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Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

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Workforce today is more expressive about their needs. Employees desire the best of everything competitive salaries, comfortable & inspirational lifestyles, job security, career enhancement options, work-life balance, and so on. Competition for talent is ever increasing and organizations need to have well-defined philosophies and strategies to help them develop innovative ways of tapping intrinsic motivation of employees by engaging their hearts and minds. The focus should be given on how managers are able to implement these types of motivation into their specific work place. This will show how motivation is important to all industries, and how it can change and impact the amount sales a bank performs. Motivated employees will in turn create a successful bank.

Published in: Leadership & Management

Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

  1. 1. “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” oooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo oooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo oooooooooooooooooooooooo LEADING A promise to lead Role of compensation practices on employees’ A study on Prime Bank Limited Masum Hussain “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Page 1 oooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo oooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo oooooooooooooooooooooooo EADING UNIVERSITY A promise to lead nsation practices on employees’ motivation A study on Prime Bank Limited Masum Hussain “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” oooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo oooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo NIVERSITY 2016 motivation
  2. 2. “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” “Role of compensation prac A study on Prime Bank Limited Department of Business Administration Department of Business Administration Major: Department of Business Administration Date of Submission: 06 February, 2016 “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Page 2 An Internship report on “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Course title: Internship Course code: BUS-499 Submitted to Department of Business Administration Leading University, Sylhet Supervised by Mr.Mr.Mr.Mr. Md. Shamimul IslamMd. Shamimul IslamMd. Shamimul IslamMd. Shamimul Islam Senior Lecturer Department of Business Administration Leading University, Sylhet Prepared by: Masum HussainMasum HussainMasum HussainMasum Hussain ID: 1201010202 Program BBA (30th Batch) Major: Human Resource Management Department of Business Administration Leading University, Sylhet Date of Submission: 06 February, 2016 “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” tices on employees’ motivation: Department of Business Administration Date of Submission: 06 February, 2016
  3. 3. “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” 06 February, 2016 To Mr. Md. Shamimul Islam Senior Lecturer, Department of Business Administration Leading University, Sylhet Subject: Submission of Internship Report Dear Sir, With best regard, I am submitting my Internship Report on employees’ motivation: A study on Prime Bank Limited important requisite of BBA program. I have tried my level best to prepare an effective, informative and creditable report. I hope my contribution will be best evaluated on your sharp scale of acceptance and analytical remarks. I would like to express my gratitude for your supp making this report. At each stage, I have given my best efforts in preparing this report. There is no doubt that this experience enriches my knowledge in a greater degree. I hope you will find the report worthy enough. I welcome all your queries and take pride to answer them. Thanking You Sincerely yours, ………………............ Masum Hussain ID: 1201010202 Program BBA (30th Batch) Major: Human Resource Management Department of Business Administration Leading University, Sylhet “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Page 3 Letter of Transmittal Department of Business Administration Subject: Submission of Internship Report. With best regard, I am submitting my Internship Report on “Role of compensation practices on : A study on Prime Bank Limited” that you have assigned to me as an f BBA program. I have tried my level best to prepare an effective, informative and creditable report. I hope my contribution will be best evaluated on your sharp scale of acceptance and analytical remarks. I would like to express my gratitude for your supportive thoughts and kind consideration in making this report. At each stage, I have given my best efforts in preparing this report. There is no doubt that this experience enriches my knowledge in a greater degree. I hope you will find the ugh. I welcome all your queries and take pride to answer them. Major: Human Resource Management Department of Business Administration “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” “Role of compensation practices on that you have assigned to me as an f BBA program. I have tried my level best to prepare an effective, informative and creditable report. I hope my contribution will be best evaluated on your sharp ortive thoughts and kind consideration in making this report. At each stage, I have given my best efforts in preparing this report. There is no doubt that this experience enriches my knowledge in a greater degree. I hope you will find the ugh. I welcome all your queries and take pride to answer them.
  4. 4. “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” I am pleased to declare that, Business Administration, Leading University, Sylhet, has been given with the internship topic titled “Role of compensation prac Limited” for researching and writing an internship report on the subject. His work is quite satisfactory and I am glad to affirm that the entire report work has been conducted under my direct and active supervision. Now I am convinced to permit him to defend the same before the respective panel of judges. I also hope that the internship report is an original one and has not been submitted elsewhere previously for publication in any form. He is sincere, report work will contribute to his career. I wish him all the success in life. ___________________ Mr. Md. Shamimul Islam Senior Lecturer Department of Business Administration Leading University, Sylhet “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Page 4 Letter of Acceptance I am pleased to declare that, Masum Hussain, bearing ID No: 1201010202 Business Administration, Leading University, Sylhet, has been given with the internship topic “Role of compensation practices on employees’ motivation: A study for researching and writing an internship report on the subject. His work is quite satisfactory and I am glad to affirm that the entire report work has been conducted under my Now I am convinced to permit him to defend the same before the respective panel of judges. I also hope that the internship report is an original one and has not been submitted elsewhere previously for publication in any form. He is sincere, honest and hard working. I hope that this report work will contribute to his career. I wish him all the success in life. Department of Business Administration “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” ID No: 1201010202, Department of Business Administration, Leading University, Sylhet, has been given with the internship topic A study on Prime Bank for researching and writing an internship report on the subject. His work is quite satisfactory and I am glad to affirm that the entire report work has been conducted under my Now I am convinced to permit him to defend the same before the respective panel of judges. I also hope that the internship report is an original one and has not been submitted elsewhere honest and hard working. I hope that this
  5. 5. “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Though the internship program has to be done individually in a sense of completion of the credit hour but it is quite impossible to do of some individuals. It is a very great and unique some individuals for their help and encouragement to make the internship successful. At first I would like to express my gratitude to almighty beautiful country like Banglades requirements for the degree. internship report “Role of compensation practices on employee’s motivation Prime Bank Limited”. I am also grateful to my and providing me with the basic necessities of my life since my birth. With due respect, I would like to thank to the Tofayel Ahmed. I extend my most sincere gratitude to my academic supervisor Islam, Senior Lecturer, Department of Business Administration. I am deeply indebted to his whole hearted supervision to me during the Internship Period. His valuable suggestions & guideline helped me a lot to prepare the report in a well I would like to express my special thanks to Branch, Amberkhana Branch Prime Bank Limited, for the constant guidance he provided me in every need of mine throughout my whole internship period. He has been extremely kind to lend me his valuable time whenever I needed. I would also like to thank the officers and senior officers for helping me to learn about banking activities, and adjusting myself in a corporate environment. They also provided me valuable information, guideline which helped me a lot to prepare this report. Besides, I am also grateful to the others, researchers, writers whose books, articles, thesis papers, and journal that have helped me to prepa At last but not the least, without the help of was quite impossible for me information about this topic which wa them. “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Page 5 Acknowledgement Though the internship program has to be done individually in a sense of completion of the credit hour but it is quite impossible to do alone without the sincere and of some individuals. It is a very great and unique pleasure to me that I have got a chance to thank some individuals for their help and encouragement to make the internship successful. I would like to express my gratitude to almighty Allah for creating us in such a beautiful country like Bangladesh with good health and tenacity of mind to complete the requirements for the degree. For the mercy of Him, I have got such courage to start this “Role of compensation practices on employee’s motivation m also grateful to my parents and family members for supporting me and providing me with the basic necessities of my life since my birth. With due respect, I would like to thank to the Head of the Department, incere gratitude to my academic supervisor , Senior Lecturer, Department of Business Administration. I am deeply indebted to his whole hearted supervision to me during the Internship Period. His valuable suggestions & me a lot to prepare the report in a well-organized manner. I would like to express my special thanks to Mr. Nazrul Islam, SAVP and Head of the Branch, Amberkhana Branch Prime Bank Limited, for the constant guidance he provided me in oughout my whole internship period. He has been extremely kind to lend me his valuable time whenever I needed. I would also like to thank the officers and senior officers for helping me to learn about banking activities, and adjusting myself in a corporate environment. They also provided me valuable information, guideline which helped me a lot to Besides, I am also grateful to the others, researchers, writers whose books, articles, thesis papers, and journal that have helped me to prepare my Internship report successfully. At last but not the least, without the help of my friends, classmates for me to prepare such kind of report. They gave me information about this topic which was unknown to me. So, I would like to give thanks to all of “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Though the internship program has to be done individually in a sense of completion of alone without the sincere and utmost cooperation pleasure to me that I have got a chance to thank some individuals for their help and encouragement to make the internship successful. for creating us in such a with good health and tenacity of mind to complete the have got such courage to start this “Role of compensation practices on employee’s motivation: A study on and family members for supporting me Head of the Department, Professor Dr. incere gratitude to my academic supervisor Mr. Md. Shamimul , Senior Lecturer, Department of Business Administration. I am deeply indebted to his whole hearted supervision to me during the Internship Period. His valuable suggestions & organized manner. , SAVP and Head of the Branch, Amberkhana Branch Prime Bank Limited, for the constant guidance he provided me in oughout my whole internship period. He has been extremely kind to lend me his valuable time whenever I needed. I would also like to thank the officers and senior officers for helping me to learn about banking activities, and adjusting myself in a corporate environment. They also provided me valuable information, guideline which helped me a lot to Besides, I am also grateful to the others, researchers, writers whose books, articles, thesis re my Internship report successfully. classmates and senior brothers it ve me some necessary would like to give thanks to all of
