Human Resources Management of Bangladesh Shilpa Bank


Origin Of The Report

The internship program of BBA students of the Faculty of Business Studies, University of Dhaka, is an integral part of the BBA program. After completion of internship program, one has to submit a report. The program is three months. I was assigned to Bangladesh Shilpa Bank to complete the program. Honorable supervisor has selected a topic for me “Human  Resource Management Practices.”

Objectives Of The Report:

The main objective of this study is to identify and familiarize with the organization objectives, functions and analyze Loan Operation Department of BSB. To do this it examines how BSB appraises project, what information it needs from the entrepreneur and what aspects of a project need to scrutinize and evaluate of its procedure to a particular project “Prime Red Oxide and paints Ltd”. The Other objectives of this report are as follows: –

  1. To know the overall function of Bangladesh Shilpa Bank (BSB) for the contribution of industrialization of the country.
  2. To develop knowledge about the reasons of making HRM practices by the sponsor.
  3. To get an idea about the condition HRM practices mechanism of BSB.
  4. To acquire knowledge about fault and disorder HRM practices by the sponsors.
  5. What’s the impact of HRM practices to the overall economy.
  6. Effects of HRM practices to the industrial sector of the economy.
  7. Consequence of HRM practices on financial condition of BSB.
  8. To recommend necessary steps for overcoming such problems of BSB.
  9. To acquire knowledge about BSB and functions of Loan Operation Department.

     10. To acquire practical knowledge about job market that will help in future life

     11.  To evaluate the trend growth rate and acceleration of industrialization

     12. To have understanding about the functions of Bangladesh Shilpa Bank

     13. To acquire myself with the practical aspect of the organic

    to go through all the department of the BSB and observe how the works are being done

     14. To analyze the management process of BSB

     15.  To get an overall idea about the existing project appraisal procedure such limitations.

Scope Of the Report

The scope of the study is in the organization of Bangladesh Shilpa Bank. The study is confined only on the Head Office and gave more concentration on it. The management of the organization is on the objective selected by the internal supervisor that is on Loan Operation Department as it is the focused area of the study.


In preparing this report, I have carefully observed the departments of BSB and got some information from the responsible officers at respective department.

The study covered based on both primary and secondary data.

Primary Data

The primary data collected from face to face discussion with the help of the various officials of department of BSB.

Expert opinion

Function analysis of department.

Secondary Data

The secondary data collected with several relevant articles of the BSB. These are given


³ Annual Report of BSB

³ BSB order 1972

³ Project Appraisal Manual of BSB

³ Project appraisal report of Prime Red Oxide and Paints Ltd

³ BSB General Regulation

³ Organizational charts

³ Journals and relevant books

³ Vouchers

³ Daily Newspaper etc.

I have analyzed these reports and documents in the light of analytical review. I have used some statistical tools, graphical presentation, and table to find out the different types of analytical result. Those are given the overall picture of the BSB.

Coverage Of The Report

Bangladesh Shilpa Bank is a very large organization. It has different divisions, department and sections. So it is very difficult to cover all things. I have tried to cover maximum important sections of BSB. But mainly I emphasized on Loan Operation Department of BSB. This report is also covering the historical background of BSB, organizational Structure, Functions, Policies, and Objectives, capital sources of BSB and many other issues.

Limitations Of The Report

As I have conducted this study within very short time, in preparing this report, I have faced some limitations. During my internship period, I was placed all the department of BSB one after another. So in this organization part, I am mainly concerning on the functions of all departments.

In addition to that the management of the organization was reluctant to disclose much important information due to organizational confidentiality. Another constraints, relevant papers and documents were not available sufficiently. The limitations are-

³ Lack of sufficient knowledge.

³ Lack of availability of data and documents

³ Improper combination among department

³ Up-to-date information is not available

³ Official deny of disclosing some information as to maintain secrecy

³ Time constraints.

Rationale Of The Study

Theoretical knowledge is not enough for a business student because there is a gap between theoretical knowledge and practical field. To match theoretical knowledge with that of practical field, internship plays a vital role for the students of business education. With this program the get experiences and knows that how much theoretical knowledge is deviated from the real fact.



Historical Background

Bangladesh Shilpa Bank, once a leading Development Financing Institutional (DFI), established in October 31, 1972 (President’s order no. 129 of 1972) with a mission of accelerating the process of industrialization of the country by providing financial assistance and equity support. After getting liberation a newly born country required rapid financial assistance and advisory services to industrialize the nation and BSB supposed to bolster in this regard. It has been extending long and medium term loan facilities in local and foreign currencies to industrialize projects (both new and BJ.1RE)in the private and public sectors.

Institutional Overview Of BSB

Established October 31, 1972

Organization         Head office                      :       Dhaka

Division                            :       05

Departments                     :       21

Zonal offices                    :       3

Branch offices                 :       15

Personnels                        :       769

Capital Structure And Sources Of Fund

Authorized capital   : Tk.2000million

Paid up capital         : Tk.2000million

The sources of bank’s fund are the Government, Bangladesh Bank, Commercial Bank, Local Overseas Financial Institution a land Supplier’s Credit.

Ownership Of BSB

At least 51 percent of the Authorized capital of BSB is subscribed by Bangladesh Government and remaining 49 percent be subscribed by Bangladeshi nationals or by local or foreign Financial Institutions. Presently, 100percent ownership of the Bank belongs to the Government.


Accelerating the process of industrialization of the country by providing mancial assistance and equity support.


The overall policy formulation and the general direction of Bank’s operation vest on a Board of Directors appointed by the Government. The Board of Directors consists of nine (9) members including the Chairman and the Managing Director. Non-Government shareholders subscribing to the capital of the Bank shall eventually elect four (4) directors among themselves. The Managing Director is the chief executive of the Bank. The General Managers assist the Managing Director in conducting overall business of the bank.

Functions of BSB:

BSB extends long and medium term loan facilities in local and foreign currencies to industrial projects (both new and BMRE) in the private and public sectors. Besides, the Bank also performs the following activities-

³ Provides working capital loans to industrial projects

³ Provides equity support in the form of under writing and bridge  finance to public limited companies.

³ Issues guarantees for repayment of loan on behalf of borrowers,

³ Extends commercial Banking services along with deposit mobilization

³ Purchases and sells shares! securities for BSB and on behalf of customers as a member of Dhaka Stock Exchange (DSE) Ltd. and Chittagong Stock Exchange (CSE) Ltd. for capital market development

³ Conducts project promotional activities along with preparation of various sub-sectoral study reports.

Departments Of Bangladesh Shilpa Bank: At A Glance

Loan Operation:

Acceptance of loan proposal, security, processing evaluation, sanction of term loans and equity etc. simplification and improvement of the quality of the customer’s service besides, it provides necessary advice to prospective entrepreneurs, receiving loan proposals, etc. through counseling counter.

Project Implementation:

Intensive follow-up measures for implementation of projects, disbursement of loan, preparation of F.C.R. and repayment schedule etc.

Documentation And Machinery Procurement:

To complete documentation  formalities in respect of loan equity and preservation of documents. Floating of lenders, security of papers  price of machinery, selection and procurement of machinery.

Project Rehabilitation:

Identification of sick projects, analysis of causes of sickness and taking rehabilitation measures.

Dhaka Commercial Branch:

Operate all commercial banking activities.

Central Account:

Maintenance of Bank’s account, disbursement of all kinds of funds, preparation of Bank’s annual  accounts etc.

Loan Accounting:

Accounting  for local and foreign country loans of Bank fmanced projects etc.

Commercial Banking:

Conduct commercial banking activities through bank’s branches and supervision thereof.

Finance Planning & Research:

Negotiation of foreign loans with the government and overseas bank and fmancial institutions and allocation of foreign loans etc. planning and management of invisible fund, identification of project, preparation of project profile, sub-sector studies, Bank’s budget, setting of technical/market report.

Human Resources And Management:

Control and supervise of bank’s administration including personnel management, staff welfare etc.

Management Information Service:

Preparing guidelines for lending strategy and Bank’s operational policy, collect and processing of data

REAL Estate Service:

To purchase and sales of Bank’s tangible and intangible assets and maintenance of properties of the Bank.

Common Service:

Procure and maintain the properties of the Bank.


Computerize  Bank’s activities.


Prepare and maintain properties of the bank.


