InternshipReport

On

Compensation Management Practices and Policies of Mutual Trust Bank

SubmittedToArifur
RahmanKhan
Lecturer
BRACBusinessSchool
BRACUniversity

SubmittedByM
ohammadAliID
# 11304096
DepartmentOf BBS

BRACUniversitySubmi

ssionDate:24-08-15
 InternshipReport
On
CompensationManagementPracticesandPoliciesof
MutualTrustBank
 LetterofTransmittal

07 June, 2015

Arifur Rahman

KhanLecturer

BRACBusinessSchoolBRAC

University

66 Mohakhali, Dhaka-1212

Subject:Submission of InternshipReportDear

Sir,

WithduerespectandhumblesubmissionIwouldliketostatethatitisanimmensejoyformetosubmitm
yinternshipreporton“CompensationManagementPracticesandPoliciesofMutualTrustBa
nk”.IamgladtoworkunderyouractiveandcooperativesupervisionandIthinkithasbeenagreatachie
vementformethatIcouldworkunderyouthroughout thelast threemonths
forwhichithasbeenpossibleto completethereportsuccessfully.

Iwill bereallygrateful toyouifyouarekindenough toreceive myinternship reportandgiveyour

valuable feedbackso thatIcan utilizeyourjudgment for furtherprospects.

SincerelyYours,

_______________
Mohammad Ali
ID# 11304096
BRACBusinessSchoolBRAC
University

i
 Acknowledgement

Firstofall,IwouldliketothanktheAlmightyAllahforthesuccessfulcompletionofthisreportandIwou
ldliketoexpressmygratefulnesstoAllahforgivingmethepatienceandstrengthtoworkinMutualtrust
bankfor thelastthreemonthsandcomplete
myreportwithinthespecifiedtime.IwouldliketothankmyinternshipsupervisorArifurRahmanKh
an,Lecturer,BRACBusinessSchoolforhisheartiestcooperationandsupervisionbecausewithout
his support and assistance it would not be possibleforme to completemytask.

IamalsogratefultoMd.AbdulKaderJilani,(JuniorOfficer)ShahedMolla(JuniorOfficer)Rash
naSharminAshaofHeadOfficeHR,MutualTrustBankLimited.Itwouldhavebeenverydifficulttop
reparethisreporttimelywithouttheirproperguidance.Lastly,IamhighlythankfultoBRACUniversit
yfororganizingtheinternshipprogramasitisanincredibleopportunityforthestudenttoexperiencear
eallifeworking situationthatisrelatedwith the academic learning.

ii
 DECLARATION

I am
declaringthisreportentitled“CompensationManagementPracticesandPoliciesofMutualTru
stBankLtd”submittedbymetoBRACUniversityforthedegreeofBachelorof Business
Administration is aunique work.

Ialsopronouncethatthereporthasnotbeensubmittedpreviouslyeitherpartlyorwhollytoanyotherun
iversityorInstitutionforanyDegree,Diploma,Associate-ship,Fellowshipandothersimilar title
orprizes.

………………………………

Mohammad

AliID# 11304096

BRACBusinessSchoolBRAC

University

3
 CERTIFICATE

Thisistoendorsethatthisreportentitled“CompensationManagementPracticesandPoliciesof
MutualTrustBankLtd”submittedtoBRACUniversityin
associationwiththeinstitution’sinternshipprogramisaauthenticrecordofworkdoneby“Mohamm
adAli”undermy supervisionatthe“MutualTrustBankLtd,HRDivision(HeadOffice),Dhaka”
from07 June2015 to 06 September 2015.

……………………
Supervisor
Arifur Rahman
KhanLecturer
BRACBusinessSchoolBRAC
University

4
 ExecutiveSummary

Thisreportispreparedonthebasisofmythree-
monthpracticalexperienceatMutualtrustbank.Mutualtrustbankisoneoftheleadinglocalbanksinou
rcountry.ThebankhasmanydivisionsanddepartmentsbutthefocusisgivenmoreontheHRD.Moreo
ver,fromtheallbank MTBisrenownedtogoodHR practices.Iam luckythatI got theopportunityto
workinthisdivision.ThisreportisbasedoncompensationsystemofMutualTrustBankhowtheirstron
gandeffectivecompensationpolicyincreaseefficiencyandmotivatetheemployees.Thepurposeofm
akingthisreportistoidentifythecompensationmanagementpracticesandpoliciesofmutualtrustban
k.Thereportalsoconsistrecommendationsandconclusionaccordingtomypointofview,whichIthink
wouldmoredevelopthecompensationpoliciesof thebank if implemented.