  6. 6. “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Workforce today is more expressive about their needs. Employees desire the best of everything competitive salaries, comfortable & inspirational lifestyles, job security, ca options, work-life balance, and so on. Competition for talent is ever increasing and organizations need to have well-defined philosophies and strategies to help them develop innovative ways of tapping intrinsic motivation of employees by e The objective of this study is to analyze the initiatives for by Prime Bank Limited and recognize historical evaluation of compensation practices regard, two types of reward are identified, and they are intrinsic rew Extensive research showed that reward can affect job satisfaction and thereby employee performance. To retain efficient and experienced workforce in an organization is very crucial in overall performance of an organization. Motivated employees can help make an organization competitively more value added and profitable. The present study is a major factors that motivate recognition and motivation while working within an organization. managers and policy makers in the context of hu Limitations and guidelines for future research are also provided. More research is needed on the relative cost-benefit of cash and gift incentives, and the way different types of tangible incentives are selected. Long-term programs led to greater performance gains than shorter did, and somewhat greater performance gains were realized for manual than for cognitive work. Any theories about motivation can be contradicted exceptions. It is important that these theories are considered general statements that have been confirmed through observational studies and are applicable only to the extent that they reflect and are influenced by individual behaviour. If we are searching universally applicable, we may be wasting our time, but if our goal is to better understand human behaviour and its impacts on personal performance, the insights gained from such theories and studies are invaluable. The mos Herzberg’s two-factor theory, and the different types of motivation. Each theory is related in the fact that there are needs for all people to meet. Every employee is at a different stage in their lives, which requires different management techniques. It is shown that motivation must come from within the employee. The theories investigated will help describe how managers can influence their employees to self motivate and produce the best work possib specific types of motivation: financial and non employees using financial means as well as non The focus should be given on how managers are able to implement these type motivation into their specific work place. This will show how motivation is important to all industries, and how it can change and impact the amount sales a employees will in turn create a successful “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Page 6 Executive Summary Workforce today is more expressive about their needs. Employees desire the best of everything competitive salaries, comfortable & inspirational lifestyles, job security, ca life balance, and so on. Competition for talent is ever increasing and organizations defined philosophies and strategies to help them develop innovative ways of tapping intrinsic motivation of employees by engaging their hearts and minds. The objective of this study is to analyze the initiatives for compensation practices by Prime Bank Limited and recognize compensation practices in it. Besides to find out the compensation practices here is also another reason of the study. regard, two types of reward are identified, and they are intrinsic reward and extrinsic reward. research showed that reward can affect job satisfaction and thereby employee performance. To retain efficient and experienced workforce in an organization is very crucial in overall performance of an organization. Motivated employees can help make an organization competitively more value added and profitable. The present study is an attempt to find out the employees and it tells about the relationship on and motivation while working within an organization. Implications of the study for managers and policy makers in the context of human resource practices have been discussed. Limitations and guidelines for future research are also provided. More research is needed on the benefit of cash and gift incentives, and the way different types of tangible incentives term programs led to greater performance gains than shorter did, and somewhat greater performance gains were realized for manual than for cognitive work. Any theories about motivation can be contradicted since these theories have many exceptions. It is important that these theories are considered general statements that have been confirmed through observational studies and are applicable only to the extent that they reflect and are influenced by individual behaviour. If we are searching for scientific evidence that is universally applicable, we may be wasting our time, but if our goal is to better understand human behaviour and its impacts on personal performance, the insights gained from such theories and The most important theories include: Maslow’s hierarchy of needs, factor theory, and the different types of motivation. Each theory is related in the fact that there are needs for all people to meet. Every employee is at a different stage in their lives, which requires different management techniques. It is shown that motivation must come from within the employee. The theories investigated will help describe how managers can influence their employees to self motivate and produce the best work possib specific types of motivation: financial and non-financial. The employers can motivate their employees using financial means as well as non-financial recognitions. The focus should be given on how managers are able to implement these type motivation into their specific work place. This will show how motivation is important to all industries, and how it can change and impact the amount sales a bank employees will in turn create a successful bank. “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Workforce today is more expressive about their needs. Employees desire the best of everything competitive salaries, comfortable & inspirational lifestyles, job security, career enhancement life balance, and so on. Competition for talent is ever increasing and organizations defined philosophies and strategies to help them develop innovative ways of ngaging their hearts and minds. compensation practices taken in it. Besides to find out the is also another reason of the study. In this ard and extrinsic reward. research showed that reward can affect job satisfaction and thereby employee performance. To retain efficient and experienced workforce in an organization is very crucial in overall performance of an organization. Motivated employees can help make an organization n attempt to find out the the relationship among reward, Implications of the study for man resource practices have been discussed. Limitations and guidelines for future research are also provided. More research is needed on the benefit of cash and gift incentives, and the way different types of tangible incentives term programs led to greater performance gains than shorter-term programs did, and somewhat greater performance gains were realized for manual than for cognitive work. since these theories have many exceptions. It is important that these theories are considered general statements that have been confirmed through observational studies and are applicable only to the extent that they reflect for scientific evidence that is universally applicable, we may be wasting our time, but if our goal is to better understand human behaviour and its impacts on personal performance, the insights gained from such theories and t important theories include: Maslow’s hierarchy of needs, factor theory, and the different types of motivation. Each theory is related in the fact that there are needs for all people to meet. Every employee is at a different stage in their lives, which requires different management techniques. It is shown that motivation must come from within the employee. The theories investigated will help describe how managers can influence their employees to self motivate and produce the best work possible. There are two financial. The employers can motivate their The focus should be given on how managers are able to implement these types of motivation into their specific work place. This will show how motivation is important to all bank performs. Motivated
  7. 7. “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Subjects Letter of Transmittal Letter of Acceptance Acknowledgement Executive Summary Chapter one (Introduction) 1. Introduction ..................................................... 2. Background of the report 3. Statement of the Problem 4. Objectives of the report 5. Research design ................................................. 6. Data Collection Method a. Primary sources b. Secondary sources 7. Sampling technique .............................................................................. 8. Scope of the study .......................................................................................... 9. Limitations of the study Chapter two (An overview of Prime Bank Limited) 1. Introduction .................................................................................. 2. History of Prime Bank 3. Vision ....................................................................................... 4. Mission .................................................................................... 5. Corporate Philosophy of Prime Bank Limited 6. Slogan ...................................................................................... 7. Awards and Recognitions 8. Departments of Prime Bank Limited 9. Prime Bank at a Glance 10. Organizational structure of Prime Bank Ltd 11. Organogram of Prime Bank Limit Chapter three (Internship experience at Prime Bank Limited) 1. My Experience in General Banking 2. My Experience in Card Division 3. My Experience in Credit Division 4. My Experience in Remittance section Chapter four (Literature Review) 1. Introduction ........................................................................... 2. Definition of Terms ...................................................... “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Page 7 Table of contents Letter of Transmittal Letter of Acceptance Acknowledgement Executive Summary Chapter one (Introduction) ................................................................................... .................................................................................................................. Background of the report .............................................................................................. the Problem ............................................................................................. Objectives of the report ................................................................................................. ............................................................................................................ Data Collection Method ................................................................................................ Primary sources ..................................................................... Secondary sources ................................................................. .............................................................................. .......................................................................................... study ......................................................................................... o (An overview of Prime Bank Limited) ................................ ........................................................................................................... History of Prime Bank .......................................................................... ....................................................................................................................... ..................................................................................................................... Corporate Philosophy of Prime Bank Limited ............................................................ .......................................................................................................................... wards and Recognitions ........................................................................ artments of Prime Bank Limited .......................................................................... Glance .......................................................................................... Organizational structure of Prime Bank Ltd ....................................... Organogram of Prime Bank Limited .................................................................... (Internship experience at Prime Bank Limited) ........... My Experience in General Banking ............................................................................ My Experience in Card Division .................................................................................... My Experience in Credit Division ............................................................................. My Experience in Remittance section ........................................................................... (Literature Review) ................................................................... .................................................................................................... ......................................................................................... “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” pages ............................... (11-13) ..................................... 11 .......................................................... 11 ............................... 11 ...................................................... 12 ......................................... 12 ................................... 12 ................................... 12 ............................................................................................. 12 ....................................................................................................... 13 ......................................................................................................... 13 ................................................................................................ 13 ......................... (15-22) .................................. 15 ................................... 15 ....................................... 15 ........................................ 16 ...................................... 16 ........................................ 16 ................................................................................................ 17 ................................ 19 .................................................................................................... 20 .................................................................... 21 ............................................................................... 22 ............................. (24) ................................................................................ 24 ..................................................................................... 24 ................................................................ 24 ............................................................................. 24 ....................................... (26-41) ........................................ 26 .................................................. 26
