Chapter 5

Overall HRM Practices of Agrani Bank Limited

5.1 Introduction

"Human resource management" (HRM) outlines the philosophy, rules, and methods for
handling organizational personnel matters. Decenzo and Robbins state that "Human Resource
Management is concerned with the people dimension" in management. As people form the basis
of every organization, obtaining their services, honing their skills, inspiring them to greater
performance levels, and ensuring they remain committed to the organization are crucial to
achieving organizational objectives. It does not matter what kind of organization it is —
government, business, education, health, or social action — this is true.

Humans have been around since ancient times, but only recently have they ought to be officially
recognized as resourceful beings. With human resources, an establishment is worthwhile. The
"people" component of management is an area of concern for the human resources division.
Since every organization comprises people, obtaining their services, honing their abilities, and
inspiring them to high-performance levels are crucial to achieving organizational objectives and
guaranteeing that they continue to be dedicated to the organization.

The evolution of HRM can be characterized as occurring in four stages: the crafting system, the
scientific management system, the human resource relationship procedure, and the current
managerial science, especially human resource proximity. Intending to increase productivity, the
company views human resources as a crucial component of corporate management. Based on
high-quality education, training, and work experience, the company has a specific policy for
organizing, keeping, and maintaining its current human resources.

To ensure the successful and efficient utilization of human talent to achieve corporate objectives,
HRM is the design of an established framework in the workplace. Recruiting, socializing,
motivating, retaining, and motivating employees is accomplished through a network of related
policies, practices, and programs. Every manager has to deal with HRM. These fundamental
HRM tasks are all carried out by managers.
5.2 Human Resource Practice in Agrani Bank Limited

Despite all advancements in technology and knowledge, human resources remain the most
critical factor in any organization's success. In a fiercely competitive financial market like
Bangladesh, ABL assumes that an ensemble of proficient human resources personnel is the key
to attaining outstanding performance. According to the Bank's management, the team of
dedicated, knowledgeable, enthusiastic employees at Agrani Bank Limited generates the Bank
continually do well. "Human resources are, therefore, the most valuable asset for the Bank,"
claims the HR professionals who work in the HR Division. The Bank is dedicated to securing top
talent and ensuring they acquire the drive, instruction, setting, and reimbursement required to
operate at peak efficiency. With that end in mind, they ensure the staff members are conscious of
the Bank's strategic goals and objectives and their respective roles in these schemes. The Bank
emphasizes high standards of ethics in its recruitment efforts. It has created a complete HR
manual and service regulations encompassing the standards for hiring, criteria for promotions,
training, and other relevant topics. The HR manual and service rules are reviewed and updated to
keep pace with modern times and uphold employees' stake in the Bank's success. Their
performance is evaluated using a rating system against goals and the core values set forth by the
Bank. Transparency and an unwavering commitment to excellence are the cornerstones of ABL's
HRD.

5.3 Functions of HRM

Figure 5.1: Basic Functions of Human Resource Management

5.4 Human Resource Planning
To achieve objectives, an organization needs
qualified people in particular positions at particular
locations and times. Planning for human resources
carefully evaluates human resources needs to ensure
sufficient employees with the appropriate abilities on
hand.

E.W. Vetter (1967) defined human resource planning

as "the process by which a management determines
how an organization should make from its current
Figure 5.2: Steps of Human Resources Planning
manpower position to its desired manpower
position." Planning aims to have the appropriate mix of people in the right places at the correct
times to carry out tasks that will benefit the organization and the individual most significant
long-term benefits.

HRP is a method a bank uses to ensure a steady flow of qualified workers while preventing
employee surpluses or shortages. A company's productivity and profitability can increase with a
strong HRP strategy. It is possible for ABL to strategically achieve goals and be prepared for
upcoming challenges by identifying its skill set and focusing on the skills it needs. HRP
frequently considers organizational design, employee motivation, succession planning, and
raising the return on investment to keep workers and stay competitive. Planning for human
resources must change as a company's objectives and tactics do over time.

With the aid of human resource planning (HRP), a company can identify and hire the best talent
with the necessary technical and soft skills to maximize their contribution to the business.
Furthermore, it enables managers to provide the workforce with better training and support for
learning the necessary skills.

5.5 Recruitment

The Bangladeshi government owns Agrani Bank. As a consequence of this, the hiring procedure
is seriously influenced by the Bangladesh Central Bank. It is Bangladesh Bank's accountability to
oversee the hiring process. Bangladesh Bank then sends newly hired employees to each
government bank's request.

The company's effective operation would be aided by carefully chosen and strategically placed
employees, who also offer significant potential for replacement in the future. The HR department
applies recruitment as a strategic tool. A formal definition stipulates, "It is the procedure of
finding and attracting suitable applicants for job placement. When recruits are sought after, the
process begins and is completed when applications are turned in. An applicant pool from which
new hires are chosen is the result.

According to Plumbley, "Recruitment is a matching process, and the capacities and inclination of
the candidates have to be matched against the demands and rewards inherent in a given job or
career pattern."

5.5.1 Recruitment method

When seeking new hires, Agrani Bank LTD combines formal and informal strategies. Newspaper
advertisements are frequently used in legal hiring to find entry-level employees. The posting
outlines the precise requirements for hiring. They also hired highly qualified medical
professionals in other instances.

