comparative management study on public and private banks in bangladesh

Page | I

By kanok and his group

CHAPTER: 1 Introduction

1.1 Background of the study

Management is an activity of converting disorganized human and physical resources into useful

and effectively results. It deals with setting, seeking and reaching objects. The success of an

individual, group, or organization mostly depends on the effectiveness of management. Despite

its importance to everyone, management is one of the most nebulous and at the same times the

most ubiquitous functions in all societies.

Management practices of any Bank and its performance mainly based on its strategic mission,

vision and goals but the different styles exist in different culture, may be they are effective now

but may not be in the future, because the practices are not unique or not universal or not without

any critics .We collected information both from primary and secondary sources about how

private and public bank authority carry out their managerial functions and represented our

findings on chart, table, graph or theoretical explanation. In order to carry out our study we took

three public banks (We tried to expose an overall management practice of both types of bank and

highlighting similarities and differences on them respectively.

1.2 Objective of the study

BROAD OBJECTIVE

The core objective of the study is to assess the values of the different management styles

practiced or followed by Public and Private banks of Bangladesh and comparing their core

management functions.

SPECIFIC OBJECTIVES

The specific objectives of the study are:

To make a brief study on Banking system of Bangladesh

To make an outline of management functions carried on by banks.

To represent the functional differences of private and public banks through charts, graphs

and theoretical approach.

To assess the standard functional criteria for more productive output.

Finally, identify the major problem of management practice and provide subsequent

recommendations.

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1.3 Scope of the Study

The study would focus on the following areas of both Public & Private banks.

Basic management practices in banking sector.

Way of carrying our overall activities.

The analysis of factors related to management style.

How managerial practices influences employees work attitudes & outputs.

1.4 Limitations of the study

Though we tried our level best to produce a comprehensive and well-organized report, some

limitations were yet present there:

Bank authorities maintains strict confidentiality about provide their financial information;

therefore, it was quite difficult to obtain all the necessary data that was required to

complete the report. In some cases assumption had to be used for some particular figures.

Thus in those cases there could be a certain level of inaccuracy.

Major part of this report is based on the face to face interviews, which consists of view

and opinion of those people. In some cases some of them were not able to provide

concrete facts or figures. In these cases as well some assumption had to be made.

Finally the nature of information of the project part is somewhat confidential and critical

to analyze. It was quite difficult to have the sufficient knowledge and understanding in

that particular field, in a short period of time.

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CHAPTER 2: Literature Review Management is a universal concept which is necessary for the success of not only profit oriented

business organizations but also for non-trading organizations.

Bank is a financial organization. From the very outset, „‟bank‟‟ popularly means only

commercial banks. Although different types of banks are found at present, only commercial

banks are the major participants in the banking world. Since the past thirty years, commercial

banks more or less have been performing all types of activities of specialized bank.

However our focus is on the management practices in different banking sectors of Bangladesh.

To say simply, bank management means, the of way managing the activities of bank properly by

the banking authority.

2.1. Types of bank

Figure: types of banks in Bangladesh.

central bank

state-owned commercial

bank

private commercial

banks

foreign commercial

banks

specialized banks

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2.1.1. State owned commercial banks State owned banks are functioning as nationalist. Among the state owned banks, there are four

state owned banks in our country as,

1. Sonali bank limited

2. Janata bank limited

3. Agrani bank limited

4. Rupali bank limited.

2.1.2. Private commercial banks Private Banks are the highest growth sector due to the dismal performances of government

banks. They tend to offer better services and products. Here is the list of some private

commercial banks.

1. AB bank limited

2. BRAC bank limited

3. Eastern bank limited

4. United Commercial bank Limited

5. Prime bank limited.

6. Bank Asia limited.

7. Pubali bank limited

8. One bank limited.

9. Mutual trust bank limited.

10. Mercantile bank limited

11. Jamuna bank limited

12. IFIC bank limited

13. Midland bank limited

14. The city bank limited. Etc.

We will try to show the differences of management practices among some private commercial

banks and some state owned banks.

2.2. Some management functions carried out by banks: Management

Functions

Activities

Planning What will be their planning orientation?

How their decisions will be made?

Are they involving their employees in decision making?

What speed they maintain while decision making? Etc.

Organizing What will be their organization‟s structure?

Who is responsible for the overall banking activities?

Degree of clearness about their responsibilities? Etc.

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Staffing What will be their recruitment system?

How they train their employees?

What will be their promotion criteria?