Handling of matters regarding pre-audit clearance on different internal issues and co ordination to external audit team etc..


Secretariat work includes holding of board meeting and projection of the Bank and its activities in newspaper, other media communication with the government and other agencies.


Inspection of Bank fmanced projects, identification of their problems and brings to the management’s notice.


Enforce of law for ‘-‘ recovery of loans.

Central Recovery:

Supervision and recovery of loans from projects located in and around Dhaka including formulation of policy in respect of Bank’s end-use activities loan recovery.

Branches Control:

Co-ordination and monitory of branches work in respect of sanction of loans and recovery.


Operational Activities Of The Bank:

Bangladesh Shilpa Bank being the prime Development Financing Institution continued its efforts in FY2003-04 to make an effective contribution towards expansion of industrialization process of the country .It emphasized on long term lending viable new projects having comparative advantage, export prospects, forward and backward linkages, local technology as well as raw material based projects. Top priority has been given to loan recovery for augmenting and recycling the invest able funds an maintaining satisfactory loan portfolio. For this, the Bank has undertaken some realistic steps towards Rephasement/rescheduling and liquidation of loan accounts of sick/closed! stuck-up projects with waiver facilities where deemed appropriate.

Profit And Loss:

The Bank has made a net profit of Tk.421.09 million (after adjustment) during FY2003-04 as against Tk.789.60 million (after adjustment) in the previous year. During FY 2003-04 the Bank earned a total income of Tk.744.40 million which is less by an amount of Tk.259.20 million in the previous year. One of the major reasons of declining bank’s income is non-receipt of subsidy from the Government against the interest waiver facilities extended by the Bank, as received in the previous year.

Deposit Mobilization;

During FY 2003-04, the Bank tried to meet its fund requirement for lending and investment from various sources. The Bank emphasized more on no-cost and/ or low-cost deposit mobilization during the period. Total deposit was Tk. 621.21 million on June30, 2004.

Loan Application Received;

During the period under review, the Bank accepted 51 new loan proposals after proper scrutiny.

Sanction Of Term Loans-

The Bank kept on sanctioning of term loans during FY 2003-04.Thisyear local currency loan of Tk.989.65 million was sanctioned to 27 projects. Of the total sanctioned amount, Tk.686.99 million was for 21 new projects, Tk.165.56 million was for 3 BMRE projects, and an additional loan of

Tk.136.10 million for 3 on-going projects.

Sanction Term Loan

Commitment And Disbursement Of Term Loan-

During FY 2003-04, the Bank made commitment of Tk.406.51 million in local currency to 15 projects. During the period, the Bank disbursed term loans of Tk.296.96 million in local currency to 14 projects as against the disbursement of Tk.170.00 million to 11 projects in the previous year. During the period the bank signed loan agreements with the sponsors of 15 sanctioned projects for an amount of Tk.406.51 million. During the last year the number of such projects was 4 and the loan amount was Tk 116.00 million only.

Sanction Of Working Capital/Commercial Loan- During FY 2003-04, the Bank sanctioned working capital/ commercial loans of Tk. 19.00 million to 5 projects and disbursed Tk. 27.51 million to projects. The Bank sanctioned Tk 4.00 million to 1 project and disbursed Tk. 1.00 million to 2 projects in the previous year.

Other Investments-During FY 2003-04, the Bank invested Tk. 22.05 million purchase shares from the primary and secondary market and the Bank earned an amount of Tk. 9.21 million as capital gain, dividend and commission from share trading.

Project Implementation- The Bank intensively monitors and supervises implementation of its own fmanced projects. During FY 2003-04, 4 projects commenced commercial production and 43 projectswere under different stages of implementation. Of these, 6 projects were under construction, 15 projects completed loan agreement and 22 projects were awaiting documentation.

Loan Recovered

Loan recovery is a crucial index to measure the success of a Lending organization. Like previous year, this year too, the Bank has strengthened its recovery drive for realizing loans and dues from its borrowers and significant success was achieved.

Total recovery target of loans during FY 2003-04 was Tk. 1500.00million against which actual cash recovery was Tk. 1124.20 million constituting 75 percent of the target. During the reporting year, outstanding loan of Tk. 149.10 million was regularized through rescheduling and Rephasement of bad and doubtful loan accounts. The amounts regularized through cash recovery and rescheduling were Tk. 1315.50 million and Tk.507.30 million respectively in FY2002-03. During FY 2003-04, the recovery drive was affected to some extent, among others, due to the ever-memorable serious flood the country experienced. During 2003-04 the percentage of classified loan stood at 62% with a 3% increase over the 59% of the preceding year. In other words, with an increase of Tk. 348.20 million during the reporting year, the classified amount of loan rose to Tk. 10024.40 million from Tk. 9676.20 million in the previous year. The increase in classified loan was mainly due to the up-date of the loan accounts along with interest for the purpose of filing suits in “Ortha Rin Adalat” which were kept suspended earlier by the bank.

Legal Actions Taken For Recovery Of Loans- The Bank initiates legal actions under the BSB order, 1972 against those defaulting and recalcitrant borrowers who fail to come up with any satisfactory proposal for settlement of Bank’s dues after all normal recovery efforts have been exhausted. L IA .” Takl In FY 2003-04, legal notices were issued against 126 defaulting companies for recovery of Bank’s dues while lawsuits were filed against 205 companies. Besides, 54 sale notices were published in the national dailies for auction. At the same time, efforts were made for settlement of disputes outside the court through negotiation. As a result, 6 litigated companies settled the disputes outside the court and assets of 2 projects were sold through auction during the year.

Loan Written Off- During FY 2003-04, the Bank has written off a total loan liability ofTk. 2284.25 million of 137 projects.

Other Activities:

Advisory Services- Apart from identification and development of viable projects, the Bank assist the interested entrepreneurs in selecting industrial projects having appropriate technology and potential market by providing advisory services and various information.

Training- For upgrading the professional competence and skills of its employees, the Bank is continually arranging training programs both at home and abroad. During FY 2003-04, 408 officers were imparted in-house and local training. Besides, 4 officers were sent abroad for this purpose. During the period under report, 4 in-house Seminars/Symposiums were held on the topics viz. “Managing Core Risk in the Banking”, “Project Management”, “Corporate Government” and “Anti Dowry Social Movement”.

Computerization- To improve the working efficiency and provide better customer service, computerization of Bank’s activities is going on. In this regard, the Bank has undertaken a far-flung action plan. The implementation of the first phase of network-based computerization has been completed and the 2ndphase of work is going on.

Human Resources- As on June 30, 2004 the total staff position of the Bank stood at 769, of which 432 were officers and 337 were supporting staff. This year, 92 officers and 30 supporting staffs were promoted to the next higher position.

Annual General Meeting- The 18thAnnual General Meeting of the shareholders of the Bank was held on November 28, 2004. The meeting among others approved the Bank’s audited accounts for FY 2003-04.

Board News- In FY 2003-04, 28 meetings of the Board of Directors were held to consider and decide upon various fmancial, operational, and administrative and policy matters.

Strength Of BSB-

³ As a prime DFI, it has a large number qualified and expenence professionals.

³ Structural set-up and business location is Strategic.

³ BSB’ s assets position is quite satisfactory and

³ BSB has requisite strength and opportunity to sustain the challenge of the market economy.

Steps Taken To Gear-Up The Bank’s Activities:

³ Gear-up recovery through setting up of pragmatic recovery targets.

³ Expansion of new area of investment.

³ Cleaning of loan ledger with exit facilities.

³ All out efforts for deposit mobilization.

³ Undertake need-based training Program including computering  to all officers and develop a computerized data-base system and

³ Full computerization of bank’s activities.


Bangladesh Shilpa Bank being the prime development financing institutional continued its effort to make on effective contribution towards expansion of industrialization process of the country. It emphasized on long term lending to the viable new projects having comparative advantages, export prospects, forward and backward linkage and local technology as well as raw materials based projects. Top priority has been given for realization of its loans towards augmenting and recycling of the invertible funds and maintaining satisfactory loan portfolio for increasing profitability. With this end in view the Bank has undertaken some realistic steps towards replacement, rescheduling and liquidating, of loan accounts of sick / closed / stuck-up projects with waiver facilities where deemed appropriate.

