I.1 Mercantile Bank Ltd at a glance
Mercantile Bank Limited is one of the famous & oldest private banks in Bangladesh. It is a scheduled private commercial Bank established on May 20, 1999 under the Bank Company Act 1991 by Mr. Abdul Jalil (MP), & registered as a Public Limited Company under Companies Act, 1994. The Bank started commercial Banking operations for both organizations & individuals from June 02, 1999. From then within a short time MBL established itself in a strong position in the economy of the country having 35 branches all over the country. It has earned significant reputation in the country’s Banking sector as a Bank & created a wide image in the eye of the people by helping people in investing their money earn profits & serving different organizations to save their money is secured place along with investing in different other businesses for profit, organizational development, country’s economic growth & exchanging money & dealing international business in foreign currency. The dream of creating MBL, which is ‘A Bank of 21st Century’, & fulfilling its will to become “Banglar Bank” as its title says has become successful because of the initiative of some persons who are the sponsors of MBL. There are 30 sponsors in Mercantile Bank Limited and all of them are highly regarded for their entrepreneurial competence.
Mercantile Bank Ltd. has consistently turned over good returns on Assets and Capital. Until the year 2008, the bank has achieved an operating profit of Tk. 3847 million and its capital funds stood at Tk. 7859 million. Out of this, Tk. 1054 million represents retained earnings and Tk. 2844 million consists of paid up capital by shareholders. Even after the business environment and default culture, quantum of classified loan in the bank is very insignificant and stood at less than 1.76%. The bank’s current capital adequacy ratio of 10.88% is in the market.
Mercantile Bank Ltd. 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 CAMEL (Capital, Asset, Management, Earnings and Liquidity) rating. The bank has already occupied an enviable position among its competitors after achieving success in all areas of business operation.
I.2 Company Vision, Mission & Objectives
Vision
Would make finest corporate citizen.
Mission
Will become most caring, focused for equitable growth based on diversified deployment of resources, and nevertheless would remain healthy and gainfully profitable Bank.
Strategic objectives
§ To achieve positive Economic Value Added (EVA) each year.
§ To be a market leader in service innovation.
§ To be one of the top three Financial Institutions in Bangladesh in terms of cost efficiency.
§ To be one of the top five Financial Institutions in Bangladesh in terms of market share in all significant market segments.
I.3 Objectives of Mercantile Bank Foundation
Mercantile Bank Foundation has been formed with the aim of achieving some objectives, which has been stated below:
1. To take possible initiatives in increasing social well-being and alleviating poverty from the country.
2. To support the education by establishing new educational institutions, providing stipends/ scholarship to the poor and brilliant students.
3. To provide awards to the Scholars in eight significant arenas for their outstanding contribution. These arenas are:
· Bengali Language and Literature
·Education and Culture
·Research on Liberation War
·Economy and Economic Research.
·Commerce and Industry
·Medicine, Science and Technology
·Journalism and
·Sports
4. To assist research activities on Bengali Literature through Bangla Academy.
5. To support the writers and publishers through purchasing their books and distributing these to different educational institutions on the occasion of national and historical days.
6. To assist the unemployed young to make them self-sufficient.
7. To assist the rootless and distressed orphans through taking appropriate steps for their mental perfection and self-support.
8. To support in establishing hospitals, clinics, etc. for the improvement of the health sector, to donate one time financial endowment to the poor artiste, literature-patron and fatal disease-affected poor patients, to support the poor father for arranging his daughter's marriage, to help poor but bright students.
I.4 Financing of the Foundation
§ MBL always wants ensure to highest quality to services by upgrading banking technology, in management and by applying high standard of business ethics through its established commitment and heritage.
§ MBL is committed to ensure its contribution to national economy by increasing its profitability through professional and disciplined growth strategy for its customer and by creating corporate culture in international banking arena.
§ MBL’s objective is not only to earn profit but also to keep the social commitment and to ensure its co-operation to the person of all level, to the businessman, industrialist-specially who are engaged in establishing large-scale industry by consortium and the agro-based export oriented medium & small-scale industries by self-inspiration.
§ MBL is always pre-occupied to encourage the inventors for purchasing its share by creating the opportunity of long-term investment and increasing the value of share through prosperity as developed day by day.
§ MBL is playing a vital role in Socio-economic development of Bangladesh by way of linkage with rest of the world by developing worldwide network in domestic and international operations.
§ The Bank contributes 1% of Operating Profit or BDT 4.00 million, which one is a lot.
§ The Sponsors of the Bank donates to the Foundation a lump sum amount at a time or amount on yearly- basis from their own funds or their own business source
· Grants and Donations from persons/ organizations of home and overseas
I.5 Financial objectives
To achieve 20% return on shareholders' equity or more, on average.
For the customers
Providing with caring services by being innovative in the development of new banking product and service
For the shareholders
Maximizing wealth of the bank
For the employees
Respecting worth and dignity of individual employees devoting their energies for the progress of the Bank
For the community
Strengthening the corporate values and taking environment and social risks and reward into account
New technology
Adopting the state-of-the art technology in banking operations
Slogan
“Efficiency is our strength”
Corporate Information
Name of the Company
Mercantile Bank Limited
Total Branches
61
Year of Incorporation 1999Legal Form:
A Public Limited Company under Companies Act, 1994, The Bank started commercial Banking operations from June 02, 1999.
Registered Office:
61, Dilkusha Commercial Area
Dhaka -1000, Bangladesh
Website: www.mblbd.com
Chairman & Owner
Md. Abdul Jalil (M.P.)
