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Page 1: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

oooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo

LEADING A promise to lead

Role of compensation practices on employees’

A study on Prime Bank Limited

Masum Hussain

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 1

oooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo

EADING UNIVERSITYA promise to lead

nsation practices on employees’ motivation

A study on Prime Bank Limited

Masum Hussain

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

oooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo

NIVERSITY

2016

motivation

Page 2: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

“Role of compensation prac

A study on Prime Bank Limited

Department of Business Administration

Department of Business Administration

Major: Department of Business Administration

Date of Submission: 06 February, 2016

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 2

An Internship report on

“Role of compensation practices on employees’ motivation:

A study on Prime Bank Limited”

Course title: Internship Course code: BUS-499

Submitted to Department of Business Administration

Leading University, Sylhet

Supervised by Mr. Mr. Mr. Mr. Md. Shamimul IslamMd. Shamimul IslamMd. Shamimul IslamMd. Shamimul Islam

Senior Lecturer Department of Business Administration

Leading University, Sylhet

Prepared by:

Masum HussainMasum HussainMasum HussainMasum Hussain

ID: 1201010202 Program BBA (30th Batch)

Major: Human Resource Management Department of Business Administration

Leading University, Sylhet

Date of Submission: 06 February, 2016

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

tices on employees’ motivation:

Department of Business Administration

Date of Submission: 06 February, 2016

Page 3: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

06 February, 2016

To

Mr. Md. Shamimul Islam

Senior Lecturer,

Department of Business Administration

Leading University, Sylhet

Subject: Submission of Internship Report

Dear Sir,

With best regard, I am submitting my Internship Report on

employees’ motivation: A study on Prime Bank Limited

important requisite of BBA program. I have tried my level best to prepare an effective,

informative and creditable report. I hope my contribution will be best evaluated on your sharp

scale of acceptance and analytical remarks.

I would like to express my gratitude for your supp

making this report. At each stage, I have given my best efforts in preparing this report. There is

no doubt that this experience enriches my knowledge in a greater degree. I hope you will find the

report worthy enough. I welcome all your queries and take pride to answer them.

Thanking You

Sincerely yours,

………………............

Masum Hussain ID: 1201010202 Program BBA (30th Batch) Major: Human Resource ManagementDepartment of Business AdministrationLeading University, Sylhet

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 3

Letter of Transmittal

Department of Business Administration

Subject: Submission of Internship Report.

With best regard, I am submitting my Internship Report on “Role of compensation practices on

: A study on Prime Bank Limited” that you have assigned to me as an

f BBA program. I have tried my level best to prepare an effective,

informative and creditable report. I hope my contribution will be best evaluated on your sharp

scale of acceptance and analytical remarks.

I would like to express my gratitude for your supportive thoughts and kind consideration in

making this report. At each stage, I have given my best efforts in preparing this report. There is

no doubt that this experience enriches my knowledge in a greater degree. I hope you will find the

ugh. I welcome all your queries and take pride to answer them.

Major: Human Resource Management Department of Business Administration

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

“Role of compensation practices on

that you have assigned to me as an

f BBA program. I have tried my level best to prepare an effective,

informative and creditable report. I hope my contribution will be best evaluated on your sharp

ortive thoughts and kind consideration in

making this report. At each stage, I have given my best efforts in preparing this report. There is

no doubt that this experience enriches my knowledge in a greater degree. I hope you will find the

ugh. I welcome all your queries and take pride to answer them.

Page 4: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

I am pleased to declare that,

Business Administration, Leading University, Sylhet, has been given with the internship topic

titled “Role of compensation prac

Limited” for researching and writing an internship report on the subject. His work is quite

satisfactory and I am glad to affirm that the entire report work has been conducted under my

direct and active supervision.

Now I am convinced to permit him to defend the same before the respective panel of judges.

I also hope that the internship report is an original one and has not been submitted elsewhere

previously for publication in any form. He is sincere,

report work will contribute to his career.

I wish him all the success in life.

___________________

Mr. Md. Shamimul Islam

Senior Lecturer

Department of Business Administration

Leading University, Sylhet

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 4

Letter of Acceptance

I am pleased to declare that, Masum Hussain, bearing ID No: 1201010202

Business Administration, Leading University, Sylhet, has been given with the internship topic

“Role of compensation practices on employees’ motivation: A study

for researching and writing an internship report on the subject. His work is quite

satisfactory and I am glad to affirm that the entire report work has been conducted under my

Now I am convinced to permit him to defend the same before the respective panel of judges.

I also hope that the internship report is an original one and has not been submitted elsewhere

previously for publication in any form. He is sincere, honest and hard working. I hope that this

report work will contribute to his career.

I wish him all the success in life.

Department of Business Administration

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

ID No: 1201010202, Department of

Business Administration, Leading University, Sylhet, has been given with the internship topic

A study on Prime Bank

for researching and writing an internship report on the subject. His work is quite

satisfactory and I am glad to affirm that the entire report work has been conducted under my

Now I am convinced to permit him to defend the same before the respective panel of judges.

I also hope that the internship report is an original one and has not been submitted elsewhere

honest and hard working. I hope that this

Page 5: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Though the internship program has to be done individually in a sense of completion of

the credit hour but it is quite impossible to do

of some individuals. It is a very great and unique

some individuals for their help and encouragement to make the internship successful.

At first I would like to express my gratitude to almighty

beautiful country like Banglades

requirements for the degree.

internship report “Role of compensation practices on employee’s motivation

Prime Bank Limited”. I am also grateful to my

and providing me with the basic necessities of my life since my birth.

With due respect, I would like to thank to the

Tofayel Ahmed.

I extend my most sincere gratitude to my academic supervisor

Islam, Senior Lecturer, Department of Business Administration. I am deeply indebted to his

whole hearted supervision to me during the Internship Period. His valuable suggestions &

guideline helped me a lot to prepare the report in a well

I would like to express my special thanks to

Branch, Amberkhana Branch Prime Bank Limited, for the constant guidance he provided me in

every need of mine throughout my whole internship period. He has been extremely kind to lend

me his valuable time whenever I needed. I would also like to thank the officers and senior

officers for helping me to learn about banking activities, and adjusting myself in a corporate

environment. They also provided me valuable information, guideline which helped me a lot to

prepare this report.

Besides, I am also grateful to the others, researchers, writers whose books, articles, thesis

papers, and journal that have helped me to prepa

At last but not the least, without the help of

was quite impossible for me

information about this topic which wa

them.

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 5

Acknowledgement

Though the internship program has to be done individually in a sense of completion of

the credit hour but it is quite impossible to do alone without the sincere and

of some individuals. It is a very great and unique pleasure to me that I have got a chance to thank

some individuals for their help and encouragement to make the internship successful.

I would like to express my gratitude to almighty Allah for creating us in such a

beautiful country like Bangladesh with good health and tenacity of mind to complete the

requirements for the degree. For the mercy of Him, I have got such courage to start this

“Role of compensation practices on employee’s motivation

m also grateful to my parents and family members for supporting me

and providing me with the basic necessities of my life since my birth.

With due respect, I would like to thank to the Head of the Department,

incere gratitude to my academic supervisor

, Senior Lecturer, Department of Business Administration. I am deeply indebted to his

whole hearted supervision to me during the Internship Period. His valuable suggestions &

me a lot to prepare the report in a well-organized manner.

I would like to express my special thanks to Mr. Nazrul Islam , SAVP and Head of the

Branch, Amberkhana Branch Prime Bank Limited, for the constant guidance he provided me in

oughout my whole internship period. He has been extremely kind to lend

me his valuable time whenever I needed. I would also like to thank the officers and senior

officers for helping me to learn about banking activities, and adjusting myself in a corporate

environment. They also provided me valuable information, guideline which helped me a lot to

Besides, I am also grateful to the others, researchers, writers whose books, articles, thesis

papers, and journal that have helped me to prepare my Internship report successfully.

At last but not the least, without the help of my friends, classmates

for me to prepare such kind of report. They gave me

information about this topic which was unknown to me. So, I would like to give thanks to all of

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Though the internship program has to be done individually in a sense of completion of

alone without the sincere and utmost cooperation

pleasure to me that I have got a chance to thank

some individuals for their help and encouragement to make the internship successful.

for creating us in such a

with good health and tenacity of mind to complete the

have got such courage to start this

“Role of compensation practices on employee’s motivation: A study on

and family members for supporting me

Head of the Department, Professor Dr.

incere gratitude to my academic supervisor Mr. Md. Shamimul

, Senior Lecturer, Department of Business Administration. I am deeply indebted to his

whole hearted supervision to me during the Internship Period. His valuable suggestions &

organized manner.

, SAVP and Head of the

Branch, Amberkhana Branch Prime Bank Limited, for the constant guidance he provided me in

oughout my whole internship period. He has been extremely kind to lend

me his valuable time whenever I needed. I would also like to thank the officers and senior

officers for helping me to learn about banking activities, and adjusting myself in a corporate

environment. They also provided me valuable information, guideline which helped me a lot to

Besides, I am also grateful to the others, researchers, writers whose books, articles, thesis

re my Internship report successfully.

classmates and senior brothers it

ve me some necessary

would like to give thanks to all of

Page 6: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Workforce today is more expressive about their needs. Employees desire the best of everything competitive salaries, comfortable & inspirational lifestyles, job security, caoptions, work-life balance, and so on. Competition for talent is ever increasing and organizations need to have well-defined philosophies and strategies to help them develop innovative ways of tapping intrinsic motivation of employees by e

The objective of this study is to analyze the initiatives for by Prime Bank Limited and recognize historical evaluation of compensation practices regard, two types of reward are identified, and they are intrinsic rewExtensive research showed that reward can affect job satisfaction and thereby employee performance. To retain efficient and experienced workforce in an organization is very crucial in overall performance of an organization. Motivated employees can help make an organization competitively more value added and profitable. The present study is amajor factors that motivate recognition and motivation while working within an organization. managers and policy makers in the context of huLimitations and guidelines for future research are also provided. More research is needed on the relative cost-benefit of cash and gift incentives, and the way different types of tangible incentives are selected. Long-term programs led to greater performance gains than shorterdid, and somewhat greater performance gains were realized for manual than for cognitive work.

Any theories about motivation can be contradictedexceptions. It is important that these theories are considered general statements that have been confirmed through observational studies and are applicable only to the extent that they reflect and are influenced by individual behaviour. If we are searchinguniversally applicable, we may be wasting our time, but if our goal is to better understand human behaviour and its impacts on personal performance, the insights gained from such theories and studies are invaluable. The mosHerzberg’s two-factor theory, and the different types of motivation. Each theory is related in the fact that there are needs for all people to meet. Every employee is at a different stage in their lives, which requires different management techniques. It is shown that motivation must come from within the employee. The theories investigated will help describe how managers can influence their employees to self motivate and produce the best work possibspecific types of motivation: financial and nonemployees using financial means as well as non

The focus should be given on how managers are able to implement these typemotivation into their specific work place. This will show how motivation is important to all industries, and how it can change and impact the amount sales a employees will in turn create a successful

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 6

Executive Summary

Workforce today is more expressive about their needs. Employees desire the best of everything competitive salaries, comfortable & inspirational lifestyles, job security, ca

life balance, and so on. Competition for talent is ever increasing and organizations defined philosophies and strategies to help them develop innovative ways of

tapping intrinsic motivation of employees by engaging their hearts and minds.The objective of this study is to analyze the initiatives for compensation practices

by Prime Bank Limited and recognize compensation practices in it. Besides to find out the compensation practices here is also another reason of the study.

regard, two types of reward are identified, and they are intrinsic reward and extrinsic reward. research showed that reward can affect job satisfaction and thereby employee

performance. To retain efficient and experienced workforce in an organization is very crucial in overall performance of an organization. Motivated employees can help make an organization competitively more value added and profitable. The present study is an attempt to find out the

employees and it tells about the relationshipon and motivation while working within an organization. Implications of the study for

managers and policy makers in the context of human resource practices have been discussed. Limitations and guidelines for future research are also provided. More research is needed on the

benefit of cash and gift incentives, and the way different types of tangible incentives term programs led to greater performance gains than shorter

did, and somewhat greater performance gains were realized for manual than for cognitive work. Any theories about motivation can be contradicted since these theories have many

exceptions. It is important that these theories are considered general statements that have been confirmed through observational studies and are applicable only to the extent that they reflect and are influenced by individual behaviour. If we are searching for scientific evidence that is universally applicable, we may be wasting our time, but if our goal is to better understand human behaviour and its impacts on personal performance, the insights gained from such theories and

The most important theories include: Maslow’s hierarchy of needs, factor theory, and the different types of motivation. Each theory is related in the

fact that there are needs for all people to meet. Every employee is at a different stage in their lives, which requires different management techniques. It is shown that motivation must come from within the employee. The theories investigated will help describe how managers can influence their employees to self motivate and produce the best work possibspecific types of motivation: financial and non-financial. The employers can motivate their employees using financial means as well as non-financial recognitions.

The focus should be given on how managers are able to implement these typemotivation into their specific work place. This will show how motivation is important to all industries, and how it can change and impact the amount sales a bankemployees will in turn create a successful bank.

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Workforce today is more expressive about their needs. Employees desire the best of everything competitive salaries, comfortable & inspirational lifestyles, job security, career enhancement

life balance, and so on. Competition for talent is ever increasing and organizations defined philosophies and strategies to help them develop innovative ways of

ngaging their hearts and minds. compensation practices taken

in it. Besides to find out the is also another reason of the study. In this

ard and extrinsic reward. research showed that reward can affect job satisfaction and thereby employee

performance. To retain efficient and experienced workforce in an organization is very crucial in overall performance of an organization. Motivated employees can help make an organization

n attempt to find out the the relationship among reward,

Implications of the study for man resource practices have been discussed.

Limitations and guidelines for future research are also provided. More research is needed on the benefit of cash and gift incentives, and the way different types of tangible incentives

term programs led to greater performance gains than shorter-term programs did, and somewhat greater performance gains were realized for manual than for cognitive work.

since these theories have many exceptions. It is important that these theories are considered general statements that have been confirmed through observational studies and are applicable only to the extent that they reflect

for scientific evidence that is universally applicable, we may be wasting our time, but if our goal is to better understand human behaviour and its impacts on personal performance, the insights gained from such theories and

t important theories include: Maslow’s hierarchy of needs, factor theory, and the different types of motivation. Each theory is related in the

fact that there are needs for all people to meet. Every employee is at a different stage in their lives, which requires different management techniques. It is shown that motivation must come from within the employee. The theories investigated will help describe how managers can influence their employees to self motivate and produce the best work possible. There are two

financial. The employers can motivate their

The focus should be given on how managers are able to implement these types of motivation into their specific work place. This will show how motivation is important to all

bank performs. Motivated

Page 7: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Subjects

Letter of TransmittalLetter of AcceptanceAcknowledgementExecutive Summary

Chapter one (Introduction)1. Introduction .....................................................2. Background of the report3. Statement of the Problem 4. Objectives of the report5. Research design .................................................6. Data Collection Method

a. Primary sources b. Secondary sources

7. Sampling technique ..............................................................................8. Scope of the study ..........................................................................................9. Limitations of the study

Chapter two (An overview of Prime Bank Limited)

1. Introduction ..................................................................................2. History of Prime Bank3. Vision .......................................................................................4. Mission ....................................................................................5. Corporate Philosophy of Prime Bank Limited6. Slogan ......................................................................................7. Awards and Recognitions8. Departments of Prime Bank Limited9. Prime Bank at a Glance10. Organizational structure of Prime Bank Ltd11. Organogram of Prime Bank Limit

Chapter three (Internship experience at Prime Bank Limited)

1. My Experience in General Banking 2. My Experience in Card Division3. My Experience in Credit Division4. My Experience in Remittance section

Chapter four (Literature Review)

1. Introduction ...........................................................................2. Definition of Terms ......................................................

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 7

Table of contents

Letter of Transmittal Letter of Acceptance Acknowledgement Executive Summary

Chapter one (Introduction) ................................................................................... ..................................................................................................................

Background of the report ..............................................................................................the Problem .............................................................................................

Objectives of the report .............................................................................................................................................................................................................

Data Collection Method ................................................................................................Primary sources .....................................................................Secondary sources .................................................................

........................................................................................................................................................................study .........................................................................................

o (An overview of Prime Bank Limited) ................................

...........................................................................................................History of Prime Bank ..........................................................................

............................................................................................................................................................................................................................................

Corporate Philosophy of Prime Bank Limited ......................................................................................................................................................................................

wards and Recognitions ........................................................................artments of Prime Bank Limited ..........................................................................

Glance ..........................................................................................Organizational structure of Prime Bank Ltd .......................................Organogram of Prime Bank Limited ....................................................................

(Internship experience at Prime Bank Limited) ...........

My Experience in General Banking ............................................................................My Experience in Card Division ....................................................................................My Experience in Credit Division .............................................................................My Experience in Remittance section ...........................................................................

(Literature Review) ...................................................................

.............................................................................................................................................................................................

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

pages

............................... (11-13) ..................................... 11

.......................................................... 11 ............................... 11

...................................................... 12 ......................................... 12

................................... 12

................................... 12 ............................................................................................. 12

....................................................................................................... 13 ......................................................................................................... 13

................................................................................................ 13

......................... (15-22)

.................................. 15 ................................... 15

....................................... 15 ........................................ 16 ...................................... 16

........................................ 16 ................................................................................................ 17

................................ 19 .................................................................................................... 20

.................................................................... 21 ............................................................................... 22

............................. (24)

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................................................................ 24 ............................................................................. 24

....................................... (26-41)

........................................ 26 .................................................. 26

Page 8: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

3. Importance of incentives 4. Reward .....................................................................................5. Types of rewards .........................................................................................6. Length of Reward Program7. Importance of a Reward System8. Benefits .............................................................................9. Types of Benefits ..........................................................................................10. Equity-based compensation 11. Motivation .......................................................................12. Significance of motivation in the workplace13. Motivating by meeting basic human needs14. Maslow's need hierarchy theory15. Alderfer’s ERG theory16. Three Components of Motivation17. Procedural justice theory18. Designing jobs that motivate19. Job Enlargement: Doing More of the Same Kind of Work20. Job Enrichment: Increasing Required Skills and Responsibilities21. The job characteristics model22. Suggestions for Enhancing the Motivating Potential of Jobs23. Rewards and Incentives theories24. The Carrot and Stick Approach to Motivation25. Is money the best ‘carrot’?26. Motivation-Hygiene Theory27. Theory X of McGregor28. Theory Y of McGregor

Chapter five (Compensation and motivation practices of

1. HR Principles of Prime Bank2. Talent Resourcing, Learning and Development Culture3. Open and Fair Evaluation System for Employees4. Competitive Compensation Package5. Performance Bonus ..................................................................................6. 'We, not I' Culture ....................................................................................7. Knowledge Sharing and Open House Discussions8. Human Capital .......................................................................................9. Compensations offered by Prime Bank Ltd. to the employees

a. Basic Salary .................................................................................b. House Rent Allowancec. Conveyance ....................................................................................d. Leave travel allowancee. Medical reimbursementf. Staff loan facilitiesg. Bonus ..................................................................................................................

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 8

Importance of incentives .................................................................................................................................................................................................................

.........................................................................................th of Reward Program .........................................................................................

Importance of a Reward System ........................................................................................................................................................................................

..........................................................................................compensation ....................................................................................

.................................................................................................Significance of motivation in the workplace ..........................................Motivating by meeting basic human needs .........................................................

need hierarchy theory ..........................................................Alderfer’s ERG theory ........................................................................Three Components of Motivation ..............................................................Procedural justice theory ..............................................................................Designing jobs that motivate ........................................................................Job Enlargement: Doing More of the Same Kind of Work ............................Job Enrichment: Increasing Required Skills and Responsibilities ..................The job characteristics model .....................................................................Suggestions for Enhancing the Motivating Potential of Jobs ..................Rewards and Incentives theories ...........................................................The Carrot and Stick Approach to Motivation ......................................

‘carrot’? ......................................................................Hygiene Theory ....................................................................

Theory X of McGregor ............................................................................Theory Y of McGregor ...................................................................................

(Compensation and motivation practices of PBL) .......................

HR Principles of Prime Bank Limited ...................................................................earning and Development Culture ...............................................

Open and Fair Evaluation System for Employees ................................................Competitive Compensation Package .......................................................

......................................................................................................................................................................

Knowledge Sharing and Open House Discussions .....................................................................................................................................

Compensations offered by Prime Bank Ltd. to the employees ...........................................................................................

House Rent Allowance .......................................................................................................................................................................

Leave travel allowance ...............................................................................Medical reimbursement .......................................................................

facilities ................................................................................................................................................................................................................

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

..................................... 27 .................................... 27

.......................................................................................................... 28 ................................ 29 ................................ 29

........................................... 30 ......................................................................................................... 30

................................... 31 ............................................. 31

.................................................. 32 ........................................ 33

................................................................................... 33 ................................................................................................. 34

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.............................................................. 38 ..................................................... 39 ..................................................... 40

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....................... (43-47)

........................................................................... 43 ............................................... 43

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...................................... 45 ........................................................................................................ 45

................................ 45 ........................................................................................................ 46

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Page 9: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

h. Special allowance10. Motivational facts on Prime Bank Ltd.

a) Ensuring horizontal and vertical caree

b) Succession planning

c) Comprehensive performance management program

d) Reward & recognition program

e) Grievances and counselling

f) Competitive compensation package

g) Ensuring a decent workplace

Chapter six (Data Analysis and findings) Chapter seven (Recommendations and Conclusion) Appendix

1. Bibliography 2. Questionnaire 3. Terms and acronyms

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 9

Special allowance .........................................................................................Motivational facts on Prime Bank Ltd. .................................................

Ensuring horizontal and vertical career growth ...............................

Succession planning ..............................................................................

Comprehensive performance management program .....................................

Reward & recognition program ......................................................................

Grievances and counselling ..................................................................................

Competitive compensation package .........................................................................

Ensuring a decent workplace ................................................................................

(Data Analysis and findings) .......................................

Chapter seven (Recommendations and Conclusion) .....................

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

................................................................................................ 46 .................................. 46

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............................................................ (49-63)

.......................................... (65-67)

Page 10: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Chapter

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 10

Chapter One (Introduction)

1. Introduction 2. Background of the report 3. Statement of the Problem 4. Objectives of the report 5. Research design 6. Data Collection Method

a. Primary sources b. Secondary sources

7. Sampling technique 8. Scope of the study 9. Limitations of the study

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

ne (Introduction)

Statement of the Problem

Page 11: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Introduction An internship program is a very good approach to co

with the theoretical knowledge because it provides an an organization with some specific objectives. As a result it bears great importance in case of business graduates.

Workforce today is more articulate about their needs. Employees everything competitive salaries, comfortable & inspirational lifestyles, job security, career enhancement options, work-life balance, and so on. Competition for talent is ever increasing and organizations need to have wellinnovative ways of tapping intrinsic motivation of employees by engaging their hearts and minds. While many organizations are struggling to make sufficient progress in this direction, there are organizations that have institutionalized strong prdifferent people practice areas that go a long way in positively impacting employee perception. Most employers today would like to have their employee’s motivated and ready to work, but do not understand what truly motivaspecifically an employee, to succeed in the workplace. I will examine different theories of motivations, how they are relevant to the workplace, and how employers can implement the theories to ensure happy and motivated employees.

Now, the main objective of my internship program was to evaluate the compensation practices on employees’ motivation: A study on Prime Bank Limitedreport is basically a result of experience in the Background of the report

As a requirement of the completion of the graduation of Business Administration degree under direct supervision of my internship report supervisor assigned to do my internship at Prime Bank Limited Amberkhana Branch, Sylhet for a specified period of 3 months from 21th September to 20th December, 2015.opportunity for me to work in one of the reputed private commerciPrime Bank Limited. During this period I had the opportunity to work in all sections of Prime Bank Limited. This report is a formal documentation of this internship program. Statement of the Problem

While compensation is arguastudied areas, doubts may arise on the effectiveness of compensation. While lack of it causes dissatisfaction, its provision does not result in lasting motivation. The effects of compensation on motivation vary from organization to organization. Most people are motivated by money at least for their basic needs and wants. Employees’ motivation through compensation can be in several forms including salary raises, performance bonuses, commissions, pbenefits such as vacations, cars and other tangible items that are used as rewards. These compensation systems can be categorized as direct financial payment and indirect financial

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 11

An internship program is a very good approach to co-relate the practical work experience with the theoretical knowledge because it provides an individual the great opportunity to work in an organization with some specific objectives. As a result it bears great importance in case of

Workforce today is more articulate about their needs. Employees mpetitive salaries, comfortable & inspirational lifestyles, job security, career

life balance, and so on. Competition for talent is ever increasing and organizations need to have well-defined philosophies and strategies to help thinnovative ways of tapping intrinsic motivation of employees by engaging their hearts and minds. While many organizations are struggling to make sufficient progress in this direction, there are organizations that have institutionalized strong practices and effective processes in different people practice areas that go a long way in positively impacting employee perception. Most employers today would like to have their employee’s motivated and ready to work, but do not understand what truly motivates a person. There are essential needs to be met for a person, specifically an employee, to succeed in the workplace. I will examine different theories of motivations, how they are relevant to the workplace, and how employers can implement the

ensure happy and motivated employees. Now, the main objective of my internship program was to evaluate the

compensation practices on employees’ motivation: A study on Prime Bank Limitedreport is basically a result of experience in the compensation practices of Prime Bank Limited.

As a requirement of the completion of the graduation of Business Administration degree under direct supervision of my internship report supervisor Mr. Md. Shamimul Islamassigned to do my internship at Prime Bank Limited Amberkhana Branch, Sylhet for a specified

21th September to 20th December, 2015. As an intern it was a great opportunity for me to work in one of the reputed private commercial banks of Bangladesh, the Prime Bank Limited. During this period I had the opportunity to work in all sections of Prime Bank Limited. This report is a formal documentation of this internship program.