  8. 8. “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” 3. Importance of incentives 4. Reward ..................................................................................... 5. Types of rewards ......................................................................................... 6. Length of Reward Program 7. Importance of a Reward System 8. Benefits ............................................................................. 9. Types of Benefits .......................................................................................... 10. Equity-based compensation 11. Motivation ....................................................................... 12. Significance of motivation in the workplace 13. Motivating by meeting basic human needs 14. Maslow's need hierarchy theory 15. Alderfer’s ERG theory 16. Three Components of Motivation 17. Procedural justice theory 18. Designing jobs that motivate 19. Job Enlargement: Doing More of the Same Kind of Work 20. Job Enrichment: Increasing Required Skills and Responsibilities 21. The job characteristics model 22. Suggestions for Enhancing the Motivating Potential of Jobs 23. Rewards and Incentives theories 24. The Carrot and Stick Approach to Motivation 25. Is money the best ‘carrot’? 26. Motivation-Hygiene Theory 27. Theory X of McGregor 28. Theory Y of McGregor Chapter five (Compensation and motivation practices of 1. HR Principles of Prime Bank 2. Talent Resourcing, Learning and Development Culture 3. Open and Fair Evaluation System for Employees 4. Competitive Compensation Package 5. Performance Bonus .................................................................................. 6. 'We, not I' Culture .................................................................................... 7. Knowledge Sharing and Open House Discussions 8. Human Capital ....................................................................................... 9. Compensations offered by Prime Bank Ltd. to the employees a. Basic Salary ................................................................................. b. House Rent Allowance c. Conveyance .................................................................................... d. Leave travel allowance e. Medical reimbursement f. Staff loan facilities g. Bonus .................................................................................................................. “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Page 8 Importance of incentives .............................................................................................. ................................................................................................................... ......................................................................................... th of Reward Program ......................................................................................... Importance of a Reward System .............................................................................. .......................................................................................................... .......................................................................................... compensation .................................................................................... ................................................................................................. Significance of motivation in the workplace .......................................... Motivating by meeting basic human needs ......................................................... need hierarchy theory .......................................................... Alderfer’s ERG theory ........................................................................ Three Components of Motivation .............................................................. Procedural justice theory .............................................................................. Designing jobs that motivate ........................................................................ Job Enlargement: Doing More of the Same Kind of Work ............................ Job Enrichment: Increasing Required Skills and Responsibilities .................. The job characteristics model ..................................................................... Suggestions for Enhancing the Motivating Potential of Jobs .................. Rewards and Incentives theories ........................................................... The Carrot and Stick Approach to Motivation ...................................... ‘carrot’? ...................................................................... Hygiene Theory .................................................................... Theory X of McGregor ............................................................................ Theory Y of McGregor ................................................................................... (Compensation and motivation practices of PBL) ....................... HR Principles of Prime Bank Limited ................................................................... earning and Development Culture ............................................... Open and Fair Evaluation System for Employees ................................................ Competitive Compensation Package ....................................................... .................................................................................. .................................................................................... Knowledge Sharing and Open House Discussions .............................................. ....................................................................................... Compensations offered by Prime Bank Ltd. to the employees .......... ................................................................................. House Rent Allowance ................................................................................... .................................................................................... Leave travel allowance ............................................................................... Medical reimbursement ....................................................................... facilities .............................................................................................. .................................................................................................................. “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” ..................................... 27 .................................... 27 .......................................................................................................... 28 ................................ 29 ................................ 29 ........................................... 30 ......................................................................................................... 30 ................................... 31 ............................................. 31 .................................................. 32 ........................................ 33 ................................................................................... 33 ................................................................................................. 34 ................................................................. 35 .............................................................................................. 35 ............................................ 36 ......................................... 36 ............................. 36 .............................................. 37 ....................................... 37 ..................................................... 38 .............................................................. 38 ..................................................... 39 ..................................................... 40 .................................................................................................. 40 .................................................................................................. 41 ....................... (43-47) ........................................................................... 43 ............................................... 43 ......................................................... 43 ............................................................................. 43 ........................................................................................................ 43 .......................................................................................................... 43 ....................................... 43 ............................................................................................................... 44 ...................................... 45 ........................................................................................................ 45 ................................ 45 ........................................................................................................ 46 ....................................... 46 ...................................................................................... 46 .............................................................................................. 46 .................................................................................................................. 46
  9. 9. “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” h. Special allowance 10. Motivational facts on Prime Bank Ltd. a) Ensuring horizontal and vertical caree b) Succession planning c) Comprehensive performance management program d) Reward & recognition program e) Grievances and counselling f) Competitive compensation package g) Ensuring a decent workplace Chapter six (Data Analysis and findings) Chapter seven (Recommendations and Conclusion) Appendix 1. Bibliography 2. Questionnaire 3. Terms and acronyms “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Page 9 Special allowance ......................................................................................... Motivational facts on Prime Bank Ltd. ................................................. Ensuring horizontal and vertical career growth ............................... Succession planning .............................................................................. Comprehensive performance management program ..................................... Reward & recognition program ...................................................................... Grievances and counselling .................................................................................. Competitive compensation package ......................................................................... Ensuring a decent workplace ................................................................................ (Data Analysis and findings) ....................................... Chapter seven (Recommendations and Conclusion) ..................... “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” ................................................................................................ 46 .................................. 46 ......................................................... 46 ................................................................................................... 47 .............................. 47 ................................................................................. 47 ................................. 47 ......................................................................... 47 ..................................... 47 ............................................................ (49-63) .......................................... (65-67)
  10. 10. “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Chapter “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Page 10 Chapter One (Introduction) 1. Introduction 2. Background of the report 3. Statement of the Problem 4. Objectives of the report 5. Research design 6. Data Collection Method a. Primary sources b. Secondary sources 7. Sampling technique 8. Scope of the study 9. Limitations of the study “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” ne (Introduction) Statement of the Problem
