
Lt. Col. (Red) Md. Azizul
Ashraf, Psc,
Director
Capt. Abu Sayeed Monir
Director
Salim Rahman
Director
AKM Enamul Haque
Director
Md. Choudhury Moshtaq
Ahmed
Managing Director
Al-haz Khalilur Rahman
Director

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4.11 Organizational Structure
Figure 4: Organogram of National Bank Limited
Junior Officer
First Executive Officer
Executive Officer
Senior Executive Officer
Principal Officer
Senior Principal Officer
Assistant Vice President
Senior Assistant Vice President
Vice President
Executive Vice President
Senior Executive Vice President
Deputy Managing Director
Additional Managing Director
Managing Director/CEO
Chairman

32
Chapter Five
Human Resource Practices at National
Bank Limited

33
Employees are the core resources of any organization, without them, one cannot
run their organization, and human resources is conducted with the growth of development
of people toward higher level of competency, creativity and fulfillment.
It help employee’s become better more responsible person and then it tries to
create a climate in which they contribute to the limits of their improved abilities. It
assumes that expanded capabilities and opportunities for people with lead directly to
improvements in operating effectiveness.
Essentially, the human resource approach means that people better result. Bank
always determine what jobs need to be done, and how many and types of workers will be
required.
Human Resource Department is responsible for the main dimension of people of the
organization.
It is responsible for:
 Hiring competent people
 Training them,
 Helping them perform at high levels and mechanisms
 Ensure that these employees maintain their productive affiliation with the
organization.
Human Resources Department of NBL is also solely responsible for:
 Recruitment,
 Training and Development,
 Ensuring Compensation and Benefits of staffs,

34
 Performance Appraisals and Rewards.
With all those core functions Human Resources Department linkage its operations
meet the organization’s objectives.
Management & Appointment
Figure 5: Human Resource Division
5.1 HR Planning
A very common term in business is strategic planning. The strategic plan serves
as a guide for businesses to achieve their mission. The standard strategic plan presents an
organization's strengths and weaknesses, the environment in which the organization
operates, and the goals the organization desires to achieve within a specific time frame. In
order to achieve the desired goals that are presented in a strategic plan, it is important that
the organization take a strategic approach to human resource management.

35
Human resource planning is the ongoing process of systematic planning to
achieve optimum use of an organization's human resources. To develop a strategic HR
plan, human resource professionals must forecast labor demand, analyze present labor
supply, and balance projected labor demand and supply. This is the standard model of
strategic human resource planning. Strategic human resource planning goes hand-in-hand
with an organization's overall strategic plan. As a human resource director, it is
imperative that you have the strategic vision, when it comes to human resource needs,
necessary for your organization to achieve its goals that were set forth in its strategic
plan.
5.2 Job Analysis
Job analysis is the process of gathering and analyzing information about the
content and the human requirements of jobs, as well as, the context in which jobs are
performed. This process is used to determine placement of jobs. Under NU Values the
decision-making in this area is shared by units and Human Resources. Specific internal
approval processes will be determined by the unit's organizational leadership. Job
analysis defines the organization of jobs within a job family. It allows units to identify
paths of job progression for employees interested in improving their opportunities for
career advancement and increasing compensation.
5.3 Recruitment
An institution or an organization cannot be succeeding without giving proper
service to the customer and clients. For bank it‟s even more important in terms of
service. So for serving Valuable service to the consumers they always hire resourceful
officer to maintain the standard of the bank. NBL believes by paying sufficient salary and

36
emoluments to their staff to get maximum services out of them. As a result, bank
authority has to be careful in recruiting the right person for the right job.
Without priority of the post no sanction and recruitment is allowed The
responsibility of board of directors to analyze the manpower requirement of the
organization every year and fix up the number of staff officer , executives and number of
officer
each category .if the bank demand any temporary or permanent post for the sake
of the organization , the board of directors implies the commitments and also fund for
thirty years. National Bank Limited cannot manage to pay for maintaining extra
manpower . NBL must recognize the importance of manpower estimation and
accordingly an chart they for the hiring people. When they requiring, its need to be
reviewed and revised from time to time for expanding the business.
Still, professionals will take the edge to fill up posts lying vacant within the
approved chart or organogram. For the justification they can take initiative and can revise
the chart for justification of the post. The organogram has to be revised time to time.
5.3.1 Recruitment through Advertisement
When an organization needs people they give advertisements in the media, it‟s
also called the part of the recruitment. Right type of talent is the main object to the
recruitment policy. NBL always follows the advertisements print, online. The department
will handle all matters relating to recruitment and selection of staff.
Regarding recruitment of Probationary Officer the criteria has been set as under:-
 He/ She must be a citizen of Bangladesh.