While compensation is arguably one of the key drivers of motivation and one of the most studied areas, doubts may arise on the effectiveness of compensation. While lack of it causes dissatisfaction, its provision does not result in lasting motivation. The effects of compensation on motivation vary from organization to organization. Most people are motivated by money at least for their basic needs and wants. Employees’ motivation through compensation can be in several forms including salary raises, performance bonuses, commissions, profit sharing and other extra benefits such as vacations, cars and other tangible items that are used as rewards. These compensation systems can be categorized as direct financial payment and indirect financial

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

relate the practical work experience individual the great opportunity to work in

an organization with some specific objectives. As a result it bears great importance in case of

Workforce today is more articulate about their needs. Employees desire the best of mpetitive salaries, comfortable & inspirational lifestyles, job security, career

life balance, and so on. Competition for talent is ever increasing and defined philosophies and strategies to help them develop

innovative ways of tapping intrinsic motivation of employees by engaging their hearts and minds. While many organizations are struggling to make sufficient progress in this direction,

actices and effective processes in different people practice areas that go a long way in positively impacting employee perception. Most employers today would like to have their employee’s motivated and ready to work, but do

tes a person. There are essential needs to be met for a person, specifically an employee, to succeed in the workplace. I will examine different theories of motivations, how they are relevant to the workplace, and how employers can implement the

Now, the main objective of my internship program was to evaluate the Role of compensation practices on employees’ motivation: A study on Prime Bank Limited and this

of Prime Bank Limited.

As a requirement of the completion of the graduation of Business Administration degree Mr. Md. Shamimul Islam I was

assigned to do my internship at Prime Bank Limited Amberkhana Branch, Sylhet for a specified As an intern it was a great

al banks of Bangladesh, the Prime Bank Limited. During this period I had the opportunity to work in all sections of Prime Bank Limited. This report is a formal documentation of this internship program.

bly one of the key drivers of motivation and one of the most studied areas, doubts may arise on the effectiveness of compensation. While lack of it causes dissatisfaction, its provision does not result in lasting motivation. The effects of compensation on motivation vary from organization to organization. Most people are motivated by money at least for their basic needs and wants. Employees’ motivation through compensation can be in several

rofit sharing and other extra benefits such as vacations, cars and other tangible items that are used as rewards. These compensation systems can be categorized as direct financial payment and indirect financial

Page 12: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

payments. In today’s work environment, there need for empowered employees, decline in traditional incentives, rise of nontraditional incentives and increased use of variable compensation. Studies have also shown that compensation programs and the met Objectives of the report

� To analyze the initiatives ofrecognize compensation practices

� To find the most suitable � Finding out the historical evaluation of � To analyze the components of � To find out the weaknesses of the current � To suggest some guidelines to improve the current compensation practices that will

ideally improve the motivation of the employee Research design:

The research is based on explanatory in terms of research type which has its primary objective the provision of insights into and comprehension of the problem situation confronting the researcher. This research process is flexible and unstructured. By doing explanatory research it will be helpful to study about compensation practices in Prime Bank Limittowards compensation practices taken by Prime Bank Limited. Data Collection Method:

The objectivity of any study depends largely on how methodologically it is done. For the purpose of this report I have used both qualitative and quantitjudgment opportunity.

a) Primary sources: This report has prepared through the use of primary data. It is collected from a group of people who are working in this bank. The following

i. Questionnaire ii. Observation iii. Frequent conversation with the officers of Prime Bank Limitediv. Direct conversation with the manager and officers of Prime Bank Limited

b) Secondary sources: i. Annual report of Prime Bank Limited, 2014ii. Different publications ofiii. Internal records of the bankiv. Reports published by Bangladesh Bank.v. Some national & international journals about vi. Relevant documents related to the study as provided by the officers.

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 12

payments. In today’s work environment, there is more change and uncertainty; there is increased need for empowered employees, decline in traditional incentives, rise of nontraditional incentives and increased use of variable compensation. Studies have also shown that compensation programs and the methods of administration affect employee’s motivation.

To analyze the initiatives of compensation practices taken by Prime Bank Limited and compensation practices in it.

To find the most suitable compensation practices in the Prime Bank Limited.Finding out the historical evaluation of compensation practices at Prime Bank LimitedTo analyze the components of compensation practices & their effectiveness of PTo find out the weaknesses of the current compensation policy.

some guidelines to improve the current compensation practices that will e the motivation of the employees’.

The research is based on explanatory in terms of research type which has its primary provision of insights into and comprehension of the problem situation confronting

the researcher. This research process is flexible and unstructured. By doing explanatory research it will be helpful to study about compensation practices in Prime Bank Limittowards compensation practices taken by Prime Bank Limited.

The objectivity of any study depends largely on how methodologically it is done. For the purpose of this report I have used both qualitative and quantitative information to give it a clear

This report has prepared through the use of primary data. It is collected from a group of people who are working in this bank. The following methods are used in collecting

Frequent conversation with the officers of Prime Bank Limited Direct conversation with the manager and officers of Prime Bank Limited

Annual report of Prime Bank Limited, 2014 Different publications of Prime Bank Limited Internal records of the bank Reports published by Bangladesh Bank. Some national & international journals about compensation practicesRelevant documents related to the study as provided by the officers.

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

is more change and uncertainty; there is increased need for empowered employees, decline in traditional incentives, rise of nontraditional incentives and increased use of variable compensation. Studies have also shown that

hods of administration affect employee’s motivation.

taken by Prime Bank Limited and

the Prime Bank Limited. at Prime Bank Limited

& their effectiveness of PBL.

some guidelines to improve the current compensation practices that will

The research is based on explanatory in terms of research type which has its primary provision of insights into and comprehension of the problem situation confronting

the researcher. This research process is flexible and unstructured. By doing explanatory research it will be helpful to study about compensation practices in Prime Bank Limited and initiatives

The objectivity of any study depends largely on how methodologically it is done. For the ative information to give it a clear

This report has prepared through the use of primary data. It is collected from a group of people methods are used in collecting data. These are:

Direct conversation with the manager and officers of Prime Bank Limited

compensation practices Relevant documents related to the study as provided by the officers.

Page 13: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Sampling technique: a) Elements: Branch Manager, Executives and Officers of Prime Bank Limited

Amberkhana branch, Executives of PBL Head Officeb) Sampling size: Sample size of this study is 20 officers including branch manager,

executives and officers of Prime Bank Limited Amberkhana branch.c) Sampling method: I have taken Convenience sampling method. Convenience sampling

means- A nonprobability sampling technique that attempts to obtain a sample of convenient elements. The selection of sampling units is left primarily to the interviewer. It can be used where the respondents and the interviewees are considered on my convenience and priority.

d) Data collection period20th December, 2015. The study covers

e) Techniques of analysis: Excel.

f) Data Presentation: I have used graph, chart, table and diagram to analyze the data.g) Data collection area:

branch.

Scope of the study: This internship program gives me a great opportunity for gathering experience and

knowledge in several areas of banking by which I can evaluate or expose myself. The scope of this report is mostly limited to Prime Bank Limitedobservations. For the purpose of my internship program I was assigned at Prime Bank Limited, Amberkhana Branch. I have worked as a service intern and try to resolve customer’s problem. Also I worked in different departactivities within these three months. Limitations of the study:

For the purpose of acquiring data to prepare this report I faced some constraints that are listed below:

i. Because of time and cost bank was a difficult task within the time allowed for the internship program.

ii. Another limitation of this report is the bank’s policy of not disclosing some data and information, which would havupdated information was not published or available.

iii. Preparing a formal document like an internship report requires some prior experience in this field. I have tried my level best to reduce the distortithat I have used in this report.

iv. The personnel of the bank are usually busy with their daily activities and routine tasks, therefore interacting with them during their office hours is difficult sometimes.

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 13

anch Manager, Executives and Officers of Prime Bank Limited Amberkhana branch, Executives of PBL Head Office.

Sample size of this study is 20 officers including branch manager, executives and officers of Prime Bank Limited Amberkhana branch.

I have taken Convenience sampling method. Convenience sampling A nonprobability sampling technique that attempts to obtain a sample of

convenient elements. The selection of sampling units is left primarily to the interviewer. n be used where the respondents and the interviewees are considered on my

convenience and priority. Data collection period: The necessary data have been collected from 21th September to 20th December, 2015. The study covers compensation practices in

echniques of analysis: The data have been tabulated and analyzed with the help of

I have used graph, chart, table and diagram to analyze the data.Data collection area: Data have been collected from Prime Bank Limited Amberkhan

This internship program gives me a great opportunity for gathering experience and knowledge in several areas of banking by which I can evaluate or expose myself. The scope of this report is mostly limited to Prime Bank Limited, as the report is based on practical observations. For the purpose of my internship program I was assigned at Prime Bank Limited, Amberkhana Branch. I have worked as a service intern and try to resolve customer’s problem. Also I worked in different department of the bank. But it was not possible to learn all job activities within these three months.

For the purpose of acquiring data to prepare this report I faced some constraints that are listed

Because of time and cost constraints, covering the entire compensation practices of the bank was a difficult task within the time allowed for the internship program.Another limitation of this report is the bank’s policy of not disclosing some data and information, which would have been very much useful for the report. In many cases, updated information was not published or available. Preparing a formal document like an internship report requires some prior experience in this field. I have tried my level best to reduce the distortion or biasness of information that I have used in this report. The personnel of the bank are usually busy with their daily activities and routine tasks, therefore interacting with them during their office hours is difficult sometimes.

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

anch Manager, Executives and Officers of Prime Bank Limited

Sample size of this study is 20 officers including branch manager, executives and officers of Prime Bank Limited Amberkhana branch.

I have taken Convenience sampling method. Convenience sampling A nonprobability sampling technique that attempts to obtain a sample of

convenient elements. The selection of sampling units is left primarily to the interviewer. n be used where the respondents and the interviewees are considered on my

: The necessary data have been collected from 21th September to in PBL.

The data have been tabulated and analyzed with the help of MS

I have used graph, chart, table and diagram to analyze the data. Data have been collected from Prime Bank Limited Amberkhana

This internship program gives me a great opportunity for gathering experience and knowledge in several areas of banking by which I can evaluate or expose myself. The scope of

, as the report is based on practical observations. For the purpose of my internship program I was assigned at Prime Bank Limited, Amberkhana Branch. I have worked as a service intern and try to resolve customer’s problem.

ment of the bank. But it was not possible to learn all job

For the purpose of acquiring data to prepare this report I faced some constraints that are listed

constraints, covering the entire compensation practices of the bank was a difficult task within the time allowed for the internship program. Another limitation of this report is the bank’s policy of not disclosing some data and

e been very much useful for the report. In many cases,

Preparing a formal document like an internship report requires some prior experience in on or biasness of information

The personnel of the bank are usually busy with their daily activities and routine tasks, therefore interacting with them during their office hours is difficult sometimes.

Page 14: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

(An overview of Prime Bank Limited)

1. Introduction2. History of Prime Bank3. Vision 4. Mission5. Corporate Philosophy of Prime Bank Limited6. Slogan 7. Awards and Recognitions8. Departments of Prime Bank Limited9. Prime Bank at a Glance10. Organizational structure of Prime 11. Organogram of Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 14

Chapter Two overview of Prime Bank Limited)

Introduction History of Prime Bank

Mission Corporate Philosophy of Prime Bank Limited

Awards and Recognitions Departments of Prime Bank Limited Prime Bank at a Glance

Organizational structure of Prime Organogram of Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

overview of Prime Bank Limited)

Corporate Philosophy of Prime Bank Limited

Organizational structure of Prime Bank Ltd Organogram of Prime Bank Limited

Page 15: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Introduction: In the backdrop of economic liberalization and financial sector reforms, a group of highly

successful local entrepreneurs visualized an idea of introducing a commercial bank with different outlook. For them, it was competence, excellence and consistent delsuperior value products. Accordingly, Prime Bank was created and commencement of business started on 17th April 1995.

As a fully licensed commercial bank, Prime Bank is being managed by a highly professional and dedicated teunderstanding and anticipating customer needs. As the banking scenario undergoes changes so is the bank and it repositions itself in the changed market condition. Prime Bank has already made significant progress within a very short period of its existence. The bank has been graded as a top class bank in the country through internationally accepted CAMELS rating. The bank has already occupied an enviable position among its competitors after achieviof business operation.

Prime Bank offers all kinds of commercial corporate and personal banking services covering all segments of society within the framework of banking regulations laid down by central bank.Banking, Retail Banking and Consumer Banking right from industry to agriculture, and real state to software. Prime Bank, since its beginning has attached more importance in technology integration. In order to retain competitive edge, investment in technology is always a top agenda and under constant focus. Keeping the network within a reasonable limit, its strategy is to serve the customers through capacity building across multipoised to take its customers through fast changing times and enable them compete more effectively in the market. History of Prime Bank:

Prime Bank Ltd was incorporated under the this day field a duly verified, declaration in the prescribed from that the condition of section 150 (1) (a) to (b) of the said Act, have been compiled with is entitled to commence business as public limited bank. PBL being a banking registered office at 5, Rajuk Avenue, Motijheel C/A, Dhaka 1000, Later it was shifted to Adamjee Court Annex Building, 119industrialists, business house and professionals of the incorporation of the bank. Initially the bank was having authorized capital of TK 1,000 million and paid up capital of TK 100 million sponsored by 22 members of Board of Directors. Vision:

“To be the best Private Commercial Bank in Bangladesh in terms of efficiency, capital adequacy, asset quality, sound management and profitability having strong liquidity”

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 15

In the backdrop of economic liberalization and financial sector reforms, a group of highly successful local entrepreneurs visualized an idea of introducing a commercial bank with different outlook. For them, it was competence, excellence and consistent delivery of reliable service with superior value products. Accordingly, Prime Bank was created and commencement of business

As a fully licensed commercial bank, Prime Bank is being managed by a highly professional and dedicated team with long experience in banking. They constantly focus on understanding and anticipating customer needs. As the banking scenario undergoes changes so is the bank and it repositions itself in the changed market condition. Prime Bank has already made

ificant progress within a very short period of its existence. The bank has been graded as a top class bank in the country through internationally accepted CAMELS rating. The bank has already occupied an enviable position among its competitors after achievi

Prime Bank offers all kinds of commercial corporate and personal banking services covering all segments of society within the framework of banking bankregulations laid down by central bank. Diversification of products and services include Corporate Banking, Retail Banking and Consumer Banking right from industry to agriculture, and real state to software. Prime Bank, since its beginning has attached more importance in technology

In order to retain competitive edge, investment in technology is always a top agenda and under constant focus. Keeping the network within a reasonable limit, its strategy is to serve the customers through capacity building across multi-delivery channels. PBL is better placed and poised to take its customers through fast changing times and enable them compete more

Prime Bank Ltd was incorporated under the Bank ACT, 1994 on February 12. 1995. On ield a duly verified, declaration in the prescribed from that the condition of section 150

(1) (a) to (b) of the said Act, have been compiled with is entitled to commence business as public . PBL being a banking bank has been registered under the Bank

registered office at 5, Rajuk Avenue, Motijheel C/A, Dhaka 1000, Later it was shifted to Adamjee Court Annex Building, 119-120, Motijheel C/A Dhaka 1000. A group of renowned industrialists, business house and professionals of the country is sponsored from the incorporation of the bank. Initially the bank was having authorized capital of TK 1,000 million and paid up capital of TK 100 million sponsored by 22 members of Board of Directors.

“To be the best Private Commercial Bank in Bangladesh in terms of efficiency, capital adequacy, asset quality, sound management and profitability having strong liquidity”

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

In the backdrop of economic liberalization and financial sector reforms, a group of highly successful local entrepreneurs visualized an idea of introducing a commercial bank with different

ivery of reliable service with superior value products. Accordingly, Prime Bank was created and commencement of business

As a fully licensed commercial bank, Prime Bank is being managed by a highly am with long experience in banking. They constantly focus on

understanding and anticipating customer needs. As the banking scenario undergoes changes so is the bank and it repositions itself in the changed market condition. Prime Bank has already made

ificant progress within a very short period of its existence. The bank has been graded as a top class bank in the country through internationally accepted CAMELS rating. The bank has already occupied an enviable position among its competitors after achieving success in all areas

Prime Bank offers all kinds of commercial corporate and personal banking services bank act and rules and

Diversification of products and services include Corporate Banking, Retail Banking and Consumer Banking right from industry to agriculture, and real state to software. Prime Bank, since its beginning has attached more importance in technology

In order to retain competitive edge, investment in technology is always a top agenda and under constant focus. Keeping the network within a reasonable limit, its strategy is to serve

PBL is better placed and poised to take its customers through fast changing times and enable them compete more

ACT, 1994 on February 12. 1995. On ield a duly verified, declaration in the prescribed from that the condition of section 150

(1) (a) to (b) of the said Act, have been compiled with is entitled to commence business as public Bank ACT 1913 with its

registered office at 5, Rajuk Avenue, Motijheel C/A, Dhaka 1000, Later it was shifted to . A group of renowned

country is sponsored from the incorporation of the bank. Initially the bank was having authorized capital of TK 1,000 million and paid up capital of TK 100 million sponsored by 22 members of Board of Directors.

“To be the best Private Commercial Bank in Bangladesh in terms of efficiency, capital adequacy, asset quality, sound management and profitability having strong liquidity”

Page 16: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Mission: “To build Prime Bank Limited into an efficient, market driven, customer f

institution with good corporate governance structure. Continuous improvement in our business policies, procedure and efficiency through integration of technology at all levels.” Corporate Philosophy of Prime Bank LimitedFor Customers –

i. To provide the most courteous and efficient service in every aspect of its business.ii. To be innovative in the development of new banking products and services.

For Employees – i. By promoting their wellii. By promoting good staff morale through proper staff training and development, and

provision of opportunities for career development.

For Shareholders – i. By forging ahead and consolidating its position as a stable and progressive financial

institution. ii. By generating profits and fair return on their investment.

For Community – i. By assuming our role as a socially responsible corporate citizen in a tangible manner by

adhering closely to national policies and objectives thereby contributing towards the progress of the nation.

ii. By upholding ethical values and best practices.iii. Constantly seeking to improve performance by aligning our goals with stakeholders’

expectations because we value them.

Slogan: a bank with a difference

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 16

“To build Prime Bank Limited into an efficient, market driven, customer finstitution with good corporate governance structure. Continuous improvement in our business policies, procedure and efficiency through integration of technology at all levels.”

Corporate Philosophy of Prime Bank Limited

the most courteous and efficient service in every aspect of its business.To be innovative in the development of new banking products and services.

By promoting their well-being through attractive remuneration and fringe benefits.promoting good staff morale through proper staff training and development, and

provision of opportunities for career development.

By forging ahead and consolidating its position as a stable and progressive financial

ating profits and fair return on their investment.

By assuming our role as a socially responsible corporate citizen in a tangible manner by adhering closely to national policies and objectives thereby contributing towards the

the nation. By upholding ethical values and best practices. Constantly seeking to improve performance by aligning our goals with stakeholders’ expectations because we value them.

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

“To build Prime Bank Limited into an efficient, market driven, customer focused institution with good corporate governance structure. Continuous improvement in our business policies, procedure and efficiency through integration of technology at all levels.”

the most courteous and efficient service in every aspect of its business. To be innovative in the development of new banking products and services.

being through attractive remuneration and fringe benefits. promoting good staff morale through proper staff training and development, and

By forging ahead and consolidating its position as a stable and progressive financial

By assuming our role as a socially responsible corporate citizen in a tangible manner by adhering closely to national policies and objectives thereby contributing towards the

Constantly seeking to improve performance by aligning our goals with stakeholders’

Page 17: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

12th Bangladesh Awards

DHL -The Daily Star

SAFA Award 2010

Best Published Accounts & Corporate Disclosures in

Banking Sector

Prime Bank wins 1st Prize

in 11th ICAB National Awards

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 17

Awards and Recognitions:

The BIZZ 2012

Inspirational Bank Award

ICAB Best Published Accounts &

ICMAB Best Corporate

Award 2010

International Star for Leadership in Quality (ISLQ) Award 2010Business Initiative Directions (B.I.D.)

SAFA Best Presented

Accounts Awards 2009 Overall Winner

SAFA Best Presented Accounts and Corporate Governance Disclosures

Awards 2009 Winner (Banking Sector)

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

ICAB National Award 2010 Best Published Accounts &

Reports

International Star for Leadership in Quality (ISLQ) Award 2010 Business Initiative Directions (B.I.D.)

Paris, France

SAFA Best Presented

Accounts and Corporate Governance Disclosures

Awards 2009 Winner (Banking Sector)

Page 18: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

10th ICAB National Award for Best Published Accounts & Reports 2009

First (Banking Sector)

SAFA Best Presented Accounts Awards 3rd

Position

9th ICAB National Awards

for Best Published Accounts and Reports

2008 First Prize Financial Sector Banking

ICAB National Awards-2003 For Best Published Accounts and Reports Second Prize Financial

Sector (Banking)

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 18

SAFA Best Presented Accounts Awards 2008 Joint Winner Banking

Financial Sector

SAFA Best Presented Accounts Awards 2007 Bronze Award Banking

10th ICAB National

Award for Best Published Accounts & Reports 2009 Winner (Private Sector) Corporate Governance

Disclosure Awards

ICMAB Best Corporate

Performance Award 2008 First Position (Jointly)

FNS Award-2005 Best Performing Local Bank

ICAB National Awards 2004 For Best Published

Accounts and Reports First Prize Financial Sector

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

SAFA Best Presented Accounts Awards 2007 Bronze Award Banking

Sector

ICMAB Best Corporate

Performance Award 2008 First Position (Jointly)

ICAB National Awards - 2004 For Best Published

Accounts and Reports First Prize Financial Sector

(Banking)

Page 19: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Departments of Prime Bank Limited:The Department Based Approach is similar to that of the branch based approach, where each

department operates as a separate unit but sometimes collaborates in order operate more efficiently or to solve a common problem. Such departments are also treated asbut are much more specialized in one particular area of business unlike a branch, which has to be involved in multiple tasks. Examples of few other departments at Prime Bank Ltd are given below:

a) Human Resources Division (HRD) b) Financial and Administration Division (FAD) c) General banking department

i. Accounts opening section ii. Cash section iii. Remittance section iv. Bills and clearing section v. Accounts section

d) Foreign exchange department i. Import section ii. Export section iii. Foreign remittan

e) Marketing Division f) Public Relation Department (PRD) g) Merchant Banking and Investment Banking h) Treasury Division i) International Division (ID) j) Computer and Information Technology Department (IT) k) Credit Division l) Corporate Affairs Division m) Card Division n) Board Audit Cell o) Monitoring and Inspection Division

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 19

Departments of Prime Bank Limited: The Department Based Approach is similar to that of the branch based approach, where each

department operates as a separate unit but sometimes collaborates in order operate more efficiently or to solve a common problem. Such departments are also treated asbut are much more specialized in one particular area of business unlike a branch, which has to be involved in multiple tasks. Examples of few other departments at Prime Bank Ltd are given

Human Resources Division (HRD) Financial and Administration Division (FAD) General banking department

Accounts opening section

Remittance section Bills and clearing section Accounts section

Foreign exchange department Import section Export section Foreign remittance section

Public Relation Department (PRD) Merchant Banking and Investment Banking

International Division (ID) Computer and Information Technology Department (IT)

Corporate Affairs Division

Monitoring and Inspection Division

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

The Department Based Approach is similar to that of the branch based approach, where each department operates as a separate unit but sometimes collaborates in order operate more efficiently or to solve a common problem. Such departments are also treated as a separate entity but are much more specialized in one particular area of business unlike a branch, which has to be involved in multiple tasks. Examples of few other departments at Prime Bank Ltd are given

Page 20: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Prime Bank at a Glance:

1) Date of Incorporation 2) Date of Commencement of Business3) Logo of the Bank

4) Capital Authorized 5) Paid-up Capital 6) Net Profit 7) Deposits 8) 7) Loans & Advances 9) 8) Investment 10) 8) Global Reach 11) 9) Number of Employees12) 10) Cash Reserve Ratio13) 11) Market Price Per Share14) 12) Return on Equity 15) 13) Return on Assets 16) 14) Earnings per Share (EPS)17) 15) Name of the Chairman Of PBL18) 16) Number of Branches19) 17) Number of SME Branches20) 18) It is a Publicly Traded 21) 19) Credit Card 22) 20) Banking Operation System23) 21) Head Office

24) 22) Phone 25) 23) Telex 26) 24) Fax no. 27) 25) E-mail 28) 26) Swift 29) 27) Website

Source: Prime Bank Limited Annual Report 201

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 20

12th February, 1995 Date of Commencement of Business 17th April, 1995

Tk. 25000 Million Tk. 10,293 Million Tk. 2,393 Millions Tk. 204,838 Millions

Tk. 147,367 Millions TK. 72,642 Millions 638 Correspondents Worldwide

9) Number of Employees 2867 Cash Reserve Ratio 6.71%

11) Market Price Per Share 19.60 taka 10.08%

0.96% 14) Earnings per Share (EPS) 2.32 taka 15) Name of the Chairman Of PBL Azam J Chowdhury 16) Number of Branches 122

SME Branches 18 18) It is a Publicly Traded Bank Share quoted daily in DSE & CSE

Master Card, Platinum Card20) Banking Operation System Both conventional & Islamic Shariah System

Adamjee Court, Annexe Building120,Motijheel C/A, Dhaka9567265, 95670747-8 PABX642459 PRIME BJ, 671543 PBL MJ BJ880-2-9567230, 9560977, [email protected], [email protected] www.prime-bank.com

Source: Prime Bank Limited Annual Report 2014

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Correspondents Worldwide

Share quoted daily in DSE & CSE Master Card, Platinum Card Both conventional & Islamic Shariah System Adamjee Court, Annexe Building-2, 119-120,Motijheel C/A, Dhaka-1000, Bangladesh

8 PABX 642459 PRIME BJ, 671543 PBL MJ BJ

9567230, 9560977, 880-2-9566215 [email protected]

Page 21: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Organizational structure of Prime Bank L

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 21

Organizational structure of Prime Bank Ltd

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 22: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Organogram of Prime Bank Limited:

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

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Organogram of Prime Bank Limited:

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

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“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

(Internship experience at Prime Bank Limited)

1. My Experience in General Banking

2. My Experience in Card Division

3. My Experience in Credit Division

4. My Experience in Remittance section

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

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Chapter Three (Internship experience at Prime Bank Limited)

My Experience in General Banking

My Experience in Card Division

My Experience in Credit Division

My Experience in Remittance section

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

(Internship experience at Prime Bank Limited)

My Experience in Remittance section

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“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Working in Prime Bank opportunity for me to acquire practical knowledge about banking sector. I worsupervision of Mr. Wasim Ahmedalmost every division by rotation. It was a tremendous journey for me to go through the actual experience of banking sector. Real world is far away different from the theoretical knowledge. Especially in service sector there are both encouraging and offBank Limited Amberkhana Branch I works of bankers and observed how the works are being done accordingly to serve the customerproperly. My Experience in General Banking

At first I got the chance to work in general banking. Working in general banking was different and spontaneous experience. As in general banking sector I had to deal with the customers directly. This includes Some other works were also done by me. The list of jobs that I have done in general banking isgiven below:

a) Helping customer in filling their forms b) Briefing the customers about different Deposit Scheme of PBL c) Writing Inward register d) Issuing cheque books e) Making phone calls to clients to acknowledge them about the arrival of their cheque

books f) Registering the cheque requisition

My Experience in Card Division: I also worked in card

responsibilities while working in card division were as follow: a) Inputting data in Card Register b) Sorting collected cards from Alternative Delivery Channel (ADC) c) Maintaining Card pin and acknowledgement slips d) Delivering cards to the

My Experience in Credit Division:Credit section is much difficult and sensitive area

wasn’t allowed to work there. Yet I asked many questions to the credit officers to corns of their work. Thus I came to know something about their activities. My Experience in Remittance section

It’s another busiest section ohelped her if there is heavy work absence.