Employees:
There are 879 (approximately) employees working for the bank according to 31-12-2009. The work force of the bank is very active and efficient. They work day and night for the betterment of the bank.
Core Values:
For Customers-
To provide the most courteous and efficient service in every aspect of its business
To be innovative in the development of new banking products and service
For Employees-
By promoting well- being of the members of the staff.
For Shareholders-
By ensuring fair return on their investment through generating stable profit
For Community-
By assuming the role as socially responsible corporate entity in a tangible manner through close adherence to national policies and objectives.
Upholding ethical values and best practices
I.6 Corporate Profile of Mercantile Bank Limited: Figure 1
Board of Directors | |
MD. Abdul Jalil, MP | Chairman |
M. S. Ahsan | First Vice Chairperson |
Golum Faruk Ahmed | Second Vice Chairperson |
Alhaz Akram Hossain | Chairman, Executive Committee |
Md. Anwarul Haque | Director |
Mr.Monsuruzzaman | Director |
Mr. Subrata Narayon | Director |
Mrs.Bilkis Begum | Director |
Tabibul Haque | Director |
ASM Firoz Alam | Director |
Mr. Amanullah | Director |
I.7 Hierarchy of divisions in MBL Figure 2
I.8 Hierarchy of designations in MBL: Figure 3
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I.9 Products & Services: Figure 4
Retail Banking
SME Banking
Project Finance
Loan Syndication- Car Loan, House Loan, Study Loan, Commercial Loan, Export-Import Loan, Family maintenance Loan
Monthly Savings Scheme- Bishesh Shonchoy Prokolpo, digun briddhi prokolpo, Mashik shonchoy prokolpo
Investment Banking-
Islamic Banking
Personal Banking
Online Branch Banking
Electronic Banking
Corporate Banking & Institutional Banking
Locker Service
Cards
Consumer Finance
Trade Finance
Industrial Finance
| Import Finance |
| Export Finance |
| Working Capital Finance |
Custodial Service
Cash Management
Western Union Monet transfer
| Deposit Insurance Scheme Foreign Exchange Business |
| Inward & Outward Remittances |
| Travelers Cheque |
I.10 Departments of Mercantile Bank
Mercantile Bank limited has does this work very well. Different departments of Mercantile Bank are as follows.
Human resources division
Operations department
Information technology department
Treasury department
Foreign exchange department
Investment department
Accounts division
Audit and risk management division
Law division
I.11 Financial Performance of MBL-At a Glance: Figure 5
(BDT in million)
| Particulars | 2004 | 2005 | 2006 | 2007 | 2008 |
| Authorized Capital | 1200.00 | 1200.00 | 1200.00 | 1200.00 | 1200.00 |
| Paid-up Capital | 319.77 | 639.53 | 799.41 | 999.27 | 1199.12 |
| Assets | 16383.17 | 18324.73 | 24098.09 | 28890.48 | 37159.65 |
| Investments | 882.47 | 1382.29 | 2107.26 | 3517.68 | 5407.90 |
| Deposits | 15150.42 | 16285.19 | 22385.19 | 25727.43 | 33317.64 |
| Advances | 8896.19 | 10775.95 | 17669.29 | 21857.05 | 26842.14 |
| Import | 15112.50 | 20380.80 | 28325.20 | 33271.90 | N/A |
| Export | 11377.30 | 15250.60 | 17411.00 | 24108.57 | N/A |
| Profit after tax | 256.74 | 215.91 | 312.58 | 386.83 | 494.22 |
| Earning Per Share | 70.59 | 57.88 | 31.28 | 32.26 | 41.22 |
| Price earning ratio | - | - | 17 times | 9 times | 10 times |
| No. of Branches | 15 | 20 | 25 | 28 | 31 |
| No. of Employees | 363 | 492 | 544 | 663 | 879 |
| No. of foreign Correspondence | 215 | 240 | 255 | 266 | 271 |
Source: Annual Report 2007 and financial statements 2008 of MBL
II-Introduction to the report
II.1 Rationale of the Study
This study is been proposed because it contains all the necessary details about the report on Mercantile Bank’s HR Training & Development also it has the initial information & data that is required for an internship report.
As a student of HR this study is very important for me as it is giving me not only information for my report but also making me aware about the necessary factors, processes, people & methods in a bank’s HR training & development.
In my future it would help me to become a good HR trainer & even an HR officer by giving me ideas about an a bank’s overall HR system, managing works, evaluating training needs, selecting persons to train & to be trained.
This study will be beneficial to the faculty of business administration as it will provide information about a bank’s HR system & training which can be useful for knowing modern HR systems that are applied.
II.2 Statements of the Problems
In this study some particular questions would be answered, they are what are the training methods, how trainees are trained, by whom they are trained, for what we purpose training programs are arranged, duration, place & logistics of the training, what are the impacts of training programs on trainees etc.
II.3 Scopes & Delimitation of the Study
The study on Mercantile Bank’s training & development process covers the methods of on the job & off the job training, process of training such as class room lecture, hand sheets & notes. It also covers peoples as trainers, the second managers, executive vice presidents, senior executive officers, senior executive vice presidents, principal officers, guest lecturers & about trainees and other factors such as location of training which is in Bijoynagar in Dhaka & time duration is 1-3 weeks before joining & 1-3 days after joining and many other factors. There are some limitations of the study due to organizational secret & not having proper records of management activities and lack of assistance from others.
Sometimes, I was assigned to do some jobs without explaining why these works are to be done. This situation has created lot of problems to understand why a specific function is being performed.