37
 Candidates must be Masters/BBA from a well reputed University having three
first Divisions/Class or CGPA-3.00 out of 4.00 or GPA 3.25 out of 5.00 where
applicable (no 3rd Division/Class is acceptable).
 Preference will be given to those having MBA/BBA in Accounting, Finance &
Banking, Marketing, Management & other business oriented subjects and Masters
with Honors in Economics, English, Statistics, Mathematics and other business
oriented subjects.
 His/ Her age must be between 21 to 30. These conditions may be relax able in
special cases to be recorded in writing.
 He/ She must be physically fit.
 The new recruit be required to get full medical examination from the Doctor,
appointed by the Bank. The fees of the Doctor be paid by the Candidate.
However, any fees for Pathological/other services required by Doctor for full
medical examination be paid by the prospective employee.
Figure 6: Job Circular of National Bank Limited

38
5.3.2 Interview Performance
Like other bank NBL also follow the same rule for probationary officer that they
have to be probation for one year. After the time of probation, their performance will be
analyzed by the Management and place the report to the Managing Director. If the
candidate found suitable for the post, they will be confirmed. If they got unfitting their
probationary period may be further extended or their services will-be terminated by the
authority. Selection Committee will consider the candidate‟s appearance, personality,
communicating ability, presence of mind, manners, general and common sense and award
marks individually which will be totaled and averaged for determining interview
performance score. The following criterion for interview may be
followed:
 Appearance & Personality: 5
 Expression & Presentation capacity & manners : 5
 General knowledge : 5
 General & common Sense : 3
 Assessment : 2
Written Test
It‟s mandatory to for the all applicants to attempt the written test which is 60
marks exam. The test should be containing with general knowledge and mathematical
bias. NBL take the help of outside experts for setting the questions, supervising the
examination

39
5.3.3 Flow chart of recruitment process
Figure 7: Recruitment Process
5.3.4 Probation and Confirmation
Here are the rules that NBL follow for the probationary officer
 Entry level officers a will be on probation for a minimum of one year. Afterward
theprobation period, management committee will evaluate their performance and
they will present a report. If they find the officer is suitable they will confirm him
or her otherwise they transfer or can terminate
 Also they have that rules for staff that if they recruit any sub staff they can be
occupied as regular employee if they complete 8 years of continuous service in
the Bank by seeing their records and educational qualification.
Receipt of the
application
prescribed from
the bank
Inviting for the
preliminary select
test
Conducting with
interview
Justification of the
previous history of
selected candidates
List of the selected
candidates
Approval from the
board
Physical
examination,
appointment and
replacement

40
5.3.5 Resignation
For resignation NBL gives notices three months early of the termination. Its
applicable for all the staffs here they also mentioned if the managing director fails to
provide the writing documents to them, managing committee liable to pay the
compensation an amount equal their basic salary three months ‟salary. It‟s also
applicable for the probationary officer if there any disciplinary action implied on an
officer or if any officer using any equipment which belongs from the bank they can‟t
resign without the permission of the authority.
Gift or Benefits Offered to Employees
It is an offence to solicit, demand or accept for the benefit of an employee,
anything of value from anyone in return for any business, service or confidential
information, either before or after a transaction is discussed or completed. Advertising or
promotional material of nominal value, such as pens, pencils, note pads, key chains,
calendars and similar items etc and gifts of reasonable value on wedding are exempted.
Whenever any situation arises with regard to matters concerning things of value, an
employee must make full disclosure to the management and receive management's
written response.
Things Offered By Employees
Employees shall not, on behalf of NBL directly or indirectly give, offer or
promise anything of value to any individual, business entity, organization, public official,
and political party for the purpose of influencing the recipient. Normal business practices
of offering meals; entertainment promotional gifts etc are exempted. Employees shall not,
on behalf of NBL directly or indirectly give, offer or promise anything of value to any