  11. 11. “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Introduction An internship program is a very good approach to co with the theoretical knowledge because it provides an an organization with some specific objectives. As a result it bears great importance in case of business graduates. Workforce today is more articulate about their needs. Employees everything competitive salaries, comfortable & inspirational lifestyles, job security, career enhancement options, work-life balance, and so on. Competition for talent is ever increasing and organizations need to have well innovative ways of tapping intrinsic motivation of employees by engaging their hearts and minds. While many organizations are struggling to make sufficient progress in this direction, there are organizations that have institutionalized strong pr different people practice areas that go a long way in positively impacting employee perception. Most employers today would like to have their employee’s motivated and ready to work, but do not understand what truly motiva specifically an employee, to succeed in the workplace. I will examine different theories of motivations, how they are relevant to the workplace, and how employers can implement the theories to ensure happy and motivated employees. Now, the main objective of my internship program was to evaluate the compensation practices on employees’ motivation: A study on Prime Bank Limited report is basically a result of experience in the Background of the report As a requirement of the completion of the graduation of Business Administration degree under direct supervision of my internship report supervisor assigned to do my internship at Prime Bank Limited Amberkhana Branch, Sylhet for a specified period of 3 months from 21th September to 20th December, 2015. opportunity for me to work in one of the reputed private commerci Prime Bank Limited. During this period I had the opportunity to work in all sections of Prime Bank Limited. This report is a formal documentation of this internship program. Statement of the Problem While compensation is argua studied areas, doubts may arise on the effectiveness of compensation. While lack of it causes dissatisfaction, its provision does not result in lasting motivation. The effects of compensation on motivation vary from organization to organization. Most people are motivated by money at least for their basic needs and wants. Employees’ motivation through compensation can be in several forms including salary raises, performance bonuses, commissions, p benefits such as vacations, cars and other tangible items that are used as rewards. These compensation systems can be categorized as direct financial payment and indirect financial “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Page 11 An internship program is a very good approach to co-relate the practical work experience with the theoretical knowledge because it provides an individual the great opportunity to work in an organization with some specific objectives. As a result it bears great importance in case of Workforce today is more articulate about their needs. Employees mpetitive salaries, comfortable & inspirational lifestyles, job security, career life balance, and so on. Competition for talent is ever increasing and organizations need to have well-defined philosophies and strategies to help th innovative ways of tapping intrinsic motivation of employees by engaging their hearts and minds. While many organizations are struggling to make sufficient progress in this direction, there are organizations that have institutionalized strong practices and effective processes in different people practice areas that go a long way in positively impacting employee perception. Most employers today would like to have their employee’s motivated and ready to work, but do not understand what truly motivates a person. There are essential needs to be met for a person, specifically an employee, to succeed in the workplace. I will examine different theories of motivations, how they are relevant to the workplace, and how employers can implement the ensure happy and motivated employees. Now, the main objective of my internship program was to evaluate the compensation practices on employees’ motivation: A study on Prime Bank Limited report is basically a result of experience in the compensation practices of Prime Bank Limited. As a requirement of the completion of the graduation of Business Administration degree under direct supervision of my internship report supervisor Mr. Md. Shamimul Islam assigned to do my internship at Prime Bank Limited Amberkhana Branch, Sylhet for a specified 21th September to 20th December, 2015. As an intern it was a great opportunity for me to work in one of the reputed private commercial banks of Bangladesh, the Prime Bank Limited. During this period I had the opportunity to work in all sections of Prime Bank Limited. This report is a formal documentation of this internship program. While compensation is arguably one of the key drivers of motivation and one of the most studied areas, doubts may arise on the effectiveness of compensation. While lack of it causes dissatisfaction, its provision does not result in lasting motivation. The effects of compensation on motivation vary from organization to organization. Most people are motivated by money at least for their basic needs and wants. Employees’ motivation through compensation can be in several forms including salary raises, performance bonuses, commissions, profit sharing and other extra benefits such as vacations, cars and other tangible items that are used as rewards. These compensation systems can be categorized as direct financial payment and indirect financial “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” relate the practical work experience individual the great opportunity to work in an organization with some specific objectives. As a result it bears great importance in case of Workforce today is more articulate about their needs. Employees desire the best of mpetitive salaries, comfortable & inspirational lifestyles, job security, career life balance, and so on. Competition for talent is ever increasing and defined philosophies and strategies to help them develop innovative ways of tapping intrinsic motivation of employees by engaging their hearts and minds. While many organizations are struggling to make sufficient progress in this direction, actices and effective processes in different people practice areas that go a long way in positively impacting employee perception. Most employers today would like to have their employee’s motivated and ready to work, but do tes a person. There are essential needs to be met for a person, specifically an employee, to succeed in the workplace. I will examine different theories of motivations, how they are relevant to the workplace, and how employers can implement the Now, the main objective of my internship program was to evaluate the Role of compensation practices on employees’ motivation: A study on Prime Bank Limited and this of Prime Bank Limited. As a requirement of the completion of the graduation of Business Administration degree Mr. Md. Shamimul Islam I was assigned to do my internship at Prime Bank Limited Amberkhana Branch, Sylhet for a specified As an intern it was a great al banks of Bangladesh, the Prime Bank Limited. During this period I had the opportunity to work in all sections of Prime Bank Limited. This report is a formal documentation of this internship program. bly one of the key drivers of motivation and one of the most studied areas, doubts may arise on the effectiveness of compensation. While lack of it causes dissatisfaction, its provision does not result in lasting motivation. The effects of compensation on motivation vary from organization to organization. Most people are motivated by money at least for their basic needs and wants. Employees’ motivation through compensation can be in several rofit sharing and other extra benefits such as vacations, cars and other tangible items that are used as rewards. These compensation systems can be categorized as direct financial payment and indirect financial
  12. 12. “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” payments. In today’s work environment, there need for empowered employees, decline in traditional incentives, rise of nontraditional incentives and increased use of variable compensation. Studies have also shown that compensation programs and the met Objectives of the report To analyze the initiatives of recognize compensation practices To find the most suitable Finding out the historical evaluation of To analyze the components of To find out the weaknesses of the current To suggest some guidelines to improve the current compensation practices that will ideally improve the motivation of the employee Research design: The research is based on explanatory in terms of research type which has its primary objective the provision of insights into and comprehension of the problem situation confronting the researcher. This research process is flexible and unstructured. By doing explanatory research it will be helpful to study about compensation practices in Prime Bank Limit towards compensation practices taken by Prime Bank Limited. Data Collection Method: The objectivity of any study depends largely on how methodologically it is done. For the purpose of this report I have used both qualitative and quantit judgment opportunity. a) Primary sources: This report has prepared through the use of primary data. It is collected from a group of people who are working in this bank. The following i. Questionnaire ii. Observation iii. Frequent conversation with the officers of Prime Bank Limited iv. Direct conversation with the manager and officers of Prime Bank Limited b) Secondary sources: i. Annual report of Prime Bank Limited, 2014 ii. Different publications of iii. Internal records of the bank iv. Reports published by Bangladesh Bank. v. Some national & international journals about vi. Relevant documents related to the study as provided by the officers. “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Page 12 payments. In today’s work environment, there is more change and uncertainty; there is increased need for empowered employees, decline in traditional incentives, rise of nontraditional incentives and increased use of variable compensation. Studies have also shown that compensation programs and the methods of administration affect employee’s motivation. To analyze the initiatives of compensation practices taken by Prime Bank Limited and compensation practices in it. To find the most suitable compensation practices in the Prime Bank Limited. Finding out the historical evaluation of compensation practices at Prime Bank Limited To analyze the components of compensation practices & their effectiveness of P To find out the weaknesses of the current compensation policy. some guidelines to improve the current compensation practices that will e the motivation of the employees’. The research is based on explanatory in terms of research type which has its primary provision of insights into and comprehension of the problem situation confronting the researcher. This research process is flexible and unstructured. By doing explanatory research it will be helpful to study about compensation practices in Prime Bank Limit towards compensation practices taken by Prime Bank Limited. The objectivity of any study depends largely on how methodologically it is done. For the purpose of this report I have used both qualitative and quantitative information to give it a clear This report has prepared through the use of primary data. It is collected from a group of people who are working in this bank. The following methods are used in collecting Frequent conversation with the officers of Prime Bank Limited Direct conversation with the manager and officers of Prime Bank Limited Annual report of Prime Bank Limited, 2014 Different publications of Prime Bank Limited Internal records of the bank Reports published by Bangladesh Bank. Some national & international journals about compensation practices Relevant documents related to the study as provided by the officers. “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” is more change and uncertainty; there is increased need for empowered employees, decline in traditional incentives, rise of nontraditional incentives and increased use of variable compensation. Studies have also shown that hods of administration affect employee’s motivation. taken by Prime Bank Limited and the Prime Bank Limited. at Prime Bank Limited & their effectiveness of PBL. some guidelines to improve the current compensation practices that will The research is based on explanatory in terms of research type which has its primary provision of insights into and comprehension of the problem situation confronting the researcher. This research process is flexible and unstructured. By doing explanatory research it will be helpful to study about compensation practices in Prime Bank Limited and initiatives The objectivity of any study depends largely on how methodologically it is done. For the ative information to give it a clear This report has prepared through the use of primary data. It is collected from a group of people methods are used in collecting data. These are: Direct conversation with the manager and officers of Prime Bank Limited compensation practices Relevant documents related to the study as provided by the officers.