Another problem is concerned with the data collection. Primary and secondary data are not available in organized form.
II.4 Objectives of the Study
Broad/General Objective- Is to provide details information about Mercantile Bank’s training & development system & analyze different aspects of it
Specific Objectives-
§ To provide details about training systems, procedures, topics, people related to it, analyze its advantage & disadvantage
§ To identify the MBL’s training method
§ To provide names & details about training that is provided
§ To analyze materials used for training
§ To identify the employee’s satisfaction about the training
§ To know about the system to choose trainee & trainer
§ To identify about the trainee efficiency
§ To identify the output of the employee on the training period
§ To find out the employees benefit on the job period
§ To identify whether the employee are applying their knowledge on the job life
III Training & Development of Mercantile Bank Ltd
III.1Mercantile Bank Ltd Training Institute (MBL TI)
MBL training institute in Bijoynagar has embarked on several “need based” trainings sessions for its officers working mainly in the desks of the branches. It has a principal, vice-principal & a team of trainers from the VPs, & guest lecturers, they are the board of the institute & the training programs to take place are decided by the HR & management divisions. Objectives of this venture were to upgrade & update the officers on the recent changes in the area if any, & to make them moiré capable & competent to deliver proficient services so that the bank can attain escalating growth.
In order to materialize this bank, perpetual aim of training institute has designed its training program in 5 annual training plan in sequential order giving proper weightiness to al the areas of banking operations so that present workforce of the bank grows with harmony to become all rounder & there by the bank creates its second line of defense to help prevent the ominous impact of indispensability in the day business & administrative operations of the field & corporate office.
During the quarter under reference training institute has conducted as many as 22 short term & medium training courses in the area of general banking, credit, foreign trade, foreign remittance, cash management, documentations on loan & advances, prevention of money laundering, customer services, internal compliance & control, code of conduct & confidentiality. CIB reporting, case study, dispute of foreign trade, SME financing & so on. In the next quarter together with other courses it shall activate the program to train specially the lastly recruited probationary & assistant officers so that they can be confident to powerfully add to the healthy manpower strength to pull the bank up further in future more.
We believe, with all out additional co operation from the officers, branches, divisions, at H.O. as well as management & board of the bank training institute shall go on continuing its endeavor to mark the 5 annual training plan a success
III.2 Importance of Human Resource Training & Development
§ The HR training & development ensures the concept of TQM- total quality Management.
§ This Department ensures EEO- Equal Employment Opportunity.
§ This department manages the training system for the new recruited employees, weak employee and if any new technology or theory is adopted
§ Also looks after taking care of employee’s compensation & benefits
§ Serves with latest & best modules and topics of training giving importance to the changing technology & newly adopted methods in the organization
§ Helps to increase KSAOs of t. e employees
§ This department looks after the performance appraisal, promotion, and transfer.
§ Establish and maintain chain of command & management hierarchy.
§ This department tries to improve the motivational level of employee.
§ To establish all kinds of acts regarding employee, organization etc.
§ To improve the employees’ skills
§ To establish and ensure proper organizational behavior and environment.
§ This department can speak out the Vacancy announcement
§ This department also can recruit and make selection of candidates
§ Mainly it enables the employees to become efficient & achieve the desired stage according to their slogan which is “Efficiency is our strength”.
Organogram of Human Resource Department Figure 6
Organogram of the training institute
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| Trainers Guest Lecturer | |
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Trainees- Branch needs General, special purpose, Need Based purpose |
III.3 Activities of training institute
Figure 8
a. Training needs assessment
What we know by theory:
Needs assessment phase Development & Conduct of Training
1. Organization needs 1. Location
2. Task needs 2. Presentation
3. Persons need 3. Type (What type of Training)
Analyzing Needs
In the first step need assessment is done basing on some factors mentioned above which depend on government policy, bank needs, adoption of new technology, central bank policy, new recruitment, need of increase in performance & branch based purpose etc.
When it’s seen that there is a new technology or method of working going to be adopted by the bank then it’s called organizational need
When trainee assistant officer, probationary officers or any senior executive is recruited they are sent to the “general training for bankers”
The training takes place in the institute in Bijoynagar, the duration depends on the topic
Bellow a structure is shown
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III.4 General Information about MBL TI & its activities
§ Faculty Member
1. Principal
2. Vice-Principal
3. Guest Lecturer
The faculty members are chosen randomly from the VPs & SVPs who are normally branch head or manager operations in different branches.
§ Selection of trainees
q Newly recruitment
q Special purpose
q Need based purpose
q New appointment (Any rank)
§ Trainee Assistant Officer (TAO) & Probationary officer
These candidates are passing first year on the probation year. The candidate is passing with training during his or her job time. After working for one year they are sent for general training for bankers
MBL TI has divided the candidates on the several batches. MBL TI puts 60 persons in each batch. It is the maximum capacity of the MBL TI.
· Other rank
Sometimes Bank recruits some employee on the others & higher ranks also. Furthermore the MBL TI gives the exact training based on his specific rank & specific reasons such as new recruitment in higher ranks, government policy, changes in industrial or foreign exchange sectors or central bank policies or for the need of more skilled employee in branches.
§ Cash Management
On the branch levels who are maintaining the cash, if they couldn’t do well & mistakes in count of cash & accounts mismatch then they are sent for training. This selection of trainees are done by the branch manager
§ Internal Changes of organization structure
If any changes take place in internal management or organizational structure, use of technology or work pattern then need could to change the employee or recruit new employee. Then MBL TI provides the appropriate training according with the job rank.