Similar to other banks, this one takes a casual approach. Consideration is given to cashiers,
junior officers, and different positions that demand high expertise. Additionally, they look for
middle management personnel with prior experience and a successful track record. Additionally,
top talent has been hired on a contract basis.

[Link] Internal Source: Agrani Bank Limited frequently looks within regarding hiring. The
company's management must seek out and select workers accustomed to the company's culture.

High-level management may endorse Agrani Bank Limited's achievements from internal sources
in the following ways:

 Employee Transfer
 Promotion of Current Employees
 Employee Recommendation
 Additional Assignments
[Link] External Source: Even so, Agrani Bank Limited does employ outside candidates. The
external places' sources are listed below:

 Universities
 Internships
 Rival Businesses
 Web pages

5.5.2 Recruitment process

The process of formal external recruitment involves searching the job market for candidates who
have a connection to the company. These strategies have also, in the past involved newspaper
advertising, hiring firms' use of hiring agencies, and university recruitment. The practice of
advertising job openings online, whether on a company website or a for-profit job board, has
become more and more common in recent years. For a long time, newspaper ads were the most
common employment advertising. It is Bangladesh Bank's responsibility to handle the hiring
process. Following that, Bangladesh Bank provides hired personnel for any need a government
bank may have. During the hiring process, Bangladesh Bank uses the procedure listed below:

[Link] Advertising: Bangladesh Bank publishes job postings in its official newspaper
and website. An announcement regarding the number of openings at Agrani Bank Ltd. and the
application requirements can be found in a newspaper.

Bangladesh Bank uses various other techniques to publicize this job opening, including-

 Website advertisements: BD [Link], [Link], and [Link].

 Social media: LinkedIn and Facebook portals.
 Media: TV channels and newspapers

[Link] Application submission: Applications must be submitted after a position has been
advertised. The individual's name, home address, and contact information are required.
Additionally, a copy of their resume should be sent to the provided address.

[Link] Written exam: The written test for hiring combines elaborative and multiple-choice
questions. Typically, Agrani Bank Ltd assigns this to another organization. The specific
organization carries out the entire process. A person must achieve a particular score to pass the
written portion of the exam.

Figure 5.3: Recruitment advertisement of Agrani Bank Limited

[Link] Viva: After passing the written test to advance, the candidate must take the VIVA test.
Typically, VIVA is consumed by the bank's top management. The final selection for the position
is made from only the shortlisted candidates. Candidates for a job may be interviewed by HRM
interviewers, senior managers of ABL, potential supervisors, and potential coworkers.

[Link] Others: Once a list of candidates has been established, additional background checks on
each candidate must be done. Bangladesh Bank looks into the histories of those who have been
shortlisted. There are many ways to accomplish this, including getting in touch with the
candidate's former employers to confirm their employment history and get their assessment of
the candidate's performance, getting in touch with other professional and personal references,
checking the source of authority and criminal history, or even using the third-party investigation
to conduct the background check.

Before being considered for a position, applicants must also complete a medical or physical
examination to show that they are physically and mentally fit.

[Link] Job offer: Despite their performance, candidates who made it via the initial phases are
now qualified for the job offer. The HRPD division of Agrani Bank Limited created this offer
letter.

5.6 Selection

Selecting personnel to fill specific positions within an organization is known as selection. This
procedure usually entails reading through applications or resumes, interviewing potential hires,
and reaching a decision. Selection is crucial to human resources because it enables businesses to
select the top candidates for open positions.

Selection conveys an additional weight for any organization because it influences the efficiency
of the organization, expenditures related to recruitment and selection, and statutory
responsibilities. Agrani Bank Limited admits the worth of careful selection and uses a systematic
selection procedure for all employee types, though the procedure varies depending on the
position.

According to Thomas H. Stone, "Selection is the process of differentiating between applicants to

identify (and hire) those with a greater likelihood of success in a job." A decision is made during
the selection process. A series of steps are involved in the ABL selection process, which
applicants must complete. For instance, a candidate who fails to meet the requirements for one
step cannot take the next step. Every action's outcome is significant. The candidate can
only attempt the next step if any effort fails to be completed.

The bank should adhere to a proper selection process, given the financial commitment to finding
the ideal candidate. Labor turnover and absenteeism are bad situations for any organization.
These issues will worsen, and the organization's effectiveness will only improve if the candidates
are appropriately chosen. Additionally, training and induction programs are also expensive.
Making the wrong choice could cost the employer a lot of time, money, and effort.

5.6.1 Process of selection

The initial screening interview is the first step in the selection process, and the final employment
decision follows.

[Link] Initial Screening: Due to our recruitment efforts, the organization should be ready to
start a preliminary review of potential acceptable candidates. This initial screening is a two-step
process that involves conducting screening interviews and screening inquiries.

[Link] Completion of the Application Form: After the preliminary screening is complicated,
applicants are asked to make the organization's application form complicated. Only the
applicant's name, address, phone number, and other information may be needed.

[Link] Employment tests: Intelligence, aptitude, ability, and interest tests have traditionally
played an integral part in organizations' selection processes.

[Link] The comprehensive interview: A senior manager, a potential supervisor, a potential

boss, potential coworkers, or some combination of these may interview the applicant.