  13. 13. “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Sampling technique: a) Elements: Branch Manager, Executives and Officers of Prime Bank Limited Amberkhana branch, Executives of PBL Head Office b) Sampling size: Sample size of this study is 20 officers including branch manager, executives and officers of Prime Bank Limited Amberkhana branch. c) Sampling method: I have taken Convenience sampling method. Convenience sampling means- A nonprobability sampling technique that attempts to obtain a sample of convenient elements. The selection of sampling units is left primarily to the interviewer. It can be used where the respondents and the interviewees are considered on my convenience and priority. d) Data collection period 20th December, 2015. The study covers e) Techniques of analysis: Excel. f) Data Presentation: I have used graph, chart, table and diagram to analyze the data. g) Data collection area: branch. Scope of the study: This internship program gives me a great opportunity for gathering experience and knowledge in several areas of banking by which I can evaluate or expose myself. The scope of this report is mostly limited to Prime Bank Limited observations. For the purpose of my internship program I was assigned at Prime Bank Limited, Amberkhana Branch. I have worked as a service intern and try to resolve customer’s problem. Also I worked in different depart activities within these three months. Limitations of the study: For the purpose of acquiring data to prepare this report I faced some constraints that are listed below: i. Because of time and cost bank was a difficult task within the time allowed for the internship program. ii. Another limitation of this report is the bank’s policy of not disclosing some data and information, which would hav updated information was not published or available. iii. Preparing a formal document like an internship report requires some prior experience in this field. I have tried my level best to reduce the distorti that I have used in this report. iv. The personnel of the bank are usually busy with their daily activities and routine tasks, therefore interacting with them during their office hours is difficult sometimes. “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Page 13 anch Manager, Executives and Officers of Prime Bank Limited Amberkhana branch, Executives of PBL Head Office. Sample size of this study is 20 officers including branch manager, executives and officers of Prime Bank Limited Amberkhana branch. I have taken Convenience sampling method. Convenience sampling A nonprobability sampling technique that attempts to obtain a sample of convenient elements. The selection of sampling units is left primarily to the interviewer. n be used where the respondents and the interviewees are considered on my convenience and priority. Data collection period: The necessary data have been collected from 21th September to 20th December, 2015. The study covers compensation practices in echniques of analysis: The data have been tabulated and analyzed with the help of I have used graph, chart, table and diagram to analyze the data. Data collection area: Data have been collected from Prime Bank Limited Amberkhan This internship program gives me a great opportunity for gathering experience and knowledge in several areas of banking by which I can evaluate or expose myself. The scope of this report is mostly limited to Prime Bank Limited, as the report is based on practical observations. For the purpose of my internship program I was assigned at Prime Bank Limited, Amberkhana Branch. I have worked as a service intern and try to resolve customer’s problem. Also I worked in different department of the bank. But it was not possible to learn all job activities within these three months. For the purpose of acquiring data to prepare this report I faced some constraints that are listed Because of time and cost constraints, covering the entire compensation practices of the bank was a difficult task within the time allowed for the internship program. Another limitation of this report is the bank’s policy of not disclosing some data and information, which would have been very much useful for the report. In many cases, updated information was not published or available. Preparing a formal document like an internship report requires some prior experience in this field. I have tried my level best to reduce the distortion or biasness of information that I have used in this report. The personnel of the bank are usually busy with their daily activities and routine tasks, therefore interacting with them during their office hours is difficult sometimes. “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” anch Manager, Executives and Officers of Prime Bank Limited Sample size of this study is 20 officers including branch manager, executives and officers of Prime Bank Limited Amberkhana branch. I have taken Convenience sampling method. Convenience sampling A nonprobability sampling technique that attempts to obtain a sample of convenient elements. The selection of sampling units is left primarily to the interviewer. n be used where the respondents and the interviewees are considered on my : The necessary data have been collected from 21th September to in PBL. The data have been tabulated and analyzed with the help of MS I have used graph, chart, table and diagram to analyze the data. Data have been collected from Prime Bank Limited Amberkhana This internship program gives me a great opportunity for gathering experience and knowledge in several areas of banking by which I can evaluate or expose myself. The scope of , as the report is based on practical observations. For the purpose of my internship program I was assigned at Prime Bank Limited, Amberkhana Branch. I have worked as a service intern and try to resolve customer’s problem. ment of the bank. But it was not possible to learn all job For the purpose of acquiring data to prepare this report I faced some constraints that are listed constraints, covering the entire compensation practices of the bank was a difficult task within the time allowed for the internship program. Another limitation of this report is the bank’s policy of not disclosing some data and e been very much useful for the report. In many cases, Preparing a formal document like an internship report requires some prior experience in on or biasness of information The personnel of the bank are usually busy with their daily activities and routine tasks, therefore interacting with them during their office hours is difficult sometimes.