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

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Working in Prime Bank Limited Amberkhana Branch as an intern was the very first opportunity for me to acquire practical knowledge about banking sector. I wor

Ahmed chowdhury, Operation Manager of the bankon by rotation. It was a tremendous journey for me to go through the actual

experience of banking sector. Real world is far away different from the theoretical knowledge. Especially in service sector there are both encouraging and off-putting things to experience every day. As an intern of Prime

Limited Amberkhana Branch I experienced of so many new things. I came to know actual works of bankers and observed how the works are being done accordingly to serve the customer

eneral Banking (GB): chance to work in general banking. Working in general banking was

different and spontaneous experience. As in general banking sector I had to deal with the This includes helping the customers to fill up their account opening form.

s were also done by me. The list of jobs that I have done in general banking is

Helping customer in filling their forms Briefing the customers about different Deposit Scheme of PBL

nward register

Making phone calls to clients to acknowledge them about the arrival of their cheque

Registering the cheque requisition

My Experience in Card Division: division of Prime Bank Limited, Amberkhana Branch. My

responsibilities while working in card division were as follow: Inputting data in Card Register Sorting collected cards from Alternative Delivery Channel (ADC) Maintaining Card pin and acknowledgement slips Delivering cards to the customers

Division: Credit section is much difficult and sensitive area of a bank. That’s why

work there. Yet I asked many questions to the credit officers to s I came to know something about their activities.

My Experience in Remittance section: It’s another busiest section of PBL. A senior officer is appointed there. Sometime I

helped her if there is heavy work load and even I tried to handle the desk at the time of her

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Limited Amberkhana Branch as an intern was the very first opportunity for me to acquire practical knowledge about banking sector. I worked in under the

of the bank. I worked in on by rotation. It was a tremendous journey for me to go through the actual

Real world is far away different from the theoretical knowledge. Especially in service sector perience every day. As an intern of Prime

experienced of so many new things. I came to know actual works of bankers and observed how the works are being done accordingly to serve the customers

chance to work in general banking. Working in general banking was different and spontaneous experience. As in general banking sector I had to deal with the

fill up their account opening form. s were also done by me. The list of jobs that I have done in general banking is

Making phone calls to clients to acknowledge them about the arrival of their cheque

Amberkhana Branch. My

f a bank. That’s why as an intern I work there. Yet I asked many questions to the credit officers to know pros and

. A senior officer is appointed there. Sometime I to handle the desk at the time of her

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“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Chapter

1. Introduction2. Definition of Terms3. Importance of incentives 4. Reward 5. Types of rewards6. Length of Reward Program7. Importance of a Reward System8. Benefits 9. Types of Benefits10. Equity-based compensation11. Motivation12. Significance of motivation in the workplace13. Motivating by meeting basic human needs14. Maslow's need hierarchy theory15. Alderfer’s ERG theory16. Three Components of Motivation17. Procedural justice theory18. Designing jobs that motivate19. Job Enlargement: Doing More of th20. Job Enrichment: Increasing Required Skills and Responsibilities21. The job characteristics model22. Suggestions for Enhancing the Motivating Potential of Jobs23. Rewards and Incentives theories24. The Carrot and Stick Approach to Motivation25. Is money the best ‘carrot’?26. Motivation27. Theory X of McGregor28. Theory Y of McGregor

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

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Chapter Four (Literature Review)

Introduction Definition of Terms Importance of incentives

Types of rewards Length of Reward Program Importance of a Reward System

Types of Benefits based compensation

Motivation Significance of motivation in the workplace Motivating by meeting basic human needs Maslow's need hierarchy theory Alderfer’s ERG theory Three Components of Motivation Procedural justice theory Designing jobs that motivate Job Enlargement: Doing More of the Same Kind of WorkJob Enrichment: Increasing Required Skills and ResponsibilitiesThe job characteristics model Suggestions for Enhancing the Motivating Potential of JobsRewards and Incentives theories The Carrot and Stick Approach to Motivation

y the best ‘carrot’? Motivation-Hygiene Theory Theory X of McGregor Theory Y of McGregor

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

(Literature Review)

e Same Kind of Work Job Enrichment: Increasing Required Skills and Responsibilities

Suggestions for Enhancing the Motivating Potential of Jobs

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“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Introduction Compensation is output and the benefit that employees’ receive in the form of pay, wages

and also same rewards like monetary exchange for the employees’ to increases the Performance. Compensation is the segment of transition between the employees’ and the outcomes employees’ contract. As the prospective of employees’ pay is the necessary of life. The payment receives from work done on the behalf of people getting the employment. Compensation is mostly equal to half of cash flow of the more than half. It is the major to attract the employees’ and motivate them to increase the performance.

It argues that most individuals that jobs and their turnover rate is higher. Sretain the employees’ as well plays more to attract, retain and motivate to give man power. Different organizations designemployees’ who believe in increased.

In other words you can say that compensation and rewards effects the employees’ decision making to stay their organizations and also accepted the responsibiliemployees’ training as a compensation and benefits packagehuman resources normally increases the satisfaction and productivityemployees’ about the organization’s benefits performance good quality and quantity of work is done. Organizationinfluences to employees’ voluntary turnover employees’ compare to their pay available in other organization. Employee’s staytheir job promotional opportunities Definition of Terms Compensation

This is the package of quantifiable rewards employees’ receive for his or her labour. It includes three components: base compensation, pay incentives and indirect compensation/ benefits. Motivation

Motivation is concerned with factors that influence people to behave in certain ways. Motivating people is about getting them to move in the direction you results. There are two types of motivation these are, intrinsic motivationmotivation. Incentives

An incentive is something that motivates an individual to perform an action. The study of incentive structures is central to the study of all economic activities (both in terms of individual

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

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Compensation is output and the benefit that employees’ receive in the form of pay, wages and also same rewards like monetary exchange for the employees’ to increases the Performance. Compensation is the segment of transition between the employees’ and the outcomes employees’ contract. As the prospective of employees’ pay is the necessary of life. The payment receives from work done on the behalf of people getting the employment. Compensation is mostly equal to half of cash flow of the bank. But in the service sector it is more than half. It is the major to attract the employees’ and motivate them to increase the

individuals that are getting higher education are not satisfied rate is higher. So that organizations design the compensation plan to

retain the employees’ as well plays more to attract, retain and motivate to give man power. organizations design their benefits and compensation packages to attract

their abilities and know that if they perform well pay can be

In other words you can say that compensation and rewards effects the employees’ decision making to stay their organizations and also accepted the responsibiliemployees’ training as a compensation and benefits packages has increased

s normally increases the satisfaction and productivityorganization’s benefits policy should be clear. If pay is tied to employees’

performance good quality and quantity of work is done. Organizationalinfluences to employees’ voluntary turnover employees’ compare to their pay available in other

Employee’s stay or leave the bank much more depends on their satisfactionr job promotional opportunities and work environment.

This is the package of quantifiable rewards employees’ receive for his or her labour. It three components: base compensation, pay incentives and indirect compensation/

otivation is concerned with factors that influence people to behave in certain ways. Motivating people is about getting them to move in the direction you want them to go to achieve results. There are two types of motivation these are, intrinsic motivation

is something that motivates an individual to perform an action. The study of ntral to the study of all economic activities (both in terms of individual

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Compensation is output and the benefit that employees’ receive in the form of pay, wages and also same rewards like monetary exchange for the employees’ to increases the Performance. Compensation is the segment of transition between the employees’ and the owner that the outcomes employees’ contract. As the prospective of employees’ pay is the necessary of life. The payment receives from work done on the behalf of people getting the employment.

ut in the service sector it is more than half. It is the major to attract the employees’ and motivate them to increase the

are not satisfied with their o that organizations design the compensation plan to

retain the employees’ as well plays more to attract, retain and motivate to give man power. their benefits and compensation packages to attract qualified

that if they perform well pay can be

In other words you can say that compensation and rewards effects the employees’ decision making to stay their organizations and also accepted the responsibilities. The value of

s has increased the performance of s normally increases the satisfaction and productivity. The perception of

. If pay is tied to employees’ al pay system directly

influences to employees’ voluntary turnover employees’ compare to their pay available in other much more depends on their satisfaction with

This is the package of quantifiable rewards employees’ receive for his or her labour. It three components: base compensation, pay incentives and indirect compensation/

otivation is concerned with factors that influence people to behave in certain ways. want them to go to achieve

results. There are two types of motivation these are, intrinsic motivation and extrinsic

is something that motivates an individual to perform an action. The study of ntral to the study of all economic activities (both in terms of individual

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“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

decision-making and in terms structure). Economic analysis, then, of the differences between societies (and between different organizations within a society) largely amountsstructures faced by individuals involved in these collective efforts. Ultimately, incentives aim to provide value for money and contribute to organizational success.

Importance of incentives

Are your employees’ singing the blues? Are they seemingly unmotivated? Are you having a tough time getting them fired up about safety?starting an incentive program. And if that's the case, then a new study, "Incentives, Motivationand Workplace Performance: Research and Best Practices," contains some interesting information. For example, the study found that teamcan have a positive impact on the negative attitudes that adversely affect acgoals. The study is much comprehensive on the effectiveness of theto employers in determining the relationship between incentives, motivation and performance in the workplace.

"This definitive study shows performance. No CEO in the world can afford to ignore this compelling finding. Incentive programs may be the single most important performanceexecutives today. Incentives pra natural thing that nobody acts without a purpose behind. Therefore, a hope for a reward is a powerful incentive to motivate employees’. Besides monetary incentive, there are some other stimuli which can drive a person to better. This will include job satisfaction, job security, job promotion, and pride for accomplishment. Therefore, incentives really can sometimes work to accomplish the goals of a concern. The need of incentives can be m

1. To increase productivity,2. To drive or arouse a stimulus work,3. To enhance commitment in work performance,4. To psychologically satisfy a person which leads to job satisfaction,5. To shape the behavior or outlook of subordinate towards work,6. To encourage zeal and enthusiasm towards work,

Reward Money or another kind of payment that is given or received for something that has been

done or that is offered for something that might be done is called reward. recognition can be powerful tools for emMany types of rewards and recognition have direct costs associated with them, such as cash bonuses and stock awards, and a wide variety of bankparking, and gift certificates. Other types of rewards and recognition may be less tangible, but still very effective. These "non

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

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making and in terms of co-operation and competition within a larger institutional structure). Economic analysis, then, of the differences between societies (and between different organizations within a society) largely amounts to characterizing the differences in

faced by individuals involved in these collective efforts. Ultimately, incentives aim to provide value for money and contribute to organizational success.

ees’ singing the blues? Are they seemingly unmotivated? Are you having a tough time getting them fired up about safety? If so, then you might be thinking about starting an incentive program. And if that's the case, then a new study, "Incentives, Motivationand Workplace Performance: Research and Best Practices," contains some interesting information. For example, the study found that team-based incentives work best, and incentives can have a positive impact on the negative attitudes that adversely affect ac

comprehensive on the effectiveness of the incentive to employers in determining the relationship between incentives, motivation and performance in

"This definitive study shows that tangible incentives dramatically increase work No CEO in the world can afford to ignore this compelling finding. Incentive

programs may be the single most important performance-improvement toolIncentives provide a spur or zeal in the employees’ for better performance. It is

a natural thing that nobody acts without a purpose behind. Therefore, a hope for a reward is a powerful incentive to motivate employees’. Besides monetary incentive, there are some other stimuli which can drive a person to better. This will include job satisfaction, job security, job promotion, and pride for accomplishment. Therefore, incentives really can sometimes work to accomplish the goals of a concern. The need of incentives can be many:-

To increase productivity, To drive or arouse a stimulus work, To enhance commitment in work performance, To psychologically satisfy a person which leads to job satisfaction,To shape the behavior or outlook of subordinate towards work,

zeal and enthusiasm towards work,

Money or another kind of payment that is given or received for something that has been done or that is offered for something that might be done is called reward. recognition can be powerful tools for employees’ motivation and performance improvement. Many types of rewards and recognition have direct costs associated with them, such as cash bonuses and stock awards, and a wide variety of bank-paid perks, like car allowances, paid

cates. Other types of rewards and recognition may be less tangible, but still very effective. These "non-monetary" rewards include formal and informal

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

within a larger institutional structure). Economic analysis, then, of the differences between societies (and between different

to characterizing the differences in incentive faced by individuals involved in these collective efforts. Ultimately, incentives aim to

ees’ singing the blues? Are they seemingly unmotivated? Are you If so, then you might be thinking about

starting an incentive program. And if that's the case, then a new study, "Incentives, Motivation and Workplace Performance: Research and Best Practices," contains some interesting

based incentives work best, and incentives can have a positive impact on the negative attitudes that adversely affect achievement of work

incentive and its usefulness to employers in determining the relationship between incentives, motivation and performance in

that tangible incentives dramatically increase work No CEO in the world can afford to ignore this compelling finding. Incentive

improvement tool available to ovide a spur or zeal in the employees’ for better performance. It is

a natural thing that nobody acts without a purpose behind. Therefore, a hope for a reward is a powerful incentive to motivate employees’. Besides monetary incentive, there are some other stimuli which can drive a person to better. This will include job satisfaction, job security, job promotion, and pride for accomplishment. Therefore, incentives really can sometimes work to

To psychologically satisfy a person which leads to job satisfaction,

Money or another kind of payment that is given or received for something that has been done or that is offered for something that might be done is called reward. Rewards and

ployees’ motivation and performance improvement. Many types of rewards and recognition have direct costs associated with them, such as cash

paid perks, like car allowances, paid cates. Other types of rewards and recognition may be less tangible, but

monetary" rewards include formal and informal

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“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

acknowledgement, assignment of more enjoyable job duties, opportunities for training, and an increased role in decision-making. Types of rewards

Most people assimilate "rewards", with salary raise or bonuses, but this is only one kind of reward, extrinsic reward. Studies proves that salesfrustrated by their inability to obtain other rewards,applying a complete reward strategy. There are two kinds of rewards:

1. Extrinsic rewards: Concrete rewards that employees’ receive.

� Bonuses: Usually this is paid on annual basisput in all Endeavours’ and efforts during the year to achieve more than a satisfactory appraisal that increases the chance of earning several salaries as lump sum. The scheme of bonuses varies within organizations; some organizabonuses which eliminate the element of asymmetric information, conversely, other organizations deal with bonuses in terms of performance which is subjective and may develop some sort of bias which may discourage employees’ and create setback. Therefore, managers must be extra cautious and unbiased.

� Salary raise: Is achieved after hard work and effort of employees’, attaining and acquiring new skills or academic certificates and as appreciation for employees’ duty (yearly increments) in an organization. This type of reward is beneficial for the reason that it motiis also an investment for the organization due to increased productivity and performance. This type of reward offers longNevertheless, managers must also be organization and eliminate the possibility of adverse selection where some employees’ can be treated superior or inferior to others.

� Gifts: Are considered shortachievement or obtaining an organizations desired goal. Any employees’ would appreciate a tangible matter that boosts their selfrecognition and appreciation from the management. This type of reward basically provides a clear vision of the employees’ correct path and motivates employees’ into stabilizing or increasing their efforts to achieve higher returns and attainments.

� Promotion: Quite similar to the former type of reward. Promotions tend to effect the long-term satisfactito a higher stage and offering a title with increased accountability and responsibility due to employees’ efforts, behaviour and period serving a specific organization. This type of reward is vemployees’ is motivated in this type of reward to contribute all his efforts in order to gain managements trust and acquire their delegation and responsibility. The issue

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

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acknowledgement, assignment of more enjoyable job duties, opportunities for training, and an making.

Most people assimilate "rewards", with salary raise or bonuses, but this is only one kind of reward, extrinsic reward. Studies proves that sales people prefer pay raises because they feel

ity to obtain other rewards, but this behavior can be modified by applying a complete reward strategy. There are two kinds of rewards:

Concrete rewards that employees’ receive.

Usually this is paid on annual basis, Bonuses motivates the employees’ to put in all Endeavours’ and efforts during the year to achieve more than a satisfactory appraisal that increases the chance of earning several salaries as lump sum. The scheme of bonuses varies within organizations; some organizabonuses which eliminate the element of asymmetric information, conversely, other organizations deal with bonuses in terms of performance which is subjective and may develop some sort of bias which may discourage employees’ and create

back. Therefore, managers must be extra cautious and unbiased.

Is achieved after hard work and effort of employees’, attaining and acquiring new skills or academic certificates and as appreciation for employees’ duty (yearly increments) in an organization. This type of reward is beneficial for the reason that it motivates employees’ in developing their skills and competence which is also an investment for the organization due to increased productivity and performance. This type of reward offers long-term satisfaction to employees’. Nevertheless, managers must also be fair and equal with employees’ serving the organization and eliminate the possibility of adverse selection where some employees’ can be treated superior or inferior to others.

Are considered short-term. Mainly presented as a token of appreciation foachievement or obtaining an organizations desired goal. Any employees’ would appreciate a tangible matter that boosts their self-esteem for the reason of recognition and appreciation from the management. This type of reward basically

vision of the employees’ correct path and motivates employees’ into stabilizing or increasing their efforts to achieve higher returns and attainments.

Quite similar to the former type of reward. Promotions tend to effect the term satisfaction of employees’. This can be done by elevating the employees’

to a higher stage and offering a title with increased accountability and responsibility due to employees’ efforts, behaviour and period serving a specific organization. This type of reward is vital for the main reason of redundancy and routine. The employees’ is motivated in this type of reward to contribute all his efforts in order to gain managements trust and acquire their delegation and responsibility. The issue

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

acknowledgement, assignment of more enjoyable job duties, opportunities for training, and an

Most people assimilate "rewards", with salary raise or bonuses, but this is only one kind of people prefer pay raises because they feel

but this behavior can be modified by

motivates the employees’ to put in all Endeavours’ and efforts during the year to achieve more than a satisfactory appraisal that increases the chance of earning several salaries as lump sum. The scheme of bonuses varies within organizations; some organizations ensure fixed bonuses which eliminate the element of asymmetric information, conversely, other organizations deal with bonuses in terms of performance which is subjective and may develop some sort of bias which may discourage employees’ and create

back. Therefore, managers must be extra cautious and unbiased.

Is achieved after hard work and effort of employees’, attaining and acquiring new skills or academic certificates and as appreciation for employees’ duty (yearly increments) in an organization. This type of reward is beneficial for the

vates employees’ in developing their skills and competence which is also an investment for the organization due to increased productivity and

term satisfaction to employees’. fair and equal with employees’ serving the

organization and eliminate the possibility of adverse selection where some

term. Mainly presented as a token of appreciation for an achievement or obtaining an organizations desired goal. Any employees’ would

esteem for the reason of recognition and appreciation from the management. This type of reward basically

vision of the employees’ correct path and motivates employees’ into stabilizing or increasing their efforts to achieve higher returns and attainments.

Quite similar to the former type of reward. Promotions tend to effect the on of employees’. This can be done by elevating the employees’

to a higher stage and offering a title with increased accountability and responsibility due to employees’ efforts, behaviour and period serving a specific organization. This

ital for the main reason of redundancy and routine. The employees’ is motivated in this type of reward to contribute all his efforts in order to gain managements trust and acquire their delegation and responsibility. The issue

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“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

revolved around promotion is reasonable in promoting their employees’.

2. Intrinsic rewards: Tend to give personal satisfaction to individual

i. Information/ feedback:effective managers never neglect. This type of rewards offers guidance to employees’ whether positive (remain on track) or negative (guidance to the correct path). This also creates a bond and adds value to the relationship of managers and employees’.

ii. Recognition: It’sThis type of reward may take the presence of being formal informal (such as a “pat on the back”which will result into

iii. Trust/Empowerment:living individuals in order to add value to any relationship. This form of reliance is essential in order to complete tasks successfullwhen managers delegate tasks to employees’. This adds importance to an employees’ where his decisions and actions are reflected. Therefore, this reward may benefit organizations for the idea of two minds better than one.

Length of Reward Program

The length of the employees’ rewards progperformance. A recent analysis found that, in general, the longer the implementation of an incentive program, the greater the performance gains:

a) Long-term incentive programs (last longer than 6 months)b) Intermediate length incentive programs (last 1c) Short-term incentive programs (last less than 1 month)

The effect of long term incentive programs may be so robust because they act to continushape employees’ behavior in order to make it a better fit for the organizational culture and preferences. This results in work performance that is more in line with result, contributes more value to the rewards program, managers should consider making it long term (last longer than 6 months) in order to gain the most desired results.

Importance of a Reward SystemIdentifying the desired outcome of rewards is essential in

rewards program in a bank. The goals of a good rewards system should be multifaceted. It should be designed to:

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

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revolved around promotion is adverse selection and managers must be fair and reasonable in promoting their employees’.

Tend to give personal satisfaction to individual

feedback: Also a significant type of reward that successful and ers never neglect. This type of rewards offers guidance to employees’

whether positive (remain on track) or negative (guidance to the correct path). This also creates a bond and adds value to the relationship of managers and employees’.

’s recognizing an employee’s performance by verbal appreciation. This type of reward may take the presence of being formal (for example meeting

such as a “pat on the back”) to boost employees’ self-which will result into additional contributing efforts.

iii. Trust/Empowerment: In any society or organization, trust is a vital aspect between living individuals in order to add value to any relationship. This form of reliance is essential in order to complete tasks successfully. Also, takes place in empowerment when managers delegate tasks to employees’. This adds importance to an employees’ where his decisions and actions are reflected. Therefore, this reward may benefit organizations for the idea of two minds better than one.

The length of the employees’ rewards program has an impact on employees’

analysis found that, in general, the longer the implementation of an incentive program, the greater the performance gains:

term incentive programs (last longer than 6 months) Intermediate length incentive programs (last 1-6 months)

term incentive programs (last less than 1 month) The effect of long term incentive programs may be so robust because they act to continushape employees’ behavior in order to make it a better fit for the organizational culture and preferences. This results in work performance that is more in line with bankresult, contributes more value to the bank. Thus, when deciding on the length of an employees’ rewards program, managers should consider making it long term (last longer than 6 months) in order to gain the most desired results.

Importance of a Reward System Identifying the desired outcome of rewards is essential in developing the most effective

. The goals of a good rewards system should be multifaceted. It should

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

adverse selection and managers must be fair and

Also a significant type of reward that successful and ers never neglect. This type of rewards offers guidance to employees’

whether positive (remain on track) or negative (guidance to the correct path). This also creates a bond and adds value to the relationship of managers and employees’.

recognizing an employee’s performance by verbal appreciation. for example meeting) or

to boost employees’ self-esteem and happiness

n any society or organization, trust is a vital aspect between living individuals in order to add value to any relationship. This form of reliance is

y. Also, takes place in empowerment when managers delegate tasks to employees’. This adds importance to an employees’ where his decisions and actions are reflected. Therefore, this reward may benefit

ram has an impact on employees’ subsequent analysis found that, in general, the longer the implementation of an

The effect of long term incentive programs may be so robust because they act to continually shape employees’ behavior in order to make it a better fit for the organizational culture and

bank standards and as a ng on the length of an employees’

rewards program, managers should consider making it long term (last longer than 6 months) in

developing the most effective . The goals of a good rewards system should be multifaceted. It should

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“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

• Attract talented employees’the bank. Bank should allocate a certain amount of funds to the recruitment and hiring of high calibre employees’.

• Motivate employees’ to perform optimallycomponent of rewards. They use rewards to shape employees’ behavior in thdesired direction. This outcome should be carefully considered when designing a rewards program.

• Foster personal growth and development.promote personal growth and professional development. When rewards are uencourage employees’ to engage in behavior that will increase their work performance, the bank ultimately benefits from a more skilled workforce.

• Increase employees’ satisfaction with their workwith work, resulting in increased workplace sato persist in the face of challenges, come up with creative solutions to tackling tasks and encourage them to derive more pleasure with their work.

• Keep talented employees’ from leavingrewarded for their performance, they are less likely to leave their employees’ on board should be a priority of any resources necessary to ensure that their rewardstalented employees’.

Benefits: A payment or gift as one made to help someone

pension plan, free health insurance and other benefits. the bank’s earnings in the event that the returns from the investments devoted to funding the employee’s retirement result in a funding shortfall. The payouts made to retiring employees’ participating in defined-benefit plans are determined by more personalizeemployment. Types of Benefits 1. Guaranteed Pay

Guaranteed pay is a fixed monetary (cash) reward. The basic element of guaranteed pay is base salary which is paid on an his typically used by employees’ for ongoing consumption. Many countries dictate the minimum base salary defining a minimum wageleave room for differentiating income levelssalary, there is other pay elements which are paid based solely on employees’/employer relations, such as salary and seniority allowance.

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

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Attract talented employees’: Rewards should be used to entice talented employees’ to should allocate a certain amount of funds to the recruitment and hiring of

employees’.

Motivate employees’ to perform optimally: Most programs focus on the motivational component of rewards. They use rewards to shape employees’ behavior in thdesired direction. This outcome should be carefully considered when designing a rewards

Foster personal growth and development. Rewards should be used to encourage and promote personal growth and professional development. When rewards are uencourage employees’ to engage in behavior that will increase their work performance,

ultimately benefits from a more skilled workforce.

Increase employees’ satisfaction with their work: Rewards can promote engagement n increased workplace satisfaction. They can motivate

to persist in the face of challenges, come up with creative solutions to tackling tasks and encourage them to derive more pleasure with their work.