[Link] Background investigation: Investigating candidates who make good employees is the
next step. The following can involve-

 Getting in touch with the applicant's previous employers to confirm their employment
history and get their assessment of their performance,
 Getting in touch with other professional and personal references,
 Demonstrating the academic achievements listed on the application,
  Checking credit references and criminal records, and
 They are even using third-party investigations to conduct background checks.

5.6.2 Method of selection

Correlation and regression are two statistical strategies of selection. The correlation assessed
measures a relationship between variables' strength and direction. Regression, however, uses the
connection to forecast scores on one variable from scores on several additional variables.

[Link] Physical/ Medical Examination: Physical tests are only practical as a screening tool to
weed out candidates who are physically unable to perform the duties of a position.

[Link] Conditional job offers: A conditional job offer is typically made when a candidate has
"passed" all previous rounds of the selection process. An HRM is corresponding usually provides
conditional job offers. A conditional job offer implies that if everything goes "as planned"—
passing a specific physical, drug, or alcohol test—the request will become permanent, and the
job will be accepted.

[Link] Job offer: People who complete the previous steps are now considered legitimate to
receive the job offer.

5.6.3 Organizational practices

Agrani Bank Ltd. recruits staff members both formally and informally. Entry-level employees
have typically been hired formally through newspaper advertisements. The advertisement
explicitly mentions hiring criteria. However, they occasionally hired skilled individuals at the
medium and top levels.

In the case of this bank, the informal approach is also reliable. The educational background of
entry-level employees, such as cashiers, junior officers, Etc., is considered in this situation.
Additionally, they hire mid-level candidates with experience and a solid track record. Contract-
based hiring has also been used to find top-level employees.
5.7 Socialization in Agrani Bank Ltd.

HR encompasses much more than just hiring new employees. As soon as the selection procedure
wraps up, an enthusiastic human resources department aids the new employee in becoming
effective and content. Being an effective and satisfied employee is essential for both the
organization and the employee. This initial turnover is anticipated.

New hires frequently inquire, "Will I be able to do the job? Can I blend in? Will my boss approve
of me? " Employees are more likely to leave during the first few months of employment than at
any other time. The orientation program acquaints new hires with their responsibilities and the
company. It also aids in their adjustment to their new workplaces and job duties.

Adaptation is taking place. Anxiety plagues brand-new employees. New hires are seeking to
mitigate the initially high state of anxiety swiftly. Stress is high because the new member lacks
identification. Being lonely and having a sense of isolation are common reactions. Special care
must be taken to reassure brand-new workers. In order to lessen challenges and discrepancies, it
entails providing adequate data. Personnel departments can lower turnover rates through this
initiative. Helping employees achieve their individual goals can lower turnover. Turnover has a
very high cost. It costs money to find, train, and develop new employees.

Short, informal introductions to extensive, structured courses are all included in orientation
programs. New hires typically receive a handbook or printed materials covering topics like
working hours, performance reviews, joining the payroll, vacations, and facility tours. Employee
benefits, personnel policies, daily schedules, organizational structure, and safety procedures
are other topics covered in handbooks.

During the orientation, an HR specialist typically provides information about working hours and
vacations, followed by an introduction to the new supervisor. The orientation continues with a
letter that explains the job in detail, introduces the new employee to colleagues, and familiarizes
them with the workplace. The goal is to ease first-day nerves and help the new employee feel
"More comfortable," which can be improved for better clarity.
5.8 Compensation

When we talk about compensation, we refer to how

much a person gets paid for their work.
Compensation originates from the Latin term
"compensation," which refers to the payment or
remuneration provided in exchange for labor or
service. R.S. Schuler defines compensation as how
organizations assess their employees' contributions
and offer them financial and non-financial incentives
based on affordability and government regulations.

A yearly salary and an employee's work hours may

be used to determine their compensation. In some Figure 5.4: Components of compensation and benefits
cases, added benefits such as insurance, vacation time, or stock options may also be included,
which could impact an employee's performance. If a company has a sound compensation
management system in place, it can help employees perform better and feel more engaged in
their work. This system must be transparent and applied to everyone in the company to be
effective. It can also help managers make better decisions about how to compensate individual
employees, which can help them identify areas where they can improve and prepare for future
opportunities.

5.8.1 Classification of Compensation

Compensation may take the form of financial or non-financial rewards. It encompasses monetary
and non-monetary remuneration, such as bonuses, profit sharing, overtime pay, recognition
rewards, sales commissions, company-paid cars, stock options, and company-paid housing.
 Figure 5.5: Types of compensation
[Link] Direct Compensation

Employees may receive direct compensation as compensation for their time and effort. It is direct
because no mediator gets it to the worker. In direct compensation, there are two types of
compensation. They are:

 Pay: Consists of the wages and salaries received for work done. Options include basic
payment and incentive compensation based on work productivity.
 Incentives: Even though they are not given directly to employees, Benefits are provided
to them through indirect remuneration. This type of compensation includes piece-rate
salary, fees, bonuses, revenue-sharing, and stock options.

Agrani Bank offers its employees a basic salary, house rent allowances, special allowances, and
bonuses. However, only the Executive Vice President, Vice President, First Vice President,
Senior Vice President, and Senior Executive are eligible for conveyance, leave travel allowances
and medical reimbursement.
[Link] Indirect Compensation

Although it does not go directly to the employees, indirect

compensation is offered for their benefit. Indirect compensation
includes two types of payment:

 Benefits are additional payments made on top of pay.