  14. 14. “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” (An overview of Prime Bank Limited) 1. Introduction 2. History of Prime Bank 3. Vision 4. Mission 5. Corporate Philosophy of Prime Bank Limited 6. Slogan 7. Awards and Recognitions 8. Departments of Prime Bank Limited 9. Prime Bank at a Glance 10. Organizational structure of Prime 11. Organogram of Prime Bank Limited “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Page 14 Chapter Two overview of Prime Bank Limited) Introduction History of Prime Bank Mission Corporate Philosophy of Prime Bank Limited Awards and Recognitions Departments of Prime Bank Limited Prime Bank at a Glance Organizational structure of Prime Organogram of Prime Bank Limited “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” overview of Prime Bank Limited) Corporate Philosophy of Prime Bank Limited Organizational structure of Prime Bank Ltd Organogram of Prime Bank Limited
  15. 15. “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Introduction: In the backdrop of economic liberalization and financial sector reforms, a group of highly successful local entrepreneurs visualized an idea of introducing a commercial bank with different outlook. For them, it was competence, excellence and consistent del superior value products. Accordingly, Prime Bank was created and commencement of business started on 17th April 1995. As a fully licensed commercial bank, Prime Bank is being managed by a highly professional and dedicated te understanding and anticipating customer needs. As the banking scenario undergoes changes so is the bank and it repositions itself in the changed market condition. Prime Bank has already made significant progress within a very short period of its existence. The bank has been graded as a top class bank in the country through internationally accepted CAMELS rating. The bank has already occupied an enviable position among its competitors after achievi of business operation. Prime Bank offers all kinds of commercial corporate and personal banking services covering all segments of society within the framework of banking regulations laid down by central bank. Banking, Retail Banking and Consumer Banking right from industry to agriculture, and real state to software. Prime Bank, since its beginning has attached more importance in technology integration. In order to retain competitive edge, investment in technology is always a top agenda and under constant focus. Keeping the network within a reasonable limit, its strategy is to serve the customers through capacity building across multi poised to take its customers through fast changing times and enable them compete more effectively in the market. History of Prime Bank: Prime Bank Ltd was incorporated under the this day field a duly verified, declaration in the prescribed from that the condition of section 150 (1) (a) to (b) of the said Act, have been compiled with is entitled to commence business as public limited bank. PBL being a banking registered office at 5, Rajuk Avenue, Motijheel C/A, Dhaka 1000, Later it was shifted to Adamjee Court Annex Building, 119 industrialists, business house and professionals of the incorporation of the bank. Initially the bank was having authorized capital of TK 1,000 million and paid up capital of TK 100 million sponsored by 22 members of Board of Directors. Vision: “To be the best Private Commercial Bank in Bangladesh in terms of efficiency, capital adequacy, asset quality, sound management and profitability having strong liquidity” “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Page 15 In the backdrop of economic liberalization and financial sector reforms, a group of highly successful local entrepreneurs visualized an idea of introducing a commercial bank with different outlook. For them, it was competence, excellence and consistent delivery of reliable service with superior value products. Accordingly, Prime Bank was created and commencement of business As a fully licensed commercial bank, Prime Bank is being managed by a highly professional and dedicated team with long experience in banking. They constantly focus on understanding and anticipating customer needs. As the banking scenario undergoes changes so is the bank and it repositions itself in the changed market condition. Prime Bank has already made ificant progress within a very short period of its existence. The bank has been graded as a top class bank in the country through internationally accepted CAMELS rating. The bank has already occupied an enviable position among its competitors after achievi Prime Bank offers all kinds of commercial corporate and personal banking services covering all segments of society within the framework of banking bank regulations laid down by central bank. Diversification of products and services include Corporate Banking, Retail Banking and Consumer Banking right from industry to agriculture, and real state to software. Prime Bank, since its beginning has attached more importance in technology In order to retain competitive edge, investment in technology is always a top agenda and under constant focus. Keeping the network within a reasonable limit, its strategy is to serve the customers through capacity building across multi-delivery channels. PBL is better placed and poised to take its customers through fast changing times and enable them compete more Prime Bank Ltd was incorporated under the Bank ACT, 1994 on February 12. 1995. On ield a duly verified, declaration in the prescribed from that the condition of section 150 (1) (a) to (b) of the said Act, have been compiled with is entitled to commence business as public . PBL being a banking bank has been registered under the Bank registered office at 5, Rajuk Avenue, Motijheel C/A, Dhaka 1000, Later it was shifted to Adamjee Court Annex Building, 119-120, Motijheel C/A Dhaka 1000. A group of renowned industrialists, business house and professionals of the country is sponsored from the incorporation of the bank. Initially the bank was having authorized capital of TK 1,000 million and paid up capital of TK 100 million sponsored by 22 members of Board of Directors. “To be the best Private Commercial Bank in Bangladesh in terms of efficiency, capital adequacy, asset quality, sound management and profitability having strong liquidity” “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” In the backdrop of economic liberalization and financial sector reforms, a group of highly successful local entrepreneurs visualized an idea of introducing a commercial bank with different ivery of reliable service with superior value products. Accordingly, Prime Bank was created and commencement of business As a fully licensed commercial bank, Prime Bank is being managed by a highly am with long experience in banking. They constantly focus on understanding and anticipating customer needs. As the banking scenario undergoes changes so is the bank and it repositions itself in the changed market condition. Prime Bank has already made ificant progress within a very short period of its existence. The bank has been graded as a top class bank in the country through internationally accepted CAMELS rating. The bank has already occupied an enviable position among its competitors after achieving success in all areas Prime Bank offers all kinds of commercial corporate and personal banking services bank act and rules and Diversification of products and services include Corporate Banking, Retail Banking and Consumer Banking right from industry to agriculture, and real state to software. Prime Bank, since its beginning has attached more importance in technology In order to retain competitive edge, investment in technology is always a top agenda and under constant focus. Keeping the network within a reasonable limit, its strategy is to serve PBL is better placed and poised to take its customers through fast changing times and enable them compete more ACT, 1994 on February 12. 1995. On ield a duly verified, declaration in the prescribed from that the condition of section 150 (1) (a) to (b) of the said Act, have been compiled with is entitled to commence business as public Bank ACT 1913 with its registered office at 5, Rajuk Avenue, Motijheel C/A, Dhaka 1000, Later it was shifted to . A group of renowned country is sponsored from the incorporation of the bank. Initially the bank was having authorized capital of TK 1,000 million and paid up capital of TK 100 million sponsored by 22 members of Board of Directors. “To be the best Private Commercial Bank in Bangladesh in terms of efficiency, capital adequacy, asset quality, sound management and profitability having strong liquidity”
  16. 16. “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Mission: “To build Prime Bank Limited into an efficient, market driven, customer f institution with good corporate governance structure. Continuous improvement in our business policies, procedure and efficiency through integration of technology at all levels.” Corporate Philosophy of Prime Bank Limited For Customers – i. To provide the most courteous and efficient service in every aspect of its business. ii. To be innovative in the development of new banking products and services. For Employees – i. By promoting their well ii. By promoting good staff morale through proper staff training and development, and provision of opportunities for career development. For Shareholders – i. By forging ahead and consolidating its position as a stable and progressive financial institution. ii. By generating profits and fair return on their investment. For Community – i. By assuming our role as a socially responsible corporate citizen in a tangible manner by adhering closely to national policies and objectives thereby contributing towards the progress of the nation. ii. By upholding ethical values and best practices. iii. Constantly seeking to improve performance by aligning our goals with stakeholders’ expectations because we value them. Slogan: a bank with a difference “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Page 16 “To build Prime Bank Limited into an efficient, market driven, customer f institution with good corporate governance structure. Continuous improvement in our business policies, procedure and efficiency through integration of technology at all levels.” Corporate Philosophy of Prime Bank Limited the most courteous and efficient service in every aspect of its business. To be innovative in the development of new banking products and services. By promoting their well-being through attractive remuneration and fringe benefits. promoting good staff morale through proper staff training and development, and provision of opportunities for career development. By forging ahead and consolidating its position as a stable and progressive financial ating profits and fair return on their investment. By assuming our role as a socially responsible corporate citizen in a tangible manner by adhering closely to national policies and objectives thereby contributing towards the the nation. By upholding ethical values and best practices. Constantly seeking to improve performance by aligning our goals with stakeholders’ expectations because we value them. “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” “To build Prime Bank Limited into an efficient, market driven, customer focused institution with good corporate governance structure. Continuous improvement in our business policies, procedure and efficiency through integration of technology at all levels.” the most courteous and efficient service in every aspect of its business. To be innovative in the development of new banking products and services. being through attractive remuneration and fringe benefits. promoting good staff morale through proper staff training and development, and By forging ahead and consolidating its position as a stable and progressive financial By assuming our role as a socially responsible corporate citizen in a tangible manner by adhering closely to national policies and objectives thereby contributing towards the Constantly seeking to improve performance by aligning our goals with stakeholders’