Activities Of Bangladesh Shilpa Bank Bangladesh Shilpa Bank encompasses various department and zonal offices to discharge its activities. To perform efficient and effectively BSB in its board meeting has determined the schedule activities of various departments and zonal offices and they are supposed to perform the task accordingly and the respective employee have to report according to organizational hierarchy. Activities of some important department are enumerated below

Loan Operation Department

Loan operation Department (LOD) is the most important department of Bangladesh Shilpa Bank. This department analysis’s the ability of potential entrepreneur for the purpose of loan sanctioning. It does all the necessary works to give loan to a potential party.

Major FunctionsOf Loan OperationDepartment(LOD)

0 To provide logistic support to the investors in relation with industrial loan,

application form of loan (along with 1/8thof 1% project estimated cost and other necessary documents) / capital distribution, accepting, processing and analyzing project offer and forwarding loan application.

Project loan proposal evaluation/justification and proposal sent to loan sanction sub-committee to sanction loan and getting approval from respective activity.

³ To take  necessary action to process and approve co-fmancing projects.

³ Accepting the clearance letter from Investment Board on project proposal

³ Loan sanction letter prepared and sent to respective department.

³ Revaluation of past evaluated loan agreement if necessary, according to up-todate  information.

³ According to foreign investment authority’s requisition, updating the project evaluation report.

³ Issuing respective notice in  terms of changes of government /Bank rules to loan procurement and sanction time to time.

³ Approving and processing under writing  shares of project financed by banks and other financial institution, as a member of l.C.B. consortium.

³ Preparation of long term statement about pending loan application and sanction project etc.

³ Preserving core paper, sanction letter and sanction article of the projects already sanctioned.

³ Regular revision of investment policy and providing recommendation there off  and notification issue about the policies.

³ Selling application form to non-residence Bangladeshi.

³ Giving advice about preparation of loan application form to non-resident

³ Bangladeshi Take necessary action for preparation of application for loan to be processed or sanctioned.

³ Examining, processing and sanctioning joint venture investment proposal of Bangladeshi with foreigners.

³ Invitation and inspiration of lease financing by the foreign investors/entrepreneur/ machinery producing company.

³ Preparing and preserving statements of investments and guarantee of non-resident Bangladeshi, maintaining core paper and sanction letter.

³ To take action to approve of joins foreign project to be set up and preparation of regulations for the same.

³ To give advice about advantage of loan and deliberation of foreign investors/ entrepreneur’s proposal.

³ To take respective steps about various governmental bodies approval to sanction of non-resident Bangladeshis loan proposals.

³ To give necessary advice to Zonal Branches of Bank about project evaluation and also about their sanctioned loan project.

³ Computerization of loan management activities.

³ Properly implementing duties and  responsibilities assigned by the head of the department.

Project Implementation Department

Project implementation is one of the most important tasks conducted by BSB. When the loan operation department sanctions the loan, it is the responsibility of this department to help the borrower and provide the guidelines to the borrower so the project is implemented accurately and smoothly. The Project Implementation Department (PID) performs their duty according to loan sanctioning letter. The loan-sanctioning letter is made on the basis of project appraisal report. According to terms and conditions mentioned in the letter, PID tries to implement project successfully. Providing consultancy services and other necessary assistance implementation process is going on. They inspect and monitor project ground physically whether the project is implementing according to given terms and conditions or not. If not, PID reports it to the concern authority to take necessary action. Project implementation work is going on up to the commencement of commercial production.

The following activities:-

³ Undertaking necessary initiative after granting loan in favor of the project

³ Taking necessary action to make the factory lay-out

³ Making necessary adjustment in case of change of the project place, change of board of directors and change/extension product mix etc.

³ Making necessary attempt to give the loan a stage by stage after the loan granting

³ To ensure that necessary capital has been supplied by the entrepreneur and to ensure its proper utilization

³ To give necessary assistance in the case of Bridge loan from any financial institution

³ Taking necessary initiative to construct the lay-out of the project according to construction cycle

³ Monitoring the machinery of the project, inspection and taking any kind of advice regarding to any machine related problem from machinery department

³ Verification of new material process of project ensuring the cash capital

³ according to the loan terms and condition and providing necessary assistance this matter

³ Inspection and monitoring experimental production and extension of loan period

³ Making the Final Construction Report (FCR) and transferring it to Central

³ Recovery Department (CRD) and concerned department! authorities and at least two installment of loan repayment conformation after project completion.

³ Converting the foreign currency into local currency and vice versa if it is necessary.

³ Determination of the construction  period of the project preparing loan repayment schedule and taking necessary action regarding this.

³ Monitoring and inspecting the project to see whether the project is implementing according to time schedule and taking necessary initiatives to solve any kind of problem arising out there from and providing necessary advice to the entrepreneur.

³ Receiving insurance letter against the predetermined risk of the implementation project assets and ensuring its deposit to bank

³ Inspection of the utility of the principles regarding the project implementation and presiding up to date principles.

³ Revaluation and connecting sanction letter on the basis of the different up to date information.

³ Up dating the sanction letter according to the necessary of the foreign lender.

³ Rescheduling the construction period, taking authorization from the concern authority and taking necessary action relation to this.

³ Re-auditing of cost at project completion stage, re-examining of excess loan application and processing of loan application and sanctioning, disbursement and conformation of uses.

³ Time to time verification of latest rules and regulation about project completion and appropriate rule preparation.

³ Taking legal action, if loan receiver are unable to repay loan’s two installments after reminding him/them.

³ Propose for project BMRE processing and implementation.

³ Project agreement/statement updating after disbursement of loan according to foreign loan giving authority’s requisition.

³ In special circumstance, project construction re-scheduling after smooth examination, getting approval of proper authority and taking necessary steps for the same.

³ Completion of duties given by supreme authority or departmental chief.

Documentation and Machinery Procurement Department

After sanctioning loans by Loan Operation Department, it issues a letter to

Documentation Department, parties and after concerned departments. The

Documentation Department issues a letter to the parties to produce necessary documents.

Those documents are: –

³ Memorandum of Association

³ Articles of Association

³ The land upon which the project will be established, document of this land must be produced

³ Receipt of rent

³ Documentation fee

³ Mouja map

³ The document that reveal that the land were not sold within preceding two years

Then a form is filled up. These documents are sent to lawyer. It every thing is proper it is transferred to project implementation department.

In the documentation process the borrowers are required to submit a copy of

Memorandum of Association and Articles of Association. It is returned after the confirmation that it has been submitted according to the rules the borrower company must submit it after the authorization by direction of registration of Joint Stock Company and firm.

There are three types of security, which must be giving to the bank

³ Project land

³ Collateral security

³ Share certificate.

The following activities are performed during the time of documentation process: –

³ The borrower company must submit necessary documents

³ Verification of documents by Documentation And Machinery Department and Law Department

³ Preparation of all documents of the borrower company director

³ The machinery wing of Machinery and Documentation Department performs the following functions-

³ Machinery schedule preparation! selection and approving for tender.

³ Necessary advice given to investors! entrepreneurs about tender invitation to collect project machinery.

³ Offered machinery and related documents evaluation and necessary information collection about suppliers.

³ Comparative study of machinery, price justification, selection and approval receiving of authority.

³ Preparation of list of pre-shipping investigator through notice and receive approval.

³ Arranging investigation procedures of importable machinery.

³ Preparation of rules and regulation related to machinery procurement, and coordination of zonal and branch office’s activities and completion of other officers for the same.

³ Information collection about different price of machinery of different capacity in industrial production.

³ Recommendation about various project regulated by loan separating department and zonal office.

The documentation wing of Machinery and Documentation Department performs the following functions-

³ Documentation and contract completion with loan receiver after loan sanction.

³ Document given by company to bank or document of land evaluation and investigation of document is land sub-registration office.

³ Site conformation about land! project according to document and marking the law by government surveyor if necessary.

³ Examination of project memorandum and statements of affairs.

³ Change filling at company register office of mortgage land.

³ Renewal of necessary document in time.

³ Conformation of bank guarantee from debtors and keeping it properly and renewal before expired of due time.

³ Accidental investigation of document kept in registrar’s storage room.

³ Actual document collection from registrar and act as custodian for that document.

³ Other activities given by department head.