They include:
 Compensation for time not worked,
including paid holidays and vacations
 Protection Programs: Insurance, Pension,
and Gratuities, Etc.
 Executive perks include free telephone
service and newspapers.
 Service and prerequisites: They significantly reduce or
Figure 5.6: Components of indirect
eliminate employee costs while increasing employee compensation
well-being. They are:
 Transportation, housing, food
 Loans for child and education costs
 Purchase discounts and credit cards
 Participation in social and cultural activities; club dues.

5.8.2 Compensation as a Component of Human Recourses Management

A critical component of compensation management is establishing the most affordable

compensation structure that will draw in qualified candidates, keep them on board, and inspire
them to work harder. It must also be viewed favorably by employees.

[Link] Job Descriptions: Systems of selection and compensation are dependent on it. Job
descriptions detail all duties, conditions, operations, functions, geography, environment,
circumstances, and other aspects of the job. One can create job descriptions for specific positions
or entire job groups.

[Link] Job Analysis: Creating job descriptions through the analysis of jobs. Techniques for job
analysis include observation, surveys, and interviews.
[Link] Job Evaluation: comparing jobs to find appropriate pay scales for particular jobs or
components.

[Link] Pay Structures: It helps standardize payment methods. Most pay structures have a
variety of grades. Every grade has a starting salary, wage, grade ranges, or step increments.

[Link] Salary Surveys: It is a compilation of salary and market data, and it might contain
average salaries, inflation indicators, cost of living hands, and salary budget averages.
Companies can either buy the results of salary surveys conducted by third-party survey vendors
or run their own.

5.8.3 Compensation Management System of Agrani Bank Limited

Agrani Bank relies on this structure. An employee's compensation package includes their
wage/salary, bonuses, benefits (both monetary and non-monetary), and other incentives. This is
shown in the diagram below:

Remuneration
package of an
employee

Non-monetary
Wage /salary Incentives Fringe benefits Perquisites
benefiters

Figure 5.7: Remuneration System of Agrani Bank Limited

[Link] Wages and Salary: When we talk about compensation, we refer to the hourly pay rates
that employees receive. On the other hand, pay refers to the monthly pay rate, but it does not
consider how often the employee works. Compensation and pay vary depending on the
employee's seniority, merit, and job description. In addition to financial compensation, workers
may receive non-financial benefits, payment incentives, and fringe benefits, which total 51. At
ABL, employees are paid monthly, and their pay is deposited into their accounts within the first
week of the month.

[Link] Incentives: Payments, also called incentives, are made in addition to wages and salaries.
At ABL, employee incentives are determined by productivity, profit, sales, and cost-cutting
initiatives.
[Link] Fringe benefits: This kind of financial benefit is occasionally provided to Employees. As
well as a provident fund, medical attention, gratuities, hospitalization payments, health and group
insurance, and uniforms, Agrani Bank offers its employees a host of benefits.

[Link] Perquisites: Management positions are eligible for unique benefits. The objective is to
retain talented executives. Examples of perks include a company car for business trips, club
membership, paid vacations, and a furnished home or place to stay.

[Link] Non-monetary benefits: Additionally, financial advantages, this benefit gives workers a
sense of fulfilment. It helps to energize staff in a new way. Include job sharing, flexible
scheduling, comfortable working conditions, competent supervision, challenging job
responsibilities, and recognition of merit through a certificate.

5.9 Reward

In the context of human resource accounting (HRA), management and employees are referred to
as "human assets" or "capital." Agrani Bank Limited is prepared to handle business with 960
branches and 11,389 employees spread out across the nation. The bank's top achievers receive
non-monetary rewards in the form of certificates and medals in order to motivate and push ABL's
best employees. This recognition occurs quarterly, every six months, or even once a year. The
image might be featured in the neighborhood paper, or the management or board might award a
special prize. As an alternative, additional benefits come in the form of paid time off, private
retirement plans, and other choices.

Employees of ABL receive a reward for their outstanding work. There are two types-

 Internal
 External.

5.9.1 Intrinsic Reward: Intrinsic Rewards are job-related job satisfaction on a personal level.
These are self-initiated rewards, like being proud of one's accomplishments.

5.9.2 Extrinsic Rewards: Extrinsic Rewards are monetary, professional, and other benefits. The
fact that they are external to the position and originate from outside sources, primarily
management, unites them.
5.9.3 Reward Plans as Short Term

[Link] Financial: For initiating a challenge among the members of ABL, the branch's or bank's
top performer is recognized quarterly, six months, or annually.

[Link] Non-financial: The ABL staff members receive certificates and awards for exceptional
performance. A picture of the performer is also published in the journals, and the management
wins a special prize.

[Link] The reward for the family members: This has been practised for a few years on ABL as
a reward for the family members. Children receive financial tips (cash/prize bonds) or non-
financial rewards (watches/ornaments Etc.) for achieving exceptional results or achievements.

5.9.4 Reward Plans as Long Term

[Link] Furniture loan: A furniture loan is available for employees ranging from AO to Chief
Officer at ABL.

[Link] House building loan: ABL offers home loans for individuals who have completed a
specific service period, with repayment options available over a more extended period.
Additionally, ABL provides educational loans for those seeking professional education.

[Link] Motorcycle/car loan: This is intended for full-time employees who have completed a
certain length of service.