5
 Acronym

Mutual Trust Bank =MTB

6
 TableofContent
FormalPart

TopicsName PagesNo.
Letter ofTransmittal I
Acknowledgement II
Declaration III
Certificate IV
Executive Summary V
Acronym VI

Chapter One-Introduction
Background ofthe study 2
Scope of thestudy 2
Objective of thestudy 2
Methodology 3
Limitation 4

ChapterTwo- Overviewof Organization

Backgroundand HistoryofMTB 6
Objective of MTB 7
Mission 7
Vision 7
OrganizationalHierarchy 8
Myjob responsibilityinMTB 9

ChapterThree- LiteratureReview
Literaturereview 11

ChapterFour- CompensationManagementPractices& Policies of MTB

CompensationManagementPractices 13-17
CompensationManagementPolicies 18-19
ChapterFive-DataAnalysis,Findings&Recommendation
Data Analysis 21-25
Findings&Recommendation 26

Conclusion 27
Bibliography 28
Appendix 29
CHAPTER01

Introduction

1
BackgroundoftheStudy:
ForthestudentsofBBAprogramofBRACUniversity,itisamandatoryrequirementtoundertaketheIn
ternshipPrograminanorganizationtocompletethegraduationanditiscountedasacreditcourse.There
fore,thisstudyisapartialrequirementoftheInternshipprogramofBBAcurriculumsothatthestudents
gettunedandhaveatruefeeloftherealjobworld.Thisstudyistitled“CompensationManagementP
racticesandPoliciesofMutualTrustBankLimited”.Thisreportistheproductofthreemonthslong
practicalworkingknowledgeinMTB.Thisreportincludesinformationofthecompensationsystemof
MTB,theoverviewoftheorganizationandalsofacilitiestheyoffertosatisfytheiremployees.

Scopeofthestudy:
ThestudywillfocusonthecompensationmanagementofMTB;howtheyperformandmaintaincomp
ensationmanagement.AlsoItwillbediscussedthecurrentcompensationpracticesandpoliciesofMT
B.IamluckythatIhadagreatopportunitytohaveanindepthknowledge
ofcompensationmanagementpracticedbythe Mutual TrustBankLtd.

ObjectiveoftheStudy:
Withoutobjectivenothingcanbecountedasasuccessfulone.Myinternshipprogramwasalsodirected
toservesomeparticularobjectives.Themainobjectiveofthestudyistogetanoverall idea about the
compensationmanagementof Mutual Trust BankLtd.

Specificobjectivesof theStudy:

 ToidentifytheCompensationManagementPracticesandpoliciesofMutualTrustBankLimit
ed.

2
Methodology:
AsIwasinvolvedwiththeorganizationforthelastthreemonthsandworkthere,Iwasabletocollectthed
atafromtheprimarysources.Therefore,Dataarecollectedfrombothprimaryandsecondarysources.
EverynowandthenItriedtotalktodifferentofficialstofindoutrelevantfactseveninunofficialmanner
slikeinteabreaksandlunchbreaks.AndtalkingaboutsecondarysourceIhaveusedtothefullestextent
possible.The sourcesofdatadetailsaregivenbelow:

PrimarySources:

 Communication with theorganizational supervisor.

 Discussion with officials and concernedexperts of different designation.

SecondarySources:

 Websites of the Bank.

 Significant datafrom theInternet
 Textbook

3
Limitation:
Firstofall,therearesomeinformation’sthatarethoughttobeconfidentialtobedisclosedtoothers,
some people werefound to be hesitant to sharethoseandshowed negative
impression.IonlyworkedattheHRdepartmentanditwasquitedifficulttounderstandaboutthecompe
nsationpolicies and the extent to which employeeswere satisfied inotherdivision.