§ New service/product launch
If Bank has launched new product or service to ensure its proper & full duty towards customer satisfaction & to enhance reliability on the service training programs are arranged. And one person from every branch’s particular department according to the type of service are sent for training, the trainee is also decided by the branch manager, the person who can come back & provide details & teach other employees about the things learned are sent.
§ Bangladesh Bank (central bank) changes the rule or make new rule
Sometimes our central bank changes procedures & rules and regulations in banking sector such as export-import rate can change when a new budget in announced for a fiscal year, even rate of credit to borrow or lend changes also with the interest rate or government can make systems to have logistics bank owned and also many other purposes can be there for all these employees may need training. Keeping all types of needs & wants trainings are designed & provided.
§ Exam
§ Class test (question and write down those question’s answer)
§ Final ( MCQ)
§ Oral Presentation
§ Case study
§ Work shops
§ Lecture series
In 1 day duration training test are taken after half of the training & at the end of the training & in 3 days exams are taken at the end of every day & in monthly program tests are taken after 10 or 15 & at the last day.
§ Mark distribution
The total mark is 100.
Class Test 30%
Presentation 30%
Final 30%
Participation 10%
Total 100%
§ The Grading system
The grading system is following:
1. Excellent: 91 and above 3
2. Good: 81 to 90 2
3. Average: 71 to 80 1
4. Bellow Average: less than 71
Methods
§ On the job Training- The process in which TAOs & POs gets trained by working in office for 3 months after joining & also for one year.
-Coach
-Mentoring
-Job Rotation
-Job Instruction Technique (JIT)
§ Off the job Training – POs & TAOs are trained after 1 year of joining, e session is of 1 month & other rank employees who are trained for special purpose, need based purpose are also been given training for 1, 2 & 3 days sessions.
· Coaching
Coaching is one of the training methods, which is considered as a corrective method for inadequate performance.
1. Coaching is the best training plan.
2. It is one-to-one interaction.
3. It can be done on phone, meetings, through mails, chat etc.
· Mentoring
§ Mentoring is an ongoing relationship that is developed between a senior and junior employee.
§ Mentoring provides guidance and clear understanding of how the organization goes to achieve its vision and mission to the junior employee.
· Job Rotation
· This approach allows the manger to operate in diverse roles and understand the different issues that crop up.
· It is the process of preparing employees at a lower level to replace someone at the next higher level.
· Job Instruction Technique (JIT)
Job Instruction Technique (JIT) uses a strategy with focus on knowledge (factual and procedural), skills and attitudes development.
· Results and outcome of training
· Increase quality and quantity (Evaluation and comparing, increase the quantity of all people’s behavior) of work performance.
· Decrease accident
· Increase knowledge, skills, and attitudes.
· Decrease cost of management.
· Evaluation on the training effort
q Data collection: the trainee’s data collection is to be more effective to evaluate the training result. The data collection means what is the condition about the trainee before the training and after the training.
· Off The Job Training
There are many management development techniques that an employee can take in off the job. The few popular methods are:
1. Sensitivity Training
2. Transactional Analysis
3. Face to face Lectures
4. Case study method: A development method in which the manager is presented with written description of an organizational problem to diagnose and solve.
5. outside seminar
6. University related program
7. Role playing: A training techniques in which trainees act out parts in a realistic management situation.
8. In-house development center: A company based method for exposing prospective managers to realistic exercise to develop to improve management skill.
Sensitivity Training
Sensitivity training is about making people understand about themselves and others reasonably, which is done by developing in them social sensitivity and behavioral flexibility.
Transactional Analysis
Transactional Analysis provides trainees with a realistic and useful method for Analyzing and understanding the behavior of others. In every social interaction, there is a motivation provided by one person and a reaction to that motivation given by another person. This motivation-reaction relationship between two persons is a transaction.
Lecture
Lecture is given to enhance the knowledge of listener or to give him the theoretical aspect of a topic. Training is basically incomplete without lecture
Internal Training
Internal training is the form of training that is conducted within the company. The company uses its own facilities and logistic to provide the training.
In the MBL in most cases, in house trainer is used. In MBL in house trainer can be organizing by the HR department or it can be organize by their own Training institution.
MBL has its own training institute. It is located in Bijoynagar
External Training
External Training is the form of training in which employee are sent to various training institute to participate in development programs.
In MBL employees are sent to different external institutes for training. The training institute may be located in Bangladesh or abroad. Sometime, they receive book shield from different require International Business Schools. Training is also used as motivation tools in MBL.
To know the more skills, knowledge, and abilities, sometimes bank may allow its employee for taking the external institution trainings Like (Bangladesh Institute of bank management) BIBM & BBTA two months training.
In this situation employee may not do the job. But still company provides financial supports to the employees who have attained the training program.
Apprenticeship training
It’s a process by which people became skillful workers through a combination of classroom instruction and on the job training.
Technologies & materials used to train the candidate in the classroom. These are:
o Board
o Overhead Projector
o Multimedia Projector
o Video Clips
o Still picture
o Paper
o Other logistics
The way all these instruments are used
§ Lectures, Conferences, seminar, staff meeting, demonstrations are used for short courses through coaching.
§ Role-playing and job rotation (less used tools)
§ Case or project studies and problem solving sessions.
§ Use of pamphlets, charts, brochures, booklets, handbooks, manuals, are used for class lectures & exams.
§ Graphs, pictures, books, slides are shown in projectors,
§ Posters, displays, notice and bulletin boards for notification
§ Reading rooms and library where specific books and journals are maintained for references and use.