Keep talented employees’ from leaving: When employees’ love what they do and are rewarded for their performance, they are less likely to leave their bankemployees’ on board should be a priority of any bank. Thus, resources necessary to ensure that their rewards program meet the needs of their most

A payment or gift as one made to help someone. The bank offers its employees’ a pension plan, free health insurance and other benefits. Therefore, employers will need to dip into

’s earnings in the event that the returns from the investments devoted to funding the employee’s retirement result in a funding shortfall. The payouts made to retiring employees’

benefit plans are determined by more personalized factors, like length of

Guaranteed pay is a fixed monetary (cash) reward. The basic element of guaranteed pay is base salary which is paid on an hourly, daily, weekly, bi-weekly or monthly rate. Base salar

employees’ for ongoing consumption. Many countries dictate the minimum minimum wage. Employees’ individual skills and level of experienc

leave room for differentiating income levels within a job-based pay structure. In addition to base salary, there is other pay elements which are paid based solely on employees’/employer relations, such as salary and seniority allowance.

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Rewards should be used to entice talented employees’ to should allocate a certain amount of funds to the recruitment and hiring of

Most programs focus on the motivational component of rewards. They use rewards to shape employees’ behavior in the most desired direction. This outcome should be carefully considered when designing a rewards

Rewards should be used to encourage and promote personal growth and professional development. When rewards are used to encourage employees’ to engage in behavior that will increase their work performance,

Rewards can promote engagement tisfaction. They can motivate employees’

to persist in the face of challenges, come up with creative solutions to tackling tasks and

employees’ love what they do and are bank. Keeping talented

. Thus, bank should devote program meet the needs of their most

offers its employees’ a Therefore, employers will need to dip into

’s earnings in the event that the returns from the investments devoted to funding the employee’s retirement result in a funding shortfall. The payouts made to retiring employees’

d factors, like length of

Guaranteed pay is a fixed monetary (cash) reward. The basic element of guaranteed pay or monthly rate. Base salary

employees’ for ongoing consumption. Many countries dictate the minimum . Employees’ individual skills and level of experience

based pay structure. In addition to base salary, there is other pay elements which are paid based solely on employees’/employer

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“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

2. Variable Pay Variable pay is a non

performance, or results achieved. There are different types of variable pay plans, such as bonus schemes, sales incentives (commission), overtime pay, and more. An examplplan is prevalent is how the real estate industry compensates real estate agents. A common variable pay plan might be the sales person receives 50% of every dollar they bring in up to a level of revenue at which they then Typically, this type of plan is based on an annual period of time requiring a "resetting" each year back to the starting point of 50%. Sometimes this type of plan is administered so the sales person never resets or falls down to a lower level. It also includes Performance Linked Incentive which is variable and may range from 130% to 0% as pe Equity-based compensation

Equity based compensation is an employer compensation plan shares as employees’ compensation. The additional vehicles such as restricted stockpurchase plan (ESPP), and stock appreciation rights i. External equity

External equity refers to the similarity of the practices of other organization of the same sector. If perceived like this, it can be said that the program is considered competitive or externally equitable. Usually, these comparisons are done in external labor markets where the wages vary. There are various factors that contribute to create these differengeographical location, and education and work experience. ii. Internal equity

Internal equity is employees’' perception of their duties, compensation, and work conditions as compared with those of other employees’ in similar positions inorganization. As this comparison is always made within the can result in conflict among employees’, mistrust, low morale, anger and even the adoption of legal actions. Workers can make the evaluation of internathe one hand, procedural justice is the person’s perceived fairness of the process (assigned tasks) and procedures used to make decisions about him/her. On the other hand, distributive justice refers to the perceived fairness in the distribution of outcomes (salaries). The classic objectives of equity based compensation plans are retention, attraction of new hires and aligning employees’’ and shareholders’ interests with the long Motivation:

Scientists have defined motivation as behavior toward a goal. As this definition suggests, motivation involves three components. The

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 31

Variable pay is a non-fixed monetary (cash) reward that is contingent on discretion, performance, or results achieved. There are different types of variable pay plans, such as bonus schemes, sales incentives (commission), overtime pay, and more. An examplplan is prevalent is how the real estate industry compensates real estate agents. A common variable pay plan might be the sales person receives 50% of every dollar they bring in up to a level of revenue at which they then strike up to 85% for every dollar they bring in going forward. Typically, this type of plan is based on an annual period of time requiring a "resetting" each year back to the starting point of 50%. Sometimes this type of plan is administered so the sales person

esets or falls down to a lower level. It also includes Performance Linked Incentive which is variable and may range from 130% to 0% as per performance of the individual.

Equity based compensation is an employer compensation plan

shares as employees’ compensation. The most common form is stock optionsrestricted stock, restricted stock units (RSU),

stock appreciation rights (SAR).

External equity refers to the similarity of the practices of other organization of the same f perceived like this, it can be said that the program is considered competitive or

externally equitable. Usually, these comparisons are done in external labor markets where the wages vary. There are various factors that contribute to create these differengeographical location, and education and work experience.

Internal equity is employees’' perception of their duties, compensation, and work conditions as compared with those of other employees’ in similar positions inorganization. As this comparison is always made within the bank, problems with internal equity can result in conflict among employees’, mistrust, low morale, anger and even the adoption of legal actions. Workers can make the evaluation of internal equity regarding two main points. On the one hand, procedural justice is the person’s perceived fairness of the process (assigned tasks) and procedures used to make decisions about him/her. On the other hand, distributive justice

fairness in the distribution of outcomes (salaries). The classic objectives of equity based compensation plans are retention, attraction of new hires and aligning employees’’ and shareholders’ interests with the long-term success of the bank

Scientists have defined motivation as the process of arousing, directing, and maintaining As this definition suggests, motivation involves three components. The

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

fixed monetary (cash) reward that is contingent on discretion, performance, or results achieved. There are different types of variable pay plans, such as bonus schemes, sales incentives (commission), overtime pay, and more. An example where this type of plan is prevalent is how the real estate industry compensates real estate agents. A common variable pay plan might be the sales person receives 50% of every dollar they bring in up to a

85% for every dollar they bring in going forward. Typically, this type of plan is based on an annual period of time requiring a "resetting" each year back to the starting point of 50%. Sometimes this type of plan is administered so the sales person

esets or falls down to a lower level. It also includes Performance Linked Incentive which r performance of the individual.

Equity based compensation is an employer compensation plan using the employer’s stock options, yet employers use

, restricted stock units (RSU), employees’ stock

External equity refers to the similarity of the practices of other organization of the same f perceived like this, it can be said that the program is considered competitive or

externally equitable. Usually, these comparisons are done in external labor markets where the wages vary. There are various factors that contribute to create these differences, for example,

Internal equity is employees’' perception of their duties, compensation, and work conditions as compared with those of other employees’ in similar positions in the same

, problems with internal equity can result in conflict among employees’, mistrust, low morale, anger and even the adoption of

l equity regarding two main points. On the one hand, procedural justice is the person’s perceived fairness of the process (assigned tasks) and procedures used to make decisions about him/her. On the other hand, distributive justice

fairness in the distribution of outcomes (salaries). The classic objectives of equity based compensation plans are retention, attraction of new hires and aligning

bank.

the process of arousing, directing, and maintaining As this definition suggests, motivation involves three components. The

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“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

first component, arousal, has to do with the drive, or energy behind ouwhen we are hungry, we are driven to seek food. The behavior made. A hungry person may make many different choicesdelivered, go out for a burger, and so on. Thepeople's persistence, their willingness to continue to exert effort until a goal is met. The longer you would continue to search for food when hungry, the more persistent you would be. Significance of motivation in the workplace

Motivation is the clusterin people to be continually interested in and committed to a job, role, or subject and to exert persistent effort in attaining a goal”from what you are doing, and are less concerned with the external rewards.The significance of motivation in the workplace is high because of the following benefits it provides.

Firstly, motivation puts human resources into action and improves level of efficiency of employees’. Every concern requires financial and human resources to accomplish the goals. Having the employees’ only physically does not mean that you manage to make full use of it. You need their desire and wish to be there where actually are.The performance of motivated employees’ is high, which results into: increased productivity and reduced cost of operations. Motivated employees’ will not try to get by with little effort; will bmore oriented on his job. If those workers, who spend most of their time on facebook or other pages, use their potential and keep instead themselves busy with their job, increased productivity will be very clear.

Secondly, motivation leads to the stabilipoint of view of reputation and goodwill of the should feel themselves as part of the organization, feel that they are needed and appreciated. The longer the person works in the organization, more experience he gathers, as say “Old is gold”. When people are willing to work for one organization for a long time, and they do not consider the bank as one of the steps of staircase, it will prevent the organization from turnover and the positive image that will be created from the word of mouth marketing, will attract competent and qualified people into a concern.

Thirdly, motivated people are not resistant to the changes taken into the organizations. Change is the law of nature and effectively motivated workforce, those changes will be accepted, introduced and implemented without negative attitude and the organization will be kept on the

Fourthly, Motivation brings employees’ closer to organization. As long as needs of employees’ are met through attractive rewards, promotional to take more interest in their interests of the enterprise and their interests. This helps in developing cordial relations between management and workers.

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 32

has to do with the drive, or energy behind our actions. For example, are hungry, we are driven to seek food. The direction component involves the choice of made. A hungry person may make many different choices--eat an apple, have a pizza

out for a burger, and so on. The third component, maintenance, persistence, their willingness to continue to exert effort until a goal is met. The longer

continue to search for food when hungry, the more persistent you would be.

motivation in the workplace: cluster of “internal and external factors that stimulate desire and energy

in people to be continually interested in and committed to a job, role, or subject and to exert persistent effort in attaining a goal”. Being motivated intrinsically means that you take pleasure from what you are doing, and are less concerned with the external rewards.The significance of motivation in the workplace is high because of the following benefits it

ion puts human resources into action and improves level of efficiency of employees’. Every concern requires financial and human resources to accomplish the goals. Having the employees’ only physically does not mean that you manage to make full use of it.

ou need their desire and wish to be there where actually are. The performance of motivated employees’ is high, which results into: increased productivity and reduced cost of operations. Motivated employees’ will not try to get by with little effort; will bmore oriented on his job. If those workers, who spend most of their time on facebook or other pages, use their potential and keep instead themselves busy with their job, increased productivity

, motivation leads to the stability of workforce that is very important from the point of view of reputation and goodwill of the bank. In order to keep employees’ loyal, they should feel themselves as part of the organization, feel that they are needed and appreciated. The

on works in the organization, more experience he gathers, as say “Old is gold”. When people are willing to work for one organization for a long time, and they do not consider

as one of the steps of staircase, it will prevent the organization from turnover and the positive image that will be created from the word of mouth marketing, will attract competent and qualified people into a concern.

motivated people are not resistant to the changes taken into the organizations. ange is the law of nature and bank has to incorporate different essential ones. With

effectively motivated workforce, those changes will be accepted, introduced and implemented without negative attitude and the organization will be kept on the right track of progress.

Motivation brings employees’ closer to organization. As long as needs of employees’ are met through attractive rewards, promotional opportunities to take more interest in their bank. They begin to think that there is no difference between the interests of the enterprise and their interests. This helps in developing cordial relations between

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

r actions. For example, component involves the choice of

eat an apple, have a pizza maintenance, is concerned with

persistence, their willingness to continue to exert effort until a goal is met. The longer continue to search for food when hungry, the more persistent you would be.

of “internal and external factors that stimulate desire and energy in people to be continually interested in and committed to a job, role, or subject and to exert

. Being motivated intrinsically means that you take pleasure from what you are doing, and are less concerned with the external rewards. The significance of motivation in the workplace is high because of the following benefits it

ion puts human resources into action and improves level of efficiency of employees’. Every concern requires financial and human resources to accomplish the goals. Having the employees’ only physically does not mean that you manage to make full use of it.

The performance of motivated employees’ is high, which results into: increased productivity and reduced cost of operations. Motivated employees’ will not try to get by with little effort; will be more oriented on his job. If those workers, who spend most of their time on facebook or other pages, use their potential and keep instead themselves busy with their job, increased productivity

ty of workforce that is very important from the . In order to keep employees’ loyal, they

should feel themselves as part of the organization, feel that they are needed and appreciated. The on works in the organization, more experience he gathers, as say “Old is gold”.

When people are willing to work for one organization for a long time, and they do not consider as one of the steps of staircase, it will prevent the organization from the high index of

turnover and the positive image that will be created from the word of mouth marketing, will

motivated people are not resistant to the changes taken into the organizations. to incorporate different essential ones. With the help of

effectively motivated workforce, those changes will be accepted, introduced and implemented right track of progress.

Motivation brings employees’ closer to organization. As long as needs of opportunities etc. employees’ begin

ink that there is no difference between the interests of the enterprise and their interests. This helps in developing cordial relations between

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“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

These are the main reasons why the motivation is important to the business. But of courssignificant for both parties: motivation is essential for an individual as it helps him achieve his personal goals, develop and what is very important, be satisfied with his job. Motivating by meeting basic human needs

As our definition suggests, people are motivated to for food, as in example, or other needs, such as the need for social approval. employees’ in this quest are certain to reap the benefits. Organbank that strive to meet the needs of their employees’ attract the best people and motivate them to do excellent work. Maslow's need hierarchy theory

Some insight into how to achieve this is provided by Abraham Maslow's ntheory. Maslow's basic idea was simple: People will not be healthy and wellhave all of their basic needs met. This idea applies whether we're talking about becoming a functioning member of society, Maslow's original focuorganization, a later application of his work. Specifically, Maslow identified five different types of needs which, he claimed, are activated in a hierarchy, beginning at the lowest, most basic needs, and working upward to the next level. Furthermore, these needs are not aroused all at once or in random fashion. Rather, each need is triggered step by step, only after the one beneath it in the hierarchy has been satisfied. Each of Maslbelow. Physiological Needs

The lowest-order is defined by biological drives, such as the need for air, food, water, and shelter. These are understandably primary to humans, as even newborn babies exthat bank do to help meet their employees’' basic physiological needs. Probably the simplest involves paying them a living wage, money that can be exchanged for food and shelter. But, there's more to satisfying physiological needs tha Safety Needs

After physiological needs have been satisfied, the next level of needs is triggeredneeds. These are concerned with the need to operate in an environment that is physically andpsychologically safe and secure one free from threats of harm.employees’ safety needs in several ways. For example, theyin the environment by fitting them with goggles and hard hats.settings, such as offices, can be swamped with safety hazards. This isspare office workers from eyestrain, wrist injuries (such as the

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 33

These are the main reasons why the motivation is important to the business. But of courssignificant for both parties: motivation is essential for an individual as it helps him achieve his personal goals, develop and what is very important, be satisfied with his job.

Motivating by meeting basic human needs: As our definition suggests, people are motivated to fulfil their needs

example, or other needs, such as the need for social approval. employees’ in this quest are certain to reap the benefits. Organizational behaviorists claim that

that strive to meet the needs of their employees’ attract the best people and motivate them

Maslow's need hierarchy theory Some insight into how to achieve this is provided by Abraham Maslow's n

theory. Maslow's basic idea was simple: People will not be healthy and wellhave all of their basic needs met. This idea applies whether we're talking about becoming a functioning member of society, Maslow's original focus, or a productive employees’ of an organization, a later application of his work. Specifically, Maslow identified five different types of needs which, he claimed, are activated in a hierarchy, beginning at the lowest, most basic

to the next level. Furthermore, these needs are not aroused all at once or in random fashion. Rather, each need is triggered step by step, only after the one beneath it in the hierarchy has been satisfied. Each of Maslow's five categories of needs

order is defined by physiological needs, those that satisfy fundamental biological drives, such as the need for air, food, water, and shelter. These are understandably primary to humans, as even newborn babies express these basic needs. There are many things

do to help meet their employees’' basic physiological needs. Probably the simplest involves paying them a living wage, money that can be exchanged for food and shelter. But,

g physiological needs than giving employees’ a pay check

After physiological needs have been satisfied, the next level of needs is triggeredThese are concerned with the need to operate in an environment that is physically and

psychologically safe and secure one free from threats of harm. Organizations help satisfy their employees’ safety needs in several ways. For example, they protect shop workers from hazards in the environment by fitting them with goggles and hard hats. Even settings, such as offices, can be swamped with safety hazards. This is why efforts are made to spare office workers from eyestrain, wrist injuries (such as the increasingly prevalent carpal

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

These are the main reasons why the motivation is important to the business. But of course this is significant for both parties: motivation is essential for an individual as it helps him achieve his personal goals, develop and what is very important, be satisfied with his job.

their needs whether it is a need example, or other needs, such as the need for social approval. Bank that help their

izational behaviorists claim that that strive to meet the needs of their employees’ attract the best people and motivate them

Some insight into how to achieve this is provided by Abraham Maslow's need hierarchy theory. Maslow's basic idea was simple: People will not be healthy and well-adjusted unless they have all of their basic needs met. This idea applies whether we're talking about becoming a

s, or a productive employees’ of an organization, a later application of his work. Specifically, Maslow identified five different types of needs which, he claimed, are activated in a hierarchy, beginning at the lowest, most basic

to the next level. Furthermore, these needs are not aroused all at once or in random fashion. Rather, each need is triggered step by step, only after the one beneath

ow's five categories of needs is explained

those that satisfy fundamental biological drives, such as the need for air, food, water, and shelter. These are understandably

press these basic needs. There are many things do to help meet their employees’' basic physiological needs. Probably the simplest

involves paying them a living wage, money that can be exchanged for food and shelter. But, pay check.

After physiological needs have been satisfied, the next level of needs is triggered safety These are concerned with the need to operate in an environment that is physically and

Organizations help satisfy their protect shop workers from hazards

seemingly safe work why efforts are made to

increasingly prevalent carpal

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“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

tunnel syndrome), and back pain, by using spechairs. Social Needs

Once physiological and safety needs have been satisfied, the These refer to the need to be liked and accepted by others. As social animals, we want to be with others and to have them approve of us. Many employees’. Besides keeping employees’ healthy, it'shelp satisfy social needs. Esteem Needs

Not only do we need to be liked by others socially, but we also need to gain their respect and approval. In other words, we have a need for have others recognize our accomplishments. Consider, for example, reserved parking spots or plaques honouring the "employeeindividual employee. So too are awards banquets in which worthy stare recognized. The same thing is frequently done in print by recognizing one's organizational contributions on the pages of a corporate newsletter. Self-Actualization Needs

What happens after all thepeople will strive for self-actualizationbeing. When people are self-become extremely valuable assetpaving the way for their employees’ to selfdiscussion clearly suggests, Maslow's theory provides excellent guidance with respect to thneeds that workers are motivated to achieve. Indeed, many organizations have taken actions directly suggested by the theory, and ha Alderfer’s ERG theory

Clayton Alderfer’s Existence Relatedness Growth Maslow’s thinking but reduces the number of unirelatedness needs, and existence needs Alderfer lifts the restriction imposed by Maslow in which lowerbefore a higher level need becomes a motivator. Alderfer breaks with Maslow on the consequence of need frustration. Alderfer proposes that when an individual is motidifficulty doing so, the person’s motivation to satisfy lower

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 34

tunnel syndrome), and back pain, by using specially designed computer monitors, desks, and

Once physiological and safety needs have been satisfied, the social needs These refer to the need to be liked and accepted by others. As social animals, we want to be with others and to have them approve of us. Many banks provide health club facilities for their employees’. Besides keeping employees’ healthy, it's easy to see how such opportunities

Not only do we need to be liked by others socially, but we also need to gain their respect and approval. In other words, we have a need for self-esteem—that is, to achieve suhave others recognize our accomplishments. Consider, for example, reserved parking spots or

the "employee of the month." Both are ways of promoting est. So too are awards banquets in which worthy staff members' contributions

are recognized. The same thing is frequently done in print by recognizing one's organizational contributions on the pages of a corporate newsletter.

What happens after all the employees’ lower-order needs are met? According to Maslow, actualization that is, they will work to become all they are capable of

-actualized they perform at their maximum level of creativity and become extremely valuable assets to their organizations. For this reason, paving the way for their employees’ to self-actualize by meeting their lowerdiscussion clearly suggests, Maslow's theory provides excellent guidance with respect to thneeds that workers are motivated to achieve. Indeed, many organizations have taken actions directly suggested by the theory, and have found them to be successful.

Clayton Alderfer’s Existence Relatedness Growth (ERG) theory builds Maslow’s thinking but reduces the number of universal needs from five to three

ness needs, and existence needs and is more flexible on movement between levels. Alderfer lifts the restriction imposed by Maslow in which lower-order needs must be addressed before a higher level need becomes a motivator. Alderfer breaks with Maslow on the onsequence of need frustration. Needs are more than one level can be motivators at any time.

Alderfer proposes that when an individual is motivated to satisfy a higherdifficulty doing so, the person’s motivation to satisfy lower-level needs will increase.

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

computer monitors, desks, and

social needs are activated. These refer to the need to be liked and accepted by others. As social animals, we want to be with

provide health club facilities for their easy to see how such opportunities also

Not only do we need to be liked by others socially, but we also need to gain their respect that is, to achieve success and

have others recognize our accomplishments. Consider, for example, reserved parking spots or of the month." Both are ways of promoting esteem within

aff members' contributions are recognized. The same thing is frequently done in print by recognizing one's organizational

s are met? According to Maslow, that is, they will work to become all they are capable of

actualized they perform at their maximum level of creativity and banks are interested in

actualize by meeting their lower-order needs. As this discussion clearly suggests, Maslow's theory provides excellent guidance with respect to the needs that workers are motivated to achieve. Indeed, many organizations have taken actions

(ERG) theory builds on some of versal needs from five to three growth needs,

and is more flexible on movement between levels. order needs must be addressed

before a higher level need becomes a motivator. Alderfer breaks with Maslow on the can be motivators at any time.

vated to satisfy a higher-level need but has level needs will increase.

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“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Three Components of MotivationExpectancy theory views motivation as the result of three different types of beliefs tha

people have. These are: expectancyinstrumentality—the belief that one's performance will be rewarded, and value of the expected rewards.

a) Expectancy: Sometimes people believe that putting forth a great deal of effort will help them get a lot accomplished. However, in other cases, people do not expect that their efforts will have much effect on how well they do. For example, an employees’ operating a faumay have a very low expectancy. continue to exert much effort. After all, there is no good reason to go on trying to fill a bucket riddled with holes. Accordingly, good managerbelieve that their hard work will lead them to do their jobs better. With this in mind, training employees’ to do their jobs better can be very effective in helping enhance expectancy beliefs. Indeed, a large part of working more effectively involves making sure that one's efforts will pay off.

b) Instrumentality: Even if an employee performs at a high level, his or her motivation may suffer if that performance is not appropriately rewarded instrumental in bringing about the rewards. So, for example, an extremely productive employee may be poorly motivated if he or she has already reached the top level of pay given by the Recognizing this possibility, several odesired performance to rewards.

c) Valence: The value an individual places on the rewards of an outcome, which is based on their needs, goals, values and sources of motivation. Influential factors preferences and sources that strengthen their motivation for a particular outcome. Valence is characterized by the extent to which a person values a given outcome or reward. This is not an actual level of satisfaction rather the expected satisfaction of a particular outcome. The valence refers to the value the individual personally places on the rewards. In order for the valence to be positive, the person must prefer attaining the outcome to not attaining it. Valence is obehavioral alternative, where the decision is measured on the value of the reward. The model below shows the direction of motivation, when behavior is energized Procedural justice theory

Procedural justice theory is concerned with the perceived fairneto make decisions about inputs, performance, and the distribution of outcomes. How managers treat their subordinates and the extent to which they provide explanations for their decisions influence employees’ perceptions of procedu

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 35

Three Components of Motivation xpectancy theory views motivation as the result of three different types of beliefs tha

expectancy the belief that one's effort will affect performance, the belief that one's performance will be rewarded, and valence

value of the expected rewards.

Sometimes people believe that putting forth a great deal of effort will help them get a lot accomplished. However, in other cases, people do not expect that their efforts will have much effect on how well they do. For example, an employees’ operating a faulty piece of equipment

expectancy. Someone working under such conditions probably would not continue to exert much effort. After all, there is no good reason to go on trying to fill a bucket riddled with holes. Accordingly, good managers will do things that help their subordinates believe that their hard work will lead them to do their jobs better. With this in mind, training employees’ to do their jobs better can be very effective in helping enhance expectancy beliefs.

art of working more effectively involves making sure that one's efforts will pay

performs at a high level, his or her motivation may suffer if that is not appropriately rewarded that is, if the performance is not perceived as

instrumental in bringing about the rewards. So, for example, an extremely productive employee may be poorly motivated if he or she has already reached the top level of pay given by the Recognizing this possibility, several organizations have crafted pay systems that explicitly link desired performance to rewards.

The value an individual places on the rewards of an outcome, which is based on their needs, goals, values and sources of motivation. Influential factors include one's values, needs, goals, preferences and sources that strengthen their motivation for a particular outcome. Valence is characterized by the extent to which a person values a given outcome or reward. This is not an

ther the expected satisfaction of a particular outcome. The valence refers to the value the individual personally places on the rewards. In order for the valence to be positive, the person must prefer attaining the outcome to not attaining it. Valence is obehavioral alternative, where the decision is measured on the value of the reward. The model below shows the direction of motivation, when behavior is energized

Procedural justice theory is concerned with the perceived fairness of the procedures used to make decisions about inputs, performance, and the distribution of outcomes. How managers treat their subordinates and the extent to which they provide explanations for their decisions influence employees’ perceptions of procedural justice. When procedural justice is perceived to

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

xpectancy theory views motivation as the result of three different types of beliefs that the belief that one's effort will affect performance,

valence—the perceived

Sometimes people believe that putting forth a great deal of effort will help them get a lot accomplished. However, in other cases, people do not expect that their efforts will have much

lty piece of equipment Someone working under such conditions probably would not

continue to exert much effort. After all, there is no good reason to go on trying to fill a bucket s will do things that help their subordinates

believe that their hard work will lead them to do their jobs better. With this in mind, training employees’ to do their jobs better can be very effective in helping enhance expectancy beliefs.

art of working more effectively involves making sure that one's efforts will pay

performs at a high level, his or her motivation may suffer if that mance is not perceived as

instrumental in bringing about the rewards. So, for example, an extremely productive employee may be poorly motivated if he or she has already reached the top level of pay given by the bank.

rganizations have crafted pay systems that explicitly link

The value an individual places on the rewards of an outcome, which is based on their needs, include one's values, needs, goals,

preferences and sources that strengthen their motivation for a particular outcome. Valence is characterized by the extent to which a person values a given outcome or reward. This is not an

ther the expected satisfaction of a particular outcome. The valence refers to the value the individual personally places on the rewards. In order for the valence to be positive, the person must prefer attaining the outcome to not attaining it. Valence is one behavioral alternative, where the decision is measured on the value of the reward. The model

ss of the procedures used to make decisions about inputs, performance, and the distribution of outcomes. How managers treat their subordinates and the extent to which they provide explanations for their decisions

ral justice. When procedural justice is perceived to

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“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

be low, motivation suffers because employees’ are not sure that their inputs and performance levels will be accurately assessed or that outcomes will be distributed in a fair manner. Designing jobs that motivate

Recall that Frederick W. Taylor's approach to stimulating work performance was to design jobs so that people worked as efficiently as possible. No wasted movements and no wasted time added up to efficient performance, or so Taylor believed. Howeconsider one important thing: The repetitive machinewere highly routine and monotonous. And, not surprisingly, people became bored with such jobs and frequently quit. Fortunately, today's organidesigning jobs that can not only be performed very efficiently, but are also highly pleasant and enjoyable. This is the basic principle behind job design, the process of creating jobs that people enjoy performing because they are so inherently appealing. Job Enlargement: Doing More of the Same Kind of Work

Job enlargement is increasing the number of tasks an employees’ performs but keeping all of the tasks at the same level of difficulty and responsibility. Itloading because the content of a job is expanded but the difficulty remains constant. Proponents of this approach thought that job enlargement might increase intrinsic motivation.higher responsibility involved, notasks. The idea behind job enlargement is simple: you can decrease boredom by giving people a greater variety of jobs to do. effects may be short-lived. It appears that the problem with enlarging jobs is that after a while, people get bored with them, and they need to be enlarged even further. Because it is impractical to continue enlarging jobs all the time, the value of this appro Job Enrichment: Increasing Required Skills and Responsibilities

As an alternative, consider another approach tenrichment is the designing of jobs to provide opportunities for employees’ growemployees’ more responsibility and control over their work. It is often referred to as loading because employees’ are given some of the responsibilities that used to belong to their supervisors. Herzberg’s motivator hygiene theoryjobs. Job enrichment is aimed at increasing intrinsic motivation.Although job enrichment programs have also been successful in many organizations, several factors limit their popularity. First, there is the dexisting facilities so that job can be enriched is often prohibitively expensive. Besides, the technology needed to perform certain jobs makes it impractical for them to be redesigned.Managers can enrich jobs in a

a. Allow employees’ to plan their own work schedules.b. Allow employees’ to decide how the work should be performed.