How they pay bonus, incentives and remuneration?

How they secure their job? Etc.

Leading What management style they follow?

How they communicate with each other?

How they coordinate their activities? Etc.

Controlling Who will responsible for control?

What is their ultimate focus of controlling?

How they manage deviation? Etc.

2.3. Comparative management study Comparative management is the study and analysis of how management differs in various

environments. The study and analysis focus on the differences in management styles based on

geographic locations; dynamics and personalities in management team and employees; and size

of the company and corporation.

According to G.R Terry, “comparative management may be defined as identifying, measuring

and interpreting the similarities and differences among managers behavior , techniques followed

and practices applied as found in various countries.”

According to koontz, „‟ comparative management is defined is defined as study and analysis of

management in different environments and the reasons enterprises show different results in

various countries.‟‟

In our term paper we will try to analyze the basic differences of management practices in some

private and public banks, in the context of Bangladesh banking environment.

2.4. Importance of Comparative Management Study: Understanding the management practices applied in different countries as well as

organizations.

Having in depth analysis and interpretation to advance the understanding of management

practices to provide framework for further study of management and enterprise

development.

Studying cross cultural management

Seeking new management frontiers.

Developing prescriptive guidelines that can improve effective management actions by

management of organizations

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CHAPTER 3: Research Methodology & Sample Design

This chapter examines the research methodology which generally means the selected methods of

achieving the research objectives. To be more precise, it primarily focuses on the method(s) of

data collection along with the justification of using the method(s). It also includes basic

parameters to be chosen related to the selected method(s). In addition to that, the instruments for

gathering data also fall within the definition of methodology of a research

3.1 Methods To conduct a comparative management study on private and public bank limited in context of

Bangladesh is a matter of qualitative judgment. For the purpose of this study, two methods are

used namely

i. Content Analysis

ii. Questionnaire Survey

Content Analysis: This includes collecting related information and data from all relevant books,

documents, published and unpublished research works available, online articles, notes etc.

Questionnaire Survey: This survey is intended to gather primary data about management

functions carried out by different public and private banks.

3.2 Sources of Data

The data for this study have been collected both from primary and secondary sources. Secondary

data are drawn from the existing literatures like books, newspaper reports, previous research

works, seminar papers, reports, online etc. Primary data have been collected through

questionnaire survey. The respondents included the managerial authority from different banks.

3.3 Data Collection Techniques

To collect data, in-depth interviews are conducted through close ended semi structured

questionnaire.

3.4 Sampling

The employees of public and private bank, who are very much known about management

structure and functions of their bank. So we took them as our sample.

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3.5 Sample Size

Our tram paper is about comparative management study on public and private banks. Many

people of our country do not have any knowledge about managerial functions of any public and

private bank. So that we took our respondents from employees of the bank, who are specialist on

this area. We could manage six specialists of managerial activities of bank from different bank

organization. They include Ashik Ahmed (officer, Agrani Bank ltd.), Md. Khorshed Alam

Molla(Area manager, Brac Bank Ltd.), Md Nuruzzaman(Relationship officer, Eastern Bank

Ltd.), Mohammad Sarwar Alam (First vice president, United Commercial Bank Ltd.), Sayfur

Rahman Akon (FAGM, Manager, Janata Bank Ltd.) And Md. Zahirul Islam (DGM, Sonali Bank

Ltd.). They helped us through giving raw information about their managerial functions and style.

3.6 Data Validation

The collected data have been validated through cross checking with each other and with the

secondary sources.

3.7 Data Analysis Tools/ Techniques

There are some tools which are used in analysis. These are various figures, tables, charts. These

instruments are used in the analysis with the information we got.

We follow the qualitative survey system. Though our sample size is very few, our data is more

relievable.

Page | VIII

CHAPTER: 4 Data Analysis & Findings

Banks Respondent 1 Respondent 2 Respondent 3

Private bank Eastern BRAC UCB

Public bank janata Agrani Sonali

Section B (Planning)

B1. Planning orientation:

Every bank has its own distinctive Planning orientation system based on its strategic objectives

but they vary to an extent depending on the duration of the project. No matter whether the bank

is private or public it must possess both short & long term plans. While conducting our survey

we found several banks putting more emphasizes on short term plans as they are more profitable.

We propose them to rank the planning orientation system followed by the authority on the basis

of priority.

We convert their ranking into points and make percentage to show them in graph and charts.