Central Recovery Department

Project Implementation Department makes a repayment schedule and gives it to the borrower. Normally the interval is six months. This department inspects the project after every 6 months to see whether there is any linkage. If the borrower fails to repay the loan as the application of the borrower it is scheduled. Sometimes a portion of interest is exempted. If the borrower fails to repay the loan then it is transferred to law department to take legal action. On the application of the borrower sometime the project is transferred to Project Rehabilitation Department to restore the project.

Principles of classification of loan and provisioning: –

For the purpose of classification all types of loans and advances are divided into four broad heads a) Revolving loan, b) Short term loan, c) Long and medium Term loan, d)Short-term agricultural and micro-credit.

a)        Revolving loan: – The loan, which can be granted and recovered      without any repayment schedule but have an expiry date and maximum            limit are called Revolving loan.

b)        Short-term loan: – The loan, which must be repaid as the bank calls it,       is called short-term loan.

c)         Long and medium Term loan: -The loans which are repayable within         a specific time period under a specific payment schedule will be treated         as Long and medium term  loan.

d)        Short-term Agricultural Credit: will include the short-term credits as

listed under the Annual Credit Program issued by the Agricultural

Credit Department of Bangladesh Bank. Credits in the agricultural sector repayable within less than 12 months will also be included herein. Short term Micro-Credits will include any micro-credits for less than Tk. 10, 000/= and repayable within less than 12 months

Objective criteria: – If any continuous loan is not repaid within the expiry date that it is called irregular loan. The classification of loan are as follows:-

3 months< continuous loan <6 months= Substandard

6 months< continuous loan <12 months=Doubtful

12 months< continuous loan = Bad and loss

If any installment of any term loan is not repaid within specific date it is treated as installment default.


Maintenance Of Provision:

1. On the basis of the quality of the loan the following precession are maintained:

Unclassified 1%


A. Substandard 20%

B. Doubtful 50%

C. Bad debt 100%

2. On the term agricultural and micro-credit the following provision to be kept-

A. On all debt other than bad debt 5%

B. On bad debt 100%

Loan Accounting Department

Loan Accounting Department is the department, which centrally maintains all loan accounts of the bank both local and foreign currencies loans. Some sort of exemption, rephasement, rescheduling are made by the bank that also the concerned of this department. Here considerable matter is that bank gives opportunity to the sponsor’s during the construction period called Interest During Construction Period (IDCP). This interest is payable with various installment that is designed by the bank authority. There is no further interest on this amount of interest. Accounts of all the projects on which loan is sanctioned, disbursed and scheduled to cover are maintained by this department. There are 4 sections, which performs the activities of the department.

I. Not due section-Not due is the installment not yet due for payment in schedule time fixed by the project department/Branch officer. The functions of this section are:

a.1       Quarterly /half yearly installment and interest charge and transferred it       to amount due section.

b.         The rate of interest is fixed by the prevailing interest at the time of

execution of loan document

c.         Foreign currency installment and interest will full as foreign currency         loan agreement as per contract of overseas donor agency.

II.        Amount due section/overdue section- Overdue is the amount of      installment and interest that is not paid! cleared in time.

The functions of this section are: –

³ Accurately list of balance preparation

³ Advice sending to borrower

³ Quarter/half year interest charge

Ill. Replacement section-When the overdue is rephrased or waived then the replacement section will do the necessary activities.

IV. General and policy section- General and policy section will do the following

a.         To prepare the monthly Trial Balance.

b.         Monthly recovery statement.

c.         Monthly disbursement schedule

d.         To make entry all the transaction as per daily statement received from the branch officer.

e.         All list of balances of not due send to the Head Office and Branch office

f.          To prepare distribution of work among the officers and staff as specific guide lines of the authorities.

The functions of this department are stated below-

³ Keep records of local and foreign loan affairs of Bank fmanced projects.

³ To classify and reclassify the loan accounts according to the loan operation, Loan recovery, project rehabilitation, all regional and branch officers, law department and proper authorities along with proper authority’s approval.

³ Provide information about project loan accounts to loan holder, related bank authority, departments, Zonal and branch office regularly.

³ To record statistical information about collection of loan installment and supply to various related department. The information is also presented to the Managing directors for their concern.

³ Maintaining accounts of matured and non-matured loan of the projects of the bank.

³ Preparation of loan statement schedule and supply that information to various department and branch office monthly and quarterly basis.

³ Make conformation about yearly loan statement and up dated loan statement to loan holder.

³ To classify loan according to the borrower conditions.

³ Keep all loan accounts and submit trial balance to central accounting department in monthly basis.

³ To ensure the supply of projects loan accounts to the borrower and the current position of the loan accounts.

³ To supply the loan accounts regularly to the borrower, related bank authorities department, regional and branch offices.

³ To supply information about payable installment, interest and other accounts to the related department, branch, regional offices and the borrower and timely recovering the due amount.

³ 0 Re-evaluation of existing loan accounting method and correction, refurnishing and to update that methods).

³ Computerization of bank loan accounting and loan management.

³ Other activities given by department chief.

Law Department

If Central Recovery Department fails to recover loan in the way, it must undertaken alternative action and file case in the court. It is the responsibility of the law department to take legal action and file the case of failure of recovering the loan in the normal way from the borrower. The causes which Shilpa Bank files cases are-

A. Recovery Case:

B. Financial Loan Case:

C. Certificate Case:

D. Bankruptcy Case:

E. Case if check is not cashed (petition case):

F. Case if machinery of project is transferred

from the project without permission:

G. Case if false properties are mortgaged:section 33

section 5(a)

section 35

section 9(1)

Section 138



A.        Recovery Case:

Case is filed with the court of District Judge or sub judge the concerned company and its director such case filed according to Bangladesh Shilpa bank Ordinance 1972 section 33.

B.        financial Loan case:

Such case is filed against the concerned company and its directors to recover the loan, which is due.

C.        Certificate Case:

This case is filed against the loan default company and its directors according to public demand Recovery Act 1913 with the court of respective General Certificate officer.

D.        Bankruptcy Case:

Bankruptcy case can be filed if at least Tk. 5 lacks are due. this case is filed according to insolvency Act 1997.

E.         Case if check is not cashed

This case is filed if any check is dishonored. It is done according to the negotiable Instrument Act, 1994




Human resource management refers to the practices and policies you need to carry out the people or personnel aspects of your management job. These include:

. Conducting job analyses (determining the nature of each employee’s job)

. Planning labor needs and recruitment job candidates

³ Selecting job candidates

³ Orienting and training new employees

³ Managing Wages and Salaries (how to compensate employees)

³ Providing incentives and benefits

³ Appraising performance

³ Communicating (interviewing, counseling, disciplining)

³ Training and developing

³ Building employee commitment


Why are these concepts and techniques important to all managers? Perhaps it’s easier to answer this by listing some of the personnel mistakes you don’t want to make while managing. For example, you don’t want:

  • To hire the wrong person for the job
  • To experience high turnover
  • To find your people not doing their nest
  • To waste time with useless interviews 52
  • To have your company taken to court because of your discriminatory actions
  • To have your company cited under federal occupational safety laws for unsafe      practices.
  • To have some of your employees think their salaries are unfair and inequitable relative to others in the organization
  • To allow a lack of training to undermine your department’s effectiveness.
  • To commit any unfair labor practices.

For many years it has been said that capital is the bottleneck for a developing industry. I don’t think this any larger holds true. I think it’s the workforce and the company’s inability to recruit and maintain a good work force that does constitute the bottleneck for production. I don’t know of any major project backed by good ideas, vigor and enthusiasm that has been stopped by a shortage of cash. I do know of industries whose growth has been partly stopped or hampered because they can’t maintain an efficient and enthusiastic labor force; and I think this will hold true even more in the future.

At time in our history has that statement been true than it is today. As we’ll

See in a moment, intensified global competition, deregulation, and technical

Advances have triggered an avalanche of change, one that many firms have not survived. Human resource practices and policies can playa crucial role in fostering such employee commitment and in enabling the firm to better respond to change.

The Changing Environment Of HRM

Changes are occurring today in the environment of human resource management changes that are requiring it to play an ever more crucial role in organization. These trends include work force diversity, technological trends, globalization, as changes in the nature of jobs and work.


Not surprisingly, the role of HR management is also changing, to adapt to these trends. In the early 1900spersonnel people first took over hiring and firing from supervisors, the payroll department, and administered benefit plans. It was job consisting largely of ensuring that procedures were followed. As technology in such areas as testing and interviewing began to emerge, the personnel department began to play an expanded role in employee selection, training, and promotion.