41
individual, business entity, organization, public official, and political party for the
purpose of influencing the recipient.
5.4 Training and Development
In every well reputed organization training is very common practice to place new
employee into managerial responsibilities after process of training and development .We
know Training means acquainting everyone with the technical aspect of the job so that
his technical skills will be upgraded. It‟s a client oriented job , so training is not enough
for specifically who needs human relation and social skill in this training provides
individuals perception, attitude, values and expectations, so that and employee or
employer can develop their with the latest update . Human Resources develop skill and
knowledge for better outstanding of job responsibilities. Its embraces with on -the-job
and formed training programs.
5.4.1 NBL training programs
 Orientation Training
 In-House Training
 Job Specific Training
 Need based Local/Foreign Training
 Peer or supervisors' coaching
 E-Learning: Online Training & Evaluation
Orientation Training: for the fresher, National Bank Limited has orientation internal
training program to give them the general view of the bank and also introduce them with
the organizational culture.

42
Job specific training: this is training where Norm of the bank is to train them by peer or
supervisors' coaching. Employees must attempt this training to know the job description
and follow on the on the job training.
Needbased training: this training can be either Foreign or local. After analyzing
employees gap between skills and knowledge and competency required for the current
role.
Basic training program:
i. Joining/ Participating in orientation with different Departments
ii. Foundation Course
iii. Attachment with SME Unit Offices & Branches
iv. Organization of Development Program
v. Attachment with different departments
vi. Information Technology Training
vii. On job hands-on training according to Job Description
5.4.2 Training Authority
The Managing Director has the power to decide issues relating to training of the
employees of the Bank. For training/education within or outside the country, the decision
may be made by Managing Director in consultation with Heads of the Divisions/Deputy
Managing Directors.

43
5.5 Compensation & Benefits
The success of NBL in sound advancing and deposit mobilization as well as other
investment will depend on efficient and effective service rendered by competent and
enthusiastic executives, officers and staff. At the moment the existing pay scale inclusive
of other benefits for different category of officers and staff can be considered as fair and
equitable. These may be reviewed every two years depending on the development,
growth and situation in the Bank. According to employee The bank is paying current
amount is not that sufficient like for probationary officer they are paying tk30000/-, first
executive officer tk 32000/- Senior Executive Vice PresidentTk.1,63,900/-,
5.5.1 Increment
Like other organization NBL has some increment rules also. Their Annual
increment fixed based of 10 years, the basic salary would increase by approximately
100% of the starting salary. This rules review every after two years. They have marking
system for this increment , employees increment happened basis of marks received. Up to
19 no increment, from 20 -28 grading scale normal increment, 29-40 grading scale is
considered as special increment. All the increment will be approved by the
Board/Committee However, the Board may recognize the outstanding performance of
any individual officers in the form of deposit mobilization, loan recovery and loan
administration and award extra cash or extra increment or a letter of appreciation. In case
of promotion of an employee effective from first January
 An employee would get his normal annual increment, if otherwise in order, with
effect from first day of January every year.
 All special increment shall be approved by the Board/Committee on the basis of
Company's Financial Performance and Policy which shall be reviewed every year.

44
 List of all officers who obtained less that 40 Marks shall be reported to the Board
every year for appropriate action/decision.
5.5.2 Bonus Policy
Bonus is an extra payment in addition to fair and reasonable normal salary. It is an
incentive payment not a routine salary. Therefore it must be strictly linked only with
effort and profitability of the Bank. Two Festival Bonus every year, pay dividend 7%-
9% only one Festival Bonus/ no Incentive Bonus.
 Bonus always on the basis of the Basic Salary
 Nevertheless even if net profit not enough to pay minimum dividend as mentioned
at
 National Bank Law under serial no. b(1) Board shall consider the matter every
year.
5.5.3 Provident Fund
For every commercial organization a Provident Fund is a legal entity which is
created by to provide long term benefit to the workers and employees. Employer
contributes with the fund based on fixed percentage of the monthly pay roll expenses. On
the other hand, employees are to make deposit similar amount or more to the fund every
month. Provident Fund Administered by a Board of Trustee Comprising both Board
Members and Executives. The Fund shall be overseen by these Rules or by such other
Rules as may be framed from time to time .The custody, management, investment and
control of the fund shall be vested in the Trustees.