[Link] Medical Facilities: Employees are provided with a monthly medical facility allowance
of 700 tk.

[Link] Provident Fund: Similar to other private sector banks, under traditional practices, 10%
of employees' salaries are deducted for provident fund purposes.

[Link] Gratuity: As per the standard practice of other banks in the private sector.

[Link] Maternity leave: Female employees are granted at least three months of maternity leave
before giving birth.
5.10 Benefits

The benefits package includes mandatory protection programs, compensation for time off,
optional insurance programs, personal retirement plans, and additional services.

5.10.1 Short-term benefits: The company considers salaries, wages, medical leave, maternity
leave, bonuses, allowances, paid annual leave, and other benefits expenses for the year
employees provide their services.

5.10.2 Termination benefits: Benefits for terminated employees are acknowledged once an
agreement has been contacted with the appropriate employee representatives regarding
redundancy terms. Otherwise, benefits will only be disclosed to individual employees after they
have been informed of the specific terms.

5.10.3 Pay for time not worked

[Link] Weekly Holiday: Agrani Bank staff members get Fridays and Saturdays off for their
weekly vacation. Additionally, male security guards are entitled to one day off for every 15
working days, resulting in two holidays per month for them.

[Link] Annual Holiday: Agrani Bank employees' annual leave schedule is determined by the
head office's published list of government-issued holidays. These holidays serve as the basis for
the schedule.

[Link] Festival bonus: ABL employees are entitled to full salary festival leave as per
government policy. The bank generously provides festival bonuses twice a year, including Eid-
ul-Fitr and Eid-ul-Adha bonuses for all religious employees and a one-month introductory
income festival bonus given twice a year. Employees who work on a festival day are entitled to
two days leave with full pay. Furthermore, employees receive a bonus of 20% of their basic
salary on Pahela Baishakh.

[Link] Sick Leave: ABL employees are eligible for 14 days of paid sick leave per year. To
claim this benefit, workers must provide a medical certificate or doctor's prescription from a
designated medical professional within 72 hours.

[Link] Confidential Leave: Employees are entitled to personal leave that can take up to 20
days at their discretion.
[Link] Maternity Leave: Female employees at Agrani Bank receive generous maternity leave
benefits, including six months of paid leave and the option for an additional six months of unpaid
leave. In cases of abortion or miscarriage, female employees may take up to six weeks of leave.
The competent authority may approve a six-month maternity leave for employees, ensuring that
Agrani Bank supports its female workforce during this critical time.

[Link] Accidental Leave: If an employee is injured at work or needs to be hospitalized due to

an accident or surgery, they can take Accidental Leave. ABL provides 21 days of paid leave for
this situation. Employees can take additional days if more time off is required, but they will not
be compensated for them. In exceptional cases, the authority may grant an extra 21 days of leave.

[Link] Extraordinary leave: "Extraordinary leave" refers to unpaid leave available to

employees who have worked for ABL for at least five years. Those with five years of service are
entitled to one year of special leave, while those with ten or more years are granted two years of
special leave.

[Link] Casual Leave: Casual leave may be granted if an ABL employee cannot report to work
due to an unexpected illness or a personal emergency. Up to three days of withdrawal may be
taken at once, only briefly.

5.10.4 Protection programs

[Link] Gratuity: The Gratuity Fund is a post-retirement or post-resignation benefit for

employees. A gratuity bonus is awarded to the employee for resignation, retirement, or layoff.
Employees of Agrani Bank will be compensated with 30% of their previous basic salary.

[Link] Group Term Life Insurance: Each staff member gets life assurance coverage upon
leaving the bank. All employees must sign the "Group Term Life Insurance Registration Form"
and place it in the HR/Personnel & Administration department for processing to be eligible for
the Group Term Life Insurance policy. Amounts of 10 to 15 lakhs taka are set aside for life
insurance, but the beneficiary will receive this benefit after the employee dies.

[Link] Welfare Funds: A tiny sum is taken out each month to contribute to the employee
welfare fund, though the exact amount depends on the employee's position. such as

Job Designation Money deducted for the fund

 Officer 100 Taka

Senior Officer 120 Taka

Principal Officer 160 Taka

Senior Principal Officer 170 Taka

Table 5.1: Welfare funds of ABL

A lump sum of 2 lakh taka is provided to employees for this fund. Employees in need or
experiencing an emergency can get assistance from the welfare fund, which makes them feel
secure. When an employee is seriously ill, the authority decides whether to grant him or her
assistance from the Welfare Fund based on the employee's application.

[Link] Superannuation Fund: One type of pension plan established by a business to benefit
its employees is superannuation. Another name for it is a company pension plan. This account
will increase tax-free. In Agrani Bank, authorities establish a supernatural fund for each officer
or employee, into which 75% of the officer or employee's basic salary is deposited each month
with no interest paid. After the officer, as mentioned earlier, or employee retires, the funds placed
in the superannuation fund are used to pay the monthly pension.

[Link] Termination benefits: Depending on the severity of their punishment, employees of the
termination period may or may not receive service benefits.

[Link] Suspension Benefit: The amount withheld during dismissal in cases of exemption from
suspension will be reimbursed by the authorities' determination of the appropriate punishment.