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 36

be low, motivation suffers because employees’ are not sure that their inputs and performance levels will be accurately assessed or that outcomes will be distributed in a fair manner.

t motivate Recall that Frederick W. Taylor's approach to stimulating work performance was to

design jobs so that people worked as efficiently as possible. No wasted movements and no wasted time added up to efficient performance, or so Taylor believed. Howeconsider one important thing: The repetitive machine-like movements required of his workers were highly routine and monotonous. And, not surprisingly, people became bored with such jobs and frequently quit. Fortunately, today's organizational scientists have found several ways of designing jobs that can not only be performed very efficiently, but are also highly pleasant and enjoyable. This is the basic principle behind job design, the process of creating jobs that people

ing because they are so inherently appealing.

Job Enlargement: Doing More of the Same Kind of Work Job enlargement is increasing the number of tasks an employees’ performs but keeping

all of the tasks at the same level of difficulty and responsibility. It is also called because the content of a job is expanded but the difficulty remains constant. Proponents

of this approach thought that job enlargement might increase intrinsic motivation.higher responsibility involved, nor any greater skills, just a wider variety of the same types of tasks. The idea behind job enlargement is simple: you can decrease boredom by giving people a

Although job enlargement may help improve job performance, its It appears that the problem with enlarging jobs is that after a while,

people get bored with them, and they need to be enlarged even further. Because it is impractical to continue enlarging jobs all the time, the value of this approach is rather limited.

Job Enrichment: Increasing Required Skills and Responsibilities As an alternative, consider another approach taken to redesign jobs

enrichment is the designing of jobs to provide opportunities for employees’ growemployees’ more responsibility and control over their work. It is often referred to as

because employees’ are given some of the responsibilities that used to belong to their ’s motivator hygiene theory was a driving force in the movement to enrich

jobs. Job enrichment is aimed at increasing intrinsic motivation. Although job enrichment programs have also been successful in many organizations, several factors limit their popularity. First, there is the difficulty of implementation. Redesigning existing facilities so that job can be enriched is often prohibitively expensive. Besides, the technology needed to perform certain jobs makes it impractical for them to be redesigned.Managers can enrich jobs in a variety of ways:

Allow employees’ to plan their own work schedules. Allow employees’ to decide how the work should be performed.

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

be low, motivation suffers because employees’ are not sure that their inputs and performance levels will be accurately assessed or that outcomes will be distributed in a fair manner.

Recall that Frederick W. Taylor's approach to stimulating work performance was to design jobs so that people worked as efficiently as possible. No wasted movements and no wasted time added up to efficient performance, or so Taylor believed. However, Taylor failed to

like movements required of his workers were highly routine and monotonous. And, not surprisingly, people became bored with such jobs

zational scientists have found several ways of designing jobs that can not only be performed very efficiently, but are also highly pleasant and enjoyable. This is the basic principle behind job design, the process of creating jobs that people

Job enlargement is increasing the number of tasks an employees’ performs but keeping is also called horizontal job

because the content of a job is expanded but the difficulty remains constant. Proponents of this approach thought that job enlargement might increase intrinsic motivation. There's no

r any greater skills, just a wider variety of the same types of tasks. The idea behind job enlargement is simple: you can decrease boredom by giving people a

Although job enlargement may help improve job performance, its It appears that the problem with enlarging jobs is that after a while,

people get bored with them, and they need to be enlarged even further. Because it is impractical ach is rather limited.

aken to redesign jobs job enrichment. Job enrichment is the designing of jobs to provide opportunities for employees’ growth by giving employees’ more responsibility and control over their work. It is often referred to as vertical job

because employees’ are given some of the responsibilities that used to belong to their was a driving force in the movement to enrich

Although job enrichment programs have also been successful in many organizations, several ifficulty of implementation. Redesigning

existing facilities so that job can be enriched is often prohibitively expensive. Besides, the technology needed to perform certain jobs makes it impractical for them to be redesigned.

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“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

c. Allow employees’ to check their own work.d. Allow employees’ to learn new skills.

The job characteristics model

An attempt to expand the idea of job enrichment, known as the job characteristic model, provides an answer to this important question. Basic Elements of the Job Characteristics Model:

This approach assumes that jobs can be designed so as to help people get enjoyment outof their jobs and care about the work they do.help people feel that they are doing meaningful and valuable work. In particular, it specifies that enriching certain elements of jobs alters people's psycholotheir work effectiveness. The model identifies five core job dimensions that help create three critical psychological states, leading, in turn, to several beneficial personal and work outcomes The five critical job dimensions are skill variety, task identity, task significance, autonomy, and feedback. Let's take a closer look at these.

� Skill variety is the extent to which a job requires using several different skills and talents that an employees’ has.

� Task identity is the degree to which a job requires doing a whole task from beginning to end.

� Task significance is the amount of impact a job is believed to have on others. � Autonomy is the extent, to which employees’ have the freedom and discretion to plan,

schedule, and carry out their jobs as desired.� Feedback is the extent to which the job allows people to have information about the

effectiveness of their performance.

Suggestions for Enhancing the Motivating Potential of Jobs:The job characteristics model specifi

enhance their motivating potential. For example, instead of using several workers, each of whom performs a separate part of a whole job, it would be better to have each person perforjob. Doing so help provides greater skill variety and task identity.The job characteristic model also suggests that jobs should be set up so that the person performing a service (such as an auto mechanic) comes into contact with the recipient of the service (such as the car owner). Jobs designed in this manner will not only help the employees’ by providing feedback, but also enhancing skill variety (e.g., talking to customers in addition to fixing cars), and building autonomy (by giving people the freedom to manage threlationships with clients). Another implication of the job characteristics model is that jobs should be designed so as to give employees’ as much feedback as possible. The more peopbetter equipped they are to take appropriate corrective action.

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 37

Allow employees’ to check their own work. Allow employees’ to learn new skills.

The job characteristics model pand the idea of job enrichment, known as the job characteristic model,

provides an answer to this important question.

f the Job Characteristics Model: This approach assumes that jobs can be designed so as to help people get enjoyment out

of their jobs and care about the work they do. The model identifies how jobs can be designed to help people feel that they are doing meaningful and valuable work. In particular, it specifies that enriching certain elements of jobs alters people's psychological states in a manner that enhances their work effectiveness. The model identifies five core job dimensions that help create three critical psychological states, leading, in turn, to several beneficial personal and work outcomes

dimensions are skill variety, task identity, task significance, autonomy, and feedback. Let's take a closer look at these.

is the extent to which a job requires using several different skills and talents that an employees’ has.

is the degree to which a job requires doing a whole task from beginning to

is the amount of impact a job is believed to have on others. is the extent, to which employees’ have the freedom and discretion to plan,

and carry out their jobs as desired. is the extent to which the job allows people to have information about the

effectiveness of their performance.

Suggestions for Enhancing the Motivating Potential of Jobs: The job characteristics model specifies several ways in which jobs can be designed to

enhance their motivating potential. For example, instead of using several workers, each of whom performs a separate part of a whole job, it would be better to have each person perfor

greater skill variety and task identity. The job characteristic model also suggests that jobs should be set up so that the person performing a service (such as an auto mechanic) comes into contact with the recipient of the

the car owner). Jobs designed in this manner will not only help the employees’ by providing feedback, but also enhancing skill variety (e.g., talking to customers in addition to fixing cars), and building autonomy (by giving people the freedom to manage th

Another implication of the job characteristics model is that jobs should be designed so as to give employees’ as much feedback as possible. The more people know how well they're doing

take appropriate corrective action.

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

pand the idea of job enrichment, known as the job characteristic model,

This approach assumes that jobs can be designed so as to help people get enjoyment out The model identifies how jobs can be designed to

help people feel that they are doing meaningful and valuable work. In particular, it specifies that gical states in a manner that enhances

their work effectiveness. The model identifies five core job dimensions that help create three critical psychological states, leading, in turn, to several beneficial personal and work outcomes.

dimensions are skill variety, task identity, task significance, autonomy, and

is the extent to which a job requires using several different skills and talents

is the degree to which a job requires doing a whole task from beginning to

is the amount of impact a job is believed to have on others. is the extent, to which employees’ have the freedom and discretion to plan,

is the extent to which the job allows people to have information about the

es several ways in which jobs can be designed to enhance their motivating potential. For example, instead of using several workers, each of whom performs a separate part of a whole job, it would be better to have each person perform the entire

The job characteristic model also suggests that jobs should be set up so that the person performing a service (such as an auto mechanic) comes into contact with the recipient of the

the car owner). Jobs designed in this manner will not only help the employees’ by providing feedback, but also enhancing skill variety (e.g., talking to customers in addition to fixing cars), and building autonomy (by giving people the freedom to manage their own

Another implication of the job characteristics model is that jobs should be designed so as to give le know how well they're doing the

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“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Rewards and Incentives theories“Reward is the benefits that arise from performing a task, rendering a service or

discharging a responsibility.” Pay is the most significant and motivating benefit that is received in return for performing a task or service. It is pay that motivates indiviwork. Pay is also one of the few ways to set a mutually acceptable common value to the individual’s work contribution. Pay can also be a powerful demotivator, if employees’ are not satisfied with the reward package, it will be hardindividuals.

Advocates of the expectancy theory believe that employees’ will change their behavior by working harder or prioritizing their actions if they know that by doing so they will be rewarded with something of value to them. Hence, incentives are a great way to reward effort and behaviors which the organization wishes to encourage. If the incentive is paid in return for behavior that contributes to the organizations goals, it will in the long run enhance organeffectiveness and productivity and hence generates a positive outcome for both employer and employees’.

The principle reward for performing work is pay, many employees’ however offer also reward packages of which wages and salaries are only a parbonuses, pension schemes, health insurance, allocated cars, beneficial loans, subsidized meals, profit sharing, share options and much more.There are various things to think about before making decisions about what kisystem is most appropriate for an organization. Managers should start by asking what objectives they are seeking to achieve. These are likely to include the following:

i. To minimize expenditure on wages and salaries over the long term.ii. To attract and retain staff of the desired caliber, experience and qualifications.iii. To motivate the workforce so as to maximize organizational performance.iv. To direct effort and enthusiasm in specific directions and to encourage particular types of

employees’ behavior. v. To underpin and facilitate the management of organizational change.

There is no one payments system that can achieve all the above mentioned features for all employees’ in an organization. Managers are required to weigh up the advantages and disadvantages of each payment system and decide where to put the emphasis on The Carrot and Stick Approach to Motivatio

A very widely known motivational concept is the ‘Carrot and Stick’ approach. Many managers see motivation in terms of this notion and so asking the question; should I bribe people or simply threaten them? However when put into practice, this concept is found to be more complicated than this. To motivate is to change behaviour. How can you change the bteam? Using the carrot and stick approach, there are basically two ways; behaviour is changed by force or by choice through the use of incentives.

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 38

Rewards and Incentives theories “Reward is the benefits that arise from performing a task, rendering a service or

discharging a responsibility.” Pay is the most significant and motivating benefit that is received in return for performing a task or service. It is pay that motivates individuals to go out and seek work. Pay is also one of the few ways to set a mutually acceptable common value to the individual’s work contribution. Pay can also be a powerful demotivator, if employees’ are not satisfied with the reward package, it will be hard for the bank to recruit and retain good

Advocates of the expectancy theory believe that employees’ will change their behavior by working harder or prioritizing their actions if they know that by doing so they will be

f value to them. Hence, incentives are a great way to reward effort and behaviors which the organization wishes to encourage. If the incentive is paid in return for behavior that contributes to the organizations goals, it will in the long run enhance organeffectiveness and productivity and hence generates a positive outcome for both employer and

The principle reward for performing work is pay, many employees’ however offer also reward packages of which wages and salaries are only a part of. The packages typically include; bonuses, pension schemes, health insurance, allocated cars, beneficial loans, subsidized meals, profit sharing, share options and much more. There are various things to think about before making decisions about what kisystem is most appropriate for an organization. Managers should start by asking what objectives they are seeking to achieve. These are likely to include the following:

To minimize expenditure on wages and salaries over the long term.act and retain staff of the desired caliber, experience and qualifications.

To motivate the workforce so as to maximize organizational performance.To direct effort and enthusiasm in specific directions and to encourage particular types of

To underpin and facilitate the management of organizational change.

There is no one payments system that can achieve all the above mentioned features for all employees’ in an organization. Managers are required to weigh up the advantages and

tages of each payment system and decide where to put the emphasis on

The Carrot and Stick Approach to Motivation A very widely known motivational concept is the ‘Carrot and Stick’ approach. Many

managers see motivation in terms of this notion and so their efforts to motivate is limited to asking the question; should I bribe people or simply threaten them? However when put into practice, this concept is found to be more complicated than this. To motivate is to change behaviour. How can you change the behaviour of people, both as individuals and as a group or team? Using the carrot and stick approach, there are basically two ways; behaviour is changed by force or by choice through the use of incentives.

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

“Reward is the benefits that arise from performing a task, rendering a service or discharging a responsibility.” Pay is the most significant and motivating benefit that is received

duals to go out and seek work. Pay is also one of the few ways to set a mutually acceptable common value to the individual’s work contribution. Pay can also be a powerful demotivator, if employees’ are not

to recruit and retain good

Advocates of the expectancy theory believe that employees’ will change their behavior by working harder or prioritizing their actions if they know that by doing so they will be

f value to them. Hence, incentives are a great way to reward effort and behaviors which the organization wishes to encourage. If the incentive is paid in return for behavior that contributes to the organizations goals, it will in the long run enhance organizational effectiveness and productivity and hence generates a positive outcome for both employer and

The principle reward for performing work is pay, many employees’ however offer also t of. The packages typically include;

bonuses, pension schemes, health insurance, allocated cars, beneficial loans, subsidized meals,

There are various things to think about before making decisions about what kind of payment system is most appropriate for an organization. Managers should start by asking what objectives

To minimize expenditure on wages and salaries over the long term. act and retain staff of the desired caliber, experience and qualifications.

To motivate the workforce so as to maximize organizational performance. To direct effort and enthusiasm in specific directions and to encourage particular types of

To underpin and facilitate the management of organizational change. There is no one payments system that can achieve all the above mentioned features for all employees’ in an organization. Managers are required to weigh up the advantages and

tages of each payment system and decide where to put the emphasis on.

A very widely known motivational concept is the ‘Carrot and Stick’ approach. Many their efforts to motivate is limited to

asking the question; should I bribe people or simply threaten them? However when put into practice, this concept is found to be more complicated than this. To motivate is to change

ehaviour of people, both as individuals and as a group or team? Using the carrot and stick approach, there are basically two ways; behaviour is changed by

Page 39: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

The ‘stick’ or fear is a good motivator and when usthat context, fear has always been the ‘convenient’ choice of organisations. When all else fails, the stick approach is somehow most attractive as it usually produces instantaneous compliance and hence immediate results. Fear is also attractive as ishort term; an employees’ performance may be improved without any need for incentives or financial remuneration. Is money the best ‘carrot’?

There is also the often asked question of this seems to be money. People need money to feed, clothe, and house themselves and their families: this being the basic assumption of Maslow’s theory. Hence, organisations have always based their motivational schemes on this premise that the more money you give to employees’, the harder they will work. But is this true?

Is not clear growth potential for the for employees’ professionalism in the only concern for the respondents as they were proud of the "What is the biggest long-term motivator for you?" The results were different from the survey done in Asia, but money was still not the number one factor. The responses in ranking were as follows: 1. Working for a leader with vision and values.2. Pay raises and bonuses. 3. Being given greater responsibility.4. Developing the respect of subordinates and peers.5. Being given recognition from supervisors and managers.

Simply put, money is not the reason why these respondents want to work. In that context, a billionaire like Bill Gates and two generations after him could live very comfortably with all the money that he presently has, and yet he is known to be a workaholic. Quite clearly, a monthly paycheque is not the main motivation for people like him or the people mentioned previously, to go to work.

Money is important, but it does not override the fact that there be better motivators at the appropriate times. In that context, no motivating factor can be looked at in isolation. No factor by itself will serve to motivate perpetually. There must be a combination of factors which when used toincreasing or at least sustaining the motivational levels of employees’. Organisations, which recognise this, will be well on their way to having motivated employees’.

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 39

The ‘stick’ or fear is a good motivator and when used at the correct times can be very helpful. In that context, fear has always been the ‘convenient’ choice of Bangladeshiorganisations. When all else fails, the stick approach is somehow most attractive as it usually

mpliance and hence immediate results. Fear is also attractive as iperformance may be improved without any need for incentives or

There is also the often asked question of what is the best ‘carrot’? The obvious answer to

this seems to be money. People need money to feed, clothe, and house themselves and their families: this being the basic assumption of Maslow’s theory. Hence, organisations have always

al schemes on this premise that the more money you give to employees’, the harder they will work. But is this true?

lear growth potential for the bank? Is not it necessary a career dprofessionalism in management? Money was important but it did not appear to be

the only concern for the respondents as they were proud of the bank that they aterm motivator for you?" The results were different from the survey

money was still not the number one factor. The responses in ranking were as

1. Working for a leader with vision and values.

3. Being given greater responsibility. 4. Developing the respect of subordinates and peers.

eing given recognition from supervisors and managers.

Simply put, money is not the reason why these respondents want to work. In that context, a billionaire like Bill Gates and two generations after him could live very comfortably with all

he presently has, and yet he is known to be a workaholic. Quite clearly, a monthly paycheque is not the main motivation for people like him or the people mentioned

Money is important, but it does not override the fact that there are other factors that may be better motivators at the appropriate times. In that context, no motivating factor can be looked at in isolation. No factor by itself will serve to motivate perpetually. There must be a combination of factors which when used together will serve to achieve the overall objective of increasing or at least sustaining the motivational levels of employees’. Organisations, which recognise this, will be well on their way to having motivated employees’.

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

ed at the correct times can be very helpful. In Bangladeshi managers and

organisations. When all else fails, the stick approach is somehow most attractive as it usually mpliance and hence immediate results. Fear is also attractive as in the

performance may be improved without any need for incentives or

what is the best ‘carrot’? The obvious answer to this seems to be money. People need money to feed, clothe, and house themselves and their families: this being the basic assumption of Maslow’s theory. Hence, organisations have always

al schemes on this premise that the more money you give to employees’,

career development plan Money was important but it did not appear to be

that they are working for. term motivator for you?" The results were different from the survey

money was still not the number one factor. The responses in ranking were as

Simply put, money is not the reason why these respondents want to work. In that context, a billionaire like Bill Gates and two generations after him could live very comfortably with all

he presently has, and yet he is known to be a workaholic. Quite clearly, a monthly paycheque is not the main motivation for people like him or the people mentioned

are other factors that may be better motivators at the appropriate times. In that context, no motivating factor can be looked at in isolation. No factor by itself will serve to motivate perpetually. There must be a

gether will serve to achieve the overall objective of increasing or at least sustaining the motivational levels of employees’. Organisations, which

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“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Motivation-Hygiene Theory Herzberg's findings revealed that certain characteristics of a job are consistently related to

job satisfaction, while different factors are associated with job dissatisfaction. These are:

From 'One More Time: How do You Motivate Employees’?' by Frederick Herzberg.conclusion he drew is that job satisfaction and job dissatisfaction are not opposites.

The opposite of SatisfactionThe opposite of DissatisfactionRemedying the causes of dissatisfaction will not create of job satisfaction eliminate job dissatisfaction. If you have a hostile work environment, giving someone a promotion will not make him or her satisfied. If you create a healthy work environment but do not provide work they're doing will still not be satisfying.

According to Herzberg, the factors leading to job satisfaction are "separate and distinct from those that lead to job dissatisfaction." Thereforjob factors you may create peace, but not necessarily enhance performance. This placates your workforce instead of actually motivating them to improve performance.associated with job dissatisfaction are called hygiene factors. When these have been adequately addressed, people will not be dissatisfied nor will they be satisfied. If you want to motivate your team, you then have to focus on satisfaction factors like achievement, recognition, anresponsibility.

To apply Herzberg's theory, you need to adopt a two stage process to motivate people. Firstly, you need eliminate the dissatisfactions they're experiencing and, secondly, you need to help them find satisfaction. Theory X of McGregor:

In this theory, management assumes employees’ are inherently lazy and will avoid work if they can and that they inherently dislike work. As a result of this, management believes that

Factors for Satisfaction

1. Achievement2. Recognition3. The work itself4. Responsibility5. Advancement6. Growth

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 40

berg's findings revealed that certain characteristics of a job are consistently related to

job satisfaction, while different factors are associated with job dissatisfaction. These are:

From 'One More Time: How do You Motivate Employees’?' by Frederick Herzberg.conclusion he drew is that job satisfaction and job dissatisfaction are not opposites.

Satisfaction is No Satisfaction. Dissatisfaction is No Dissatisfaction.

Remedying the causes of dissatisfaction will not create satisfaction. Nor will adding the factors of job satisfaction eliminate job dissatisfaction. If you have a hostile work environment, giving someone a promotion will not make him or her satisfied. If you create a healthy work environment but do not provide members of your team with any of the satisfaction factors, the work they're doing will still not be satisfying.

According to Herzberg, the factors leading to job satisfaction are "separate and distinct from those that lead to job dissatisfaction." Therefore, if you set about eliminating dissatisfying job factors you may create peace, but not necessarily enhance performance. This placates your workforce instead of actually motivating them to improve performance.

isfaction are called hygiene factors. When these have been adequately addressed, people will not be dissatisfied nor will they be satisfied. If you want to motivate your team, you then have to focus on satisfaction factors like achievement, recognition, an

To apply Herzberg's theory, you need to adopt a two stage process to motivate people. Firstly, you need eliminate the dissatisfactions they're experiencing and, secondly, you need to

In this theory, management assumes employees’ are inherently lazy and will avoid work if they can and that they inherently dislike work. As a result of this, management believes that

Factors for Satisfaction Factors for Dissatisfaction

Achievement Recognition The work itself Responsibility Advancement Growth

1. Bank policies 2. Supervision 3. Relationship with

supervisor and peers4. Work conditions5. Salary 6. Status 7. Security

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

berg's findings revealed that certain characteristics of a job are consistently related to job satisfaction, while different factors are associated with job dissatisfaction. These are:

From 'One More Time: How do You Motivate Employees’?' by Frederick Herzberg. The conclusion he drew is that job satisfaction and job dissatisfaction are not opposites.

satisfaction. Nor will adding the factors of job satisfaction eliminate job dissatisfaction. If you have a hostile work environment, giving someone a promotion will not make him or her satisfied. If you create a healthy work

members of your team with any of the satisfaction factors, the

According to Herzberg, the factors leading to job satisfaction are "separate and distinct e, if you set about eliminating dissatisfying

job factors you may create peace, but not necessarily enhance performance. This placates your workforce instead of actually motivating them to improve performance. The characteristics

isfaction are called hygiene factors. When these have been adequately addressed, people will not be dissatisfied nor will they be satisfied. If you want to motivate your team, you then have to focus on satisfaction factors like achievement, recognition, and

To apply Herzberg's theory, you need to adopt a two stage process to motivate people. Firstly, you need eliminate the dissatisfactions they're experiencing and, secondly, you need to

In this theory, management assumes employees’ are inherently lazy and will avoid work if they can and that they inherently dislike work. As a result of this, management believes that

Factors for Dissatisfaction

Relationship with supervisor and peers Work conditions

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“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

workers need to be closely supervised and comprehensive systems of controhierarchical structure is needed with narrow span of control at each and every level. According to this theory, employees’ will show little ambition without an enticing incentive program and will avoid responsibility whenever they can. Theory Y of McGregor:

In this theory, management assumes employees’ may be ambitious andmotivated and exercise self-control. It is believed that employees’ enjoy their mental and physical work duties. According to them work is as natural as play. They possess the ability for creative problem solving, but their talents are underused in most organizations. Given the conditions, Theory Y managers believe that employees’ will learn to seek out and accept responsibility and to exercise selfthey are committed. A Theory Y manager believes that, given twill want to do well at work. They believe that the satisfaction of doing a good job is a strong motivation. Many people interpret Theory Y as a positive set of beliefs about workers.

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 41

workers need to be closely supervised and comprehensive systems of controhierarchical structure is needed with narrow span of control at each and every level. According to this theory, employees’ will show little ambition without an enticing incentive program and will avoid responsibility whenever they can.

In this theory, management assumes employees’ may be ambitious andcontrol. It is believed that employees’ enjoy their mental and

physical work duties. According to them work is as natural as play. They possess the ability for creative problem solving, but their talents are underused in most organizations. Given the conditions, Theory Y managers believe that employees’ will learn to seek out and accept responsibility and to exercise self-control and self-direction in accomplishing objectives to which they are committed. A Theory Y manager believes that, given the right conditions, most people will want to do well at work. They believe that the satisfaction of doing a good job is a strong motivation. Many people interpret Theory Y as a positive set of beliefs about workers.