Secondly,Timeconstraintwasanother difficultyfor
thecompletionofthereportbecauseduetothelimitationofthetimeitwasnotpossibletostudyalargesa
mplesizeforwhichIhadtodealwithasmallsamplesizeincaseofresearch.Ihadonlythreemonthstoco
mpletemyinternshipprogramthere.

4
 Chapter 02

AnOverview of MutualTrustBank

5
MutualtrustbanklimitedisoneoftheleadinglocalprivatebanksinBangladesh.Itoffersafullrangeofp
ersonnel,corporate,internationaltrade,foreignexchange,andleasefinanceandcapitalmarketservice
s.Mutualtrustbankisthefirstchoiceinthebankingsectorsinceitprovidesaserviceofexcellenceacust
omizedsolutionforbusinesspurposes,aglobalandtechnicalbankofhighinvestmentwhichhasactual
lycreatedanewdimensionintheareaofbanking.Due
toitsexperiencedprofessionalanddedicatedforceofmanagementalong
withavastknowledgeofbanking,ithasgonetotheapexofsuccess.Becauseofitshighexpertise,theban
kisonlyabletosolveandresolvealltheproblemsregardingthebankingoftheircustomer.

BackgroundandHistoryofMTBL
Thecompanyhasstartedits journeyon September29, 1999 with a authorizedcapital of
taka1,000,000,000. Under the banking companyact 1991it got its license on October5, 1991
andthe bankingoperation ofMTBwasstarted on October 24 1999. The companystarted
itsoperation with thefollowingcommercial banking activities.

 All sort of commercial banking activities

 Investment in merchantand companyactivities
 Different sort of financial services includingfinancialintermediariesservices.

6
ObjectivesofMTB:
The mainobjectiveofMTB istoseeitselfinapositionwhere
thepeopleandallstakeholdersconsiderthebankasabankofdifference.Itaimstomasterthesavingsand
channellingtheproceduretomakethecompanyperfectinaproperbankingsystem.Tocarryandundert
akeall sort of investmentpolicies includingfinancing,managing, underwriting etc.

Mission:
The
Missionof“MutualTrustBankLtd”istobeoneofthemostadmiredbanksinthenationandberecognize
dasaninnovativeandclient-focusedcompany,enabledbycutting-edgetechnology,a dynamic
workforce and abroadarrayoffinancial products and services.

Vision:
TheultimatevisionofMutualTrustBankistobethefirstleadingcompanyinBangladeshinthebanking
industry.MTBLwantstoseeitselfastheoneandonlyleadingperformersandworldclass
serviceproviders in the bankingindustry.

7
OrganizationHierarchy:

Sr. Executive Vice

presidentExecutive Vice

presidentSeniorVicepreside

nt

Vice president

SeniorAsstt. Vice

presidentAssistant

VicepresidentFirst Asstt.

VicepresidentJunior Asstt.

Vicepresident

SeniorOfficerTrainee

OfficeJunior Officer

Asstt. Officer(General&Cash)

8
MyJobResponsibilityinMutualTrustBank:
IhaveworkedinHumanResourcedepartmentoftheMTBCorporateCentreBranch.Mydailyrespons
ibilities were:

 Receiving curriculum vitaof theapplicant ofIntern&Assistantgeneral.

 Checkingandgivinginput different typeof human resource data on theHRISsystem.
 Callingthe candidates for exam and interviews.
 Documentingthejob confirmation file ofthe employees.

MyjobresponsibilitieswasnotfixedIusedtododifferenttypeofworksuchasphotocopyofdifferentty
pedocument.ButtheabovementionwasthemostimportantresponsibilitieswhichIfoundreallychall
enging.Apartfrommysupervisor’sjobsIhadtogothroughotherjobstooassignedbytheotherHRstaff
sworkingthere.Ialsousedtotypedifferenttypeofficialletterwhichwas issued fromH.Rdepartment
of MTBL.