[Link] Retirement benefits: Retirement benefits are an additional widespread employment

booster. Each officer and executive will be eligible for the following perks after 25 years of
service:

((Last Basic Salary x 90%) x 50% x 230 months)]

Employees who have earned leave remaining after their service period will receive the
equivalent of 18 months' pay. The following standards will be used to specify the service benefits
in this case:
(Last basic salary × 18 months)

[Link] Security Fund: The fund's primary objective is to pay out a specific amount to the
regular confirmed staff member's dependent, heir, or designated beneficiary in the event of their
passing or severe illness. Anyone with Regular Confirmation is eligible for this benefit. The only
funding source for this benefit fund is the Bank's contribution.

5.11 Salary and Benefits Structure of Agrani Bank Limited

I cannot go into detail because banking documents are highly private. Still, after speaking with
one of the ABL DGMs and reviewing their annual report, I have estimated their pay structure as
follows:

Salary and Benefits

Designation Basic House Medical Conveyanc Bonus
(Taka) Rent Allowance e
General Manager 61250 45-55% 700tk 150tk Two festival
bonuses
Deputy General 56750 45-55% 700tk 150tk Two festival
Manager bonuses
Assistant General 53500 45-55% 700tk 150tk Two festival
Manager bonuses
Senior Principal 50000 45-55% 700tk 150tk Two festival
Officer bonuses
Principal Officer 38750 45-55% 700tk 150tk Two festival
bonuses
Senior Officer 35000 45-55% 700tk 150tk Two festival
bonuses
Officer 28500 45-55% 700tk 150tk Two
festival
bonuses

Table 5.2: Salary and Benefits structure of Agrani Bank Limited

5.12 Salary Statement of Agrani Bank Employees

This is the salary statement that has been published in the Annual report of ABL, 2020. From this
table we can have an idea about their distribution of Compensation.
 Salary & Allowance Taka
Salaries- Officers 4,091,398,100
Salaries- Staff 344,097,836
Dearness Allowance (Officers & 82,009
Staff)
Fringe Benefit (Officer & Staff) 121,157,301
Bonus (Officers & Staff) 667,797,985
Banks Contribution to Provident 54,555,768
Fund
Banks Contribution to Employees 2,992,835,380
Pension Fund
Banks Contribution to Gratuity 4,359,630
Fund
Conveyance Allowances 3,374,235
Entertainment Allowances 1,989,293
Children Education Allowances 49,372,977
Hill Allowances 2,389,839
Honorarium & Fees 30,129,118
Medical Expenses 738,468
Medical Expenses (Consultation 1,524,600
Fees)
Medical Allowances 194,202,291
Uniform and Other Apparels 7,113,973
Overtime Expenses 12,743,254

Compensatory Allowances 263,400

Lunch Subsidy/Iftar Coupon 455,344,911

Leave Encashment 1,944,635

Sports and Cultural Activities 2,403,759

House Rent Allowances (Officers) 1,640,397,416

 House Rent Allowances (Staff) 140,223,857

Wages Paid to Temporary 323,906,632

Employees

Death Relief Grant Scheme -

Staff Transport Fare 34,996,827

Police & Ansar Expenses 505,706,709

Ex-Gratia 330,085

Evening, Night & Charge 6,715,875

Allowance

Salary and Allowance of Head of 1,720,000

ICC

Bangla Nobobarso Allowance 66,074,389

Salary & Allow-Executive 9,527,670

(Contractual)

Covid-19 Spl. Motivational (50,812)

Allowances

Total 11,769,367,410

Table 5.3: Salary Statement of Agrani Bank Employees (Source: Annual report of Agrani Bank
Limited-2021)

5.13 Training

A company can establish a skilled and knowledgeable workforce through training. Michael J.
Julius (1962) stated that "training is a process by which the aptitudes, skills, and abilities of
employees perform specific jobs are increasing." Training can raise a person's potential,
productivity, and performance. A well-organized learning and growth program ensures the
consistency of employees' expertise and knowledge.

Both on-the-job and off-the-job training falls under the category of ABL education.

5.13.1 On-the-job training: Gaining knowledge by doing. It denotes that the worker fulfills
training requirements for his coworkers while carrying out his duties. The course spends a
significant amount of time practicing what is being taught.

5.13.2 Off-the-job training refers to the instruction given to workers outside the office for a set
amount of time, say 15 to 20 days, in a training facility. During this time, the employee is exempt
from reporting to work. Nineteen executives and officers were sent abroad in 2007 at the
invitation of numerous foreign organizations for various training sessions, workshops, seminars,
conferences, and symposia to learn the most current banking practices.

5.14 Development

The top levels of the organization are the main targets of development. A manager's effectiveness
can be increased through training, perspective changes, or the acquisition of new skills. The steps
necessary for a manager to advance are as follows:

 Identifying the needs of the company (to increase competitiveness or fill upcoming
executive openings, for example)
 The managers' performance
 Instructing and preparing present and upcoming managers.

These actions are possible using these techniques:

 Job rotation
 Managerial on-the-job training
 A company-owned development facility

5.15 Training and Development of Agrani Bank Limited

Since founding in 1976 and through 2021, ABTI has trained 1,57,986 executives, officers, and
workers according to multiple training advertisements with 3,606 courses and workshops.
According to ABL's annual report from 2021, the organization alone gave 131 courses or
workshops to 22,333 participants. One hundred nineteen bank executives participated in two
management development training workshops and courses in 2020 to advance their managerial
skills. Due to Covid-19, there was no foundations course available in 2020. Additionally, using
the online learning environment ZOOM, ABTI has provided several courses for both current
officers and graduates of the banking foundation course.