§ Under study and visit the plant
§ Correspondence courses under which knowledge about business law, statistics, industrial management, marketing, accounting, Operation Management and many related subjects.
Trainer
Trainers are chosen randomly from the circle of VPs, EVPs & SEVPs for trainings of special purpose & trainings due to government changes. Guest lecturers are also invited from the banking & business sectors to which the trainings are related. Example: in an foreign trade training secretary of Bangladesh export-Import commission came as a guest lecturer. And also lecturers from BIBM, custom office & of trade ministry officials & income tax officials are invited.
III.5 some basic concepts about training
Training:
1. The process of teaching new employee the basic skills they need to perform their jobs.
2. The process of providing employees with specific skills or helping them correct information in their performance.
Reasons of training:
1. Cost effectiveness
2. Improve HRM, Job performance, Promotion
3. Change in program
4. Employee Turnover
5. Decrease the rate of turnover
Training effects to measure
Techniques to measure the training output
· Reaction: Evaluate trainees’ reactions to the training session. Did they like the program? Did they like it worthwhile?
MBL is not looking on that area. They are simply running their training. They don’t look to the trainees’ reaction or don’t care.
· Learning: Test the trainees’ whether they are learning effectively about the skills, principle, and facts or they are not learning. They suppose to learn it.
MBL is taking the exams what they could make. They don’t have ant exam system within one week.
· Behavior: Analyze whether the trainees’ should change the behavior on the job-training period.
MBL is collection only the performance. On the performance they don’t care the trainees’ behavior.
· Result: This is the most important. Because we can measure on trainees’ performance by the final result. What is his performance before the training and after the training? If the performance cannot make any result then perhaps it hasn’t achieve the goal of the training.
Yes, MBL has produced the result.
· Certificate after the training
After the successful training the MBL TI has provided the certificate to the trainee.
· Code of Conduct
q All participants should take care of each other’s personality and should provide good personality that way nobody is not hurt.
q Misuse, it means MBL always discouraged. So, all the participants strongly refuse the misuse.
q MBL TI is not allowed entertainment of guests of the participants during course period. However under emergency situation, participants are allowed to attend the guest with prior permission of the principal\coordinator.
q An employee is allowed to operate the television in the TV room. For recreation of participants he operates the television
q All participants are required to take care of the cleanliness of the Institute and obey the acts consequently.
· Library Formalities
q During course period the library remain open from 8.30 am to 6.00pm.
q No participants are allowed to take any books, periodicals. Journal out of the library.
He must follow the proper rule to take the books.
q Books are issued upon written request of the participants for overnight basis and such
Books borrowed are required to be return to the library on the following day positively
before start of class.
q The participants cannot borrow more the one book at a time.
q No guest of the participants’ is allowed to enter in the library.
III.6 Training courses of MBL & their duration
Figure 9
| Training Program Name | Duration |
| Anti money laundering | 1 day |
| Branch Management (Need Based) | 1 day |
| General Banking (Special) | 1 day |
| Documentation on loans & advances | 2 days |
| Case study of General Banking | 1 day |
| Prevention of fraud, forgeries & malpractices | 2 days |
| Bangladesh Bank ICT compliances & awareness | 1 day |
| Recovery of loans, treatment of NPA & filling of suits with fore closure | 1 day |
| Basel-II Implementation | 2 days |
| Basic training for TAOs | 18 days |
| Trade finance & swift payment | 2 days |
| Basic Accounting course | 1 day |
| Credit Management | 10 days |
| Internal control & compliance | 2 days |
| SME & Micro credit | 2 days |
| Money laundering prevention act 2009 | 1 day |
| Foreign exchange & foreign trade | 10 days |
| Basic training for Assistant officers | 30 days |
| Export import finance | 2 days |
| Basic training for bankers | 30 days |
| Leadership, team building & negotiation skills | 1 day |
| Bangladesh bank compliances awareness amongst the branches | 1 day |
| Computer training for IT division | 1 day |
| Basel II & credit risk grading (CRG) | 2 days |
| Accounting non-accountants | 2 days |
| Managing banking risks | 1 day |
| Correspondent banks services in Bangladesh | 4 days |
| Correction of CL(classified loan) reporting | 1 day |
| Financing readymade garments (RMG) | 1 day |
| International trade payment methods | 1 day |
| Offsite reporting to Bangladesh bank | 1 day |
III.7 Training mark sheet of MBL Figure 10
MBL training Institute
Course On
Total Mark: Grade:
| Name | Designation | Branch | Class test | Presentation | Final | Total |
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Faculty:
Principal:
Total marks:
| MBL Ltd. Figure 11 Training Evaluation form Title of the training: Date of the Training
Ended: Name of the trainee: Position of trainee: Knowledge and Skills level of trainee Before this training: low high 1 2 3 4 5 6
Evaluation Number:
Total Marks: Strong point of the trainee: Weak point of the trainee: Additional comments\recommendations:
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Formally informing employees
Employees need to be formally informed about the training program. The subject, time, duration and trainer of the training program have to be given to the employee.
In MBL the general practice of informing employees is to use an inter office memo send to the head of the department with carbon copies (CC) send to employees. Also, a session guide is given to the trainee in order to give them a sort of preview to the program, some time employees are informed informally i.e. through telephone, e-mail.
The employees of MBL are enthusiastic about the training program. They instantly accept the training program generally. In fact the employees are eager to learn new ways, and develop their skills.