45
 There shall be at least 6 (six) Trustees of the Fund out of which 3 (three) will be
nominated by the Board of Directors and the remaining 3 (three) Members of the
Fund shall be nominated by the Management.
 The custody, management, investment and control of the fund shall be vested in
the Trustees.
 There shall be at least 6 (six) Trustees of the Fund out of which 3 (three) will be
nominated by the Board of Directors and the remaining 3 (three) Members of the
Fund shall be nominated by the Management.
5.5.4 Gratuity
Gratuity is the part of the salary that an employee received from his or her
employer. This is another form of benefit for the employees. National bank has their own
rules which are called the “National Bank Limited Employees Gratuity Rules”. These
Rules has been activated from November 01, 1988.
Eligibility
For this gratuity employees who has been in their service for a minimum period of
12 (twelve) years without any break, they will be eligible to have the benefit under the
gratuity scheme. Bu tsometimes Gratuity can be approved to an employee under this
condition.
 In case of sudden death during in the service
 In capability of mental and physical permanently.
 Any special case
Disqualification

46
The following categories of employees will not be eligible for the Gratuity:-
Those who are dismissed from the service of the Bank.
OR
Those who leave or discontinue their service without the permission of the
Amount Payable
One month basic salary for each completed year of service on the basic pay drawn
by the
employee.
Payment of Gratuity
 The Gratuity will be paid to the employee concerned.
 In case of his/her death the Gratuity has to be paid
 The person(s) nominated by death
 His/her legal heirs in the absence of any nomination.
5.5.5 Medical Benefits
The benefits are over and above the normal monthly allowance. It is not
mandatory by any law but NBL Board only introduced such benefits to ensure that all
employees dedicate themselves to NBL for its continuous growth, better clientele service
and good health. Obvious monthly medical allowance does not cover the expenses for
hospitalization for major illness where prolong hospitalization are necessary including
surgery.

47
5.5.6 Rules & regulations
Employee all confirmed employee who is in the permanent payroll. The facility
alsocovers their wife and maximum two dependent children.
Declaration
A specimen copy of declaration form is required to be filled and signed in
duplicate by individual employee. The first copy of the declaration form should be
forwarded to Head Office. Administration Division for their record and the second copy
should be retained by the branch which should be kept in the personal file of concerned
employee. Please note that only wife and two children whose
The scheme
The organization will pay at actual all charges incurred in the hospitals for the
under noted purposes only which will include rent for cabin/ward, operation charges, all
pathological and Xray
charges. Doctor's fees and cost of medicines:
 Accident cases requiring hospitalization but only when going/coming from office
and on
 official duty.
 Heart diseases requiring hospitalization.
 Major surgery requiring hospitalization.
 Major diseases/ailment i.e. Requiring hospitalization for problem in Kidney,
Heart,

48
 Gastroenteritis, Brain, Eye, Ear, Nose, Lever, Lungs, Spine as well as other vital
organs.
 Hospitalization on account of maternity requiring surgical operation only.
For the cases of hospitalization and surgery has to be referred and recommended by a
recognized specialist not below the rank of Associate Professor and should be approved
by the Management before the admission/surgery.
5.5.7 Reimbursement
The scheme is constant for the employee and also for board of director which is
same amount cabin charges also paid for them .A separate account shall be opened in the
Bank. Bank to allocate the fund as per Budget allocation. At the end of every financial
year there shall be report made as to the total amount giving full details of expenses with
name/amount paid date of payment/nature of treatment. The payment for All Officers and
Non-Officers also the M.d is Maximum Tk. 25000/-, for Board of Directors its Exceeding
Tk.25000/- .
5.5.8 Transport Policy
National Bank Limited (NBL) started with an progressive step of providing cars
to all its Executives and Branch-in-Charges. In the initial days, terms of offer as an
Executive in NBL used to contain a condition for providing fulltime car to him/her by the
Bank. Though high maintenance cost thereof. In the meantime, various qualitative
changes have taken place in the NBL is emerging with a new commitment in the Banking
Sector which is being reflected in its ever increasing profitability. All these have become
possible due to the devotion & commitment of the people working in it. By hold the
morale of these people and to make them more motivated and devoted to the cause of the