Ranking 1 is given point five and ranking 5 is given point one. As ranking 2 = Point four,

ranking 3= point three, ranking 4= point two.

Planning orientation of Private Bank

Planning

orientation

Respondent1

( Ranking)

Respondent 2

( Ranking)

Respondent 3

( Ranking)

Points Percentage

Very short

term

4 4 5 (2+2+1)=5 11.11%

Short term 1 1 2 (5+5+4)=14 31.11%

Moderate

term

3 2 3 (3+4+3)=10 22.22%

Long term 2 3 1 (4+3+5)=12 26.67%

Very long

term

5 5 4 (1+1+2)=4 8.89%

total 45 100%

Page | IX

Planning orientation of Public Bank

Planning

orientation

Respondent 1

( Ranking)

Respondent 2

( Ranking)

Respondent 3

( Ranking)

Points Percentage

Very short

term

5 5 5 (1+1+1)=3 6.67%

Short term 1 3 2 (5+3+4)=12 26.67%

Moderate

term

3 2 3 (3+4+3)=10 22.22%

Long term 2 1 1 (4+5+5)=14 31.11%

Very long

term

4 4 4 (2+2+2)=6 13.33%

total 45 100%

From the chart we see that public limited bank in Bangladesh emphasis more on long term plans

rather than short term profitable plans. They always consider the economic growth of the country

than their own profit. Other hand private limited banks always consider profit with low risk and

investment. They emphasis more on short term plan on the basis of their long term plan.

11.11

31.11

22.22

26.67

8.89

Planning orientation of Private Bank

Very shortterm

Short term

Moderateterm

Long term

Very longterm

6.67

26.67

22.22 31.11

13.33

Planning orientation of Public Bank

Very shortterm

Short term

Moderateterm

Long term

Very longterm

Page | X

B2: Decision making swiftness:

In conducting every activity a bank have to rely on some decision. All banks are not same

capable to take decision. Their decision making speed depends on capabilities of manager, their

management structure and types of decision.

Response from Private bank

Respondent 1 Respondent 2 Respondent 3

Fast Very fast Very fast

Very fast= 66.67% Fast=33.33%

Response from Public bank

Respondent 1 Respondent 2 Respondent3

Very Fast Moderate Moderate

Moderate=66.67% Very fast=33.33%

From the chart we see that decision making speed in public bank is slower than private limited

bank. The reason might be the different managerial structure & risk of the project.

33.33

66.67

66.67

33.33

0

20

40

60

80

100

120

Decision making speed of public bank Decision making speed of private bank

Fast

Moderate

Very fast

Page | XI

B3: Decision making process:

There are two types of decision making process. Our Respondents from both public and private

bank ensure us that major decisions of a bank are taken centrally. But some daily work related

decisions can be taken de-centrally by responsible employee.

B4: Employee involvement in decision making:

Employee involvement in decision making is necessary. Our respondents from both public and

private limited banks ensure us that their bank‟s authority involves employees in decision

making so that implementation of decision may easy.

Centralized Private

bank

Public bank

Desions of both public and private bank

Management

Employees

Page | XII

Section c (Organizing)

C1: Responsible for Activities:

Our respondents replied us; generally branch manager is responsible for carrying out all

activities. But two of our respondents from private bank ensures us everyone is responsible for

their assigned work.



All employees All employees Branch manager

All employees = 66.67% Branch manager =33.33%



Branch manager Branch manager Branch manager

Branch manager= 100%

C2: Organization structure:

By analyzing responses of our respondent, we found that the organizational structure of public

bank is traditional hierarchical. Other hand organizational structure of private bank is flatter.

Power distance is more in public bank than private bank. In private bank every employee can

communicate with top management. But employee of public bank faces some restriction in

communication with high authority.



Flatter organization Flatter organization Flatter organization

Flatter organization = 100%

0

50

100

Responsible for activities in public bank

Responsible for activities in private bank

100

33.33

66.67 Branch Manager

All Employees

Page | XIII



Traditional hierarchy Traditional hierarchy Traditional hierarchy

Traditional hierarchy = 100%

C3: Clearness of Responsibilities:

Our respondents ensure us all responsibilities of both public and private bank is clear. Every

employee very much knows about their assigned job and their daily work routine.

Section D (Staffing)

D1: Recruit System:

By analyzing responses of our respondents, we found that both public and private limited

company conducts written test and viva test to select their required employees. Though in private

bank some employees are selected through internal reference, those selected employee must be

qualified through written and viva test.