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III.8 Training and development program & company’s general benefits
Training comes with a lot of general benefits for the employees of a company. MBL has experienced these benefits through training. They realize the strange and important of the benefits. The benefits are:
1. Increased job satisfaction and morale among employees
2. Increased employee motivation
3. Increased efficiencies in processes, resulting in financial gain
4. Increased capacity to adopt new technologies and methods
5. Increased innovation in strategies and products
6. Reduced employee turn over
7. Enhanced company image
8. Risk Management
9. Increased personal development
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| Intervention logic | Objectively verifiable indicator of achievement | Sources and means of verification | Assumption |
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Overall objectives |
Trainee should try to improve their skills |
Trainee should have: 1. Good thinking capability 2. Effectiveness 3. Able to handle any situation
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New generation’s Bank. E.g. prime Bank, Brac Bank etc. |
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Training purpose |
1. Trainee should apply your ability, skills, and thinking capability. 2. Trainee must be sincere about their responsibility. 3. Trainee mute be sincere during their working period. 4. He or she must be confidence. |
1. 75% employee in the branch level, they are applying their skills in the field.
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1. Current half yearly profit.
2. Current party’s
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1. They are applying their skills, physical working. |
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Expected result |
1. Trainee should have good ability to work effectively.
2. On the hard-hitting time, the trainee don’t go ahead sluggish way. |
1. 75% employee is working hard.
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1. Last year’s annual report. |
Every employee behavior should like as a family member and with their colleague.
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III.9 Training Manual
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| Intervention logic | Objectively verifiable indicator of achievement | Sources and means of verification | Assumption |
Activity area 1
Management training
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1. To provide training to manager about latest Banking technology and organizational behavior.
2. To provide computer training to the faculty in MBL TI. 3. Managers should learn about motivation |
1. Managers must take latest technology and should know time maximization. |
1. To survey directly in the branches. |
1. Work must be finished at exact time and exact day.
2. Manager cannot take any undo influence decision. They must learn how do they discourage it? |
Activity area 2To develop Learning |
1. From the officer level of employee must have idea on English and speak frequently.
2. Because every Bank transaction is running by English.
3. Exceptionally on Foreign Exchange. |
1. 55% employee knows good English.
2. Latest Banking software is running by English.
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1. Survey and speak with the employee. |
1. English is an International language. |
Activity area 3
Internal training and using camera |
1. To see video clips about effective working style.
2. To record the working style and after that make comment about it. |
On the training periods don’t provide ant video clips. |
By survey MBL TI institute. |
MBL TI doesn’t records it. If they record it and then shows it to the trainee then trainee also would understand about their working style. |
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| Intervention logic | Objectively verifiable indicator of achievement | Sources and means of verification | Assumption |
Activity area 4
Computer and latest technology |
1. To provide computer training. Like as Hardware, different Banking software, latest office package etc.
2. To improve computer skills as much as possible for an employee.
3. The trainee must have better idea about latest office package. |
1. Only 25% employee knows about the basic concepts of computer. |
1. To work directly with the employee in the branch. |
1. Technology is changing day by day and computerized software is expanding in the market.
2. Business transaction is increasing day by day and management should look after the time and employees efficiency.
3. E-Banking is taking place in the Banking market. |
Activity area 5External training |
1. To visit several branches and through their department to department and to see how is the employee working and to provide basic concept at directly. |
1. UCB TI has not this type of method. |
1. to visit and talk with the UCB TI management. |
1. The trainee can gather some basic concept directly. |
Activity area 6
Intelligence |
1. To provide some math and game to use the intelligence and solve it. |
1. UCB TI has not applied this system. |
1. To visit and check the method of the training. |
1. They can be able to use the brain and they can sharp the brain and increase the intelligence. |
III.10 Time frame of training program: Fig 13
| Date | Date | Date |
| Session 1 9- 10 am
Discussion with management. Discuss about competitors position.
| Session 1 9-11.30pm
Introduce some tactics, skill and techniques. Discussion about own style. | Session 1 9- 11.30 am
Feedback session: Ask question about techniques and skills. |
| Session 2 10am-12pm
Discussion on English and give some lecture about English.
Lunch break & prayer time 12 -1.30pm | Session 2 11.30- 1.00pm
To visit some branch and showing some techniques.
Lunch break & prayer time 1.00- 2.00 pm | Session 2 11.30- 1.00pm
Presentation on their understanding.
Lunch break and prayer time 1.00- 2.00pm |
| Session 3 2 – 3.00pm
Showing some video and PowerPoint presentation. Teach something about computer skill.
| Session 3 2.00- 3.00 pm
Discussion and see their own style and skills. Then make command to their style and skills. | Session 3 2.00 – 5.00pm
Analysis their training session, What will they learn on their training session?
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IV Methodology
IV.1 Study design
My study’s design was very simple. It was to see & learn. As I works both in HR Division & in branch it was very easy for me to collect information & see practically that how training is been given, programs are held, exams are taken, duration, people as trainee & trainer are selected & performance after training is evaluated also compensation & benefits along with selection & recruitment details was available for me. I just had to collect HR information from the computers there like the training manual, evaluation form, list of trainings provided & the marking system at the TI exams. Even I visited the training institute I saw how trainees are taught & in braches I saw how they apply things they have learned.
IV.2 Data sources, collection & analysis
Primary Data
Mercantile Bank’s official website www.mblbd.com
HR reports & documents
Training program files & reports
Result evaluations sheets of training programs
Trainee & trainer selection procedure papers
Annual report of MBL Bank, Many brochures, text books (Human Resource Department, Organizational Behavior, Management Process, and Business Research).