49
Bank, it has become necessary to revise the existing Transport Policy to make it more
relevant to present day needs.
5.5.9 Category of Transport used in the Bank:
 Bank‟s Car i.e transport owned by the Bank and attached with the Executives/
Branches.
 Car Loan Scheme i.e. transports purchased under Car Loan Scheme.
 Pool Transport i.e. transports owned by the Bank for meeting specific transport
needs of the Bank.
There are some rules under the categories of transports which are
 Bank‟s cars/microbuses/jeep presently attached to various branches will continue
to be attached with those branches.
 Branches which produce reasonable profit per year for two sequential years will
be eligible to get a car/microbus/jeep as deemed appropriate. The branches to be
provided with cars/microbuses/jeep will be decided by the Managing Director in
consultation with the Executive Committee depending mainly on the profitability,
importance and location of the Branch.
5.5.10 Leave rules & regulations
The following leave Rules and Regulations shall be followed by NBL. These
rules shall be followed strictly without any exceptions and any deviation shall be reported
to Board/ Committee properly for necessary information & consideration.
 Any Important Issues for leaving.
 Leave has to be earned by duty only.
 The period spent on tour will be counted as duty.

50
 Leave application will be addressed to the competent authority and it must be
submitted.
No employee shall be allowed any leave unless the leave application is forwarded
timely to the leave sanctioning authority.
5.5.11 Leave encashment benefit (in case of resignation)
Any exception on valid reason has to be approved by the Board, Executive,
Officer; Non-Officer who resigns from the Bank will not be allowed to receive any Leave
with Encashment.
5.5.12 Retirement
An officer earned Regardless skill and knowledge throughout of his working life.
Then a certain time later time comes when ability to perform reduce quite. Where it‟s the
time to retire of a senior officer shall replace new officer to work with more strength and
extra enthusiasm to improve the quality of management of the company. The rules may
be called the “ National Bank Limited” (Employees)retirement and Retirement benefit
Rules, 1993.It shall come into force at once and shall be deemed to have taken effect
from the date of inception of the Bank.An employee of the Bank shall retire on
attainment of theage of 58 (fifty eight) years which is considered as normal retirement
Voluntary Retirement:
Any employee of the Bank may opt to retire from the service of the Bank at any
time after he/she has completed minimum 10(ten) years of service in NBL giving notice
in writing to the Managing Director at least 60 (sixty) days prior to the date of his
intended retirement
Normal Retirement:

51
An employee of the Bank shall retire on attainment of the age of 58 (fifty eight)
years
Forced Retirement:
Forced retirement is not a matter of Age. An employee may be dismissed from the
service of the Bank for his committing any misconduct after conforming to rules and
procedure provided in law.
Early Retirement:
An employee of the Bank may opt for early retirement in writing to the Managing
Director with or without showing any ground thereof at any time during his service in the
Bank. There is no bar of prior notice or length of service
Retirement Benefits
Voluntary Retirement:
 An employee whose voluntary retirement has been accepted by the Bank shall be
entitled to the following retirement benefits
 Gratuity as per Gratuity Rules shall be paid, calculated at (one) months basic pay
(immediate last month‟s basic pay) for each completed years of service in the
Bank.
 He/she shall be entitled to payments admissible to him/her as per Provident fund
Rules of the Bank.
 The concerned employee shall be entitled to benefits under Superannuation Fund
Scheme.

52
 The concerned employee shall be entitled to benefits under Employees Welfare
Scheme
Normal Retirement:
 An employee who has retired at the age of 58 (fifty Eight) years in usual course
shall be entitled to the following retirement benefits:-
 Leave preparatory to retirement for 03 (three) months with pay, allowances and
other facilities in full which he/she was availing from the Bank before proceeding
to such leave. The leave preparatory to retirement shall not be debited from his
leave account.
 Leave preparatory to retirement for 03 (three) months with pay, allowances and
other facilities in full which he/she was availing from the Bank before proceeding
to such leave. The leave preparatory to retirement shall not be debited from his
leave account.
 Provident fund both own & Bank‟s contribution payable as per provident fund
rules.
Scheme.
Scheme.
Forced Retirement
An employee who has been put to forced retirement as a measure of lesser
punishment for committing any misconduct shall be entitled to the following benefits