  17. 17. “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” 12th Bangladesh Awards DHL -The Daily Star SAFA Award 2010 Best Published Accounts & Corporate Disclosures in Banking Sector Prime Bank wins 1st Prize in 11th ICAB National Awards “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Page 17 Awards and Recognitions: The BIZZ 2012 Inspirational Bank Award ICAB Best Published Accounts & ICMAB Best Corporate Award 2010 International Star for Leadership in Quality (ISLQ) Award 2010 Business Initiative Directions (B.I.D.) SAFA Best Presented Accounts Awards 2009 Overall Winner SAFA Best Presented Accounts and Corporate Governance Disclosures Awards 2009 Winner (Banking Sector) “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” ICAB National Award 2010 Best Published Accounts & Reports International Star for Leadership in Quality (ISLQ) Award 2010 Business Initiative Directions (B.I.D.) Paris, France SAFA Best Presented Accounts and Corporate Governance Disclosures Awards 2009 Winner (Banking Sector)
  18. 18. “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” 10th ICAB National Award for Best Published Accounts & Reports 2009 First (Banking Sector) SAFA Best Presented Accounts Awards 3rd Position 9th ICAB National Awards for Best Published Accounts and Reports 2008 First Prize Financial Sector Banking ICAB National Awards- 2003 For Best Published Accounts and Reports Second Prize Financial Sector (Banking) “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Page 18 SAFA Best Presented Accounts Awards 2008 Joint Winner Banking Financial Sector SAFA Best Presented Accounts Awards 2007 Bronze Award Banking 10th ICAB National Award for Best Published Accounts & Reports 2009 Winner (Private Sector) Corporate Governance Disclosure Awards ICMAB Best Corporate Performance Award 2008 First Position (Jointly) FNS Award-2005 Best Performing Local Bank ICAB National Awards 2004 For Best Published Accounts and Reports First Prize Financial Sector “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” SAFA Best Presented Accounts Awards 2007 Bronze Award Banking Sector ICMAB Best Corporate Performance Award 2008 First Position (Jointly) ICAB National Awards - 2004 For Best Published Accounts and Reports First Prize Financial Sector (Banking)
  19. 19. “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Departments of Prime Bank Limited: The Department Based Approach is similar to that of the branch based approach, where each department operates as a separate unit but sometimes collaborates in order operate more efficiently or to solve a common problem. Such departments are also treated as but are much more specialized in one particular area of business unlike a branch, which has to be involved in multiple tasks. Examples of few other departments at Prime Bank Ltd are given below: a) Human Resources Division (HRD) b) Financial and Administration Division (FAD) c) General banking department i. Accounts opening section ii. Cash section iii. Remittance section iv. Bills and clearing section v. Accounts section d) Foreign exchange department i. Import section ii. Export section iii. Foreign remittan e) Marketing Division f) Public Relation Department (PRD) g) Merchant Banking and Investment Banking h) Treasury Division i) International Division (ID) j) Computer and Information Technology Department (IT) k) Credit Division l) Corporate Affairs Division m) Card Division n) Board Audit Cell o) Monitoring and Inspection Division “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Page 19 Departments of Prime Bank Limited: The Department Based Approach is similar to that of the branch based approach, where each department operates as a separate unit but sometimes collaborates in order operate more efficiently or to solve a common problem. Such departments are also treated as but are much more specialized in one particular area of business unlike a branch, which has to be involved in multiple tasks. Examples of few other departments at Prime Bank Ltd are given Human Resources Division (HRD) Financial and Administration Division (FAD) General banking department Accounts opening section Remittance section Bills and clearing section Accounts section Foreign exchange department Import section Export section Foreign remittance section Public Relation Department (PRD) Merchant Banking and Investment Banking International Division (ID) Computer and Information Technology Department (IT) Corporate Affairs Division Monitoring and Inspection Division “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” The Department Based Approach is similar to that of the branch based approach, where each department operates as a separate unit but sometimes collaborates in order operate more efficiently or to solve a common problem. Such departments are also treated as a separate entity but are much more specialized in one particular area of business unlike a branch, which has to be involved in multiple tasks. Examples of few other departments at Prime Bank Ltd are given
  20. 20. “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Prime Bank at a Glance: 1) Date of Incorporation 2) Date of Commencement of Business 3) Logo of the Bank 4) Capital Authorized 5) Paid-up Capital 6) Net Profit 7) Deposits 8) 7) Loans & Advances 9) 8) Investment 10) 8) Global Reach 11) 9) Number of Employees 12) 10) Cash Reserve Ratio 13) 11) Market Price Per Share 14) 12) Return on Equity 15) 13) Return on Assets 16) 14) Earnings per Share (EPS) 17) 15) Name of the Chairman Of PBL 18) 16) Number of Branches 19) 17) Number of SME Branches 20) 18) It is a Publicly Traded 21) 19) Credit Card 22) 20) Banking Operation System 23) 21) Head Office 24) 22) Phone 25) 23) Telex 26) 24) Fax no. 27) 25) E-mail 28) 26) Swift 29) 27) Website Source: Prime Bank Limited Annual Report 201 “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Page 20 12th February, 1995 Date of Commencement of Business 17th April, 1995 Tk. 25000 Million Tk. 10,293 Million Tk. 2,393 Millions Tk. 204,838 Millions Tk. 147,367 Millions TK. 72,642 Millions 638 Correspondents Worldwide 9) Number of Employees 2867 Cash Reserve Ratio 6.71% 11) Market Price Per Share 19.60 taka 10.08% 0.96% 14) Earnings per Share (EPS) 2.32 taka 15) Name of the Chairman Of PBL Azam J Chowdhury 16) Number of Branches 122 SME Branches 18 18) It is a Publicly Traded Bank Share quoted daily in DSE & CSE Master Card, Platinum Card 20) Banking Operation System Both conventional & Islamic Shariah System Adamjee Court, Annexe Building 120,Motijheel C/A, Dhaka 9567265, 95670747-8 PABX 642459 PRIME BJ, 671543 PBL MJ BJ 880-2-9567230, 9560977, 880 info@prime-bank.com, primebnk@bangla.net PRBLBDDH www.prime-bank.com Source: Prime Bank Limited Annual Report 2014 “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Correspondents Worldwide Share quoted daily in DSE & CSE Master Card, Platinum Card Both conventional & Islamic Shariah System Adamjee Court, Annexe Building-2, 119- 120,Motijheel C/A, Dhaka-1000, Bangladesh 8 PABX 642459 PRIME BJ, 671543 PBL MJ BJ 9567230, 9560977, 880-2-9566215 primebnk@bangla.net
  21. 21. “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Organizational structure of Prime Bank L “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Page 21 Organizational structure of Prime Bank Ltd “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”
  22. 22. “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Organogram of Prime Bank Limited: “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Page 22 Organogram of Prime Bank Limited: “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”
  23. 23. “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” (Internship experience at Prime Bank Limited) 1.My Experience in General Banking 2.My Experience in Card Division 3.My Experience in Credit Division 4.My Experience in Remittance section “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Page 23 Chapter Three (Internship experience at Prime Bank Limited) My Experience in General Banking My Experience in Card Division My Experience in Credit Division My Experience in Remittance section “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” (Internship experience at Prime Bank Limited) My Experience in Remittance section
  24. 24. “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Working in Prime Bank opportunity for me to acquire practical knowledge about banking sector. I wor supervision of Mr. Wasim Ahmed almost every division by rotation. It was a tremendous journey for me to go through the actual experience of banking sector. Real world is far away different from the theoretical knowledge. Especially in service sector there are both encouraging and off Bank Limited Amberkhana Branch I works of bankers and observed how the works are being done accordingly to serve the customer properly. My Experience in General Banking At first I got the chance to work in general banking. Working in general banking was different and spontaneous experience. As in general banking sector I had to deal with the customers directly. This includes Some other works were also done by me. The list of jobs that I have done in general banking is given below: a) Helping customer in filling their forms b) Briefing the customers about different Deposit Scheme of PBL c) Writing Inward register d) Issuing cheque books e) Making phone calls to clients to acknowledge them about the arrival of their cheque books f) Registering the cheque requisition My Experience in Card Division: I also worked in card responsibilities while working in card division were as follow: a) Inputting data in Card Register b) Sorting collected cards from Alternative Delivery Channel (ADC) c) Maintaining Card pin and acknowledgement slips d) Delivering cards to the My Experience in Credit Division: Credit section is much difficult and sensitive area wasn’t allowed to work there. Yet I asked many questions to the credit officers to corns of their work. Thus I came to know something about their activities. My Experience in Remittance section It’s another busiest section o helped her if there is heavy work absence. “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Page 24 Working in Prime Bank Limited Amberkhana Branch as an intern was the very first opportunity for me to acquire practical knowledge about banking sector. I wor Ahmed chowdhury, Operation Manager of the bank on by rotation. It was a tremendous journey