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

workers need to be closely supervised and comprehensive systems of controls developed. A hierarchical structure is needed with narrow span of control at each and every level. According to this theory, employees’ will show little ambition without an enticing incentive program and will

In this theory, management assumes employees’ may be ambitious and self-control. It is believed that employees’ enjoy their mental and

physical work duties. According to them work is as natural as play. They possess the ability for creative problem solving, but their talents are underused in most organizations. Given the proper conditions, Theory Y managers believe that employees’ will learn to seek out and accept

direction in accomplishing objectives to which he right conditions, most people

will want to do well at work. They believe that the satisfaction of doing a good job is a strong motivation. Many people interpret Theory Y as a positive set of beliefs about workers.

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“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Chapter Five (Compensation and motivation practices of PBL)

1. HR Principles of Prime Bank Limited2. Talent Resourcing, Learning and Development Culture3. Open and Fair Evaluation System for Employees4. Competitive Compensation Package5. Performance Bonus6. 'We, not I' Culture7. Knowledge Sharing and Open House Discussions8. Human Capital9. Compensations offered by Prime Bank Ltd. to the employees

a. Basic Salaryb. House Rent Allowancec. Conveyanced. Leave travel allowancee. Medical reimbursementf. Staff loag. Bonus h. Special allowance

10. Motivational facts on Prime Bank Ltd.a) Ensuring horizonb) Succession planningc) Comprehensive performance management programd) Reward & recognition programe) Grievances and counsellingf) Competitive compensation packageg) Ensuring a decent workplace

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 42

(Compensation and motivation practices of PBL)

Principles of Prime Bank Limited Talent Resourcing, Learning and Development CultureOpen and Fair Evaluation System for EmployeesCompetitive Compensation Package Performance Bonus 'We, not I' Culture Knowledge Sharing and Open House Discussions

Capital Compensations offered by Prime Bank Ltd. to the employees

Basic Salary House Rent Allowance Conveyance Leave travel allowance Medical reimbursement

loan facilities

Special allowance Motivational facts on Prime Bank Ltd.

Ensuring horizontal and vertical career growthSuccession planning Comprehensive performance management programReward & recognition program Grievances and counselling Competitive compensation package Ensuring a decent workplace

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

(Compensation and motivation practices of PBL)

Talent Resourcing, Learning and Development Culture Open and Fair Evaluation System for Employees

Knowledge Sharing and Open House Discussions

Compensations offered by Prime Bank Ltd. to the employees

tal and vertical career growth

Comprehensive performance management program

Page 43: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

HR Principles of Prime Bank Limited Talent Resourcing, Learning and Development Culture:

We look for candidates with high potential who have wide shoulder to undertake the future leadership of the Bank. Our careful selection criteria involve fair policy and a set of steps to find the right candidate we look for. We have different programs covering onthe-job training at home and abroad to develop our employeetraining are ensured while they join in any stream of banking. Our HR Training and Development center is acclaimed as one of the best centers in the industry. ‘We shape our talents’ this is a consistent motto to prepare ou Open and Fair Evaluation System for Employees:

We manage an evaluation system that clearly links individual performance to our business goals and priorities. Each employee has wellis as a part of our evaluation process which we promote always. We manage an evaluation system based on the records of periodic over the year. For higher objectivity and openness, bemployee is screened by the next higher level (reviewer). Competitive Compensation Package:

We offer a rewarding culture and higher compensation and benefits package in a way which always match with our employees’ deshousing allowance, medical allowance, conveyance allowance, group insurance, employees’ welfare fund, leave fair assistance and other admissible facilities those match individual job role and designation as per banking policy. Performance Bonus:

Every year we pay for the high performers when It is also based some other additional criteria like the team's success and the individual's performance. We create profiles of top performers and make these visible encourage others to put in their best, thereby creating a competitive environment within the 'We, not I' Culture:

We value team collaboration. We believe the world has been shifted tofrom individual brilliance. When a target is tough for an individual; it is very easy for a team we have learned this truth over the years through our success journey. Explore us, you will never feel alone! Knowledge Sharing and Open

Ideas rule the world and ideas make money; even an idea can change our lives. The lines written here are very true, we believe. We promote, recognize and execute great ideas. We

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 43

HR Principles of Prime Bank Limited

Talent Resourcing, Learning and Development Culture: We look for candidates with high potential who have wide shoulder to undertake the

future leadership of the Bank. Our careful selection criteria involve fair policy and a set of steps to find the right candidate we look for. We have different programs covering on

job training at home and abroad to develop our employees. Well-balanced job rotation and training are ensured while they join in any stream of banking. Our HR Training and Development center is acclaimed as one of the best centers in the industry. ‘We shape our talents’ this is a consistent motto to prepare our human resources as our future business leaders.

Open and Fair Evaluation System for Employees: We manage an evaluation system that clearly links individual performance to our

business goals and priorities. Each employee has well -defined reporting relatiis as a part of our evaluation process which we promote always. We manage an evaluation system based on the records of periodic counselling and achievements of the employees tracked over the year. For higher objectivity and openness, besides the immediate supervisor, each employee is screened by the next higher level (reviewer).

Competitive Compensation Package: We offer a rewarding culture and higher compensation and benefits package in a way

which always match with our employees’ desires including basic salary, provident fund, gratuity, housing allowance, medical allowance, conveyance allowance, group insurance, employees’ welfare fund, leave fair assistance and other admissible facilities those match individual job role

on as per banking policy.

Every year we pay for the high performers when bank hits a certain level of profitability. It is also based some other additional criteria like the team's success and the individual's

files of top performers and make these visible encourage others to put in their best, thereby creating a competitive environment within the

We value team collaboration. We believe the world has been shifted tofrom individual brilliance. When a target is tough for an individual; it is very easy for a team we have learned this truth over the years through our success journey. Explore us, you will never

Knowledge Sharing and Open House Discussions: Ideas rule the world and ideas make money; even an idea can change our lives. The lines

written here are very true, we believe. We promote, recognize and execute great ideas. We

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

We look for candidates with high potential who have wide shoulder to undertake the future leadership of the Bank. Our careful selection criteria involve fair policy and a set of steps to find the right candidate we look for. We have different programs covering on-the job and off-

balanced job rotation and training are ensured while they join in any stream of banking. Our HR Training and Development center is acclaimed as one of the best centers in the industry. ‘We shape our

r human resources as our future business leaders.

We manage an evaluation system that clearly links individual performance to our defined reporting relationships. Self-rating

is as a part of our evaluation process which we promote always. We manage an evaluation and achievements of the employees tracked

esides the immediate supervisor, each

We offer a rewarding culture and higher compensation and benefits package in a way ires including basic salary, provident fund, gratuity,

housing allowance, medical allowance, conveyance allowance, group insurance, employees’ welfare fund, leave fair assistance and other admissible facilities those match individual job role

hits a certain level of profitability. It is also based some other additional criteria like the team's success and the individual's

files of top performers and make these visible bank-wide. It will encourage others to put in their best, thereby creating a competitive environment within the bank.

We value team collaboration. We believe the world has been shifted to team excellence from individual brilliance. When a target is tough for an individual; it is very easy for a team - we have learned this truth over the years through our success journey. Explore us, you will never

Ideas rule the world and ideas make money; even an idea can change our lives. The lines written here are very true, we believe. We promote, recognize and execute great ideas. We

Page 44: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

believe only employees are the biggest source of innovativesuggestion box, open house discussions, employeeideas. If you believe you can make the change with your great ideas please communicate us and exploit sooner. Our HR Division plays advocand employer. Prime Bank ltd. has a Management Committee which comprises Managing Director, Deputy Managing Directors and other Heads of Division to on important business issues. In addition to the regular roles and responsibilities, the Committee assist in formulation of remuneration related policies and practices in alignment of the Bank’s short and long-term business objectives. The roles and responsibilities of the

1. Review the effectiveness of remuneration policy to ensure that whether the Board’s set objectives and expectations are being met;

2. Ensure that an effective remuneration policy, with the Bank’s strategy, and is applied consistently for all employee levels.

3. Ensure that the structure and mix of fixed and variable pay and other elements are in alignment with the overall business objectives

4. Guide and give suggestion to HR team during preparation and review of any policy or process related to compensation and benefits;

5. Ensure that all benefits, including retirement benefits and other financial arrangements are justified, appropriately valuedrecognition etc.

All employees including the Senior Management employees are paid competitive remuneration package. The structure and level of remuneration are reviewed time to time based on Bank’s performance and affordability. The remuneration also stresses on ensuring internal and external pay equity. Human Capital Employees are the key driving force of Prime Bank’s continuous success

A group of motivated and engaged employees with diverse talents are the kPrime Bank. Prime Bank is highly reputed in the market as an employer of choice. The Bank has positioned itself with a performancewith respect and receive widened opportunities to realbenefit the organization by demonstrating value creating behaviors.

To ensure long term sustainability, Prime Bank has a special focus on skill and merit based recruitment and selection process, highly competittraining and development programs, career growth with succession planning, highculture and pleasant working atmosphere where employees are able to escalate their grievance and receive counselling.

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 44

believe only employees are the biggest source of innovative ideas. Our knowledge sharing, suggestion box, open house discussions, employee-management meets are the source of our ideas. If you believe you can make the change with your great ideas please communicate us and exploit sooner. Our HR Division plays advocacy role and acts as a bridge bet

Prime Bank ltd. has a Management Committee which comprises Managing Directors and other Heads of Division to review

on important business issues. In addition to the regular roles and responsibilities, the Committee assist in formulation of remuneration related policies and practices in alignment of the Bank’s

business objectives.

The roles and responsibilities of the Management Committee are the followings:Review the effectiveness of remuneration policy to ensure that whether the Board’s set objectives and expectations are being met; Ensure that an effective remuneration policy, procedure and practice are in place, aligned with the Bank’s strategy, and is applied consistently for all employee levels.Ensure that the structure and mix of fixed and variable pay and other elements are in alignment with the overall business objectives; Guide and give suggestion to HR team during preparation and review of any policy or process related to compensation and benefits; Ensure that all benefits, including retirement benefits and other financial arrangements are justified, appropriately valued and promoting the performance based reward &

All employees including the Senior Management employees are paid competitive remuneration package. The structure and level of remuneration are reviewed time to time based on Bank’s

and affordability. The remuneration also stresses on ensuring internal and external

Employees are the key driving force of Prime Bank’s continuous successA group of motivated and engaged employees with diverse talents are the k

Prime Bank. Prime Bank is highly reputed in the market as an employer of choice. The Bank has positioned itself with a performance-driven rewarding work culture; where employees are treated with respect and receive widened opportunities to realize their diverse potentials fully as well as benefit the organization by demonstrating value creating behaviors.

To ensure long term sustainability, Prime Bank has a special focus on skill and merit based recruitment and selection process, highly competitive remuneration package, adequate training and development programs, career growth with succession planning, highculture and pleasant working atmosphere where employees are able to escalate their grievance

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

ideas. Our knowledge sharing, management meets are the source of our

ideas. If you believe you can make the change with your great ideas please communicate us and acy role and acts as a bridge between the employees

Prime Bank ltd. has a Management Committee which comprises Managing review discuss and decide

on important business issues. In addition to the regular roles and responsibilities, the Committee assist in formulation of remuneration related policies and practices in alignment of the Bank’s

are the followings: Review the effectiveness of remuneration policy to ensure that whether the Board’s set

procedure and practice are in place, aligned with the Bank’s strategy, and is applied consistently for all employee levels. Ensure that the structure and mix of fixed and variable pay and other elements are in

Guide and give suggestion to HR team during preparation and review of any policy or

Ensure that all benefits, including retirement benefits and other financial arrangements and promoting the performance based reward &

All employees including the Senior Management employees are paid competitive remuneration package. The structure and level of remuneration are reviewed time to time based on Bank’s

and affordability. The remuneration also stresses on ensuring internal and external

Employees are the key driving force of Prime Bank’s continuous success A group of motivated and engaged employees with diverse talents are the key asset of

Prime Bank. Prime Bank is highly reputed in the market as an employer of choice. The Bank has driven rewarding work culture; where employees are treated

ize their diverse potentials fully as well as

To ensure long term sustainability, Prime Bank has a special focus on skill and merit ive remuneration package, adequate

training and development programs, career growth with succession planning, high-performance culture and pleasant working atmosphere where employees are able to escalate their grievance

Page 45: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Recruitment and selection process with ‘bestfit’ ethos followed by clearly defined policy and procedures:

The recruitment and selection of Prime Bank follows the ‘best fit’ approach. As per Bank’s requirement Human Resources Division ensures that the potential assessed, selected and placed onAttributes) and experience. Prime Bank has a recruitment policy that clearly states the criteria and procedures to recruit fresh and lateraProgram which is aimed to recruit outstanding fresh graduates and develop them as the future leaders of Prime Bank Ltd. Ensuring adequate learning & development opportunities through effectively designed training programs and ontransform Human Resources to Human Capital through appropriate learning and development initiatives in every aspects of work area. HR Division regularly undertakes effectively designed training programs targeting the right group of employees through proper training need assessment. The Bank has a separate HR Training & Development Centre. Well-crafted compensation & benefits package to have a positive impact on employees’ overall well-being

PBL has a flexible compensation and benefits system that helps to ensure pay equity, is linked with performance that is understood by employees, and keeps in touch with employee desires and what’s coveted in the market, while maintaining a balance with theaffordability. All employees are paid competitive remuneration package. The structure and level of remuneration are reviewed time to time based on Bank’s performance and affordability. Compensations offered by Prime Bank Ltd. to the employees:

Compensation refers to monetary benefits offered and provided to employees in return of the services they provide to the organization. The monetary benefits include basic salary, house rent allowance, conveyance, leave travel allowance, medical reimbursemeallowances, bonus, Pf/Gratuity, etc. They are given at a regular interval at a definite time. Basic Salary

Prime Bank Ltd. provides a handsome amount of basic salary to the employees compared to others financial institutions. rendering his/her services. House Rent Allowance

Prime Bank Ltd. also gives a definite amount of money to the employees for their accommodation. This is done to provide them social security and motivate them

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 45

and selection process with ‘bestfit’ ethos followed by clearly defined policy

The recruitment and selection of Prime Bank follows the ‘best fit’ approach. As per Bank’s requirement Human Resources Division ensures that the potential candidates are properly assessed, selected and placed on-time as per required competencies (KSA Attributes) and experience. Prime Bank has a recruitment policy that clearly states the criteria and procedures to recruit fresh and lateral entrants. The Bank has a Management Trainee Program which is aimed to recruit outstanding fresh graduates and develop them as the future leaders of Prime Bank Ltd. Ensuring adequate learning & development opportunities through

ng programs and on-the-job experience PBL continuously thrives to transform Human Resources to Human Capital through appropriate learning and development initiatives in every aspects of work area. HR Division regularly undertakes effectively designed

ing programs targeting the right group of employees through proper training need assessment. The Bank has a separate HR Training & Development Centre.

crafted compensation & benefits package to have a positive impact on employees’

PBL has a flexible compensation and benefits system that helps to ensure pay equity, is linked with performance that is understood by employees, and keeps in touch with employee desires and what’s coveted in the market, while maintaining a balance with theaffordability. All employees are paid competitive remuneration package. The structure and level of remuneration are reviewed time to time based on Bank’s performance and affordability.

Compensations offered by Prime Bank Ltd. to the employees: Compensation refers to monetary benefits offered and provided to employees in return of

the services they provide to the organization. The monetary benefits include basic salary, house rent allowance, conveyance, leave travel allowance, medical reimbursemeallowances, bonus, Pf/Gratuity, etc. They are given at a regular interval at a definite time.

Prime Bank Ltd. provides a handsome amount of basic salary to the employees compared to others financial institutions. It is the money an employee receives from his/her employer by

Prime Bank Ltd. also gives a definite amount of money to the employees for their This is done to provide them social security and motivate them

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

and selection process with ‘bestfit’ ethos followed by clearly defined policy

The recruitment and selection of Prime Bank follows the ‘best fit’ approach. As per candidates are properly

time as per required competencies (KSA – Knowledge, Skill & Attributes) and experience. Prime Bank has a recruitment policy that clearly states the criteria

l entrants. The Bank has a Management Trainee Program which is aimed to recruit outstanding fresh graduates and develop them as the future leaders of Prime Bank Ltd. Ensuring adequate learning & development opportunities through

job experience PBL continuously thrives to transform Human Resources to Human Capital through appropriate learning and development initiatives in every aspects of work area. HR Division regularly undertakes effectively designed

ing programs targeting the right group of employees through proper training need

crafted compensation & benefits package to have a positive impact on employees’

PBL has a flexible compensation and benefits system that helps to ensure pay equity, is linked with performance that is understood by employees, and keeps in touch with employee desires and what’s coveted in the market, while maintaining a balance with the business affordability. All employees are paid competitive remuneration package. The structure and level of remuneration are reviewed time to time based on Bank’s performance and affordability.

Compensation refers to monetary benefits offered and provided to employees in return of the services they provide to the organization. The monetary benefits include basic salary, house rent allowance, conveyance, leave travel allowance, medical reimbursements, special allowances, bonus, Pf/Gratuity, etc. They are given at a regular interval at a definite time.

Prime Bank Ltd. provides a handsome amount of basic salary to the employees compared an employee receives from his/her employer by

Prime Bank Ltd. also gives a definite amount of money to the employees for their This is done to provide them social security and motivate them to work.

Page 46: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Conveyance Prime Bank Ltd. grants for

organization provide vehicles and petrol allowances to their employees to motivate them whereas this kind of facilities are confined in official d Leave travel allowance

These allowances are provided to retain the best talent in are given allowances to visit any place they wish with their families. The allowances are scaled as per the position of employee in the organization. Once it was given while they need but nowadays it is given on monthly basis named LFA. Medical reimbursement

Prime Bank Ltd. also looks after the health conditions of their employees. The employees are provided with medi-claims for them and their family members. These medihealth-insurances and treatment bills reimbursements. But this is limited upto a certain ammoney. Staff loan facilities

Employees are provided staff Prime Bank Ltd. But such kinds of facilities are not available for the Bonus

Bonus is paid to the employees during festive seasons to motivate them and provide them the social security. The bonus amount usually amounts to one month’s salary of the employee. There are basically two bonuses for them in a year. Special allowance

Special allowance such as overtime, credit card facilities, mobile allowances, commissions, travel expenses, reduced interest loans; insurance, club memberships, etc are provided to employees to provide them social security and motivate them which improve theorganizational productivity. Motivational facts on Prime Bank Ltd.

a) Ensuring horizontal and vertical career growthPBL always plans for employees so that they can advance their career goals. This includes advancement into more responsible positions. The so that talented employees are placed in upgraded positions and thereby enables them to deliver their greatest value to the organization. In addition to vertical career growth, employees may also grow horizontally.

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 46

grants for conveyance facilities to their employees. Though few others organization provide vehicles and petrol allowances to their employees to motivate them whereas this kind of facilities are confined in official duties only for the employees of PBL.

These allowances are provided to retain the best talent in Prime Bank Ltd.are given allowances to visit any place they wish with their families. The allowances are scaled

e position of employee in the organization. Once it was given while they need but nowadays it is given on monthly basis named LFA.

also looks after the health conditions of their employees. The employees claims for them and their family members. These medi

insurances and treatment bills reimbursements. But this is limited upto a certain am

are provided staff loan facilities, car loan and some other relevant facilities. But such kinds of facilities are not available for the employees

Bonus is paid to the employees during festive seasons to motivate them and provide them the social security. The bonus amount usually amounts to one month’s salary of the employee. There are basically two bonuses for them in a year.

cial allowance such as overtime, credit card facilities, mobile allowances, commissions, travel expenses, reduced interest loans; insurance, club memberships, etc are provided to employees to provide them social security and motivate them which improve the

Motivational facts on Prime Bank Ltd.

Ensuring horizontal and vertical career growth PBL always plans for employees so that they can advance their career goals. This includes advancement into more responsible positions. The bank supports career opportunities internally so that talented employees are placed in upgraded positions and thereby enables them to deliver their greatest value to the organization. In addition to vertical career growth, employees may also

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

facilities to their employees. Though few others organization provide vehicles and petrol allowances to their employees to motivate them whereas

uties only for the employees of PBL.

Prime Bank Ltd. The employees are given allowances to visit any place they wish with their families. The allowances are scaled

e position of employee in the organization. Once it was given while they need but

also looks after the health conditions of their employees. The employees claims for them and their family members. These medi-claims include

insurances and treatment bills reimbursements. But this is limited upto a certain amount of

and some other relevant facilities in employees of all level.

Bonus is paid to the employees during festive seasons to motivate them and provide them the social security. The bonus amount usually amounts to one month’s salary of the employee.

cial allowance such as overtime, credit card facilities, mobile allowances, commissions, travel expenses, reduced interest loans; insurance, club memberships, etc are provided to employees to provide them social security and motivate them which improve the

PBL always plans for employees so that they can advance their career goals. This includes supports career opportunities internally

so that talented employees are placed in upgraded positions and thereby enables them to deliver their greatest value to the organization. In addition to vertical career growth, employees may also

Page 47: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

b) Succession planning Besides encouraging individual employee growth and develidentify and retain the human resources who can potentially be the successors of mission critical roles. PBL acknowledges that Succession success of the Bank. PBL continuously assesses organizational, divisional and team capability gaps to identify, develop and retain the successors in a timely manner to meet the demands of the future.

c) Comprehensive performance management program PBL has a comprehensive performance management program that evaluates employees’ yearly performance against business targets at the yearconsidered as crucial for the Bperformers and nonperformers.system can help to reward the deserving employees, as well as help to ensure further development program for the rest.

d) Reward & recognition program PBL has a well-designed Reward & Recognition program that gives special attention to employees’ actions, efforts, behavior and performance. It meets the intrinsic psychological need for appreciation of employees’ efforts and supports business strategy by reinforcing certain behaviors (e.g., extraordinary accomplishments) that contribute to Bank’s success.

e) Grievances and counseSince employee’s behavior affects work discipline, HR Division always to report if they have any work related grievance. In PBL there is formal procedure to address the employee grievance. Time to time HR Division also counsels employees as part of its job as people’s advocate.

f) Competitive compensation PBL offers competitive compensation package which encourage the employees’ to stay in theorganization. Just only for this reason they are quite satisfied PBL ensures security for the prospects for their personal development and social integration.

g) Ensuring a decent workplacePrime Bank believes that the business can grow favourably if the organization enables employees through creating and maintaining a decent workplace. In PBL, there is a decent work environment where employees can work with dignity, have the freedom to express opinions, can participate in the decision making process that affect their lives, and receive equal treaopportunity.

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 47

Besides encouraging individual employee growth and development, PBL also gives effort to identify and retain the human resources who can potentially be the successors of mission critical roles. PBL acknowledges that Succession Planning & Management is vital to the continued success of the Bank. PBL continuously assesses organizational, divisional and team capability gaps to identify, develop and retain the successors in a timely manner to meet the demands of the

Comprehensive performance management program PBL has a comprehensive performance management program that evaluates employees’ yearly performance against business targets at the year-end. This performance appraisal system is considered as crucial for the Bank as this is a very important tool to identify and distinguish the performers and nonperformers. Prime Bank believes that a well-executed performance appraisal system can help to reward the deserving employees, as well as help to ensure further

nt program for the rest.

Reward & recognition program designed Reward & Recognition program that gives special attention to

employees’ actions, efforts, behavior and performance. It meets the intrinsic psychological need f employees’ efforts and supports business strategy by reinforcing certain

behaviors (e.g., extraordinary accomplishments) that contribute to Bank’s success.

Grievances and counselling Since employee’s behavior affects work discipline, HR Division always to report if they have any work related grievance. In PBL there is formal procedure to address the employee grievance. Time to time HR Division also counsels employees as part of its job as

Competitive compensation package: PBL offers competitive compensation package which encourage the employees’ to stay in theorganization. Just only for this reason they are quite satisfied in spite of heavy

the employees’ and social protection for employees’ families, better prospects for their personal development and social integration.

Ensuring a decent workplace Prime Bank believes that the business can grow favourably if the organization enables

ating and maintaining a decent workplace. In PBL, there is a decent work environment where employees can work with dignity, have the freedom to express opinions, can participate in the decision making process that affect their lives, and receive equal trea

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

t, PBL also gives effort to identify and retain the human resources who can potentially be the successors of mission critical

Planning & Management is vital to the continued success of the Bank. PBL continuously assesses organizational, divisional and team capability gaps to identify, develop and retain the successors in a timely manner to meet the demands of the

PBL has a comprehensive performance management program that evaluates employees’ yearly end. This performance appraisal system is

ank as this is a very important tool to identify and distinguish the executed performance appraisal

system can help to reward the deserving employees, as well as help to ensure further

designed Reward & Recognition program that gives special attention to employees’ actions, efforts, behavior and performance. It meets the intrinsic psychological need

f employees’ efforts and supports business strategy by reinforcing certain behaviors (e.g., extraordinary accomplishments) that contribute to Bank’s success.

Since employee’s behavior affects work discipline, HR Division always encourages employees to report if they have any work related grievance. In PBL there is formal procedure to address the employee grievance. Time to time HR Division also counsels employees as part of its job as

PBL offers competitive compensation package which encourage the employees’ to stay in the heavy work load. Thus

and social protection for employees’ families, better

Prime Bank believes that the business can grow favourably if the organization enables ating and maintaining a decent workplace. In PBL, there is a decent work

environment where employees can work with dignity, have the freedom to express opinions, can participate in the decision making process that affect their lives, and receive equal treatment and

Page 48: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

(Data Analysis and findings)

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 48

Chapter Six (Data Analysis and findings)

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

(Data Analysis and findings)

Page 49: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

PART I

Subject Gender

Percentage

Interpretation: This shows that most (70%) of the employees at Prime Bank (Amberkhana Branch) are male. However, there are also many (30%) female workers. There are 20 employees at this branch out of which 6 are female. Prime Bank Ltd also recruited employees from differereligions. This shows a diversified work team and environment which is better than having uniform workforce as diversified workforce brings wider range of skills and experience in an organization.