9
 Chapter03Literature

Review

10
Compensationisthemostimportantpartforanemployeeaswellastheorganizationbecauseitisonemo
stimportanttoolthatmotivatestheemployeestoperformforthecompany.Actuallycompensationref
erstoaparticularremunerationthatemployeesarepaidbasedonthejobtheyhavedone.Infactwhatthe
employeesarepaidduetotheiremploymentandjobdoneiscalledcompensation.Compensationrefers
otherformsofremunerationaswellthatcouldbeeithermonetaryornonmonetary.Compensationrefer
stoallformsofpaygoingtoemployeesandarisingfromtheiremployment(Dessler,2012).Moreover
wecansaythatcompensationissortofrewardsthatcanbefundamentalaswellasmorethanthebasictha
temployeereceivesintermsoftheirservicetothecompanyororganizationwhereallsortofincentives
maybemonetaryornonmonetaryareofferedasarewardtotheemployees.Compensationrepresentsb
oththeintrinsicandextrinsicrewardsemployeesreceiveforperformingtheirjobs (Guirgis, 2007)

Themainpurposeofcompensationistoretainandupholdaswellasattractthepotentialemployeestoset
astandardofcompensation.Compensationneedstobelucrativesuchwaysthatwithoutanintensiveco
mpensationpackageitisimpossibletohirebestexpertisefortheaccomplishment of the job.

Thelevelofcompensationdiffersbasedonsomecriteria’sforwhichemployeesofsamelevelconsume
sdifferenttypesofcompensation.Firstofall,duetoeducationandexperiencethesalaryandothercomp
ensationbenefitsdifferpersontoperson.Itmeansthemoreeducatedandexperiencedemployeeenjoy
bettercompensationbenefitscomparingwiththelesseducatedandexperiencedemployeesofthesam
epostwiththesimilarjobdescriptionandstatus.Secondly,itistheskillsthathaveahugeeffectontheco
mpensation.Themoreskilledstaffsenjoyabettercompensationpackagecomparingtoothersofthesi
milarjobrecognition.Lastlyinaccordancewiththetimewiththeemployertheemployeesgetaddition
albenefitsthatotherpersonnelmaynot have.

11
 Chapter 04

Compensation ManagementPractices
andpoliciesofmutualtrustbank

12
Compensationisthemostimportantpartinanyorganizationasitisoneofthekeyfactorsofmotivationf
orallemployeesnow-a-
days.Thereforedifferentorganizationundertakesattractivecompensationpolicytoupholdthepotent
ialemployeestoincreasetheproductivity.Generally,wecanseetwotypesofcompensationsystem.O
neisfinancialandanotheroneisnonfinancial.Mutual trust
bankhasbeenalsoofferinglucrativecompensationto
theiremployeesforyearsforwhichtheirdemandisupscalingdayby
day.OneofthefinestthingthatIobservethatMTBhasalwaystriedtheirutmosttokeeptheirbestperson
elsebyensuringthebestpayscalecomparingwiththecompetitors.Thereforeitisseenthattheturnoutr
atioofemployeesofMTBissolow.MTBgoalofcompensationistofocusonthecertainactivityorwork
sdoneby
theemployeesuponwhichthecompensationismaintainorscaledsuchasithasmaintainacombination
ofcash,benefits,retirement,perquisitesasatotalcompensationpackage.

Thereareseveral compensation policies taken byMTB. Thesearegivenbelow:

Salary:

Tocomparewith all thelocalbanks MTBpaysrelativelyso

hightotheirlowerlevelemployees.Itisdoneduetograbthepotentialemployeesfromthemarket.Actu
allytherearefewcompaniesinthemarkettopaysuchahighbasicstotheiremployeesforwhichMTBiss
tillis thefirstchoice ofnewcomers.ThisistheareainwhichMTB
hasdonemarvellousjobbecausenow-a-
daysemployeesaremoreconcernoftheirbasics.MTBhassuccessfullyadaptedthischange.Ithasbeen
seenthatemployeesofMTBarehighlysatisfiedduetotheconvenientsalarystructureasothercompan
yinthemarketarenotpayinglikethis.Moreover,MTBusedtoreviewitssalaryonceinayear.Forainsta
nceeveryDecember,thesalaryoftheemployeereviewbasedontheperformancewhichiskeymotivati
ngfactortoperformwell.AnotherthingthatistomentionthatMTBconductsperformanceevaluationt
wicein ayearaccording to that theyareto reviewthe salary.