for me to go through the actual experience of banking sector. Real world is far away different from the theoretical knowledge. Especially in service sector there are both encouraging and off-putting things to experience every day. As an intern of Prime Limited Amberkhana Branch I experienced of so many new things. I came to know actual works of bankers and observed how the works are being done accordingly to serve the customer eneral Banking (GB): chance to work in general banking. Working in general banking was different and spontaneous experience. As in general banking sector I had to deal with the This includes helping the customers to fill up their account opening form. s were also done by me. The list of jobs that I have done in general banking is Helping customer in filling their forms Briefing the customers about different Deposit Scheme of PBL nward register Making phone calls to clients to acknowledge them about the arrival of their cheque Registering the cheque requisition My Experience in Card Division: division of Prime Bank Limited, Amberkhana Branch. My responsibilities while working in card division were as follow: Inputting data in Card Register Sorting collected cards from Alternative Delivery Channel (ADC) Maintaining Card pin and acknowledgement slips Delivering cards to the customers Division: Credit section is much difficult and sensitive area of a bank. That’s why work there. Yet I asked many questions to the credit officers to s I came to know something about their activities. My Experience in Remittance section: It’s another busiest section of PBL. A senior officer is appointed there. Sometime I helped her if there is heavy work load and even I tried to handle the desk at the time of her “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Limited Amberkhana Branch as an intern was the very first opportunity for me to acquire practical knowledge about banking sector. I worked in under the of the bank. I worked in on by rotation. It was a tremendous journey for me to go through the actual Real world is far away different from the theoretical knowledge. Especially in service sector perience every day. As an intern of Prime experienced of so many new things. I came to know actual works of bankers and observed how the works are being done accordingly to serve the customers chance to work in general banking. Working in general banking was different and spontaneous experience. As in general banking sector I had to deal with the fill up their account opening form. s were also done by me. The list of jobs that I have done in general banking is Making phone calls to clients to acknowledge them about the arrival of their cheque Amberkhana Branch. My f a bank. That’s why as an intern I work there. Yet I asked many questions to the credit officers to know pros and . A senior officer is appointed there. Sometime I to handle the desk at the time of her
  25. 25. “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Chapter 1. Introduction 2. Definition of Terms 3. Importance of incentives 4. Reward 5. Types of rewards 6. Length of Reward Program 7. Importance of a Reward System 8. Benefits 9. Types of Benefits 10.Equity-based compensation 11.Motivation 12.Significance of motivation in the workplace 13.Motivating by meeting basic human needs 14.Maslow's need hierarchy theory 15.Alderfer’s ERG theory 16.Three Components of Motivation 17.Procedural justice theory 18.Designing jobs that motivate 19.Job Enlargement: Doing More of th 20.Job Enrichment: Increasing Required Skills and Responsibilities 21.The job characteristics model 22.Suggestions for Enhancing the Motivating Potential of Jobs 23.Rewards and Incentives theories 24.The Carrot and Stick Approach to Motivation 25.Is money the best ‘carrot’? 26.Motivation 27.Theory X of McGregor 28.Theory Y of McGregor “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Page 25 Chapter Four (Literature Review) Introduction Definition of Terms Importance of incentives Types of rewards Length of Reward Program Importance of a Reward System Types of Benefits based compensation Motivation Significance of motivation in the workplace Motivating by meeting basic human needs Maslow's need hierarchy theory Alderfer’s ERG theory Three Components of Motivation Procedural justice theory Designing jobs that motivate Job Enlargement: Doing More of the Same Kind of Work Job Enrichment: Increasing Required Skills and Responsibilities The job characteristics model Suggestions for Enhancing the Motivating Potential of Jobs Rewards and Incentives theories The Carrot and Stick Approach to Motivation y the best ‘carrot’? Motivation-Hygiene Theory Theory X of McGregor Theory Y of McGregor “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” (Literature Review) e Same Kind of Work Job Enrichment: Increasing Required Skills and Responsibilities Suggestions for Enhancing the Motivating Potential of Jobs
  26. 26. “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Introduction Compensation is output and the benefit that employees’ receive in the form of pay, wages and also same rewards like monetary exchange for the employees’ to increases the Performance. Compensation is the segment of transition between the employees’ and the outcomes employees’ contract. As the prospective of employees’ pay is the necessary of life. The payment receives from work done on the behalf of people getting the employment. Compensation is mostly equal to half of cash flow of the more than half. It is the major to attract the employees’ and motivate them to increase the performance. It argues that most individuals that jobs and their turnover rate is higher. S retain the employees’ as well plays more to attract, retain and motivate to give man power. Different organizations design employees’ who believe in increased. In other words you can say that compensation and rewards effects the employees’ decision making to stay their organizations and also accepted the responsibili employees’ training as a compensation and benefits package human resources normally increases the satisfaction and productivity employees’ about the organization’s benefits performance good quality and quantity of work is done. Organization influences to employees’ voluntary turnover employees’ compare to their pay available in other organization. Employee’s stay their job promotional opportunities Definition of Terms Compensation This is the package of quantifiable rewards employees’ receive for his or her labour. It includes three components: base compensation, pay incentives and indirect compensation/ benefits. Motivation Motivation is concerned with factors that influence people to behave in certain ways. Motivating people is about getting them to move in the direction you results. There are two types of motivation these are, intrinsic motivation motivation. Incentives An incentive is something that motivates an individual to perform an action. The study of incentive structures is central to the study of all economic activities (both in terms of individual “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Page 26 Compensation is output and the benefit that employees’ receive in the form of pay, wages and also same rewards like monetary exchange for the employees’ to increases the Performance. Compensation is the segment of transition between the employees’ and the outcomes employees’ contract. As the prospective of employees’ pay is the necessary of life. The payment receives from work done on the behalf of people getting the employment. Compensation is mostly equal to half of cash flow of the bank. But in the service sector it is more than half. It is the major to attract the employees’ and motivate them to increase the individuals that are getting higher education are not satisfied rate is higher. So that organizations design the compensation plan to retain the employees’ as well plays more to attract, retain and motivate to give man power. organizations design their benefits and compensation packages to attract their abilities and know that if they perform well pay can be In other words you can say that compensation and rewards effects the employees’ decision making to stay their organizations and also accepted the responsibili employees’ training as a compensation and benefits packages has increased s normally increases the satisfaction and productivity organization’s benefits policy should be clear. If pay is tied to employees’ performance good quality and quantity of work is done. Organizational influences to employees’ voluntary turnover employees’ compare to their pay available in other Employee’s stay or leave the bank much more depends on their satisfaction r job promotional opportunities and work environment. This is the package of quantifiable rewards employees’ receive for his or her labour. It three components: base compensation, pay incentives and indirect compensation/ otivation is concerned with factors that influence people to behave in certain ways. Motivating people is about getting them to move in the direction you want them to go to achieve results. There are two types of motivation these are, intrinsic motivation is something that motivates an individual to perform an action. The study of ntral to the study of all economic activities (both in terms of individual “Role of compensation practices on employees’ motivation: A study on Prime Bank Limited” Compensation is output and the benefit that employees’ receive in the form of pay, wages and also same rewards like monetary exchange for the employees’ to increases the Performance. Compensation is the segment of transition between the employees’ and the owner that the outcomes employees’ contract. As the prospective of employees’ pay is the necessary of life. The payment receives from work done on the behalf of people getting the employment. ut in the service sector it is more than half. It is the major to attract the employees’ and motivate them to increase the are not satisfied with their o that organizations design the compensation plan to retain the employees’ as well plays more to attract, retain and motivate to give man power. their benefits and compensation packages to attract qualified that if they perform well pay can be In other words you can say that compensation and rewards effects the employees’ decision making to stay their organizations and also accepted the responsibilities. The value of s has increased the performance of s normally increases the satisfaction and productivity. The perception of . If pay is tied to employees’ al pay system directly influences to employees’ voluntary turnover employees’ compare to their pay available in other much more depends on their satisfaction with This is the package of quantifiable rewards employees’ receive for his or her labour. It three components: base compensation, pay incentives and indirect compensation/ otivation is concerned with factors that influence people to behave in certain ways. want them to go to achieve results. There are two types of motivation these are, intrinsic motivation and extrinsic is something that motivates an individual to perform an action. The study of ntral to the study of all economic activities (both in terms of individual

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