With this in mind, the 2021–2022 training program was created to move forward and
contribute to the strategic edge of Agrani Bank Limited by developing skilled, dedicated, ethical,
and well-motivated human resources with need-based training.

It is an honour that there are a total of 183 training courses, as proposed by the advisory panel of
the Agrani Bank Training Institute and appropriately authorized by the knowledgeable Board of
Directors.

The training calendar for 9050 employees (executives, officers, and staff) for the year 2022
includes 15 management development courses (management knowledge), 11 foundation courses
(banking knowledge), one foundation course (promoted officer), 20 skill development courses
(technical knowledge), 81 workshops, 53 computer courses, and two research programs.

An important consideration has been given to numerous innovative programs after consultation
with the illustrious boards of directors of Agrani Bank Limited and ABTI. ABL Letter
Authorization System, Effective Performance Management of ABL, Awareness & Training
Program for Stakeholder Related to Custom Duty E-Payment, Interoperable Digital Transaction
Platform (IDTP), Strategy for Enhancing Business Performance, and Smart Banking (Internet &
Mobile Banking) have all been implemented this year.

To deal with the novel obstacles triggered due to Covid-19, ABTI established an online venue in
the prevailing situation. ABTI has been putting many attempts into generating human resources
that are enthusiastic, creative, and skilled. In terms of providing the banking industry with
outstanding human resource development, we hope ABTI will be a unique and outstanding
institution.
 Figure 5.8: A workshop on "Annual Performance Agreement (APA)" was held by Agrani Bank
Training Institute
The Agrani Bank's employees performed their tasks proficiently and according to company
policy. In some cases, HRPD chooses employees based on the business's long-term objectives,
the requirements of a new job, or the needs of new bank members. As an illustration, a Ramgonj
employee received training for the recently created banking function known as Islami Banking,
which is a part of ABL. He was trained for his new position and industry by the HRPD division.
To maintain high productivity and improve staff skill levels, Agrani Bank's HRPD and ABTI
collaborate.

5.15.1 Establishment of ABTI

Agrani Bank's Training Institute did not exist at first. Training is the only approach that exists for
the advancement of human resources. For the development of human resources, training is
essential. Training improves knowledge, develops skills, and affects the officers' and staff's
attitudes.

The Bank's management launched a full-fledged training institute with these goals. On December
24, 1976, Agrani Bank Training Institute opened its doors at 18 Bangabandhu Avenue in Dhaka.
Mr M. Nurul Islam, the former governor of the Bangladesh Bank, officially opened the Institute.
Later, in October 1996, the Institute's location was changed to 35/C, Naya Paltan, VIP Road,
Dhaka. The Institute moved to our facilities at 183 Satmasjid Road, Dhanmondi, Dhaka, on April
25, 2014.
The training plan for the Bank is being created and carried out by Agrani Bank Training Institute.
The Institute is responsible for creating the course curricula, reading lists, and course materials
for training officers and staff members. The Training Institute additionally plans and manages
training initiatives at the Circle/Zonal levels. The Institute provides instruction through a
predetermined training schedule on general banking and management to increase the
professional effectiveness of all officers and managers. The Bank's officers and staff members
receive orientation and foundation training similarly to advance their professional knowledge
and abilities. For the overall growth and welfare of the Bank and society, the Institute holds
seminars and conferences on various topics for senior executives and seasoned bankers. Agrani
Bank began operating as a Public Limited Company on November 15, 2007, with renewed zeal,
enthusiasm, and commitment. With a new attitude, this change has broadened the training's
focus. The Training Institute offers to emphasize new courses, methods of training, and course
contents to keep up with the changes and introduction of new tools and techniques for putting
government and regulatory body regulations into practice and for putting reforms and
modernization of the Bank into effect.

5.15.2 Vision Statement for ABTI

To enhance Agrani Bank Limited's strategic capability by developing a trained workforce that is
knowledgeable, devoted, moral, and highly motivated.

5.15.3 Mission Statement for ABTI

 Based on assessments of training needs at the individual, task, and organizational levels,
impart training to increase knowledge, develop skills, and change the workforce's
attitude.
 To put together a training program based on adapting to changes and introducing fresh
ideas and methods to the Bank's business strategy.

5.15.4 Job Specification of ABTI

 Create a training calendar for the year.

 Create the course training schedule following the training calendar.
  The creation of reading materials.
 Plan training sessions under the schedule and as required.
 Evaluate the participants and let everyone know.
 Create a training budget for authority approval.
 Keep track of training records and give MIS the data it needs.
 Keep accurate accounting records.
 Remain in touch with the top training facilities in the nation.

5.15.5 ABTI Administration

Honorable Chairman, Directors of the Board of Directors, the Managing Director and CEO,
Deputy Managing Directors, and General Managers of ABL are guests of honor in the training
sessions along with the Director and Faculty Member of ABTI. Along with the seasoned Deputy
General Managers, Assistant General Managers, and Senior Principal Officers of ABL, guest
speakers encompass faculty members from various universities, trainers from BB, BIBM, BBTA,
and ICAB, as well as government representatives.