13
Theoverallpaystructure of theemployeesvariesin differentlayerswhichareshown below:-

Designation Salary(BDT taka)

AssistantOfficer(AO) 34,000
Junior Officer (JO) 40,000
Officer 48,000
SeniorOfficer 54,000
Junior AssistantVice president (JAVP) 60,000
FirstAssistant VicePresident(FAVP) 66,000
Assistant VicePresident(AVP) 74,000

Salary Payment:

ThemostimportantthingaboutthepaymentofthesalaryofMTBisthatitclearsallthesalarypayments
within25thofeachmonthwhichisquiteabsentinothercompanies.Theemployeesarepaidtheirevery
monthsalaryontheiraccountswhichtheyhavetoopenwhilejoininginthecompany.Itisgoodinsuchw
aythatallthetaxanddeductableincomearecutbycompanyitselfandtheemployeesgetthoseamounts
withdrawnthemoneyfromtheiraccount asa whole.

Bonus:

Liketheotherbanks,MTBprovidestwofestivalbonusestotheiremployee’soneisinEid-ul-
FitaranotheroneisEid-ul-
Azha.Thebonusisequivalenttothebasicsoftheemployees.Moreover,thereisanotherprovisionrega
rdingthebonuswhichisbasedontheperformanceoftheemployee.Butitactuallydependsintheperfor
manceofthebranchwhichmeansifabranchdoeswellasawholethenalltheemployeesofthatbranchge
tbonusesoftheirperformance.

14
Performance Bonus:

Ifthebankmakesprofit,theemployeeswillbeentitledto3%ofpre-
taxprofitasperformancebonus.Fiftypercentofsuchbonusdistributedonthebasisofbasicpayofanem
ployee,andbalancefiftypercentonthebasisofperformanceofindividualemployees.Performanceap
praisalforthepurposemadeonthecriterionsetbythemanagementtimetotime.

ProvidentFund&Gratuity:

TheemployeesarealsoentitledwithprovidentfundinMTB.Actually10%ofthebasicaredeductedfro
meachemployeefortheprovidentfundalongwiththis10%another10%providedbythecompanytota
l20%isinstalledasthepaymentofprovidentfund.Thisfundisgiventotheiremployeesattheendofthei
rservice.Ifanyemployeesleavetheorganizationbeforecompletingthreeyearsofemploymenthewill
gettheprovidentfundinducefromthe10%ofthebasicthatwillcalculateduponhisserviceperiodwhic
hmeansthoseemployeeswillnotbeabletoclaimtheother10%providedbythecompany.InadditionM
TBalsoprovidegratuitytotheirwhichhasahandsomeamountapartfromthebasics.Theemployeesw
hocomplete10yearsareusedtogetagratuityequivalenttothebasic of3 months.

Annual Increment:

ThereisaprovisionofannualincrementofMTBwhichis10%incrementbasedontheperformance.It
worksasamotivatingfactorfortheemployeestoperformwell.Thereforeeachemployeetriestheirbes
ttomakeithappensothattheirbasesalaryhavingwellshapedstructure.

15
TravelAllowance:

Thebankalsoprovidestravelallowancetotheiremployees.IfanyemployeetravelsanyplaceinBangla
deshregardingcompany’sprospect,theywillgetthemoneyorremunerationthatiscostbythembutthe
costthatisspentisverifiedbytheHRpersonnelandafterthattheygot therequisition ofthe money.

House RentAllowance:

Thecompanyalsoprovideshouserenttotheirpermanentemployeeswhoareinthemanageriallevel.E
achemployeeinthemanageriallevelgets55%oftheirbasicashouserent. This encourages
thepotential candidates in the market to workforMTB.

EmployeeLoan:

Unlikeotherbanks,MTBprovidesagreatschemeofloanstotheiremployees.Firstofall,thepermanen
temployeesgetloansfromtheirprovidentfundatacostof10%.Theycanusetheirmoneyforseveralpur
poses.Secondly,fromtheexecutiveleveltheemployeesarequalifiedforhomeloans,carloansandoth
ersatacostof8%whereitisaround15%forthecustomers so it an
extrabenefitsconsumedbytheemployees.