53
Banks and his own contribution to the Provident Fund if he is otherwise entitled to them
as per existing Provident Fund Rules.
 Gratuity benefit if admissible as per existing Employees Gratuity Rules of the
Bank.
 Benefits from Superannuation Fund Scheme.
 Benefits under Employees Welfare Scheme.
Early Retirement
Employees of the Bank who applied for Early Retirement and accepted by the
Management shall be entitled to the following retirement benefits
 Salary and Allowances for 4(four) months (Calculated at immediate last month‟s
pay).
 Provident Funds both own and Bank‟s contribution shall be paid as per Provident
Fund
Rules.
Scheme.
Scheme.
5.6 Peroformance Appraisal
A performance appraisal is a regular review of an employee's job performance
and overall contribution to a company. Also known as an "annual review," "performance
review or evaluation," or "employee appraisal," a performance appraisal evaluates an

54
employee’s skills, achievements and growth, or lack thereof. Companies use performance
appraisals to give employees big-picture feedback on their work and to justify pay
increases and bonuses, as well as termination decisions. They can be conducted at any
given time but tend to be annual, semi-annual or quarterly.
Reasons for Performance Appraisal:
• Appraisals provide information upon which promotion and salary
decisions can be made.
• Provide opportunity for supervisor and subordinate to review the
subordinate’s work- related behavior.
• Appraisal is part of the firm’s career planning process, because it provides
an opportunity to review the person’s career plans in light of his or her exhibited
strengths and weakness.
• Finally it helps the Manager or the supervisor to better manage and
improve organization’s performance.
Promotion means to next higher post should be handled carefully and judiciously
because of in one hand its importance in maintaining executives/officer‟s and staff
morals and on the other hand the future growth of the Bank . However, promotion cannot
be claimed as a matter of right. It is the duty of Management to ensure that one gets an
upward lift only on the basis of the performance at the interval of reasonable period of
time. It has to be an accepted as a principle that promotion should be strictly on the basis
of merit. But in practice, it has been found difficult to measure merit and promotions, by
and large, have been taking place on the basis of seniority.

55
Non-Graduate candidates will not be considered for promotion beyond
5.6.1 Principal Officer
For preparing the eligible list for promotion of promote Officers to the next higher
grades, the cumulative points with the ratings, academic degrees professional degree,
professional training etc. shall be the basis. Officers having higher academic degrees
would get priority over the other in the eligible list .Around three years of complete
service may be fixed to make a person eligible for promotion. Promotions also depend
largely on the availability of post.
There are also some other factor plays for promotion
 Greater importance should be attached to merit, though measurement of merit of
an individual is a difficult job with subjective judgment. By involving Seniority or
length of service should not guide promotion to higher post.
 Also part one and Part two examination of the Institute of Bankers and trained by
their Training institute may be considered to have acquired relatively more
technical competence. Therefore passing of this examination may be given some
weight at the time of promotion.
Therefore, the superior is in a better position to evaluate their merits. NBL should
therefore, install a well- designed system of grading and train the ACR writing officers
and executives. The grading should contain items which are very much relevant for
evaluating the performance of an executive/officer. For Probationary Officer, after
successful completion of Probation period of one year he/she will be confirmed as
Executive Officer.

56
5.6.2 Criteria for Promotion of Non-Officers
Their promotion in higher grade may be considered by keeping in view the scale
of pay and present grades, we are furnishing below particulars of different grades of Non-
Officers.
5.7 Disciplinary Action
Anyone doing anything harmful to the interest of NBL will be penalized.
Disciplinary action will be taken also if found guilty of misconduct or disloyalty, whether
executive, officer or staff is subject to disciplinary action if there is sufficient evidence
that he has misconducted his duty to NBL by reason of inefficiency, mental, inability,
physical infirmity or any other reason like conviction by a court corruption. Like fraud,
forgery, commercial bribery etc. and misuse of official power will be another ground for
penal measure.
In NBL “Misconduct” will cover the follows
 Disobedience to Lawful or order of the authority.
 Bank property or business property Theft, fraud or dishonesty.
 Damage or loss of goods or property.
 Late coming and early going on habitual basis.
 Absence from duty without obtaining prior permission.
 Indecent or Unsystematic behavior when on duty.
 Striking picketing and agitation surrounded by the Bank, Distribution of hand
bills,
 pamphlets or posters inside the Bank premises.
 Leaving the seat or place of work without permission on duty hours.

