Selection process and Compensation system of UCBL

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LETTER OF TRANSMITTAL
November 29, 2011 MS.SILVIA AKHTAR Independent University, Bangladesh Subject: Recruitment and Compensation System of an Organization in Bangladesh Dear Ms. Silvia As our due date for the term paper is on November 29, 2011, we are submitting you the report entitled Recruitment and Compensation System of an Organization in Bangladesh. The purpose of this report is to understand the strategies used by a company for Recruitment and compensating its employees for various business needs. The report tries to provide the entire Recruitment and Compensation System of a local company in Bangladesh. It includes an overview of the company chosen, its structure, and the recruitment and compensation strategy used by the company. This report reviews in details the recruitment and compensation components and all the recruitment process and compensation and non-compensation dimensions used in the company for its employees. We hope this report will prove to be satisfactory.

Respectfully yours, _______________________ Mariyam Abedin(On behalf of Team Unity)

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ACKNOWLEDGEMENT
All praises are due to Almighty Allah who enabled us to complete this report. This report entitled RECRUITMENT AND COMPENSATION SYSTEM OF United Commercial Bank Ltd. We would like to express our sincere gratitude and appreciation to my supervisor, Ms. Silvia Aktar. It would not have been possible for me to complete this report without her help, advice and overall supervision. This constant encouragement and supervision throughout the period of this study have been greatest inducement for us and directly contributed to the accomplishment of the task. we are also indebted to Mr. Mamun-ur-Rashid (Deputy Managing Director of United Commercial Bank Head Office, Gulshan), Mr. Mia Mohammad Quamrul Hasan Chowdhury (Deputy Managing Director And Head of the Department Of Human Resource of United Commercial Bank, Head Office, Gulshan), along with others who has been supportive through our report. Equally, we would also like to thank each other of this RED BULL group without the cooperation and efficiency of the every group member this report completion wont be possible.

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Executive Summary
This report is presented to fulfill the requirement of HRM 301 course in BBA program. The goal of this report is to link real life experience with whatever topic we are learning from this course. Throughout this report we analyzed the company overview, recruitment process and compensation strategies of United Commercial Bank Ltd. We also gone through a questionnaire to collect all the required information related to the topic of the report. We entirely covered all the recruitment process of the selected organization and all the compensation strategies that UCBL follows for the employees of all level.

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TABLE OF CONTENT
Name of the Topic Letter of Transmittal Acknowledgement Executive Summery Abbreviation Objective Methodology Limitations Contact Person Company profile Management Hierarchy of United 11 5 6 7 8 8 9-10 1 2 3 Page No.

Commercial Bank Ltd. (UCBL) Selection Process Total Compensation and Benefits Package of UCBL Recommendation Conclusion Appendix 26 27-28 12-18 19-24

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OBJECTIVE

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General Objective This study is a partial requirement of the course on Human Resource Management. The general objective of the study is to develop a clear understanding about the recruitment process and compensation benefit strategies in Bangladesh. Specific Objectives Gaining practical knowledge in implementation recruitment process and compensation strategies theory. Comparing United commercial Bank Limiteds selection process and compensation strategies with Human Resource theory. For making a general evaluation of United commercial Bank Limiteds activities across Bangladesh. Making a precise picture of the present situation of employment procedure and compensation strategies in Bangladesh. To recommend ways and means to solve problems differences in practical & theoretical differences in the recruitment process and compensation strategies.

METHODOLOGY
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Both primary and secondary data sources were used to generate the report.

Limitations
We have faced some barriers or limitations for making a complete and perfect report. These barriers or limitations are as follows: The organization maintains confidentiality about certain information. They were not willing to give any kind of internal information. Some officials were not prepared to give the data which could have helped to prepare this report better. Less analytical power

Company Profile
Brief Background of UCBL:

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United commercial Bank has started their operation in Bangladesh as a local bank in 1983. They have added 100 branches with 21 Authorized Dealer (AD) branches with their name. They have total online banking facilities along with no charge in the local transactions. They have 10 (Ten) Automated Teller Machine (ATM) Booth in Chittagong Sylhet and Dhaka division. But they also have the contract with Dutch Bangla Bank Limited to use their booths in all over Bangladesh by the UCBL customers. With its firm commitment to the economic development of the country, the Bank has already made a distinct mark in the realm of Private Sector Banking through personalized service, innovative practices, dynamic approach and efficient Management. The Bank, aiming to play a leading role in the economic activities of the country, is firmly engaged in the development of trade, commerce and industry thorough a creative credit policy (Annual report 2009-2010). Mission Statement of UCBL: United Commercial Bank Limited always tries to meet the demand of the customer and to solve most of their expectations. Their main theme is to think from the bottom line of the customers mind to provide their comfort (Annual report 2009-2010). Vision Statement of UCB: United Commercial Bank Limited wants to be the market leader in the local banks in Bangladesh. Their target is to be the highest profitable bank in local banking sector (Annual report 2009-2010).