SubjectSAVP FAVP Senior officerRetail officerJunior officerTrainee AssistanceCash officerGB in-chargeSupervisor Messenger Total

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 49

PART I – Demographic information a) Gender

Subject Male FemaleGender 14 6

Percentage 70% 30%

Figure: Gender of the employees

This shows that most (70%) of the employees at Prime Bank (Amberkhana Branch) are male. However, there are also many (30%) female workers. There are 20 employees at this branch out of which 6 are female. Prime Bank Ltd also recruited employees from differereligions. This shows a diversified work team and environment which is better than having uniform workforce as diversified workforce brings wider range of skills and experience in an

a) Position

Subject Position Percentage1 5 1 5

Senior officer 5 25 Retail officer 2 10 Junior officer 1 5 Trainee Assistance 3 15 Cash officer 2 10

charge 1 5 1 5 3 15

20 100 %

Male

70%

Female

30%

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Female

This shows that most (70%) of the employees at Prime Bank (Amberkhana Branch) are male. However, there are also many (30%) female workers. There are 20 employees at this branch out of which 6 are female. Prime Bank Ltd also recruited employees from different religions. This shows a diversified work team and environment which is better than having uniform workforce as diversified workforce brings wider range of skills and experience in an

Percentage

Page 50: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Interpretation: I had the chance to become clear about the current employees’ job position. From carrying out the questionnaire and talking to employees I found out that there are 5 senior officers, 2 retail officers, 2 cash officers and 3 trainee assistance while SAVP, FSupervisor, GB in-charge, Junior Officer 1 person for each post. There are 3 messengers who often go to different Prime Bank branches when required.

Subject 20-30 years 30-40 years 40-50 years 50-60 years

Total

1 1

0

1

2

3

4

5

6

0

5

10

15

20-30 years

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 50

Figure: Position of the employees

I had the chance to become clear about the current employees’ job position. From carrying out the questionnaire and talking to employees I found out that there are 5 senior officers, 2 retail officers, 2 cash officers and 3 trainee assistance while SAVP, F

charge, Junior Officer 1 person for each post. There are 3 messengers who often go to different Prime Bank branches when required.

a) Age

Age Percentage 5 25 13 65 2 10 0 0

20 100 %

Figure: Age of the employees

5

2

1

3

2

1 1

30 years 30-40 years 40-50 years 50-60 years

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

I had the chance to become clear about the current employees’ job position. From carrying out the questionnaire and talking to employees I found out that there are 5 senior officers, 2 retail officers, 2 cash officers and 3 trainee assistance while SAVP, FAVP,

charge, Junior Officer 1 person for each post. There are 3 messengers who

Percentage 25 65 10

100 %

3

60 years

Page 51: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Interpretation: This shows that most of the employees However, 25% employees are aged between 20the age range of 40-50 years.

SubjectDegree GraduationMasters PhD Other

Total

Interpretation: This shows that most (55%) of the employees completed ‘Masters’. indicates that completing MBA gives possible candidates a higher chance of being selected as an employee of Prime Bank Ltd by the Recruitment and Selection team. Moreover there are 2 persons who completed degree but the fact is that they are working ia graduate person and the rest others (30%) have several others qualifications.

Subject Single

Married Total

2

0

2

4

6

8

10

12

Degree

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 51

This shows that most of the employees (65%) are aged between 30However, 25% employees are aged between 20-30 years. Besides there are 2 people who are in

b) Education

Subject Education Percentage2 10

Graduation 1 5 11 55 0 0 6 30

Total 20 100 %

Figure: Education of the employees

This shows that most (55%) of the employees completed ‘Masters’. indicates that completing MBA gives possible candidates a higher chance of being selected as an employee of Prime Bank Ltd by the Recruitment and Selection team. Moreover there are 2 persons who completed degree but the fact is that they are working in clerical level. There is also a graduate person and the rest others (30%) have several others qualifications.

c) Marital status

Marital status Percentage3 1517 8520 100 %

1

11

0

6

Graduation Masters PhD Other

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

are aged between 30-40 years old. 30 years. Besides there are 2 people who are in

Percentage

This shows that most (55%) of the employees completed ‘Masters’. This indicates that completing MBA gives possible candidates a higher chance of being selected as an employee of Prime Bank Ltd by the Recruitment and Selection team. Moreover there are 2

n clerical level. There is also a graduate person and the rest others (30%) have several others qualifications.

Percentage 15 85

100 %

Other

Page 52: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Figure: Marital status

Interpretation: 85% of the employees are married. However, there are younger employees (15%) who are not yet married and have started working with PBL recently.

Range <5 years

5-10 years 10-15 years 15-20 years >20 years

Total

Figure: Years of experience

02468

1012141618

0

1

2

3

4

5

6

7

8

9

10

<5 years

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 52

Figure: Marital status of the employees 85% of the employees are married. However, there are younger employees

(15%) who are not yet married and have started working with PBL recently.

d) Years of experience

Years of experience Percentage9 45

6 30 3 15 1 5

1 5 20 100 %

Figure: Years of experience of the employees

Single Married

5-10 years 10-15 years 15-20 years >20 years

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

85% of the employees are married. However, there are younger employees (15%) who are not yet married and have started working with PBL recently.

Percentage 45 30 15

100 %

>20 years

Page 53: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Interpretation: I have also tried to find out ‘how long the employees have been working with Prime bank Ltd’. The graph shows that 45% of the employees have less than 5 years of experience. This indicates that there is a great opportunity for fresh graduates to work with bank Limited. However, this also means that there will be higher level of competition in terms of getting a job as there are more likely to be more possible candidates.

The graph also shows that there are 25% of employees who have worked with Prime Bank Ltd for over 10 years, an indication of their job satisfaction. The head of the branch (SAVP) is working more than 20 years for the bank. They have worked with Prime Bank for a long time representing that Prime Bank is offering good working motivationproper working environment.

Statement

Cost of living

Seniority pay

Merit pay

Incentives

Person focused pay

Figure: Extrinsic compensation

0

2

4

6

8

10

12

14

16

18

20

Cost of living Seniority pay

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 53

I have also tried to find out ‘how long the employees have been working with Prime bank Ltd’. The graph shows that 45% of the employees have less than 5 years of experience. This indicates that there is a great opportunity for fresh graduates to work with bank Limited. However, this also means that there will be higher level of competition in terms of getting a job as there are more likely to be more possible candidates.

The graph also shows that there are 25% of employees who have worked with Prime Bank Ltd for over 10 years, an indication of their job satisfaction. The head of the branch (SAVP) is working more than 20 years for the bank. They have worked with Prime Bank for a long time representing that Prime Bank is offering good working motivationproper working environment.

Part 2 – Types of compensation

Extrinsic compensation

Yes Percentage No Percentage

4 20 % 16

18 90 % 2

17 85 % 3

16 80 % 4

3 15 % 17

Figure: Extrinsic compensation of the employees

Seniority pay Merit pay Incentives Person focused

pay

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

I have also tried to find out ‘how long the employees have been working with Prime bank Ltd’. The graph shows that 45% of the employees have less than 5 years of experience. This indicates that there is a great opportunity for fresh graduates to work with Prime bank Limited. However, this also means that there will be higher level of competition in terms of

The graph also shows that there are 25% of employees who have worked with Prime Bank Ltd for over 10 years, an indication of their job satisfaction. The head of the branch (SAVP) is working more than 20 years for the bank. They have worked with Prime Bank for a long time representing that Prime Bank is offering good working motivation, incentives and

Percentage

80 %

10 %

15 %

20 %

85 %

Person focused

pay

Yes

No

Page 54: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Interpretation: Here, the blue bar indicates 16 of 20 employees said that

Prime Bank Ltd offers ‘seniority pay’officers are on higher salary scale than other officers. This clearly indicates that Prime Bank limited offers seniority pay as indicated by my questionnaire.

17 out of 20 employees said that the bank also offers outstanding performance. This works as a great motivation to go that ‘extra mile’ and put extra effort to become an outstanding perforthat outstanding performance is also appraised by higher level managers and all team members.16 out of 20 employees stated that Prime Bank offers incentives for workers. This motivates workers well to work with Prime Bank and put their best effort in achieving the Bank’s goals/objectives.

The results gathered from this questionnaire shows that 17 out of 20 employees said that person focused pay is not offered by Prime Bank. In my opinion, this is a will be seen as a fair opportunity to all workers whereas ‘person focused pay’ is likely to make other employees feel less important.

Statement

Skill variety

Task identity

Task significance

Autonomy

Feedback

Figure: Intrinsic compensation

0

2

4

6

8

10

12

14

16

Skill variety Task identity

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 54

Here, the blue bar indicates ‘yes’ answer while the red bar indicates 16 of 20 employees said that ‘cost of living’ is not separated in their salary. However,

‘seniority pay’ to those who have worked for a longer period. Senior officers are on higher salary scale than other officers. This clearly indicates that Prime Bank

pay as indicated by my questionnaire. 17 out of 20 employees said that the bank also offers Merit Pay

outstanding performance. This works as a great motivation to go that ‘extra mile’ and put extra effort to become an outstanding performer. From my discussion with employees, I also found out that outstanding performance is also appraised by higher level managers and all team members.16 out of 20 employees stated that Prime Bank offers incentives for workers. This motivates

to work with Prime Bank and put their best effort in achieving the Bank’s

The results gathered from this questionnaire shows that 17 out of 20 employees said that is not offered by Prime Bank. In my opinion, this is a

seen as a fair opportunity to all workers whereas ‘person focused pay’ is likely to make other employees feel less important.

Intrinsic compensation

Yes Percentage No Percentage

7 35 % 13

15 75 % 5

Task significance 14 70 % 6

8 40 % 12

14 70 % 6

Figure: Intrinsic compensation of the employees

Task identity Task

significance

Autonomy Feedback

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

answer while the red bar indicates ‘no’ . is not separated in their salary. However,

to those who have worked for a longer period. Senior officers are on higher salary scale than other officers. This clearly indicates that Prime Bank

Merit Pay . A bonus pays for outstanding performance. This works as a great motivation to go that ‘extra mile’ and put extra

mer. From my discussion with employees, I also found out that outstanding performance is also appraised by higher level managers and all team members. 16 out of 20 employees stated that Prime Bank offers incentives for workers. This motivates

to work with Prime Bank and put their best effort in achieving the Bank’s

The results gathered from this questionnaire shows that 17 out of 20 employees said that is not offered by Prime Bank. In my opinion, this is a good strategy as it

seen as a fair opportunity to all workers whereas ‘person focused pay’ is likely to make

Percentage

65 %

25 %

30 %

60 %

30 %

Feedback

Yes

No

Page 55: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Interpretation: Here, the blue bar indicates 13 of 20 employees said that said that their task identity prevails in the organization whereas rest 5 people said negatively. 14 out of 20 employees said that their task is significant to bout of 20 employees said that there is no that they get autonomy while performing their duty. From my discussion with employees, I also found out that 14 employees said that they get proper customer while 6 people replied negatively.

Part 3: In addition to my pay for the work I do, I am entitled to the following benefits.

Additional facilitiesMedical Pension

Paid leave Insurance Car loan Meals

Child-care Severance pay

Interpretation: In terms of medical facilities, all employees said that they get medical facilities such as first aid, doctor’s offices, urgent care centres, trauma centres etc. this is a good facility offered by the bank and makes employees feel safe. However, Prime Bankand therefore pension isn’t applicable. This is exactly what is demonstrated by the graph as all

0

5

10

15

20

25

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 55

Here, the blue bar indicates ‘yes’ answer while the red bar indicates

13 of 20 employees said that skill variety doesn’t appear in the bank job. However, 15 people said that their task identity prevails in the organization whereas rest 5 people said negatively. 14 out of 20 employees said that their task is significant to bank but rest 6 people said negatively. 12 out of 20 employees said that there is no autonomy while performing the job. Yet 8 people said that they get autonomy while performing their duty. From my discussion with employees, I also

ees said that they get proper feedback of their service provided to customer while 6 people replied negatively.

In addition to my pay for the work I do, I am entitled to the following benefits.

Additional facilities Yes No 20 0 0 20 20 0 20 0 8 12 0 20 0 20

Severance pay 20 0

In terms of medical facilities, all employees said that they get medical facilities such as first aid, doctor’s offices, urgent care centres, trauma centres etc. this is a good facility offered by the bank and makes employees feel safe. However, Prime Bankand therefore pension isn’t applicable. This is exactly what is demonstrated by the graph as all

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

answer while the red bar indicates ‘no’ .

doesn’t appear in the bank job. However, 15 people said that their task identity prevails in the organization whereas rest 5 people said negatively. 14

ank but rest 6 people said negatively. 12 while performing the job. Yet 8 people said

that they get autonomy while performing their duty. From my discussion with employees, I also of their service provided to

In addition to my pay for the work I do, I am entitled to the following benefits.

In terms of medical facilities, all employees said that they get medical facilities such as first aid, doctor’s offices, urgent care centres, trauma centres etc. this is a good facility offered by the bank and makes employees feel safe. However, Prime Bank Ltd is a private bank and therefore pension isn’t applicable. This is exactly what is demonstrated by the graph as all

Yes

No

Page 56: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

employees said they do not get pension. In case of emergency, maternity leave, employees can get paid leave which is also a positive facBank Ltd. This is because, without paid leave many employees may struggle to cope with their general life without any payment while being off work. In terms of getting car loan from the Bank, the resulany car loan provided by the bank. However, the other 40% employees voted saying that they get loan facility from the bank. From my discussion with the staff, I found out that all employees get loan facilities where a small amount from their salary is taken every month. This enables workers to establish themselves in terms of financial capability while working with the bank. I also asked employees if they get free meal facility. As the graph is showing, all employvoted ‘no’ as they have to take their own meals to the bank every day. When I joined as an intern, I was also told to take my lunch box to the bank which also clearly indicates that the meal facility isn’t offered by the bank. In terms of childfacilities and the employees are personally responsible for this matter. The graph also demonstrates that ‘severance pay’ is offered by the bank as all employees voted ‘yes’. This relates to payment which is made when t

Statement Stronglydisagree

fair promotion 1 Promotion based on performance

2

basic pay 1 Clear instruction 2 Independence 1 Empowerment 3 use of skills 1 Target achievement 1 working environment 1 Value of service 2 Salary 2 Career plan 1

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 56

employees said they do not get pension. In case of emergency, maternity leave, employees can get paid leave which is also a positive factor that makes people enthusiastic to work with Prime Bank Ltd. This is because, without paid leave many employees may struggle to cope with their general life without any payment while being off work. In terms of getting car loan from the Bank, the result shows 60% employees voted as they do not any car loan provided by the bank. However, the other 40% employees voted saying that they get loan facility from the bank. From my discussion with the staff, I found out that all employees get

re a small amount from their salary is taken every month. This enables workers to establish themselves in terms of financial capability while working with the bank. I also asked employees if they get free meal facility. As the graph is showing, all employvoted ‘no’ as they have to take their own meals to the bank every day. When I joined as an intern, I was also told to take my lunch box to the bank which also clearly indicates that the meal facility isn’t offered by the bank. In terms of child-care, the bank doesn’t offer any child care facilities and the employees are personally responsible for this matter. The graph also demonstrates that ‘severance pay’ is offered by the bank as all employees voted ‘yes’. This relates to payment which is made when the employees fall in trouble.

Motivation

Strongly isagree

Disagree

Fair

Agree

2 3 105 2 8

3 9 51 7 64 8 66 4 51 6 72 5 83 2 122 5 66 4 63 7 6

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

employees said they do not get pension. In case of emergency, maternity leave, employees can tor that makes people enthusiastic to work with Prime

Bank Ltd. This is because, without paid leave many employees may struggle to cope with their

t shows 60% employees voted as they do not any car loan provided by the bank. However, the other 40% employees voted saying that they get loan facility from the bank. From my discussion with the staff, I found out that all employees get

re a small amount from their salary is taken every month. This enables workers to establish themselves in terms of financial capability while working with the bank. I also asked employees if they get free meal facility. As the graph is showing, all employees voted ‘no’ as they have to take their own meals to the bank every day. When I joined as an intern, I was also told to take my lunch box to the bank which also clearly indicates that the meal

he bank doesn’t offer any child care facilities and the employees are personally responsible for this matter. The graph also demonstrates that ‘severance pay’ is offered by the bank as all employees voted ‘yes’. This

Agree Strongly agree

10 4 8 3

5 2 6 4 6 1 5 2 7 5 8 4 12 2 6 5 6 2 6 3

Page 57: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Interpretation: 14 out of 20 (70%) employees think that promotion opportunity provided is fair. This is important for employees because without promotion opportunities they would be less motivated to work harder and aim for higher posts. 55% employees agreed that they thipromotion is based on performance whereas 35% employees feel that promotion isn’t based on performance. It is good that more employees think that promotion is based on performance because they are more likely to give their best performance with the hope

The graph also shows that most (45%) employees had neutral opinion in terms of being their basic pay well balanced for the work they do whereas 20% employees had negative view on the basic pay they are currently getting. However, 35% emplbalanced. This is positive sign as more employees think their basic pay is fair. If workers feel they aren’t getting paid fairly then they would have been less motivated and this could have rendered overall productivity.

50% employees agreed that they are getting clear instructions about the work they have to do. Here, 35% employees had neutral opinion. I believe this is because; they are already aware of what they are doing and need no instruction. During my internship,officers asking their senior colleagues if they were unsure about something. This way they could do their job correctly without mistakes.

The graph also demonstrates that 35% employees feel that they are able to work independently whereas 40% employees had neutral opinion. From my experience, I can say that the senior officers are eligible to work independently whereas junior officers are often given clear instructions and cannot work as they wish. The research also shows that 4

0

2

4

6

8

10

12

14

Strongly Disagree

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 57

Figure: Motivational facts of the employees

14 out of 20 (70%) employees think that promotion opportunity provided is fair. This is important for employees because without promotion opportunities they would be less motivated to work harder and aim for higher posts. 55% employees agreed that they thipromotion is based on performance whereas 35% employees feel that promotion isn’t based on performance. It is good that more employees think that promotion is based on performance because they are more likely to give their best performance with the hope to be promoted.

The graph also shows that most (45%) employees had neutral opinion in terms of being their basic pay well balanced for the work they do whereas 20% employees had negative view on the basic pay they are currently getting. However, 35% employees said that their basic is well balanced. This is positive sign as more employees think their basic pay is fair. If workers feel they aren’t getting paid fairly then they would have been less motivated and this could have

50% employees agreed that they are getting clear instructions about the work they have to

do. Here, 35% employees had neutral opinion. I believe this is because; they are already aware of what they are doing and need no instruction. During my internship, I observed that few junior officers asking their senior colleagues if they were unsure about something. This way they could do their job correctly without mistakes.

The graph also demonstrates that 35% employees feel that they are able to work tly whereas 40% employees had neutral opinion. From my experience, I can say that

the senior officers are eligible to work independently whereas junior officers are often given clear instructions and cannot work as they wish. The research also shows that 4

Disagree Fair Agree

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

14 out of 20 (70%) employees think that promotion opportunity provided is fair. This is important for employees because without promotion opportunities they would be less motivated to work harder and aim for higher posts. 55% employees agreed that they think promotion is based on performance whereas 35% employees feel that promotion isn’t based on performance. It is good that more employees think that promotion is based on performance

to be promoted. The graph also shows that most (45%) employees had neutral opinion in terms of being

their basic pay well balanced for the work they do whereas 20% employees had negative view on oyees said that their basic is well

balanced. This is positive sign as more employees think their basic pay is fair. If workers feel they aren’t getting paid fairly then they would have been less motivated and this could have

50% employees agreed that they are getting clear instructions about the work they have to do. Here, 35% employees had neutral opinion. I believe this is because; they are already aware of

I observed that few junior officers asking their senior colleagues if they were unsure about something. This way they could

The graph also demonstrates that 35% employees feel that they are able to work tly whereas 40% employees had neutral opinion. From my experience, I can say that

the senior officers are eligible to work independently whereas junior officers are often given clear instructions and cannot work as they wish. The research also shows that 45% employees

Agree Strongly Agree

Page 58: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

think that the Bank’s employees shouldn’t be much empowered by the manager. I think this is because ‘Prime Bank Ltd’ is a banking organization which makes it very rigid in terms of the way some work has to be done. This is because, not doing tserious problems like money loss, violation of rules, bad reputation from audit.

This particular research also demonstrates that 60% employees feel like they are being compensated for using their skills at work. This motivated and satisfied with their job. Only 10% employees think that they aren’t being fairly compensated for the skills they are using which are considerable as there are more employees who are satisfied.

In terms of being rewarded for achieving targets, 60% employees agreed that they get reward for achieving target. This shows some positive signs as most employees are likely to achieve a set target when they know that they will be rewarded. During my intsenior level managers arranging diner party because there target was met and the bank was in good profit. Occupied in a good working condition is one of the most important factors related to employee productivity. The research shows thwith the working environment provided by Prime Bank Ltd where 10% employees voted as it doesn’t affect their work. From my experience as an intern, I can say that the working environment is very good. This is and the overall layout made me feel comfortable.

As the graph shows, 55% employees of Prime Bank Ltd feel that the bank values their service well. This is important as it encourages employeeknow that the work they are doing is necessary to the organization. The questionnaire also indicated that 40% employees said that they are satisfied with their current salary where another 40% said they would like morefor more salary could be an issue but it is understandable because every employee would want more salary. 45% employees suggested that increase in salary would encourage them to improve their performance. Prime Bank Ltd could increase its staff salary or pay bonus when there is good profit made. According to this research, this is likely to improve its employees’ productivity.

Statement

Success measurement Bonus Refreshment activities

Recognition Rewards upon performance

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 58

think that the Bank’s employees shouldn’t be much empowered by the manager. I think this is because ‘Prime Bank Ltd’ is a banking organization which makes it very rigid in terms of the way some work has to be done. This is because, not doing things exactly as needed could lead to serious problems like money loss, violation of rules, bad reputation from audit.

This particular research also demonstrates that 60% employees feel like they are being compensated for using their skills at work. This is a positive sign as they are more likely to be motivated and satisfied with their job. Only 10% employees think that they aren’t being fairly compensated for the skills they are using which are considerable as there are more employees

In terms of being rewarded for achieving targets, 60% employees agreed that they get reward for achieving target. This shows some positive signs as most employees are likely to achieve a set target when they know that they will be rewarded. During my intsenior level managers arranging diner party because there target was met and the bank was in

Occupied in a good working condition is one of the most important factors related to employee productivity. The research shows that 70% employees said that they are very happy with the working environment provided by Prime Bank Ltd where 10% employees voted as it doesn’t affect their work. From my experience as an intern, I can say that the working environment is very good. This is because there are good lighting, air conditioning, dining space and the overall layout made me feel comfortable.

As the graph shows, 55% employees of Prime Bank Ltd feel that the bank values their service well. This is important as it encourages employees to give their best effort when they know that the work they are doing is necessary to the organization. The questionnaire also indicated that 40% employees said that they are satisfied with their current salary where another 40% said they would like more salary and 20% employees voted as ‘neutral’. Here, 40% voting for more salary could be an issue but it is understandable because every employee would want more salary. 45% employees suggested that increase in salary would encourage them to improve

erformance. Prime Bank Ltd could increase its staff salary or pay bonus when there is good profit made. According to this research, this is likely to improve its employees’

Rewards Strongly disagree

Disagree

Fair

Agree

2 4 5 2 5 4 1 3 6

3 2 4 2 4 6

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

think that the Bank’s employees shouldn’t be much empowered by the manager. I think this is because ‘Prime Bank Ltd’ is a banking organization which makes it very rigid in terms of the

hings exactly as needed could lead to serious problems like money loss, violation of rules, bad reputation from audit.

This particular research also demonstrates that 60% employees feel like they are being is a positive sign as they are more likely to be

motivated and satisfied with their job. Only 10% employees think that they aren’t being fairly compensated for the skills they are using which are considerable as there are more employees

In terms of being rewarded for achieving targets, 60% employees agreed that they get reward for achieving target. This shows some positive signs as most employees are likely to achieve a set target when they know that they will be rewarded. During my internship, I observed senior level managers arranging diner party because there target was met and the bank was in

Occupied in a good working condition is one of the most important factors related at 70% employees said that they are very happy

with the working environment provided by Prime Bank Ltd where 10% employees voted as it doesn’t affect their work. From my experience as an intern, I can say that the working

because there are good lighting, air conditioning, dining space

As the graph shows, 55% employees of Prime Bank Ltd feel that the bank values their s to give their best effort when they

know that the work they are doing is necessary to the organization. The questionnaire also indicated that 40% employees said that they are satisfied with their current salary where another

salary and 20% employees voted as ‘neutral’. Here, 40% voting for more salary could be an issue but it is understandable because every employee would want more salary. 45% employees suggested that increase in salary would encourage them to improve

erformance. Prime Bank Ltd could increase its staff salary or pay bonus when there is good profit made. According to this research, this is likely to improve its employees’

Agree Strongly agree

7 2 8 1 8 2

6 5 5 3

Page 59: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Interpretation: In my questionnaire, I asked employees if their periodically. The results show that 35% employees agreed and 10% employees strongly agreed and said that their success is reviewed. This is important in order to review what was done wrong and how to improve in the future. This wouHowever, a total of 30% employees felt that their success isn’t reviewed regularly. I believe that Prime Bank ought to look at this and ensure that every employees’ work is reviewed so that feedback can be given on how to improve in the future.

In terms of getting bonus when the bank is in profit, the results are very positive. As we can see in the graph, most employees said that they get bonus when the bank makes a profit. This is more likely to work as an impbest of their ability to ensure bank is moving towards profit. In relation to his, about 80% employees agreed that the Bank offers refreshment activities when it is in good profit and 30% employees. During my internship, I saw refreshment activities offered by the bank. There were free meals offered by the bank at the end of a month because it was in good profit.

I also asked employees whether their manager recognizes the extra effort they put work. The result shows a total of 55% employees said that their extra effort is recognized by the manager which motivates them to go that extra mile when it comes to giving best performance. If extra effort isn’t appreciated then employees aren’t likebecause it would make no difference. I also asked the employees if they think ‘reward’ should be based on performance. Here, 40% employees said, they think it should be based on performance whereas 30% voted against it anmake a difference.

0

1

2

3

4

5

6

7

8

9

Success measurement

Strongly Disagree

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 59

Figure: Rewards of the employees

In my questionnaire, I asked employees if their work/success is reviewed

periodically. The results show that 35% employees agreed and 10% employees strongly agreed and said that their success is reviewed. This is important in order to review what was done wrong and how to improve in the future. This would make work done by employees more efficient. However, a total of 30% employees felt that their success isn’t reviewed regularly. I believe that Prime Bank ought to look at this and ensure that every employees’ work is reviewed so that

en on how to improve in the future. In terms of getting bonus when the bank is in profit, the results are very positive. As we

can see in the graph, most employees said that they get bonus when the bank makes a profit. This is more likely to work as an important motivation factor and encourage employees to work at the best of their ability to ensure bank is moving towards profit. In relation to his, about 80% employees agreed that the Bank offers refreshment activities when it is in good profit and 30%

oyees. During my internship, I saw refreshment activities offered by the bank. There were free meals offered by the bank at the end of a month because it was in good profit.