57
 Unapproved use of Bank‟s property.
 Absenteeism work show-down or undue delay in the discharge of duty.
 Negligence of duty, Habitual Negligence of duty.
 Break of Bank‟s regulation, standing orders, instruction, rules, procedure etc.
5.7.1 Disciplinary Authority
The Managing Director is the responsible for handling the Disciplinary cases
relating to executive and officers will be examined and decided by the Policy &
Regulations Committee/Board and those relating to staff .Managing Director will have
the power to suspended any one if situation demands immediate action. The action taken
by the Managing Director should be reported to the Committee for its approval. The
Committee/Board will be the supreme authority to decide what actions call for penalty.
Disciplinary actions will be initiated by the Managing Director when events of
misconduct or other offenses committed by executive/officer are taken to his notice.
5.7.2 Suspension
During the suspension period, the Bank may consider giving the suspended
employee subsistence allowance. If he is honorably acquitted he should be given full pay.
Enquiry Procedure
The troubled employee should be given an opportunity to explain his conduct and
his explanation should be examined and evaluated objectively without any basis. If the
authority is not satisfied with his written explanation, he should be charge-sheeted with
reasonable opportunity to the concerned employee to defend his innocence. If charges are
provided, the competent authority will impose the punishment.
Review & Appeal

58
On whom penalty has been imposed shall have the right to submit an application
to the punishment awarding authority to review his punishment. He can also make an
appeal to the next higher authority for reconsideration of his punishment order. The
review petition or appeal must be filed within.

59
Chapter Six
Conclusion, Findings & Recommendation

60
6.1 Conclusion
National Bank Limited maintain conventional banking system for their making
policy and for their procedure .there are lots of commercial bank and public Bank we
have in this country.in this competitive environment national bank is competing
successfully with all of them. National bank limited is not only doing competition
successfully but also its contributing in our economy sector. their SME loan AGRI loan
and also several loan helping the general people to create more opportunity to them .from
the last thirty four years they are paying to the society . They have made many funds in
export and import business. It obvious clear that national bank limited created more one
hundred ninety seven branch overall Bangladesh. Increased so many sources which
created a portfolio in the development .less the amount of loans and losses, more income
are the factor which played vital role behind the every banking success
6.2 Findings
National Bank Limited has their own training center which is situated at new
Eskaton road where they only provide theoretical materials, not with the practical one
like showing videos, also no pre and post evaluation or survey takes in the training
session.
 The Bank can not practices proper HRM guideline. The HRM have some
objectives but the bank can not follow all those objectives.
 Training and development sector, there are on-the-job and off-the-job training
techniques the bank follow some technique, but the bank can not follow arranges
off-the-job techniques video and films show.

61
 NBL does not use any recruitment agency for recruitment purpose.
 In the recruitment sector, Banking Sector of Bangladesh. Can not follow the
proper guideline of HRM.
 The orientation process, the bank can not follow of those process.
 There are several ways of employee’s rewards, such as intrinsic vs. Extrinsic
rewards, financial vs. non financial rewards, and performance- based vs.
membership rewards, but the bank can not provides all of the system.
 The entire employer is very knowledgeable, but they are totally unaware of the
philosophy behind the work or task.
 The bank does not have separate employees only for recruitment purpose. General
HR personnel are involved in this process.
 NBL makes proper focus on job analysis. They follow the proper job specification
job description & evaluate it.
 The bonus and increment that NBL provides is satisfactory number.
6.3 Recommendation
National Bank Limited is one the leading banking institute in Bangladesh. To
recommend National Bank Limited is quite difficult thing for me as an internee. The HR
function is adding more and more value to modern organizations. I have found some
points to be noticed to.

62
 The Bank should practices proper HRM guideline. The purpose of Human
Resource Management is to improve the productive contribution of people to the
organization ways that are strategically, ethically, and socially responsible.
 To get effective and efficient employee’s the Bank should arrange proper training
and development programs.
 To motivate the employee’s the bank should follow proper guideline of HRM.
 The entire HR department should be will informed regarding their goals and
objectives.
 They should follow proper guideline in recruitment process.
 Job description should be clarified and proper training should be important to
improve the performance to bottom level management.
 To evaluate employee’s performance the bank should follow promotion
policy properly.
 The bank can understand in which area training needs to be provide in the training
session they should provide pre and post evaluation process which will helpful for
the supervisor to know more about the employee that what was the condition
before training and also after the training what they have learnt.
 They should follow proper orientation process while new employees start job.

63
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