MedicalFacilities:

ThemedicalfacilityprovidedbyMTBisquitedifferentfromotherbanks.MTBhastheirownmedicalt
eamtolookaftertheiremployeesincaseofany
medicalassistance.Theyhavetheirnursinghomeaswell.ThereforeemployeesofMTBdonothaveth
eopportunitytoenjoylifeinsurancewhichmeansMTBdoesnotprovideslifeinsurancepoliciestothee
mployees.

16
Welfare Funds:

Everyyear200takaforeachemployeeisdeductedtocountintheemployeewelfarefund.Themoneyin
ducedfromthewelfarefundisusedforthewelfarefortheemployeeswhentheyare
introubleorinemergency.Thismoneyistotallydistributedtotheemployeessothattheyfeel
safeattheiremergencyperiod.

EarnLeave:

Theemployeeswhocompleteoneyearofservicewithoutanyunusualleave,get30daysforearnleave
in ayear.It means theirpaidequivalent 30 days ofcompensation.

Disability Leave:

Ifanyemployeefacesunusualaccidentorphysicalchallenge,thentheyareprovidedleavegrantedbyt
hecompanywhichiscalleddisabilityleavebutforthisleavethesalaryofthemwill not be deduced
which meansthese arepaidleave.

Maternity Leave:

Maternityleavemaybegrantedbythecompetentauthoritytoanemployeeforamaximumthreemonth
speriodatatime.Thisflexibilityisprovidedconsidering thelabourlawmadebythe government.
This is also a paidleave.

Study leave:

ThereisafantasticopportunityfortheemployeeofMTB.Theemployeeswhoperformextensivelywel
landshowgratitudeofbenefitsthattheycancontributeforthesakeofcompanyareentitledforrecomm
endationtostudy.Generally,theemployeesarerecommendedtoget3(three)yearspaidleavefortheirs
tudiesbutalltheemployeesdonotgetthisadvantagebecauseitisforthosewhoarereallyhighperformer
aretoauthorizedtoget thefull payment to continuetheir studies.

17
 CompensationManagementPolicyOfMutualtrustbank:

Thereareseveralcompensationpoliciesinanorganization.Compensationisimportantsuchawaythat
withoutafairpolicyinthissector,itisnotpossibletomaketheemployeeparticipateintheirworkeffecti
vely.Mutualtrustbankundertakedifferentlucrativepoliciesregardingthecompensationoftheirempl
oyeessothattheycanmanipulateemployeestohaveaproductiveoutcome.Thepoliciesoverthecomp
ensationtakenbyMTBarediscussedbelow:-

ThemostimportantpolicyofMTBisprovidingthedeathbenefitstotheiremployeestosupport
theirfamiliestorunwith.Itissuchabenefitthatishandovertotheirfamiliesafter the death
ofemployees. Toget thisafterthis
deathemployeenominateapersonofhimtotakethemoneywhichisdonefortheproperdocum
entationandsafetyofthemoney.Duetothisthefamiliesofthoseemployeesfeelcomfortablea
ndsecureafterthedeathoftheirwageearner.Thedeathbenefitvariesaccordingtothedesignati
onandemploymentstatus.Thefollowingchartwillgivetheclearoverviewof severaldeath
benefitsin differentlayers.

Designation Amount of taka

ManagingDirector 10Lac

EVP-SVP 8Lac

AVP-VP 7Lac

SO-FAVP 6Lac

AO-JAVP 5Lac

Thereisanotherpolicywhichisprovidingloantotheemployeesatalowerinterestrate.MTBof
theemployeeareoughttopayonly8%interestrateovertheloan.So,the employees can
usethis moneyof theloan fortheir personalwelfare.

18
 AnothereyecatchingpolicyofMTBistheirwelfarefund.Itisactuallyundertakenforthewelfa
reoftheemployee’ssothattheycanrunthemselvesinasolventwaywhentheybecomeunable
andphysicallychallenged to work.But
thefactistheyhavetodeposit200takatotheirwelfarefundatendofeachyear.Butthesanctiono
fthemoneyofthewelfarefundisdistributedaccordingtothejobstatusofthejobemployees.