Secondary Data
S. Q. Bazlur Rashid
Senior Executive Vice President
Trainer & Present Head of HR Division
Faiz Hasan
Assistant Vice President
Operational Manager & Trainer, Banani Branch
Azad Shamsi
Executive Vice President
Trainer & former Head of HR Division
· Own experience of working in HRD for one & half months and in branch for another one & half months
Data source
In order to collect the information and data followings potential sources has been used:
Data requirements
To accomplish this research the information is needed as following:
ü To get information about MBL TI
ü To get information about the employees’ training
ü To get information how other banks are trained to the employees’
ü To get information about MBL LTD
To get information about MBL LTD employee
Collection of Primary data
I have collected secondary data from various printed materials such as annual report of MBL; magazine of MBL named “Insight” Many brochures, text books (Human Resource Department, Organizational Behavior, Management Process, and Business Research).
Sampling unit
The sampling unit of the study was each level of employees who are working as Manager, Senior Executive officer, Principle officer, senior officer, and Officer and Probationary officer. And from the Training institute principal, vice principal & SEO. All of them gave me a lot of necessary information for the report.
Extend
To extend this study I also worked in banani branch of MBL, where I learned how the training is implemented practically & also it helped me to understand for what purpose & for which type of work a particular training is needed. I also learned banking in foreign exchange, accounts, credit & general desk even I worked in cash section for few times.
Analysis of Data
It was done by asking the HR officials about their activities, ways of doing work, training manual, procedure, duration, and people related to this and other factors related to the study. Basing on this information gathered the whole report was prepared.
V. Analysis of Human Resource Division and training & development program of MBL:
V.1 SWOT Analysis
Strength
· Competence & Commitment.
· Mass usage of technology
· Sufficient man power
· Updated training programs
· Implementation techniques
· Regular training programs
· Goal – oriented.
· Learning and sharing.
· High energy level
· Good working environment.
· Experienced bankers and corporate personnel have formed the management of the bank, which formulates business strategies.
· Sufficient resources.
· Automated Human Resource Information System(HIRS)
Weakness
· Lack of good career Management Process and Job security.
· Sometimes bank doesn’t want to spend money for training or logistics facility in branches
· Many times failing to distribute work & duty
· Lack of trainers for some particular types of trainings
· Spending money to send trainees outside the bank for training & bringing guest lecturers
· Other departments not always supportive to HR activities
· Lack of Recognition for work accomplished and Lack of employee satisfaction.
· Not having employees with HR study background
· Less maintaining tendency of chain of command
· Mentality to avoid responsibility
· Limited power for HRD
· Not sufficient space in TI
Opportunity
· Grow as an HR professional.
· New systems & procedures going to be started soon in training & development
· Trainers are trained going to be trained with new topics & systems
· Usage of technology is going to increase
· Develop inter communication
· Have HR study background professionals
· Attract and retain good talents.
· Simplify the processes.
· Automated HR processes.
· Company growth will dictate HR growth.
· Financial growth due to high rate of return in saving account services & collection of recovery from loans provided
Threat
· More competitors are coming.
· Loss of competent employees.
· Not increasing criteria to work for HR
· Less importance to develop training programs than others
· No particular field for HR to control operations
· Lack of trainers
· Less qualified employees
· Not improving work environment
· Not having organizational behavior pattern
· Not concentrating in maintaining chain of command
· Other banks are improving these sectors
· Less improvement of logistics
V.2 General Analysis
· HR is used not only for employee control purpose but also for maintaining rules & regulations among the branches & HO
· Training goes whole year long & it’s the most used HR function
· Other functions like Compensation & salary management gets the second priority, selection & recruitment process in the third one and performance appraisal gets the least attention
· Training programs are mandatory for every one after some period
· For special purpose trainings from every branch one person is selected who is normally the second in charge of a particular department
· He/she acquires knowledge from the training & after coming back teaches that to everyone in his department
· When a new system is going to be started soon or government has plans to have a change in banking processes for that purpose workshops are arranged.
· Trainers are chosen randomly by the HR division
· General training duration is 20 days-30 days, special purpose training duration is 1 day & 3-5 days and workshops are held for 1 day.
· Evaluation is done by the TI principal & lecturers and results are given at the end of the project.
· New projects, technologies & techniques are been adopted & updated every six months
· If anyone fails to achieve the desired mark he has to attend it again & his chance of getting promotion gets delayed, other benefits are not been given even he might get himself/herself in probationary period
· For every training guest trainers are invited
· Projects take place normally in MBL TI & government ordered programs are held in BIBM, ICMA etc
· Individual performance evaluation is done by the manager operations & branch managers in every branch & total branch wise evaluation is done by HR based on their earned profit, dealing made, contract achieved & service provided
VI. Findings & Recommendations
VI.1 Findings
After evaluating all the factors related to HR & training & development some positive & negative factors were found, these are highly effecting the bank in many ways, their effect & relation are described bellow
· Most of time the manager face difficulties to take any decision because of management hierarchy.
· Training programs take place when management decides it’s needed rather than asking employees that do they need training or not.
· MBL training department has average number of trainers. Number of skilled trainers should increase in training department.
· In this organization fresh employee’s training is compulsory but other employees training are not compulsory so it should be made compulsory
· MBL should arrange training program for other employees. If company feels that comprehensive training program is required for high-level official then they should arrange it.
· Most of the employees are motivated towards their remuneration, job security, & relationship with supervisor or subordinate except few employees.
· There are no extra benefits for performance because organization provides promotion after 3 years later; there is no chance to get a promotion for extra performance.
· There is both positive and negative side for fair evaluation, the positive side is all the employees become happy because organization evaluate them fairly but other side the most talent employees become de-motivated.