HR and Boosting Productivity

Productivity improvement is crucial in today’s globally competitive environment, and HR plays a pivotal role in lowering labor costs.

HR and Responsiveness

Making the enterprise more responsive to product innovations and technological change is the basic aim of many of the management changes listed previously. Thus, downsizing, flattening he pyramid, empowering employees, and organizing around teams are aimed at facilitating communications and making it easier for decisions to be made and for the company to respond quickly to its customers’ needs and its competitors’ challenges.

HR and Service

Employee behavior is particularly important in service firms like banks and retail establishments. Therefore, HR plays a crucial role in service companies. It has been noted, for instance, that there are “quite a few [employees] who lack the temperament, maturity, social skills, and tolerance for frequent contact” that customer service jobs require, and that the first step in avoiding this problem is screening and selection.

HR and Employee Commitment

Intense global competition and the need for more responsiveness put a premium on employee commitment.

HR and Corporate Strategy

But perhaps the most striking change in HR’s  role is its growing importance in developing and implementing strategy. Traditionally strategy – the company’s plan for how it will balance its internal strengths and weaknesses with external opportunities and threats in order to maintain a competitive advantage – was a job primarily for the company’s operating (line) managers.

Today things are different. Strategies increasingly depend on strengthening organization responsiveness and on building committed work teams, and quality oriented industrial environment, it’s often the firm’s employees themselves – its human resources – who provide the competitive key. It is thus now increasingly common to involve HR in the earliest stages of developing and implementing the firm’s strategic plan, rather than letting HR just react to it.

HRM – Global and Bangladesh Context

Importance of Human Resources Management has always been emphasized     and stressed by the economics of all times since the very development of Economics as a Systematized body of human knowledge. Adam smith, in his famous book ‘The Wealth of Nation’s,’ has specially mentioned about it and included, “acquired and useful abilities of all the inhabitants or members of a society in his “fixed capital” Alfred Marshall known to be the father of Modern Economics emphasized the importance of Economics emphasized the importance of education as “a national investment” and according to him”   the most valuable of all capital is that invested in human beings”

Paul Streeten (1981)recognized that there is a growing concern about the unevenness of progress and the evident deterioration in the human conditions in many parts of the world. In fact the fancy development models, such as Trickle Down Theory, Redistribution and Growth, Basic Needs Theory etc. could not produce the desired goals. In many cases, the fancy models produced ugly facts of starvation, social disintegration and deprivation. Therefore, the development experts in recent years discovered that people are the means and end of all development and emphasis has been to develop the individual in totality.

From the dawn of civilization, human resources had been considered an important factor for development. The administrative authorities as well as the economists are therefore, quite cautious of the proper utilization of the human resources. In order to make the most effective use of this factor, the developed nations have found out scientific ways and means. One of the objectives of those methods is to select right man in the right place. In recent years, devices to select right man for right position through ‘Professional Guidance and Counseling Programs’ and by various examinations and tests have also been innovated as a result of which the scope of proper and maximum utilization of human resources has become easy and wide.

Although in the fifties and sixties, emphasis was given on an increased production, meeting basic human needs gained priority in the seventies. The development goals in the eighties included, among other things, alleviation of poverty and reduction of social inequality. In the 1990s some new concerns have gained prominence in the development thinking. Currently development is viewed to be a pi process that seeks to increase the income of the poor though sustainable and productive activities and emphasizes on more qualitative aspects which were previously overlooked: such as self reliance, empowerment, participation, and human resources development While the earlier conceptualization ion of development is regarded as goods-oriented view of development9, what is currently being proposed can rightly be termed as “people-centered development. Islam emphasizes on the development of the moral values of mankind. The Maudju (subject matter) of the Holy Quran is: “man”. The principal objective of sending Prophets by Almighty Allah id to produce ‘perfect man’, The Revelation has come to teach purity and wisdom. This divine project put forward by the Almighty through his prophets is labeled as “Tajkiah”(Sanctification), which implies that “man” is the main engine of development, if he is instructed and trained. The principal objective of my study is to examine the perspective of Human Resources Management in BSB and to explain its implications for the development of Bangladesh.


The department of human resource management was not same name as now. Modernizing the structure of the administration of the bank and Development the skill of the human resources and reducing operating cost of the organization. The directors’ 244th meeting was conducted on 23rd April 1996. In this meeting, rename of the Administration department as “Administration and Human Resource Department” and Department of labor as ‘department of Human resources Management’. I work in Department of Human Resources Management.


There are five sections in this department

1. General administrative & activities policy sectionFixing principle relating to human                                                – Fixing principles relating to organization.

-Fixing principle relating to delegation of


-Activities relating to trade union,

-Send statements relating to delegation of

Power.2. Management section-Provide employment policy,

-Provide transfer policy,

-Provide promotion policy’ 

  -Fixing pay scale.

Fixing annual increment policy.3. Disciplinary Section-Mitigates the complaint against personnel4. Welfare section–Provides Scholarship policy,

– Assist help less,

– Provided retirement benefit5. Leave & Medical section- Provided medical facility & allowances.

– provide vacation opportunities,

– Provide conveyance facility &   allowances;

– Provide cloths benefits.


³ To control the administration of human resources of the bank.

³ To assess and collect compatible personnel who will be perfect for the bank.

³ To take program and implement for developing human resources.

³ To make appointment, promotion and appraising skill of officer and stuff.

³ To make service rules, correction, expansion, administration rules, sub rules, orders, notice etc for controlling and stuff.

³ To give scholarship to the brilliant student of the university for appointing and finding skilled officer.

³ To give general scholarship to the brilliant and daughter of stuff.

³ To communicate with trade union scrutinizing their demands, open discuss, developing the relationship with administration proper implementation of labor law.

³ To give loan for house building, Motorcycle, and ensure their proper utilization.

³ To assess and grant retirement facilities at the time of retirement.

³ To give medical facilities to the stuff.

³ To maintain relationship with retired or dead stuffs and their families to know their condition.

³ To maintain and grant leaves without regular leave.

³ To coordinate and evaluate the branch and regional stuff activities.

³ To step and implement for opening new branch office.

³ To maintain relationship with government and other institution

³ To prepare and implement policy about human resources and related activities.

³ To control the activities of the staff of the banks and take proper. Step to implement computer technology.

³ To perform the activities assigned by the departmental head.


Total Number of Employees On The Basis Of Class/ Category


No. of Employees

Class – 1 officer


Class – 2 officers


Class – 3 staffs


Class – 4 Staffs


Total employees


Categories Of Employees

There are 4 main categories of Employees. They are 1st class, 2nd class, 3rd

Class and 4th class. Again, 1st and 2nd class officer categories are subdivided

Into 5 classes.3rd and 4th class staffs also subdivided into 10classes.

                                    SIZE OF THE HRD



No. of Employees



HRD personnel by educational qualification

Level of Academic qualificationOfficerStaffs
Post Graduate10

HR Policies

HRD of Bangladesh Shilpa Bank has the written Human Resource Policies in the following.

³ Recruitment

³ Selection

³ Training &Development

³ Promotion

³ Transfer

³ Performance Appraisal

³ Compensation &Reward

³ Health &Safety

³ Leave &Vacation

Job Analysis

An organization consists of positions that have to be staffed. Job analysis is the procedure through which you determine the duties of these positions and the characteristics of the people who should be hired for them. The analysis produces information on job requirements, which is then used for developing job descriptions (what the job entails and job specifications (what kind of people to hire for the job) analysis. A supervisor or HR specialist or HR specialist normally aims to collect one or more of the following types of information via the hob.

Work activities

Information is usually collected on the actual work activities performed, such as cleaning, selling, teaching, or painting. Such a list may also indicate how, why, and when the worker performs each activity.

Human behaviors

Information on human behaviors like sensing, communicating, decision making, and writing may also be collected. Included here would be information regarding human fob demands such as lifting weights, walking ling distances, and so on.

Machines, tools, equipment, and work aids used.

Included here would be information regarding products made, materials processed, knowledge dealt with or applied (such as finance or law), and services rendered (such as counseling or repairing).

Performance standards

Information is also collected regarding performance standards (in terms of quantity, quality, or speed for each job duty, for instance) by which an employee in this job will be evaluated.