Sl. Name Designation Role

1 Suprova Saeed Deputy General Manager Director

2 Md. Helal Uddin Assistant General Manager Faulty Member

3 Manwara Begum Assistant General Manager Faulty Member

4 Ms. Shahedara Parvin Assistant General Manager Faulty Member

5 Md. Mizanur Rahman Assistant General Manager Faulty Member

6 Farzana Begum Assistant General Manager Faulty Member

Table 5.4: Director and Faculty Members of ABTI

5.16 Workshop

The workshop enables participants to gain practical experience learn from one another, and share
experiences to accomplish goals. The workshop fosters creativity, critical thinking, and learning.
Periodically, Agrani Bank Limited has organized AML training/workshops through HR Training,
Research & Development Division to raise awareness among the bank's staff. The Committee
suggested setting up risk-based audit training and workshops to classify the branches according
to risk.

With the assistance of the HR Training, Research & Development Division, ABL has
periodically held AML training/workshops to raise awareness among the bank's staff. Need-
based courses and workshops were added to the training calendar in 2022 after considering their
significance and the current demand.

Sl Course/Workshop No. of Number of

No. Course participants
1 Management Development Courses 7 925
(management knowledge)
2 Foundation Courses (Banking _ _
Knowledge)
3 Foundation Courses (Promoted Officers) _ _
(Banking Knowledge)
4 Skill Development Courses (Technical 16 1,044
Knowledge)
5 Workshop 90 17,837
6 Computer Course 45 2,527
Total 158 22,333

Table 5.5: Statement of participants and internal & guest speakers of

different courses/ workshops conducted by ABTI on 2021

5.17 Performance Appraisal

Figure 5.9: Performance Appraisal

Process
Human resources (HR) departments typically create performance reviews as a way for
employees to advance their careers. They provide employees feedback on how pleasingly they
do their jobs, ensuring they manage and achieve the set goals and offering assistance if
necessary.

A performance assessment regularly appraises an employee's work performance and broader

interaction with the enterprise. Performance is an outcome or result of an individual's actions,
according to Chen & Eldridge (2010). The ongoing assessment of a person's accomplishments in
work-related tasks within the organization is known as performance appraisal.

Companies use performance appraisals (annual reviews, performance evaluations, or employee

appraisals) to give employees general feedback on their work, support pay raises and bonus
payments, and determine whether to fire employees. They are annual, semiannual, or quarterly
but can be carried out anytime. Performance evaluations facilitate choosing ways to disperse the
organization's inadequate collaboration of funds for soaking out rewards, such as raises and
bonuses. They give businesses a way to identify which employees have made the most
considerable contributions to their growth so that they can appropriately reward their top
performers.

Additionally, performance reviews assist employees and their managers in developing a strategy
for professional growth that includes more training, more responsibility, and ways for employees
to advance in their [Link] performance review should be one of many occasions when
managers and employees discuss each other's contributions throughout the year. Increased
communication between managers and staff fosters stronger working relationships and lessens
the strain of annual reviews.

5.17.1 Appraisal Methods

Typically, an established and formal method, such as one or more described in this section, is
used to conduct the appraisal.
[Link] Graphic Rating Scale: A scale with a variety of characteristics and performance levels
for everyone. The employee is then rated by deciding which scale best captures the degree of
performance for all traits.

[Link] Alternation Ranking Method: Ranking employees based on a specific trait compared
to best to worst, selecting the highest-ranking employee first, then the lowest, and so forth.

[Link] Paired Comparison Method: Creating a chart of all possible employee pairs for every
attribute and determining who is superior in the team makes it possible to rank employees.

[Link] Forced Distribution Method: The placement of predetermined percentage rates in

different performance areas behaves similarly to assessing on a curve.

[Link] Critical Incident Method: Maintaining a record of unusually good or bad examples of
an employee's workplace conduct and assessing it with the employee at predetermined intervals.

[Link] Behaviorally Anchored Rating Scale (BARS): An assessment of performance

approach that anchors a quantitative scale with specific narrative examples of good and bad
performance, combining the advantages of critical narrative incidents and quantified ratings.

[Link] Management by Objectives (MBO): Establish clear, quantifiable goals with each
employee and periodically assess performance.

5.17.2 Performance Appraisal of Agrani Bank Limited

Partially utilizing the Graphic Rating Scale Method is Agrani Bank Limited. Each person in this
situation uses a different format for evaluating. Though there are some exceptions for the senior
level, the procedure for filling out the form corresponds for almost junior to senior employees.
The employees must complete the first page independently but must sign in on each subsequent
page according to the format's design. The evaluation of employees is done using a point system.

For instance, employees with a banking diploma are given extra credit, and M.B.A. holders are
given more credit than Graduate and Masters's pass holders. Additionally, there is a provision for
employees who bring in more deposits or have excellent customers to receive bonuses. The
divisional head assigns each employee a grade based on these factors. The appraisal form will
then be forwarded to the human resources division. This form is typically sent to HRD from all
over the nation. After receiving all the forms, they prepare them for the top management's final
assessment. There is usually an evaluation team that chooses the most deserving candidates. The
Board then received a list for final acceptance.

Employees are evaluated for potential promotions every four years using the performance
appraisal techniques ABL uses. The bank advertises the uprise promotion based on two criteria,
subject to the vacancy. These categories comprise seniority (25%) and merit (75% each).