D2: Training System:

Training is the most important function of any organization. It introduces human resource with

responsibility. It also increases the efficiency of workers. Every bank both private and public

conducts some training programs.

We said our respondents to rank their training systemon the basis of priority.




0

50

100

Organization structure ofprivate bank

Organization structure ofpublic bank

100 100 Flatter organization

Traditional hierarchy

Page | XIV

Training system of Private Bank

Training

system

Respondent1

( Ranking)

Respondent 2

( Ranking)

Respondent 3

( Ranking)

Points Percentage

Theoretical

training

5 4 5 (1+2+1)=4 8.89%

By providing

more

responsibility

4 3 4 (2+3+2)=7 15.56%

Employ as

assistant of

top manager

3 5 2 (3+1+4)=8 17.78%

By seminar

and couching

system

1 1 1 (5+5+5)=15 33.33%

Continuous

training

through daily

work

2 2 3 (4+4+3)=11 24.44%

total 45 100%

Training system of Public Bank

Training

system

Respondent1

( Ranking)

Respondent 2

( Ranking)

Respondent 3

( Ranking)

Points Percentage

Theoretical

training

2 4 3 (4+2+3)=9 20.00%

By providing

more

responsibility

5 3 4 (1+3+2)=6 13.33%

Employ as

assistant of

top manager

3 2 5 (3+4+1)=8 17.78%

By seminar

and couching

system

1 1 1 (5+5+5)=15 33.33%

Continuous

training

through daily

work

4 5 2 (2+1+4)=7 15.56%

total 45 100%

Page | XV

From the chart we see that both private and public bank gives priority to seminar and couching

system while training. After that private bank emphasis on continuous training and management

assistant. But public bank emphasis on theoretical and management assistant training.

D3: Considerable factors of any employees while promotion

Promotion works as motivators to employee. Every bank has a promotion system. Organization

considers some criteria of their employee while promotion.

We said our respondents to rank their promotion criteria on the basis of priority.


Ranking 1 is given point six and ranking 6 is given point one. As ranking 2 = Point five, ranking

3= point four, ranking 4= point three, ranking 5= point two.

Considerable factors of promotion in Private Bank

Considerable

factors

Respondent1

( Ranking)

Respondent 2

( Ranking)

Respondent 3

( Ranking)

Points Percentage

Duration of job 3 3 2 (4+4+5)=13 20.63%

Educational degree 4 4 4 (3+3+3)=9 14.29%

Professional degree 2 2 3 (5+5+4)=14 22.22%

Age of the

employee

6 5 6 (1+2+1)=4 6.35%

Performance of the

employee

1 1 1 (6+6+6)=18 28.57%

Loyalty to superior 5 6 5 (2+1+2)=5 7.94%

total 63 100%

8.89

20 15.56

13.33 17.78 17.78

33.33 33.33

24.44

15.56

0

5

10

15

20

25

30

35

Training system of Private Bank Training system of Public Bank

Theoretical training

By providing more responsibility

Employ as assistant of top manager

By seminar and couching system

Continuous training through dailywork

Page | XVI

Considerable factors of promotion in Public Bank

Considerable

factors

Respondent1

( Ranking)

Respondent 2

( Ranking)

Respondent 3

( Ranking)

Points Percentage

Duration of job 2 1 1 (5+6+6)=17 26.98%

Educational degree 4 4 4 (3+3+3)=9 14.29%

Professional degree 3 2 3 (4+5+4)=13 20.63%

Age of the

employee

5 6 5 (2+1+2)=5 7.94%

Performance of the

employee

1 3 2 (6+4+5)=15 23.81%

Loyalty to superior 6 5 6 (1+2+1)+4 6.35%

total 63 100%

From the chart we see that private bank consider performance while promotion. But public bank

emphasis on duration of the job as a promotion criteria.

D4: Promotion swiftness

By analyzing the responses of our respondents we found that promotion speed vary organization

to organization. We found that promotion speed is much faster in private bank than public bank.

The main reason behind that, private bank emphasizes more on performance as a promotion

criteria and public bank emphasize on duration of job.



Fast Fast Moderate

Fast = 66.67% Moderate =33.33%

20.63

26.98

14.29

14.29

22.22

20.63

6.35

7.94

28.57

23.81

7.94

6.35

0 5 10 15 20 25 30

Considerable factors of promotion inPrivate Bank

Considerable factors of promotion inPublic Bank

Loyalty to superior

Performance of the employee

Age of the employee

Professional degree

Educational degree

Duration of job

Page | XVII



Very slow Moderate Very slow

Very slow=66.67% Moderate=33.33%

From the chart we see that promotion swiftness of private bank is more than public ltd. Bank.