Job context

Included here is information about such matters as physical working conditions, work schedule, and the organizational and social context – for instance, in terms of the number of people with whom the employee would normally have to interact. Also included here might be information regarding incentives for doing the job. As summarized in Figure 3.1, the information produced by the hob analysis is the basis for several interrelated HR management activities.

Recruiting and selection Decisions Performance Appraisal Job Evaluation Wage and Salary Decisions Training Requirements


Uses of job analysis information

Forecast Of HR Demand

BSB has been approved to appoint maximum 1372 employees. The necessity of human resources identified by the departmental Head and Approved by the Top management. But the recruitment fully depends on the Govt. decision.

The Recruitment and Selection Process

The recruiting and selecting process can best be envisioned as a series of hurdles, illustrated in Figure4.1. Specifically, recruiting and selecting require:

³ Doing employment planning and forecasting to determine the duties of the positions to be filled.

³ Building a pool of candidates for these jobs by recruiting internal or external candidates.

³ Having the applicants fill out application forms and perhaps undergo an initial screening interview.

³ Utilizing various selection techniques such as tests, background investigations, and physical exams to identify viable job candidates.

³ Sending to the supervisor responsible for the job one or more viable job candidates.

³ Having the candidate(s) go through one or more selection interviews with the supervisor and other relevant parties’ for the purpose of finally determining to which candidate(s) an offer should be made.

Recruitment OF BSB

Principles of Recruitment

The HRD follows the following principles.

³ Recommendation of Dept. &Mgt.

³ Discipline wise

³ Not necessary skilled, they may be fresher.

Sources of Recruitment

As the part of modern business world the BSB uses the following sources of recruitment.

³ Advertisement in the Media

³ Advertisement in the Web

³ Advertisement in the Notice Board.

They prefer printed media as the recruitment source to circulate the news ofemployment.

Recruitment Tests And Interviews

HRM are large number. They conduct the structured and Panel interview to select the eligible workforce. After this, specialist to ensure the physical ability conducts physical tests. The Board/MD BSB appoints consultants for selecting Employees. Appointment procedure of BSB included in the Appendix.

Case Study of Toyota


                         Summary of Toyota Hiring Process

Based on Toyota Motor Manufacturing, USA Inc. Documents

Phase I                                          Orientation/ Application

Fill out an application and view a video of the

Toyota work environment and selection system

Process (1 hour)

Objective: To explain the job and collect

Information about work experiences and skills

Conducted :  Kentucky Department of Employment


Phase II                       Technical skills

Assessment                    Pencil/ Paper tests

General knowledge test (2 hours)

Tool & die or general maintenance test (6 hours)

Objective: To assess technical knowledge and


Conducted:    Kentucky

Department of Employment


Phase III                        Interpersonal Skill Assessment

Group and individual problem-solving activities (4 hours)

Production assembly simulation (5 hours)

Objective: To assess interpersonal and

Decision making skill.

Conducted: Toyota Motor Manufacturing

Phase IV                   Toyota Assessment

Group interview and evaluation (1 hour)

Objective: To discuss achievements and     accomplishment

Conducted: Toyota Motor Manufacturing

Phase V                      Health Assessment

Physical exam and drug/ alcohol tests (2)

Objective: To determine physical fitness

Conducted: Scott County General Hospital and

University of Kentucky Medical Center

Phase VI                   On-the-job Observation

Observation and coaching on the job after being hired (6    months)

Objective: To assess job performance and develop


Conducted: Toyota Motor Manufacturing

Management Development

Any attempt to improve current or future management performance by imparting knowledge, changing attitudes, or increasing skills.

Managerial On-The Job Training

Job rotation

A management training technique that involves moving a trainee from department to department to broaden his or her experience and identify strong weak points.

Coaching/Understudy Approach

In the coaching/ understudy approach, the trainee works directly with the person he or she is to replace; the latter is in turn responsible for the trainee’s for the trainee’s coaching. Normally, the understudy relieves the executive of certain responsibilities, thereby giving the trainee a chance to learn the job.

Junior board

A method of providing middle-management trainees with experience in analyzing company problems by inviting them to sit on a junior board of directors and make recommendations on overall company policies.

Action Learning

A training technique by which management trainees are allowed to work full time analyzing and solving problems in other departments.

Managerial Off-THFE Job Training

Case study method

A development method in which the manager is presented with a written description of an organizational problem to diagnose and solve.

Management game

A development technique in which teams of managers compete with one another by making computerized decisions regarding realistic but simulated companies.

University-Related Programs

Colleges and universities provide three types of management development activities.

Role Playing

A training technique in which trainees act out the parts of people in a realistic

management situation.

Behavior Modeling

A training technique in which trainees are first which trainees are first shown good management techniques in a film, are then asked to play roles in a simulated situation, and are then given feedback and praised by their supervisor.

In-house development centers

A company-based method for exposing prospective managers to realistic exercises to develop improved management skills.

Organizational development (OD)

A method aimed at changing the attitudes, values, and beliefs of employees so that employees can improve the organization.

Survey feedback

A method that involves surveying employees’ attitudes and providing feedback to department managers so that problems can be solved by the managers and   employees.

Sensitivity training

A method for increasing employees’ insights into their own behavior by can did discussions in groups led by special trainers.


Improving the effectiveness of teams such as corporate officers and division directors through use of consultants, interviews, and team-building meetings.

The Five-Step Training and Development Process

1. Needs analysis

³ Identify specific job performance skills needed to improve  performance and productivity.

³ Analyze the audience to ensure that the program will be suited to their specific levels of education, experience, and skills, as well as their attitudes and personal motivations

³ Use research to develop specific measurable knowledge and performance objectives.

2. Instructional Design

³ Gather instructional objective, methods, media description of and sequence of      content, examples, exercises, and activities. Organize them into a curriculum that supports adult learning theory and provides a blueprint for program development.

³ Make sure all materials, such as video scripts, leaders’ guides, and participants’ workbooks, complement each other, are written clearly, and blend into unified training geared directly to the stated learning objectives.

³ Carefully and professionally handle all program elements – whether re produced on paper, film, or tape – to guarantee quality and effectiveness.

3. Validation

³ Introduce and validate the training before a representative audience. Base final revisions on pilot results to ensure program effectiveness.

4. Implementation

³ When applicable, boost success with a train-the trainer workshop that focuses on presentation knowledge and skills in addition to training content.


5. Evaluation and follow-up

Assess program success according to:

³ Reaction- Document the learners’ immediate reactions to the training.

³ Learning -Use feedback device or pre-end posttests to measures what learners have actually learned?

³ Behavior – Note supervisors’ reactions to learners’ performance following completion of the training. This is one way to measure the degree to which learners apply new skills and knowledge to their jobs.

³ Results- Determine the level of improvement in job performance and assess needed maintenance.

Developing Employees BE BSB

Internal Training

BSB has a training department to build the skilled manpower. One year Probation period training for confirmation of the job. They use the Classroom. Lecture and Conference techniques to develop the knowledge of employees. They provide training on the following areas –

³ Orientation

³ Computer Training

³ Appraisal

³ Auditing

³ Accounting

The training department evaluates the effectiveness of the training program through the performance in tests. The employees sometimes are sent to the outside for training. They are sent for the outside for training.

They are sent to-





³ Computer Center

Foreign Training

No financial benefits are provided for foreign training except consideration at the time of promotion and study leave. Foreign training for employees of BSB managed by the Finance Ministry but Ministry has no training program or institute for its own. Scholarships for short-term courses are provided by the following organization.

  • Ø World Bank
  • Ø DFIMI (Association of National Development Finance Institution in Member Countries of the Islamic Development Bank).
  • Ø IDI (International Development Ireland Ltd)
  • Ø FMO (Netherlands’s Development Finance Company) etc.
  • Ø ADB (Asian Development Bank)

Banking Diploma

BSB encourages the employees to complete the Banking Diploma given by the IBB (Institute of Bankers of Bangladesh). The employee gets the following benefits for his achievements of Banking Diploma.

  • Ø Remuneration (cash)
  • Ø Promotion Benefits
  • Ø Study Leave
  • Ø Increment

Higher Study by self-Finance

No pecuniary encouragement relating to higher study available in BSB. But if some one achieves higher degree by self-finance he can get Privilege at the time of promotion and study leave can be given

Performance Appraisal

To appraise the following methods can be used

  • Ø Graphic rating scale

A scale that lists a number of traits and a range of performance for each. The employee id then rated by identifying the score that best describes his or her level of performance for each trait.