· Internal employee coordination is high within the branch because the boss always attempts to encourage the subordinate.
· Some of the employees are not motivated about their job security, relationship with supervisor or subordinate except few employees.
· In my three months survey It was found that the entry level employees are highly dissatisfied because of benefits, repetitive task, working hour, and work force stress.
· The mid level employees starting at senior principle officer (SPO) to top level employees starting at vice president (VP) are fully motivated because of strong compensation package, decision making power and benefits packages.
· There are a less opportunity for cyclic change in duties and responsibilities, because in the bank every day employees doing same work, for the reason that sometimes employees feel boring in the work place.
· Most of the time talents employees are very apprehensive because they do not get fair recognition for their work accomplishment.
VI.2 Recommendations
· MBL should introduce more on-the-job training. It is the age of technological development. But computer & internet connection is not used that much but it can be a very useful source of knowledge for employees to update their skill
· Trainers should be well trained and should have knowledge and skill regarding training. If they do not possess those qualities the company should introduce a training course on-how to take an effective training. Effective training programs should evaluate efficiency of trainers. So that they can provide effective training.
· Computer & usage of internet has become essential for everyone. So for training Internet can be used, especially for senior level positions.
· The trainer should be well trained. As reputed organization, MBL should arrange better training for their employees. Modern technological instrument should be used as training instrument.
· Sometimes MBL employees go to other institution for training because there is only one training institution. They should increase their own training centre.
VI.3 Suggestions for HRD & Management:
Step 1 Work role diversification.
If employees have been working in the same field for a number of years, they may have lost your passion for the work you do. When organization feel anyone become bored about his existing job organization should diversified his job into another position or department.
Step 2 Reduce Stress
When negative stress is continuously high, job satisfaction is low. Jobs are more stressful if they interfere with employees' personal lives or are a continuing source of worry or concern. HR department and management promote a balance of work and personal lives. Make sure that senior managers model this behavior. Distribute work fairly within work teams, Review work procedures to remove unnecessary "red tape" or bureaucracy, Manage the number of interruptions employees have to endure while trying to do their jobs.
Step 3 Leadership
Employees are more motivated when their managers are good leaders. This includes motivating employees to do a good job, striving for excellence, or just taking action. Organization must ensure managers are well trained. Leadership combines attitudes and behavior and People respond to managers that they can trust and who inspire them to achieve meaningful goals.
Step 4 Work Standards
When the employees are more satisfied then their entire workgroup takes pride in the quality of its work. Then management monitors and encourages communication, between employees and customers. Quality gains importance when employees see its impact on customers also Develop meaningful measures of quality. Celebrate achievements in quality.
Step 5 Fair Rewards
Employees are more motivated when they feel they are rewarded fairly for the work they do. Consider employee responsibilities, the effort they have put forth, the work they have done well, and the demands of their jobs. Management must be focus and Make sure rewards are for genuine contributions to the organization. As an added benefit, employees who are rewarded fairly, experience less stress.
Step 6: Sufficient Authority
Employees are more motivated when they have adequate freedom and authority to do their job.
Step 7 Put people on the right path:
Most employees are looking for advancement opportunities within their own company. Work with each of them to develop a career growth plan that takes into consideration both their current skills and future goals. If employees become excited about what’s down the road, they will become more engaged in their present work.
Step 8 Provide career coaching:
Help employees reach the next level professionally by providing on-site coaching. Bring in professionals to provide one-on-one counseling, which can help people learn how to overcome personal or professional obstacles on their career paths.
Step 9 Match tasks to talents:
Improve employee motivation by improving employee confidence. Assign individuals with tasks they know they will enjoy or will be particularly good about the task.
Step 10 Educate the Masses
Help employees improve their professional skills by providing on-the-job training or in-house career development. Allow them to attend workshops and seminars related to the industry. Encourage them to attend adult education classes paid for by the company. Employees will feel company is investing in them, and this will translate into an improved job performance.
VII. Conclusion
The MBL Human resource division and its training & development play a very vital role for total performance of the organization. The world is very competitive in this new millennium. Every organization is increasing the usage of technology. In this position Human resource is the thing which can make the difference. In this paper it has been tried to analyze the training & development of MBL from different point of view. To train employees effectively, organization need to understand what things employees need to learn. For this MBL TI & management evaluates what types of training is needed according to that other activities like deciding topics to train, selecting trainees & trainer, arranging workshops, having a place as TI, updating technology after all these evaluating & measuring performance, giving salary and different other activities are done. In this competitive world of banking business having a Training institute & managing it is important. MBL’s TI is very active & dedicated towards working for the employees & organization. It also helps the bank to be the ultimate “Banglar Bank” & work efficiently.
VIII. Bibliography & References
Books:
1. David A. DeCenzo (castle Carolina University), Stephen p. Robbins (San Diego state University) Fundamentals of human resources management, Eighth Edition (2007-2008)
2. Lloyd. Byars & Leslie W. Rue, Strategic Human Resources Management 8Th Edition (Towson University) 2002
3. Gary Dessler, Human Resource Management, 9th Edition (2003-2004)
4. Mercantile Bank Ltd., Annual Report 2007 & Annual Report 2008
5. Nick Blanchard, James W Thacker, Effective Training System, Strategies and Practices”, Second Edition.(2001)
6. Neresh k. Malhotra, Human Resource Management, Seventh Edition (2006-2007)
7. John Kempton, “HRM and Development”.
Websites:
2. www.answer.com. (January 01, 1999)
3. www.hrmguide.com (2001)