Management Hierarchy of United Commercial Bank Ltd. (UCBL)

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SELECTION PROCESS OF
Successful selection activities entail a lot of careful planning & careful thought. The standard pattern of selection activities are of seven steps, which are given below:

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Interview Comprehensive interview is a selection device used to obtain in-depth information about a candidate. By comprehensive interview effectiveness, realistic job previews & behavioral interview are measured. At the United Commercial Bank Limited, the applicants passed in the employment written test are called. They are mailed an invitation for the viva-voce for their post.

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The applicants have to bring their original educational certificates for producing the same before the interview committee. The certificates are tested here with the application form information. And if any disparity is found the applicant is not allowed confront the interview committee. The passed applicants are given conditional job offer. For permanent job offer they have to pass background examination & medical test steps. Background examination Background examination is the process of verifying information job candidate provides. This can include candidates former employers to confirm candidates work record & to obtain their appraisal of his or her performance, educational accomplishments etc, At the National Bank Limited, the Human Resource Department scrutinizes the background of the applicant and tries to find out all ins and outs of the respective applicant. The applicants are kept unknown about the background enquiry source. Medical/Physical test Medical/physical test is the step where applicants physical fitness for essential job performance is measured. In this step the theory & practical process is same. The applicants are to go for a medical check-up to the authorized medical center by United Commercial Bank Limited. United Commercial Bank Limited does not carry the medical fees. It is to be carried by the applicant himself. The test report directly goes to the Human Resource Department and the applicants are not permitted to see it.

Testing methods
United Commercial Bank Limited recruits employees on the basis of newspaper circulation & by online e-application on National Bank Limiteds web site. At the e-application section candidates are obligatory to drop their CV & on the foundation of United Commercial Bank Limiteds vacancy & precedence candidates are required to follow their selection procedure as follows :

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Step 1: Completed application The application form is given in the online and completely filled applications are carried forward for the preliminary test (employment test). Step 2: Employment test The Human Resource department mails the admit card to the applicants who have completed the online application successfully via post card. The questionnaire of the test is based on mathematics, English and the respective job questions. It is usually held on 100 marks. The employment test typically holds in any government major educational center. Such as teachers training college of Dhaka, etc. Step 3: Comprehensive interview The applicants passed in the employment written test are called by the bank. They are mailed an invitation for the viva-voce for their post. The applicants have to bring their original educational certificates for producing the same before the interview committee. The certificates are tested here with the application form information. And if any disparity is f ound the applicant is not allowed confront the interview committee. The passed applicants are given conditional job offer. For permanent job offer they have to pass background examination & medical test steps. Step 4: Background examination The Human Resource Department scrutinizes the background of the applicant and tries to find out all ins and outs of the respective applicant. The applicants are kept unknown about the background enquiry source. Step 5: Medical test The applicants are to go for a medical check-up to the authorized medical center by National Bank Limited. National Bank Limited does not carry the medical fees. It is to be carried by the applicant himself. The test report directly goes to the Human Resource Department and the applicants are not permitted to see it.

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Step 6: Permanent job offer If the 6th, Background examination, and the 7th Medical test, steps are passed successfully, Human Resource Department of National Bank Limited sends an Appointment as Probationary Officer letter. At the amalgamation day, the applicants are bound to sign up a Letter of Undertaking for five years continuous service to the bank from the date of confirmation. If he leaves before completion of 5 years confirmed service or during the probation period he will have t refund to the bank 50% of total salary and allowances drawn to him.

COMPENSATION AND BENEFIT PACKAGE OF UCBL

Objectives This chapter outlines the rules relating to compensation structure and the benefit package of the Bank and gives detailed procedures for exercising them in order to promote fair treatment and consistency within the organisation.

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Salary Structure Refer to the Salary & Remuneration Package Structure for Supervisors and Executive Staff of UCBL for details regarding the structure of salary and allowances for different units under UCBL. Revision of Pay Elements The compensation structure may be revised, if necessary, with the approval of the Director, Admin/HR, and Head of the Dept., Finance and the Chief Executive. Employee Compensation Records Employee Pay Records are maintained by the Personnel & Admin Department for Workers and Supervisors and by the Human Resource Department for the Executives. These departments maintain personal file of all employees where all records in regards to the employee are kept in addition to any soft copy (in computer database) maintained by the departments. These records are confidential and should not be accessible to any unauthorised persons (authorisation defined by HR or Personnel & Admin dept. head).

Basic Employee Benefits for Permanent Employees Provident Fund The Company's Provident Fund is a funded scheme. All confirmed and permanent employees are entitled to be members of the Provident Fund. The employee contribution, equal to 10% of the basic salary, is deducted each month through the payroll. The Company's Provident Fund is a funded scheme. All long-established and enduring employees are at liberty to be members of the Provident Fund. In the Provident Fund Ledger, both the employee's and the Company's contributions are accredited to the individual employee's account.

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Bonuses All confirmed Permanent employees of United Commercial Bank Limited are entitled to one Annual Bonus each equivalent to Basic Salary under the following conditions: Attendance in the Calendar Bonus Entitlement Year

200 days + 90 days +

100% of the Bonus 50% of the Bonus

Accommodation The Bank on the basis of requirements and availability provides accommodation to UCBLs Top Executives at their own established facilities in Dhaka city. Outside the Dhaka city, the Bank provides expenses for the accommodation.