  • Ø Alternation ranking method

Ranking employees from best to worst on a particular trait.

  • Ø Paired comparison method

Ranking employees by making a chart of all possible pairs of the employees

for each trait and indicating which the better employee of the pair is.

  • Management by objectives (MBO)

Involves setting specific measurable goals with each employee and then

periodically reviewing the progress made.

Performance Evaluation by BSB

Evaluation on BSB

The performance is evaluated by the Departmental Head or immediate boss in quarterly for all employees. They evaluate annually for permanent employees. They also depend on training Report.

Purpose of the Performance Appraisal

Appraisal of Performance serves following objectives –

  • Ø Promotion
  • Ø Transfer
  • Ø Determination of Time Scale
  • Ø To find out any training need of employees.

Motivation Of Employees

The following methods and techniques are used to motivate the employees.

  • Ø Promotion
  • Ø Financial Incentives
  • Ø Job Rotation
  • Ø Work Sharing

Benefits and Services for The Employees

  • Ø House Rent A
  • Ø Leave with Pay (Staff)
  • Ø Children’s education facility
  • Ø Home furnishing Allowance (MD&GM)
  • Ø House Loan
  • Ø Sick Leave
  • Ø Maternity Leave
  • Ø Ordinary Leave

Several Types Of Leave In BSB

  • Ø Ordinary Leave (with full payment)
  • Ø Leave on half pay
  • Ø Advance Leave
  • Ø Leave without Pay
  • Ø Special disability Leave
  • Ø Study Leave
  • Ø Quarantine Leave
  • Ø Maternity Leave
  • Ø Casual Leave

Pay Scales

BSB has no pay scales for its own employees. It follows the pay structured of Bangladesh Govt.

Over Time

The mgt level or officers are not entitled to overtime. Only staffs’ overtime is determined According to per hour basic. No Allowances are provided for overtime.

Compensation Principles

There is a Welfare Trust in BSB. The compensation is determined according to the nature of case. It does not exceed Tk.25,000.

Promotion Policies

It is done on the basis of –

  • Ø ACR
  • Ø Training Report
  • Ø Qualification
  • Ø Viva
  • Ø Seniority

Regulations regarding promotion are enclosed with the appendix.

Trade union and Association

There are 2 Trade Union in BSB for 3rd and 4th class employees. The Name of Trade Unions and Associations are –

BSB Karma chary Union (Reg # 1016)

BSB Employees Union (Reg # 2013)

BSB Officers’ Samity (Unregistered)

Trade Unions bargains with Mgt. for greater job security and working conditions. They don’t create pressure on workers to join Unions. There is a officer’s Association for the welfare of officers.

Labor Dispute and Solutions

If the strike is legal and it is supported by federation of Labor Union the workers of BSB can join with strikes. If any dispute arises, it will be resolved by discussion between mgt. and Union’s Leaders.


If anybody plays any role against the BSB, or Banking Rules or Govt. service rules, an inquiry committee will be formed. If the crime proves Un-doubtfully, the BOD will punish him or her. The punishment may be –

  • Ø Held up increment
  • Ø Held up Promotion
  • Ø Demotion (Removed from Service)


BSB maintains the rules and regulation of govt. for retirement benefits employees. They approve 1 year leave for preparation of Retirement (LPR).The pension will by calculated in the following way –

(a)  At the time of Retirement:

Basic Salary x 80%                 X 200



(b) Monthly:  Basic Salary x 80%


Up to the death of employee and after his death his wife will get during her whole life.


Basic Salary x 80%       X 300


BSB Culture

  • Ø There is a less or more good relationship among the work force.
  • Ø Senior and junior and officer and staff do not strictly maintain their status.
  • Ø The office work place is like as their home.
  • Ø They treat the visitors as friendly.
  • Ø Some Officer are very busy some have no business.
  • Ø All workers do their work traditionally.
  • Ø The workers work when pressure is created. No body works spontaneously,

In the context of a developing economy like Bangladesh, where the need for formation of capital is pressing, where developments in the field of industrial and bank management are dynamic, and where financial crises accompanying pangs of economic growth are frequent, the challenges posed by HR Mare of great importance: and, as a sequel, exploring the possibilities of the application of HRM becomes a very relevant field of inquiry and research.

Problem In HRM

  • Ø Absence of Motivation:

There is a few chance of promotion. The workers are in the same position lor a long time. There is no promotion for them. They work traditionally not take the job as a challenge

  • Ø Lack of team speed:

There is no team speed of the workforce. They work as usual. Sometime, the important file and work are in freeze if any officer does not give importance on it.

  • Ø Lake of work force:

In BSB the authorized 3rd and 4th class workers number is 699 but actual the activities are performed in delay. Some time the officers have to does the vacant ports work which ruin their important time.

  • Ø Lack of Morality:

Some workers are morally weak. Sometime they do not perform their duty properly. They do work which they not authorize in some cases.

  • Ø Lack of Moral teaching:

The human resources Management department recommends the training department only their regular work. But only regular work does not ensure the proper utilization of organizational researches. The moral learning is also necessary for ensuring their duties.

  • Ø No fresh worker:

About 10 years, there is no new appointment. As a result. The few and old workers are transferred to one department to another department. The know / ledge of the world in changeable. The old workers do their performance according to the old model. So there is no radical change of the work. If the new fresh workers are appointed, the face of the bank will be changed.

  • Ø Not follow service rules:

The Bank does not strictly follow service rules; many workers and officer come

in office not due time. Few actions are taken for them.

  • Ø Political trade union:

The trade union of the BSB is politically elected. As a result the skill workers sometime deprive their promotion and facilities. Sometime only political reason one worker in transferred from department to another department.

  • Ø No strong parallel business:

Some department workers are very busy. Some department workers are relaxed. They have no work. A key challenge facing organizations in the late 1990sisto continue to deliver sustained competitive advantage in the short term whilst at the same time preparing for longer-term success. Although the prime sources of competitive advantage in the past decades may have been access to financial resources or the use of technology, these are now viewed as necessary, but not sufficient. For many companies the sources of sustained competitive advantage lie not only in access to finance or capital, but within the organization, in people and processes capable of delivering the customer delight or rapid innovation which will place them ahead of competitors.


As a student of B.B.A, Department of Management Studies, Faculty of Business Studies, University of Dhaka; I have to complete internship program. With reference to that I was referred to Bangladesh Shilpa Bank (BSB), & worked there near about 3 months in 8 departments, my topic was the Human Resource Practice of BSB. The following findings are obtained from the study:

  • Ø The main aim of BSB is to stimulate industrialization throughout the country by applying the HRM supports and advices through out the various methods and tools.
  • Ø BSB collects human resources from the proper sources, such as advertising and transfer.
  • Ø BSB follows the effective steps of recruitment, formal advertising, evaluation application, testing, interview, final selection and placement.
  • Ø BSB follows the proper rules and regulations guided by govt. or as per organization’s own policy.
  • Ø BSB follows the proper I effective techniques of selection, such as viva, medical, and experience.
  • Ø BSB’s selection committee influenced by the reference group in selecting a person.
  • Ø Experience and interview are considered as the main importance in selecting a people.
  • Ø 2-6 months time takes to appoint a person after selection process that in the best time.
  • Ø Permanent promotion method is followed.
  • Ø Seniority promotion criteria method is followed.
  • Ø Violence of rules and regulation is seen not to promote a person.
  • Ø Both vertical and horizontal types of promotion are maintained.
  • Ø Replacement transfer, district, Upazilla, Zone and division types of promotion are maintained.
  • Ø Disciplinary Acton type of action management take when objective arises from employees.
  • Ø On the job training, job rotation, understanding method, lecture method, and courses methods are used for training.
  • Ø Cot problem is the main problem when implemented the HRM issues.
  • ARC method is used in performance evaluating.
  • Ø .As per policy, bonus, house rent, medical and launch are the additional offerings except salary.
  • Ø Violence of law, dissatisfaction of the job, poor salary package and less opportunity of promotion are the root causes of grievance in BSB.
  • Evaluation of solution, applying solution and feed back solution steps are followed to solve problems I grievance.
  • Ø Staff management is handled the grievance.
  • Ø There are some sick industries in the BSB where proper HRM practices are not maintained.
  • Ø Lack of business experience of the entrepreneurs about the HRM practices for their employees and their firm.
  • Ø Sometimes pressure group’s involvement in application the HRM.
  • Ø Lack of adequate, updated and accurate information from the HRM information department (MIS).
  • Ø Lack of co-ordination in exchange of transferring HRM information among various banks.
  • Ø High educated personnel are in the management.
  • Ø There some fringe benefits to the employees with cash benefit.
  • Ø Lacks of eagerness to devote themselves for bank because of lower benefits are given to employees.
  • Ø Social benefits are high from the banks to the people in various ways such as infrastructural facilities, security etc.