Designation Amount of taka

MD 6Lac
DMD 5.5Lac
SEVP 4.5Lac
AVP-EVP 4Lac
Officer 3.5Lac
Other 2.5Lac

MTBhasundertakendifferentplansoftheemployeeswhoareofagesover60yearsregardingt
hecompensation.Thebasiccompensationpoliciesarenotvalidtotheemployeeswhoareover
60yearsold.Itmeansalltheemployeesgetthecompensation benefits within 60years.

Inaddition,MTB
alsoprovidesfinancialaidstothoseemployeeswhoareenthusiastictoparticipateanycompeti
tiveexamination.MTBbearsallthefeesandnecessaryfinanceofthoseparticularcompetition
s.ForinstanceifanyemployeeeagertoparticipateinCDCS(Certifieddocumentarycreditspe
cialist)whereanemployeewillneed eightythousand taka which is totallybear bythe bank.

Moreover,MTBalsosomepoliciesoverthecompletionovertheseveralcourseslikeJAIBB(J
uniorAssociateoftheIndianInstituteofBankers).Iftheemployeecancompletethefirstpartof
JAIBB,hewillbeprovidedeightthousandtakawhereiftheybecomeabletocompletethesecon
dparttheywillbefundedfifteenthousandtaka.Thesesortsofassistanceencouragetheemploy
eestomakethemselvestomorecompetent to relevant field byundertakingthose
professionalcourses.

19
2
Findings&Recommendation:
Compensationandbenefitswhichareprovidedtotheemployeesaregoodbutshouldbebetterbecausee
mployeesofcertainlevelsaresatisfiedbutnotall.So,MTBshouldincreaseotherbenefitsaccordingtot
heirpromotionandefforts.Moreover,MTBshouldtrytoincreasecompensationandbenefitsaccordin
gtomarketstandardanalysis.OnethingIliketomentionthatMTBdoesnotprovideanylifeinsurancep
olicywhichIhavecometoknowwhileworkingthere.Theabsenceoflifeinsurancemaydiscouragethe
employeestosettlethere.Therefore,Ithinktheycanintroducelifeinsurancepolicytotheiremployeess
inceother organizationofsimilarfieldhavetheirlife
insurancepolicy.IntermofpromotionMTBonlyfocusestotheincrementofthesalary.ButIthinkitwo
uldbebetterandsatisfactoryfortheemployeeiftheygetotherincentivesandbenefitsalongwiththesal
arywhentheyarepromoted.ItisdiscouragetheseniormostemployeestocontinuetheirworkatMTBd
uetothepolicyofnotgivingcompensationbenefits60agesaboveemployees.Therefore,Ithinktheyca
n reviewthis policyconsideringfor thejob satisfaction of senior level employees.

3
Conclusion:
IamfortunatethatIwasgiventheopportunitytoworkinHRdivisionofMTB.Ithinkitisagreatpolicyof
BRACUniversitytomaketheinternshipprogrammecompulsoryforthegraduation.AsIhaveworked
threemonthsinoneofthelocalleadingbankinBangladesh,IwasabletoknowdifferentHRpractisespe
rformedinthebanks.IalsogettoknowthattheHRpractisesofMTBsignifiesstandardinrelevantfield.
ThebestthingisthatforworkingpracticallyIhavebeenabletohaveaprofoundknowledgeoverthecom
pensation.IcametoknowdifferentcompensationstrategiestakenbyMTBwhichIcanrelatewithmya
cademicknowledge.MTBensuresafaircompensationpolicyforwhichthesatisfactionlevelofemplo
yeeissohigh.Duetothishighjobsatisfactionoftheemployeeregardingthecompensation,theoveralle
mployeeturnoverisquitenegligibleinMTB.FinallyitistomentionthatIwasabletorelateallmyacade
micHRknowledgewiththerealenvironmentwhich isIthink will behighlyhelpful formyfuture
career.

4
Bibliography
1. Dessler,G.(2012). HumanResourceManagement(13th ed.).Pearson.

2. Guirgis,H.E.(2007,February8).DocSlide.RetrievedAugust15,2015,fromDocSlideW
ebsite:http://docslide.us/business/compensation-and-benefit-chapter-1.html
3. (n.d.).RetrievedAugust15,2015,fromMutualTrustBankwebsite:http:
//www.mutualtrustbank.com/