Utilities Allowances

Electricity Designation (Limit/Month) Taka

Gas (Limit/Month) Taka

Water (Limit/Month) Taka

Telephone (Local & NWD) (Limit/Month) Taka

Manager / Sr. Manager 2,500 At Actual At Actual At Actual

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Electricity Designation (Limit/Month) Taka

Gas (Limit/Month) Taka

Water (Limit/Month) Taka

Telephone (Local & NWD) (Limit/Month) Taka

EVP and above

At Actual

At Actual

At Actual

At Actual

Other employees

1500

450

1000

No

The Accounts Department will make compensation payment to the employee within 30 days from the date of submission. Telephone bill has to be forwarded to the HR department, and then they forwarded that bill to IT department, so payments can be made by the company, if it is in the name of the Bank. Mobile Telephone Based on the UCBLs business need, a mobile telephone provided to a permanent or contract employee. To receive this benefit, a written application should be forwarded to the Department Head, IT upon approvals of the employees Department Head and In charge of the site/factory if applicable. The mobile phone is to be used first and foremost for business purpose, though can be utilised for being in contact with the family members, if necessary with logical discretion due to the high cost of mobile phone usage. Medical Benefits Medical Benefits for the Executive Staff

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The bank will compensate the cost of authorised medical treatments in Bangladesh including hospitalisation, surgical and childbirth subject to the conditions mentioned here. The Bank reserves the right to approve the Medical Practitioner consulted. Dental treatment included as defensive measures, the Bank will reimburse for Upper and Lower dental cleaning twice a year. Reimbursement of the cost will be restricted to the treatment of the executive, spouse and children. Expenditure on medical treatment of Executives is reimbursed by the company. Every employee is not getting the medical benefits. Car Purchase Scheme Board of directors are entitled to 24 hours company paid transportation. The company also pays for the fuel at cost, Drivers salary, and for all necessary maintenance/repair and administrative cost of the vehicle. Car purchase scheme has to be changed into(for the top management, middle management get allowance for driver and fuel cost but need to buy the car with own expense where loan facility is available from the bank/interest redemption) LOAN SCHEME All employees are eligible to any purpose loan provided they have served the organization for 2 years

Recommendation
Based on the above study we have made some suggestions or recommendations

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Seasonal promotional activities: Different kind of seasonal promotional activities can be taken for attracting more customers. For example in Bausundhara branch has maximum account with NSU students. Especially they pay their tuition fees here. So when this tuition fees taking periods starts, every student can be offered to open their account free of service charge. For the 1th one year or they can be provided with cost effective gift. United Commercial Bank Limited can perform initial screening step in their selection process because itll save time for the organization to select the best suitable applicant. United Commercial Bank Limited should sorts the best according to the CGPA obtained and the university ranking at the initial screening step. United Commercial Bank Limited does not call the applicants. They only mail the invitation cards. Sometimes mailing needs more time in our country. So they should start Call The Applicants system along with mailing the invitation cards. The conditional job offer obtainers go for the medical test where the cost is borne by the applicant. But it should be borne by the bank so that it can increase the banks reputation. The 5 years bond for is a great impediment for many of best applicants. They do not to stick themselves into any bounding. So the bank should lessen the time period of bonding or call off the bond signing.

CONCLUSION

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This study research has been focused on the compensation system, practiced by UCBL private banks of Bangladesh. There are some components that are taken into consideration during pay in our country, but it varies significantly among banks regarding pay. It could have been better, if we might have worked with all types of banks. Here in our study we have worked with only one type of bank. In our study we have tried to focus on the pay differences, possible reasons of using different pay components used by the banks in our country. Finally, we came up with some recommendations, which can be used for both of the banks so that they can perform better.

Reference

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Retrieved November 20, 2011 Website: http://www.ucbl.com/contact_us.htm Contact Person Mr. Mamun-ur-Rashid (Deputy Managing Director of United Commercial Bank Head Office, Gulshan) Mr. Mia Mohammad Quamrul Hasan Chowdhury (Deputy Managing Director And Head of the Department Of Human Resource of United Commercial Bank, Head Office, Gulshan)

APPENDIX
Questionnaire

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Primary information from United Commercial Bank Limited(UCBL): QUESTION 1. How UCBL starts the selection process? ANSWER

2. Where UCBL circulates for recruitment? Newspaper or online?

3. Do they utilize electronic method or traditional hand written application?

4. Do they have any initial screening for the online application?

5. Who are called for the preliminary test?

6. Where does the test typically hold?

7. What are the marks for the exam?

8. What type of question includes in the questionnaire?

9. How the past applicants are called for the next comprehensive test?

10. Who are usually in the interview committee?

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11. What instruments applicants are to bring in the interview?

12. Do passed in the interview get conditional job offer? 13. What about the background investigation?

14. Is medical check-up is done?

15. Who does bear the cost of medical cost?

16. Is there any need of bond signing?

17. How long is the compulsory service period for the new employee?

18. Is there any there steps excluding the proceedings?

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