D5 & D6: Performance evaluation system and worker mobility

From the survey report we found that all banks evaluate their employee‟s performance by their

assigned activities and target standards.

The employee mobility is moderate in both private and public ltd. Bank.

D7: Considerable factor to pay salary

Salary is not motivator; it is value which is paid in exchange of labor by employees.

Organization considers several factors to pay remuneration. such as- age, position, duration of

job etc.

We propose them to rank the considerable factors to pay remuneration followed by the authority

on the basis of priority:




66.67

33.33

33.33

66.67

0%

20%

40%

60%

80%

100%

Promotion speed of private bank Promotion speed of public bank

Very slow

Moderate

Fast

Page | XVIII

Considerable factor to pay salary of Private Bank

Considerable

factor

Respondent1

( Ranking)

Respondent 2

( Ranking)

Respondent 3

( Ranking)

Points Percentage

Age 5 5 5 (1+1+1)=3 6.67%

Duration of

job

4 3 3 (2+3+3)=8 17.77%

Position 1 1 1 (5+5+5)=15 33.33%

Professional

degree

3 4 4 (3+2+2)=7 15.56%

Performance 2 2 2 (4+4+4)=12 26.67%

total 45 100%

Considerable factor to pay salary of Public Bank

Considerable

factor

Respondent1

( Ranking)

Respondent 2

( Ranking)

Respondent 3

( Ranking)

Points Percentage

Age 5 5 5 (1+1+1)=3 6.67%

Duration of

job

2 2 3 (4+4+3)=11 24.44%

Position 1 1 1 (5+5+5)=15 33.33%

Professional

degree

4 3 4 (2+3+2)=7 15.56%

Performance 3 4 2 (3+2+4)=9 20.00%

total 45 100%

6.67

17.77

33.33 15.56

26.67

Considerable factor to pay salary of Private

Bank Age

Duration ofjob

Position

Professionaldegree

performance

6.67

24.44

33.33

15.56

20

Considerable factors to pay salary of Public

Bank Age

Duration ofjob

Position

Professionaldegree

Performance

Page | XIX

From the chart we see that both public and private bank consider position to pay remuneration.

After position public bank emphasizes on duration of job and private bank emphasizes on

performance of the employee.

D8, D9& D10: Incentives and job security:

In case of private bank incentives are given on the basis of profit of the bank and performance of

the employee. Incentives can be both monetary and non-monetary in private bank. On the other

hand incentives are given in public bank only on the basis of the profit of the bank. Employee

performance is less considered to pay incentives in public limited bank. Monetary and non-

monetary both types of incentives are also available in public ltd. Bank.

High level job security is available in public bank and job security is Moderate in private bank.

Section E (Leading):

E1-E3: Leadership style & Communication System:

By analyzing the questionnaire we found that most of the private bank is followed democratic

leadership style but most of the public bank is followed authoritarian leadership style.

The communication system of public bank is top to down. In case of private bank two

commination systems -top to down and down to top communication are maintained.

Authoritarian

one way

Public Bank Private Bank Democratic

Two way

Page | XX

Section F (Controlling)

F1, F2&F3: Responsible for Controlling, Focus of Controlling and Blame Fixing:

Form our survey report we found that the ultimate controlling power in both public and private

bank is on branch manager. Branch manager control all the strategic activities of the employees

in both banks.

Individual goal get less priority in private and public bank. Overall goal achievement is the main

focus of controlling in both private and public bank.

Blame fixing is done immediately in private bank, but blame fixing is a slow process in public

bank.

Section G (Information Technology)

G1, G2&G3: IT governing committee, IT resources & IT security department:

From the responses of our respondents, we found that, now a days both public and private bank

have IT governing Committee.

Both types of bank have IT security department.

Both types of bank have IT resources such as computer hardware, software. But in public bank

IT resources are inadequate. The reasons of this are large size of banking operation, huge number

of branches, lack of government focus and corruption.