Recommendation means to give suggestion about the BSB. But as an MBA student, suggestions about HRM of BSB are very tuff. Operational activity of the bank being the prime Development Financing Institution continued its efforts in 2000-2001 to make an effective contribution towards expansion of industrialization process of the country. With keeping this view, BSB sanctioning the human resource management practices on the sponsors in the procedure of BSB; in addition to this, though it is high, in spite of this I give some suggestions about BSB are as follows

³ Sanctioning the human resource management practices on the sponsor’s carefully through proper making feasibility report on the basis Rules of The Government of the People’s Republic of Bangladesh, Ministry of Finance, and Finance Division, as the Bangladesh Gazette, Extra, December 26, 1984.

³ Sanctioning I maintaining the human resource management practices

on the basis of the rules of the Bangladesh Shilpa Bank Employees

Service Regulations, 1984, as the Bangladesh Gazette, Extra, and

December 26, 1984.

³ The main aim of BSB should be to stimulate industrialization through out the country by applying the HRM.

³ BSB should collect human resources from the proper sources.

³ BSB should follow the effective steps of recruitment.

³ BSB should follow the proper rules and regulations guided by govt. or as per organization’s own policy.

³ BSB should follow the proper I effective techniques of selection.

³ BSB selection committee should be influenced by the reference group in selecting a person.

³ Experience and interview should be considered as the main importance in selecting a people.

³ 2-6 months time should be taken to appoint a person after selection process that in the best time.

³ Permanent promotion method should be tightly followed. Violence of rules and regulation is should be seen not to promote a person.

³ Disciplinary Acton type of action management should be take when objective arises from employees.

³ On the job training, off of the job training, job rotation, understanding method, lecture method, courses methods and other methods should be used for training.

³ As per policy, bonus, house rent, medical, launch, and others V be the additional offerings except salary.

³ Staff management and top management should be handled the grievance.

³ Lock of business experience of the entrepreneurs about the HRM practices for their employees and their firm should be solved.

³ Sometimes pressure group’s involvement in application the HRM that should be controlled tightly.

³ Lack of adequate, updated and accurate information from the HRM information department (MIS) that should be solved.

³ Lack of co-ordination in exchange of transferring HRM information among various banks should be solved.

³ High educated personnel should be appointed in the management.

³ There should have some fringe benefits to the employees with cash benefit. Central Observation Committee (COC) should be established to analyses, evaluate and solute proper HRM issues.

³ Training supervisor should be smart who can able to give dynamic and timely training to the employees.

³ While selecting 5 C’s i.e (Character, capital, capacity, collateral and condition) must be considered.


1.         Bangladesh Shilpa Bank, 2003.Annual Report 2002-03.

2.         Bangladesh Shilpa Bank, August, 1984.Manual of the project appraisal.

3.         Chandra, P., Project Planning, Analysis Selection Implementation & Review.

4.         B.N. Ghosh, Scientific Methods and Social Research, Sterling

Publishers Ltd

5.         Fred N. Kerlinger, Foundation of Behavioral Research, Holt Rinehart Winston.

6.         MISPack stone Ltd, March 2002.Appraisal Report.

7.         Nabi, K.A, eds. Nov, 1992,Development Financing Institutions  of Bangladesh; policy, performance problems and prospects, proceeding of a national seminar Dec, 1992:151-190.

8.         William G.Zikman-Business  Research Methodology.

9.         T.S. Wilkinsonand P.I.Bhandarkar, Methodology and Techniques of Social Research.

10.       Bangladesh Shilpa Bank, 2002.Annual Report2001-02.

11.       Bangladesh Shilpa Bank, 2001.Annual Report2000-01.

12.       Bangladesh Shilpa Bank, 2000.Annual Report1999-00.

13.       Bangladesh Shilpa Bank, 1999.Annual Report1998-99.

14.       Bangladesh Shilpa Bank, 1998.Annual Report1997-98.


Summary of manpower

1          Managing Director                                       1

2.         General manager

3.         Deputy General Manager                            6

4.         Asst. General Manager

5.         Senior Manager                                            17

6.         Manager

7.         Senior officer/Sr. Librarian / medical       33

officer                                                            63

Total class- l

Toto I class- 2                                               122

Toto Iclass-3                                                 280

Total class-4

GRAND TOTAL                                           520


1. From which sources you collect your human resources?

A. Internal

  • Transfer
  •  Employee reference.
  •  Re-hiring

B. External

  • Public employment agencies.
  • Private employment agencies.
  •  Advertising.
  • Field trips.
  •  Educational institution.
  • Labor union.
  •  Minority groups.
  • Computer uses sources.

2. Which steps followed by your organization in recruitment?

  • Assessment of the job.
  • Attracting application
  •  Formal advertising
  • Informal advertising
  • Commercial sources
  • Evaluation application
  • Testing
  • Interview
  • Final selection
  • Placement.

3. Do you maintain rules and regulation guided by your Own or Govt.?

  • %of labor union.
  • %of minority.
  • As per organization’s own policy.

4. Which techniques of selection do you maintain?

  • Reference checking.
  •  Written.
  • Viva.
  • Psychological.
  •  Medical.
  •  Attitude test.
  •  Aptitude test.
  • Experience.

5. How much your organization influenced by reference group in selecting a person

  • Sometimes
  •  Frequently
  •  Always.

6. Which one is more important in selection a people?

  • Experience.
  • Interview.
  •  Special reference.

7. How much time it takes to appoint a person after selection.

  • On the job interview.
  •  2 – 6 months
  •  6 – 12 months
  • More than one year.

9. Which types of appointment your organization followed in promotion?

  • Permanent.
  • Temporary.
  • Probation.

10. Which types of criteria your organization followed in promotion?

  • Seniority.
  • Ability.
  • Seniority and ability.

11. When a skilled person does not get promotion?

  • Subjective criteria.
  • Undue income
  • Sex discrimination
  • Decentralized departments.
  • Non officer
  • Nepotism
  • Prohibited by top level management.

12. What types of promotion your organization gives?

  • Vertical.
  • Horizontal.
  • Both.

13. What types of transfer is followed by your organization?

  • Replacement transfer.
  • Versatility transfer.
  • Shift transfer.
  • Remedial transfer.
  • Stand transfer.
  • District.
  • Upazila.
  • Zone.
  • Division.

14. What types of action management take when objection arise from employees?

  • Motivate employees.
  •  Forced.
  • Disciplinary action.
  •  Consideration.
  •  Nothing to do.

16. Which methods are used for training

  • On the job.
  • Off the job.
  • Apprenticeship.
  • Job rotation.
  • Coaching.
  • Understudy method.
  • Planned progression.
  • TV and films.
  • Vestibule.
  • Lecture method.
  • Incident methods.
  • Role-playing.
  • Ranking.
  • Comparison method.
  • Special evaluation.
  • Others.

18. How do you evaluate one employee that you like mostly but ACR is not given?

  • No comment.
  • Correction of ACR.

21. What are the roots causes of grievance in your organization?

  • Violation of law.
  • Low morale.
  • Frustration.
  • Unfair behavior by management.
  • Dissatisfaction of the job.
  • For work environment.
  • Problem from outsider.
  • Odd place
  • Odd communication system.
  • Poor salary package.
  • Less opportunity of promotion.

22. Which steps would you followed to solve grievance?

  • Causes.
  • Gathering facts.
  • Tentative solution.
  • Evaluation of solution.
  • Applying solution.
  • Feed back solution.
  • Feed back observation.

23. How grievance is handled?

  • Top management.
  • Arbitration.
  • Supervision.
  • Staff management.