Section H (Corporate social responsibility)

HI: CSR Activities

Both public and private bank conducts CSR activities. We propose them to rank CSR activities

on the basis of priority.



ranking 3= point three, ranking 4= point two

Page | XXI

Focus of CSR activities in Private Bank

Focus of CSR Respondent1

( Ranking)

Respondent 2

( Ranking)

Respondent 3

( Ranking)

Points Percentage

Educational

sector

4 2 3 (2+4+3)=9 20.00%

Environmental

sector

3 4 4 (3+2+2)=7 15.56%

Poverty

alleviation

2 3 2 (4+3+4)=11 24.44%

Social

awareness

1 1 1 (5+5+5)=15 33.33%

Others 5 5 5 (1+1+1)=3 6.67%

total 45 100%

Focus of CSR activities in Public Bank

Focus of CSR Respondent1

( Ranking)

Respondent 2

( Ranking)

Respondent 3

( Ranking)

Points Percentage

Educational

sector

3 4 2 (3+2+4)=9 20.00%

Environmental

sector

4 3 4 (2+3+2)=7 15.56%

Poverty

alleviation

2 1 1 (4+5+5)=14 31.11%

Social

awareness

1 2 3 (5+4+3)=12 26.66%

Others 5 5 5 (1+1+1)=3 6.67%

total 45 100%

While CSR activities private bank focuses more on Social awareness, then poverty alleviation,

educational sector and environmental sector. Public bank focuses firstly on Poverty alleviation,

then social awareness, educational sector and environmental sector.

0

20

40

Focus of CSR activities inPrivate Bank

Focus of CSR activities in PublicBank

20 20 15.56 15.56 24.44

31.11 33.33 26.66

6.67 6.67

Educational sector

Environmentalsector

Poverty alleviation

Social awareness

Page | XXII

Similarities & Differences in a Nutshell Therefore, the similarities & dissimilarities between Public and Private Banks management

practices can be summed up as below-

Similarities observed:

Factors Public Banks Private Banks

Employee

involvement participative participative

Decision

making

process

Centralized centralized

Job

specification

Clear and specific Clear and specific

Recruitment

system

Viva voce along with

written test

Viva voce along with written

test

Initial training

program

Seminar and couching Seminar and couching

Promotion

criteria Job position Job position

Performance

appraisal On the basis of assigned

activities

On the basis of assigned

activities

Employee

mobility moderate Moderate

Pay scale Based on position Based on position

Responsible

for action Branch manager Branch manager

Focus of

control

Emphasizes on

organizational goals

Emphasizes on

organizational goals

Page | XXIII

Dissimilarities observed:

Factors Public Banks Private Banks

Planning

orientation Long term Short term

Decision

making

swiftness

slower faster

Organizational

structure

Traditional flatter

On the job

training

Theoretical training and

management assistant

Continuous training and

management assistant

Promotion

swiftness

slower faster

Incentive

decider Profit base Performance and profit base

Job security High level Moderate level

Leadership

style Authoritarian democratic

communication One way Two way

Blame fixing Very slow immediately

IT resources Inadequate comparing to

the operational activities

Adequate and updated

CSR activities Poverty alleviation Social awareness

Page | XXIV

CHAPTER: 5 conclusion & recommendation

Generally, the banking profession in Bangladesh is recognized with standardized salary scale,

higher social status and dignity. As can be found from the study, human resources in banks were

enjoying comparatively better facilities under the rules of banking industry. Employees of the

bank getting good number of bonus and compensation, including salary grade, leave facilities,

housing facilities, gratuities, provident funds, and losses of accident or death of employees etc.

The employees in private bank are more satisfied with salary scale, job position, promotion

scheme, working environment but very worried about working hours and work pressure. Most of

the employees are less satisfied with HRM polices and practice, job analysis, IT facilities, job

evaluation and performance measurement technique.

Public and private banks may differ in their way of management practice but the ultimate goal is

ensuring profit anyway. The way of achieving goal and how actions would be carried on to do so

is determined by its management style. We tried outlining all these factors which influence

management practice and represented the variations on graphs.

Recommendation On the basis of the findings of the study the Following recommendations are made for better

HRM practice in the banks of Bangladesh:

The salary package and administrative status of private banks are truly attractive. But in

public banks salary restructuring is needed to motivate employees.

To develop human resources, the bank should undertake different HRD programs

including continuing education and training, IT-orientation, career development, etc.

Banks‟ have good number of bright employees and it should create opportunities for

employee‟s higher studies with fellowship/scholarship at home and abroad.

Banks should organize seminars, workshops, conferences, different short courses, and

training programs on financial matters, current issues, software up gradation on regular

basis that would definitely help to develop knowledgeable manpower, create awareness

and change mental attitudes among the professionals.

Banks have a separate human resources departments. But it is essential to empower the

department or divisions for handling different issues in HRM in banks.

Provision should be created to employ professional staffs having graduate and/or

postgraduate degrees in Information technology at IT department of banks. Educational

qualifications, Experiences, skills, competencies, and ICT-literacy of the potential

candidates are given emphasis in the selection and recruitment process of employees.

Page | XXV

Reference

BOOKS:

1. Khan Dr. A R; Bank Management(A Fund Emphasis); 135,Islamia Market, Nilkhet,

Dhaka: Brothers Publication

WEBSITE:

1. International knowledge sharing Platform(journals & books hosting conferences &

workshop solutions), Available from:

https://www.google.com/search?q=Management+is+an+activity+of+converting+disorganized+h

uman+and+physical+resources+into+useful+and+effectively+results.+It+deals+with+setting%2C

+seeking+and+reaching+objects.+The+success+of+an+individual%2C+group%2C+or+organizatio

n+mostly+depends+on+the+effectiveness+of+management.+Despite+its+importance+to+every

one%2C+management+is+one+of+the+most+nebulous+and+at+the+same+times+the+most+ubi

quitous+functions+in+all+societies.&ie=utf-8&oe=utf-8#

[Accessed: 8th December 2015]

2. Shodhganga, Available from:

http://shodhganga.inflibnet.ac.in/bitstream/10603/2299/11/11_chapter%202.pdf


3. ACADEMIA, Available from:

http://www.academia.edu/11705814/Overview_of_Financial_System_in_Bangladesh


4. Ask.com, Available from: http://www.ask.com/business-finance/definition-comparative-

management-cfc06b989c287ecf


5. Brac university institution repository, Available from:

http://dspace.bracu.ac.bd/handle/10361/3026


6. Social Science Research Network , Available from:

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2117189


https://www.google.com/search?q=Management+is+an+activity+of+converting+disorganized+human+and+physical+resources+into+useful+and+effectively+results.+It+deals+with+setting%2C+seeking+and+reaching+objects.+The+success+of+an+individual%2C+group%2C+or+organization+mostly+depends+on+the+effectiveness+of+management.+Despite+its+importance+to+everyone%2C+management+is+one+of+the+most+nebulous+and+at+the+same+times+the+most+ubiquitous+functions+in+all+societies.&ie=utf-8&oe=utf-8






http://shodhganga.inflibnet.ac.in/bitstream/10603/2299/11/11_chapter%202.pdf

http://www.academia.edu/11705814/Overview_of_Financial_System_in_Bangladesh

http://www.ask.com/business-finance/definition-comparative-management-cfc06b989c287ecf

http://www.ask.com/business-finance/definition-comparative-management-cfc06b989c287ecf

http://dspace.bracu.ac.bd/handle/10361/3026

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2117189

Page | XXVI

APPENDICES

Appendix 1: Table given below shows the details about the participants of the study

Name of the Participants Position & Other Information

Md. Nuruzzaman Relationship Officer(SME Banking)

Eastern Bank Ltd.

Comilla SME/AGRI branch

Chowdhury Plaza, 195, Jail road, Jhawtala, Comilla

Tel:081-72778 Mobile:01712-012427

E-mail: [email protected]

Web: www.ebl.com.bd

Md. Khorshed Alam Molla Area Manager(small Business)

BRAC Bank Ltd

Comilla SME Territory Office

98, Garjonkhola Road, Chaik Bazar, Comilla

Tel:081-62288 Mobile:01713-481627

E-mail:

[email protected]

Web: www.bracbank.com

Mohammad Sarwar Alam First Vice President & Head of Branch

United Commercial Bank Ltd.

Comilla Branch

125/117,Rajgonj,Chatipatty,Comilla

Tel:081-76447 Mobile:01711-809726


Web: www.ucb.com.bd

Sayfur Rahman Akon (FAGM) Manager

Janata Bank Ltd.

Chawk Bazar Branch, Comilla, Bangladesh

Tel:081-65216 Mobile:01815-588228

Md. Abdul Majid Senior Principal Officer

Agrani Bank Ltd.

Comilla south Zone, Comilla

Tel:081-72689 Mobile:01812-066961

Md. Zahirul Islam Deputy General Manager

Sonali Bank Ltd.

Principal Office, Comilla

Tel:081-76569 Mobile:01711-434628


tel:081-72778

mailto:[email protected]

http://www.ebl.com.bd/

tel:081-62288


http://www.bracbank.com/

tel:081-76447


http://www.ucb.com.bd/

tel:081-65216

tel:081-72689

tel:081-76569


Page | XXVII

Appendix 2: Questionnaire

Survey Questionnaire

Dear Sir/Madam,

We are the students of Comilla University of Dept. of management studies under BBA program,

are undergoing to prepare a term paper on “comparative management study on public and private

limited bank”. We, therefore request you to fill up the questionnaire to enable us to complete the

term paper.

Section A: General information

A1 What is your name?

----------------------------------------------

A2 Age? 22-30

31-44

Up to 44

1

2

3

A3 Gender Male

Female

1

2

A4 Name of your organization?

----------------------------------------------

A5 What is your position in the company?

Please indicate your field of responsibility?

----------------------------------------------

Section B: Planning

B1 What types of planning orientation is used in

your bank?

Please rank according to preference

Very short term

Short term

Moderate term

Long term

Very long term

-

-

-

-

-

B2 How quickly decisions are made? Very slow

Slow

Moderate

Fast

Very fast

1

2

3

4

5

B3 What type of decision making process is

followed by your bank?

Centralized

Decentralized

1

2

B4 Do the employees involve in decision

making?

Never

Seldom

Frequently

Often

Always

1

2

3

4

5

Page | XXVIII

Section C: Organizing

C1 Who are the responsible for activities? Top manager

Branch manager

Senior officer

Officer

General employee

1

2

3

4

5

C2 What is your organization structure The traditional hierarchy

Formal

Bureaucratic

Flatter organizations

1

2

3

4

C3 Clearness of your responsibility? Clean and specific

unclear

1

2

Section D: Staffing

D1 How does your bank recruit employees? By taking written test and viva

Only viva is conducted

Considering result of the candidate

Internal recruit(reference )

1

2

3

4

D2 What type of training and development

system does your bank follow?


Theoretical training

By providing more responsibility

Employ as assistant of top manager

By seminar and couching system

Continuous training through daily

work

-

-

-

-

-

D3 What are considerable factors of any

employees while promotion?


Duration of job

Educational degree

Professional degree

Age of the employee

Performance of the employee

Loyalty to superior

-

-

-

-

-

-

D4 How frequent of your promotion done? Very slow

Slow

Moderate

Fast

Very fast

1

2

3

4

5

D5 How your bank evaluates employee

performance?

D6 Labor mobility?

High

Moderate

Low

Very low

1

2

3

4

D7 What is considered to pay remuneration


Age

Duration of job

Position

Professional degree

1

2

3

4

Page | XXIX

Performance 5

D8 How frequent incentives and bonus are paid? Occasionally

Profit base

Economic condition of the country

1

2

3

D9 Forms of incentives? Monetary

Non-monetary

1

2

D10 The extent of job security of employees? High

Moderate

Low

1

2

3

Section E: Leading

E1 What leadership style is followed? Authoritarian

Paternalistic

Participative

Democratic

1

2

3

4

E2 What management style is followed? Autocratic

Consultative

Democratic

Laissez-faire

………………..

1

2

3

4

5

E3 What communication style is followed? Top to down

Down to top

Vertical chain command

Both 1 and 2

1

2

3

4

E4 How do the activities carried out? Individually

Collectively

1

2

E4 How do values of individual functions in

team?

Highly preferred

Only considered team performance

Ignored individual performance

1

2

3

Section F: Controlling

F1 Who is responsible for controlling? Top manager

Branch manager

Senior officer

Officer

General employee

1

2

3

4

5

F2 Focus of controlling? Goal achievement

Individual performance

Team goal

1

2

3

F3 Blame fixing? Never

Seldom

Frequently

Often

Always

I do not know

1

2

3

4

5

6

Page | XXX

Section G: Information Technology (IT)

G1 Does your bank have any IT steering /

governing Committee headed by Director

level person and comprise over

departmental heads?

Yes

No

1

2

G2 Do you have any IT Resource

(hardware/Software/Application)

acquisition process in place?

Yes

No

1

2

G3 What type of transactional method is

followed by your bank?

Manual

Automated

1

2

G3 Do you have Information Security policy,

approved by the senior management and

reviewed at planned intervals?

Yes

No

1

2

Section H: Corporate Social Responsibility

H1 Do you have any CSR activities?

If yes, what types they are?


Yes

No

Educational sector

Environmental sector

Poverty alleviation

Social awareness

others

1

2

1

2

3

4

5