I also asked employees whether their manager recognizes the extra effort they put work. The result shows a total of 55% employees said that their extra effort is recognized by the manager which motivates them to go that extra mile when it comes to giving best performance. If extra effort isn’t appreciated then employees aren’t likely to offer their best performance because it would make no difference. I also asked the employees if they think ‘reward’ should be based on performance. Here, 40% employees said, they think it should be based on performance whereas 30% voted against it and rest of employees (30%) voted as ‘neutral’ indicating it doesn’t

Bonus Refreshment activitiess Recognition

Disagree Neutral Agree

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

work/success is reviewed periodically. The results show that 35% employees agreed and 10% employees strongly agreed and said that their success is reviewed. This is important in order to review what was done wrong

ld make work done by employees more efficient. However, a total of 30% employees felt that their success isn’t reviewed regularly. I believe that Prime Bank ought to look at this and ensure that every employees’ work is reviewed so that

In terms of getting bonus when the bank is in profit, the results are very positive. As we can see in the graph, most employees said that they get bonus when the bank makes a profit. This

ortant motivation factor and encourage employees to work at the best of their ability to ensure bank is moving towards profit. In relation to his, about 80% employees agreed that the Bank offers refreshment activities when it is in good profit and 30%

oyees. During my internship, I saw refreshment activities offered by the bank. There were free meals offered by the bank at the end of a month because it was in good profit.

I also asked employees whether their manager recognizes the extra effort they put into work. The result shows a total of 55% employees said that their extra effort is recognized by the manager which motivates them to go that extra mile when it comes to giving best performance.

ly to offer their best performance because it would make no difference. I also asked the employees if they think ‘reward’ should be based on performance. Here, 40% employees said, they think it should be based on performance

d rest of employees (30%) voted as ‘neutral’ indicating it doesn’t

Recognition Rewards upon

performance

Strongly Agree

Page 60: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Part V – E

No Statement

1. Compensation plan2. Balance of salary payment3. incentives for gaining new

skills 4. opportunities for training5. Target fill up 6. Importance of benefits7. Impact of benefits

Figure: Employees’ perception towards

Interpretation: This graph shows some positive information about howare in relation to Prime Bank Ltd. current compensation strategies. As the graph shows that 12 employees agree with current promotional strategies ofstrongly agree which gives us a total number of 75% employees who are very satisfied with the current promotional strategies. This is a positive sign and indicates this as an important reason behind Prime Bank’s success.

This graph is also showing that 8 employees said they agree and 4 said they strongly agree that the Prime Bank’s salary payment system is well balanced. This clearly indicates that most of the workforce is satisfied with their current salary. It is veryorganization to ensure that its employees are satisfied with the salary provided.

0

2

4

6

8

10

12

14

Compensation

plan

Balance of

salary payment

Strongly Agree

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 60

Employees’ perception towards compensation

Statement Strongly agree

Agree

Neutral

Compensation plan 3 12 2 of salary payment 4 8 3

incentives for gaining new 3 6 5

opportunities for training 2 13 2 5 11 1

Importance of benefits 2 10 3 Impact of benefits 3 7 4

Figure: Employees’ perception towards compensation

This graph shows some positive information about how satisfied the employees

relation to Prime Bank Ltd. current compensation strategies. As the graph shows that 12 employees agree with current promotional strategies of Prime Bank. Furthermore, 3 employees strongly agree which gives us a total number of 75% employees who are very satisfied with the current promotional strategies. This is a positive sign and indicates this as an important reason

s. This graph is also showing that 8 employees said they agree and 4 said they strongly

agree that the Prime Bank’s salary payment system is well balanced. This clearly indicates that most of the workforce is satisfied with their current salary. It is veryorganization to ensure that its employees are satisfied with the salary provided.

Balance of

salary payment

incentives for

gaining new

skills

opportunities

for training

Target fill up

Agree Neutral Disagree

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

mployees’ perception towards compensation

Neutral

Disagree Strongly disagree

2 1 4 1 4 2

2 1 2 2 3 2 3 3

compensation

satisfied the employees relation to Prime Bank Ltd. current compensation strategies. As the graph shows that 12

Prime Bank. Furthermore, 3 employees strongly agree which gives us a total number of 75% employees who are very satisfied with the current promotional strategies. This is a positive sign and indicates this as an important reason

This graph is also showing that 8 employees said they agree and 4 said they strongly agree that the Prime Bank’s salary payment system is well balanced. This clearly indicates that most of the workforce is satisfied with their current salary. It is very important for an organization to ensure that its employees are satisfied with the salary provided.

Target fill up Importance of

benefits

Impact of

benefits

Strongly Disagree

Page 61: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

However, there are 30% employees who feel that they are not receiving proper incentives for gaining new techniques and skills. This may have a negative impPrime Bank Ltd. This is because, if the employees are not encouraged to develop their job skills then they are more likely to be stuck with their current ability and don’t put extra effort in gaining new skills. For this very reasemployees in regard to gaining new skills.

A total of 75% employees said that they are provided with training opportunities. This particular information shows that Prime Bank Ltd offers great sits staff members. During my internship, I observed that few employees had gone to Dhaka for training purposes. This doesn’t only make employees better at performing their job but also makes them confident at what they ar

A huge number of employees (80%) achieve a particular target which is set by branch/regional managers. This is very positive thing because when employees are offered benefits for achieving target, they are motivated to work at the best of their ability to fulfil the target as soon as possible. 50% employees of Prime Bank Ltd agreed and 10% strongly agreed that benefits are important to them. Benefits encourage them to work harder and achieve the Bank’s objectives. However, 50% employees said that their work isn’t affected by benefits and they feel always put the best effort. Finally, I can say that offering benefits is a better option since 50% employees said that it is important to them and has an impact on their performance. Therefore, not certain things like achieving a specific target or gaining new skills or carrying out training, would have a negative impact on the performance of those who prioritize benefits as an important factor.

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 61

However, there are 30% employees who feel that they are not receiving proper incentives for gaining new techniques and skills. This may have a negative impact on the performance of Prime Bank Ltd. This is because, if the employees are not encouraged to develop their job skills then they are more likely to be stuck with their current ability and don’t put extra effort in gaining new skills. For this very reason, any organization ought to offer proper incentives for its employees in regard to gaining new skills.

A total of 75% employees said that they are provided with training opportunities. This particular information shows that Prime Bank Ltd offers great scope of training opportunities for its staff members. During my internship, I observed that few employees had gone to Dhaka for training purposes. This doesn’t only make employees better at performing their job but also makes them confident at what they are doing.

huge number of employees (80%) said that they are offered incentives when they achieve a particular target which is set by branch/regional managers. This is very positive thing because when employees are offered benefits for achieving target, they are motivated to work at

eir ability to fulfil the target as soon as possible. 50% employees of Prime Bank Ltd agreed and 10% strongly agreed that benefits are important to them. Benefits encourage them to work harder and achieve the Bank’s objectives. However,

that their work isn’t affected by benefits and they feel always put the best effort. Finally, I can say that offering benefits is a better option since 50% employees said that it is important to them and has an impact on their performance. Therefore, not certain things like achieving a specific target or gaining new skills or carrying out training, would have a negative impact on the performance of those who prioritize benefits as an

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

However, there are 30% employees who feel that they are not receiving proper incentives act on the performance of

Prime Bank Ltd. This is because, if the employees are not encouraged to develop their job skills then they are more likely to be stuck with their current ability and don’t put extra effort in

on, any organization ought to offer proper incentives for its

A total of 75% employees said that they are provided with training opportunities. This cope of training opportunities for

its staff members. During my internship, I observed that few employees had gone to Dhaka for training purposes. This doesn’t only make employees better at performing their job but also

said that they are offered incentives when they achieve a particular target which is set by branch/regional managers. This is very positive thing because when employees are offered benefits for achieving target, they are motivated to work at

50% employees of Prime Bank Ltd agreed and 10% strongly agreed that benefits are important to them. Benefits encourage them to work harder and achieve the Bank’s objectives. However,

that their work isn’t affected by benefits and they feel always put the best effort. Finally, I can say that offering benefits is a better option since 50% employees said that it is important to them and has an impact on their performance. Therefore, not offering benefits, for certain things like achieving a specific target or gaining new skills or carrying out training, would have a negative impact on the performance of those who prioritize benefits as an

Page 62: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Findings from the Study People have different needs and these different needs make them to behave in different

ways. Majority of the respondents agreed that when well paid their motivation to work for better performance increases. As an employee the salarwith the bank. When this need is achieved it will trigger another dimension of thinking to realize another achievement. This perception is in accordance with Maslow´s hierarchy of needs which is termed the basic needs. In addition, looking at the findings I note that majority of the employees are based on a permanent contract. That notwithstanding, the employees have the possibility to be promoted within the bank. This has boosted the security mentality of temployees and has created a conducive work environment for the employees. The employees are now aware of the fact that they have a long contract with the bank and will definitely increase their motivation for higher performance. This is to justify the nthat is the safety needs. From the findings the psychological state of the employee has a major influence on their motivation. Within this category are collaboration with other employees and frequent bank meetings. These attrise to higher motivation at work. By visualizing Maslow’s hierarchy of needs, we realize these attributes will support the belonging needs. From observation, face-to-face interview and multiplegeneral findings came up with which are as follows:

a. It has been found that eand designations.

b. Employees are foundbroadband system.

c. Some of the employees are found regular, systematic and work

d. It has been found

e. Further it has beensupport for the management.

f. Management seems to be resourceful and matured enough.

g. Management helps/ greets/ pays and supports its employees.

h. Besides it has beenvery minor negativity.

i. Employees seem to be honored for working in this bank.

j. Employees are found self

k. Employees are

l. Employees are found very much aware of bank’s image and goodwill.

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 62

People have different needs and these different needs make them to behave in different ways. Majority of the respondents agreed that when well paid their motivation to work for better performance increases. As an employee the salaries will form the bond that will keep them closer with the bank. When this need is achieved it will trigger another dimension of thinking to realize another achievement. This perception is in accordance with Maslow´s hierarchy of needs which

basic needs. In addition, looking at the findings I note that majority of the employees are based on a permanent contract. That notwithstanding, the employees have the possibility to be promoted within the bank. This has boosted the security mentality of temployees and has created a conducive work environment for the employees. The employees are now aware of the fact that they have a long contract with the bank and will definitely increase their motivation for higher performance. This is to justify the next needs of Maslow´s hierarchy that is the safety needs. From the findings the psychological state of the employee has a major influence on their motivation. Within this category are collaboration with other employees and frequent bank meetings. These attributes creates a friendly working environment which gives rise to higher motivation at work. By visualizing Maslow’s hierarchy of needs, we realize these attributes will support the belonging needs.

face interview and multiple choice option based questionnaire some general findings came up with which are as follows:

und that employees receive different salary based on performance and designations.

Employees are found littl e bit concern about the conventional hiebroadband system.

mployees are found regular, systematic and work

found that many employees are bored for long period

has been found that Employees have full and wholesupport for the management.

Management seems to be resourceful and matured enough.

Management helps/ greets/ pays and supports its employees.

has been noticed that employees seem to be satisfivery minor negativity.

Employees seem to be honored for working in this bank.

Employees are found self-respected and confident of their respective works.

not well adapted with the rapidly changing environment.

Employees are found very much aware of bank’s image and goodwill.

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

People have different needs and these different needs make them to behave in different ways. Majority of the respondents agreed that when well paid their motivation to work for better

ies will form the bond that will keep them closer with the bank. When this need is achieved it will trigger another dimension of thinking to realize another achievement. This perception is in accordance with Maslow´s hierarchy of needs which

basic needs. In addition, looking at the findings I note that majority of the employees are based on a permanent contract. That notwithstanding, the employees have the possibility to be promoted within the bank. This has boosted the security mentality of the employees and has created a conducive work environment for the employees. The employees are now aware of the fact that they have a long contract with the bank and will definitely increase

ext needs of Maslow´s hierarchy that is the safety needs. From the findings the psychological state of the employee has a major influence on their motivation. Within this category are collaboration with other employees and

ributes creates a friendly working environment which gives rise to higher motivation at work. By visualizing Maslow’s hierarchy of needs, we realize these

choice option based questionnaire some

mployees receive different salary based on performance

e bit concern about the conventional hierarchy system to

mployees are found regular, systematic and work-lover.

ong period of work.

Employees have full and whole-hearted respect and

Management helps/ greets/ pays and supports its employees.

mployees seem to be satisfied with the bank with

respected and confident of their respective works.

with the rapidly changing environment.

Employees are found very much aware of bank’s image and goodwill.

Page 63: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

m. Salary, bonus, incentives are found very regular and in time.

n. Employees are found appreciating of the work environment.

o. Most of the employees want to continue with the bank.

p. Employees feel that work volume is not high in this bank.

q. Employees feel accountability is high but it is not felt necessary.

r. Employees highly appreciate tea, lunch and other facilities, provided by the management.

s. Management wants all employees as good human being.

t. Employees praise management, work

u. Maximum employees feel a sense of security in this bank.

v. Promotion is absolutely performance basis

w. It is a technologically advanced bank.

x. Generally top management shares with employees, wh

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 63

Salary, bonus, incentives are found very regular and in time.

Employees are found appreciating of the work environment.

Most of the employees want to continue with the bank.

el that work volume is not high in this bank.

Employees feel accountability is high but it is not felt necessary.

Employees highly appreciate tea, lunch and other facilities, provided by the

Management wants all employees as good human being.

Employees praise management, work-environment and colleagues.

Maximum employees feel a sense of security in this bank.

Promotion is absolutely performance basis.

It is a technologically advanced bank.

Generally top management shares with employees, when necessary.

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Salary, bonus, incentives are found very regular and in time.

Employees are found appreciating of the work environment.

Employees feel accountability is high but it is not felt necessary.

Employees highly appreciate tea, lunch and other facilities, provided by the

environment and colleagues.

en necessary.

Page 64: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

(Recommendations and Conclusion)

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 64

Chapter Seven (Recommendations and Conclusion)

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

(Recommendations and Conclusion)

Page 65: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Recommendations As a renowned private commercial bank in Bangladesh, the Prime Bank Limited has already

given much importance in satisfying the employees. From the analysis of the problems and data and also analysis from the finding of the study it is clear that employeesBank Ltd. is satisfactory and it depends on various elements like salary, working environment and activities etc. It is important to determine the employees’ motivation for the improvement of task and workings because better the employbank. According to my work on development can happen; here are those,

1. Training and Development issue:

introduced to increase the employee performance to the optimum levelLimited. Otherwise it will

2. HR counseling cell: In this system, the employerin Prime Bank Limitedwill tell their problems. HR becomes more important than compensation.

3. Continuous modernization and and revision of the compensation Limited as the world continuously monitor the changes happening around and changed scenario.

4. The Methods of Determining Employee’s Compensation: conclusions made, there seems that proper methods of determining employee’s compensation in Prime Bank Limited what the different surveys advocate for. It is with this knowledge that is recommend the Human Resources Manager should develop systems that will ensure that there is a proper compensation plan entailing proper job evaluatBank Limited. Any changes in the plan, like salaries or process should be supported by right fundamentals like salary survey and facts on the ground.

5. Direct Financial Payments and Employee’s Motivation: high awareness of existence of basic and other additional payment, only a small population was motivated with their basic pay and the overwhelming positive response on motivation improving as a result of change in basic pay. It’s reproper salary survey and job evaluation viscommissioned in a bid to ensure there is internal and external equity in the organization and that motivation is driven by the right fundamentals.

6. Benefits and Employee’s Motivationbenefits available and what they were entitled to. There was also a high level motivation

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 65

As a renowned private commercial bank in Bangladesh, the Prime Bank Limited has already given much importance in satisfying the employees. From the analysis of the problems and data and also analysis from the finding of the study it is clear that employeesBank Ltd. is satisfactory and it depends on various elements like salary, working environment and activities etc. It is important to determine the employees’ motivation for the improvement of task and workings because better the employees’ motivation the greater the outcomes of the bank. According to my work on Prime Bank Limited, I have identified some sectors where some development can happen; here are those,

Training and Development issue: More intensive training program should be introduced to increase the employee performance to the optimum level

will be quite difficult to motivate the employees’

In this system, the employer-employee relationship can Bank Limited Here, to authorized HR personal, all employees will come and

will tell their problems. HR personnel will then take necessary steps. becomes more important than compensation. Continuous modernization and revision of the compensation policies

compensation policies and strategies are indispensable for is getting more diversified day by day. The head of HR should

continuously monitor the changes happening around and adjust the policies to match the

The Methods of Determining Employee’s Compensation: From the findings and the conclusions made, there seems that proper methods of determining employee’s

Prime Bank Limited are lacking, and especially in evaluation against what the different surveys advocate for. It is with this knowledge that is recommend the Human Resources Manager should develop systems that will ensure that there is a proper compensation plan entailing proper job evaluation processes and pay structures in

. Any changes in the plan, like salaries or process should be supported by right fundamentals like salary survey and facts on the ground.

Direct Financial Payments and Employee’s Motivation: In the lihigh awareness of existence of basic and other additional payment, only a small population was motivated with their basic pay and the overwhelming positive response on motivation improving as a result of change in basic pay. It’s reproper salary survey and job evaluation vis-a-vis total rewards received to be commissioned in a bid to ensure there is internal and external equity in the organization and that motivation is driven by the right fundamentals.

d Employee’s Motivation: The respondents seemed quite aware of the benefits available and what they were entitled to. There was also a high level motivation

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

As a renowned private commercial bank in Bangladesh, the Prime Bank Limited has already given much importance in satisfying the employees. From the analysis of the problems and data and also analysis from the finding of the study it is clear that employees motivation of Prime Bank Ltd. is satisfactory and it depends on various elements like salary, working environment and activities etc. It is important to determine the employees’ motivation for the improvement of

ees’ motivation the greater the outcomes of the , I have identified some sectors where some

More intensive training program should be introduced to increase the employee performance to the optimum level in Prime Bank

employees’.

employee relationship can be increased Here, to authorized HR personal, all employees will come and

will then take necessary steps. Sometime it

policies: Modernization policies and strategies are indispensable for Prime Bank

is getting more diversified day by day. The head of HR should adjust the policies to match the

From the findings and the conclusions made, there seems that proper methods of determining employee’s

especially in evaluation against what the different surveys advocate for. It is with this knowledge that is recommend the Human Resources Manager should develop systems that will ensure that there is a proper

ion processes and pay structures in Prime . Any changes in the plan, like salaries or process should be supported by

In the light of the findings, of high awareness of existence of basic and other additional payment, only a small population was motivated with their basic pay and the overwhelming positive response on motivation improving as a result of change in basic pay. It’s recommended that a

vis total rewards received to be commissioned in a bid to ensure there is internal and external equity in the organization

The respondents seemed quite aware of the benefits available and what they were entitled to. There was also a high level motivation

Page 66: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

for benefits received, although a small group felts benefits were not important. In the light of the findings the researcher would recommend that management to take initiatives in finding out which benefits work well and why. This could be done by creating an environment conducive for information sharing and brain storming.

7. Introducing Job Knowledge Tit is by definition job-based on the data gathered from an inresponses; they may also be orally administered exams. the employees’ should be paid.

8. Introducing Assessment Centers: identifying management potential. In assessment centerssubjected to different exercises constructed to simulate the job for which they are applying. Candidates participate in a series of activities similar to those they may be expected to encounter in the actual job. properly.

9. Stop Policy Violation: policy in terms of criteria and procedure violation. For example, it is against the policy to recruit interns from universitiesgraduates of such universities that are not listed in the policy are being recruited as interns. Also graduates from listed universities but not having the required CGPA are also recruited as interns srequests of high officials. An example of procedure violation has been going on for quite some time. That is there were no written exams being held for recruiting TAs until very recently.

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 66

for benefits received, although a small group felts benefits were not important. In the e findings the researcher would recommend that management to take initiatives

in finding out which benefits work well and why. This could be done by creating an environment conducive for information sharing and brain storming.

Introducing Job Knowledge Tests: A primary advantage of a job knowledge test is that -related. A test for any specific organizational job can be designed

based on the data gathered from an in-depth job analysis. These tests may require writtenresponses; they may also be orally administered exams. Thus it will

d be paid.

Introducing Assessment Centers: An assessment center is a selection technique for identifying management potential. In assessment centers, potential candidates are subjected to different exercises constructed to simulate the job for which they are applying. Candidates participate in a series of activities similar to those they may be expected to encounter in the actual job. Otherwise motivational techniques may not work

Stop Policy Violation: There has been policy violation of the recruitment and selection policy in terms of criteria and procedure violation. For example, it is against the policy to recruit interns from universities that are not in the list given in the policy. But the graduates of such universities that are not listed in the policy are being recruited as interns. Also graduates from listed universities but not having the required CGPA are also recruited as interns sometimes. These sorts of policy violations occur as a result of requests of high officials. An example of procedure violation has been going on for quite some time. That is there were no written exams being held for recruiting TAs until very

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

for benefits received, although a small group felts benefits were not important. In the e findings the researcher would recommend that management to take initiatives

in finding out which benefits work well and why. This could be done by creating an environment conducive for information sharing and brain storming.

A primary advantage of a job knowledge test is that related. A test for any specific organizational job can be designed

depth job analysis. These tests may require written will determine how much

An assessment center is a selection technique for , potential candidates are

subjected to different exercises constructed to simulate the job for which they are applying. Candidates participate in a series of activities similar to those they may be

tional techniques may not work

There has been policy violation of the recruitment and selection policy in terms of criteria and procedure violation. For example, it is against the policy to

that are not in the list given in the policy. But the graduates of such universities that are not listed in the policy are being recruited as interns. Also graduates from listed universities but not having the required CGPA are also

ometimes. These sorts of policy violations occur as a result of requests of high officials. An example of procedure violation has been going on for quite some time. That is there were no written exams being held for recruiting TAs until very

Page 67: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Conclusion In the current competitive business environment, the organizations are facing a lot of

challenges and among these issues, getting the right employees and retaining them is one of the most important ones. In addition, today, the benefthe most important advantages of any organization; and in order to acquire the results with the highest efficiency and effectiveness from human resource, motivation of employee is very essential. In fact, employees will do their highest when they feel or hope that their hard work are to be rewarded by their managers. In this regard, many factors are available that change employees performance such as worker and employer relationship, working conditions, job security, training and opportunity of development, and overall rewarding policies of the addition, among the factors which impact employee performance, motivation, as a result of rewards, is the most important aspect. Motivation is defined as the growwhich express and control people’s behavior to achieve some specific goals.

Therefore, understanding its importance is very necessary for all organizations managers. The maximum level of workers performance happens when they feel compensated completely. For a long period of time Prime Bank Limited is trying to improve them by establishing a sound relationship among employees. They are trying heart and soul to satisfy their employees as these employees arelationship with the customers. For this reason they are rewarding their employees by enhancing their salaries, bonus and incentives. Prime Bank Limited is one of the leading commercial banks in our country and for this in all economic condition of our country it has been working with great confidence and competing tremendously with Government oriented banks, local commercial banks along with the multinational banks also.

Actually, among all effective elements on ethe consequence of rewarding, is the most important and essential element. This concept consists of different processes which affect employee’s behavior to achieve some definite goals. Extant research emphasized on relationships between job satisfaction with reward and employee performance. The study reveals that can’t satisfy the employees equally. Most of the employees are unaware about compensation package followed by reward and motivation, career growth, training and development, management style, and job design and responsibilities. It is obvious that compensation practices in Prime Bank Limited has not been fully developed and there is the urgent need to eservices of HR professionals, consultants and researchers to help shape and develop new directional focus that will ensure an efficient and effective human resource practices.

To sum up, rewards and recognition programmes must connect to the emeexpectations of the workforce and link them with the bank’s overall goals and strategies to be successful. The bank should review existing pay practices so as to offer fair pay, provide challenging and meaningful work tasks, and foster posicreate a good working environment.

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 67

In the current competitive business environment, the organizations are facing a lot of challenges and among these issues, getting the right employees and retaining them is one of the most important ones. In addition, today, the benefit of human resource is measured to be one of the most important advantages of any organization; and in order to acquire the results with the highest efficiency and effectiveness from human resource, motivation of employee is very

yees will do their highest when they feel or hope that their hard work are to be rewarded by their managers. In this regard, many factors are available that change employees performance such as worker and employer relationship, working conditions, job

rity, training and opportunity of development, and overall rewarding policies of the addition, among the factors which impact employee performance, motivation, as a result of rewards, is the most important aspect. Motivation is defined as the growth of different processes which express and control people’s behavior to achieve some specific goals.

Therefore, understanding its importance is very necessary for all organizations managers. The maximum level of workers performance happens when they feel their effort is rewarded and compensated completely. For a long period of time Prime Bank Limited is trying to improve them by establishing a sound relationship among employees. They are trying heart and soul to satisfy their employees as these employees are the way of building and retaining good relationship with the customers. For this reason they are rewarding their employees by enhancing their salaries, bonus and incentives. Prime Bank Limited is one of the leading commercial banks

r this in all economic condition of our country it has been working with great confidence and competing tremendously with Government oriented banks, local commercial banks along with the multinational banks also.

Actually, among all effective elements on employees performance, motivation, which is the consequence of rewarding, is the most important and essential element. This concept consists of different processes which affect employee’s behavior to achieve some definite goals. Extant

n relationships between job satisfaction with reward and employee performance. The study reveals that compensation practices exercised in can’t satisfy the employees equally. Most of the employees are unaware about compensation

ollowed by reward and motivation, career growth, training and development, management style, and job design and responsibilities. It is obvious that compensation practices

has not been fully developed and there is the urgent need to eservices of HR professionals, consultants and researchers to help shape and develop new directional focus that will ensure an efficient and effective human resource practices.

To sum up, rewards and recognition programmes must connect to the emeexpectations of the workforce and link them with the bank’s overall goals and strategies to be successful. The bank should review existing pay practices so as to offer fair pay, provide challenging and meaningful work tasks, and foster positive co-worker relationships in order to create a good working environment.

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

In the current competitive business environment, the organizations are facing a lot of challenges and among these issues, getting the right employees and retaining them is one of the

it of human resource is measured to be one of the most important advantages of any organization; and in order to acquire the results with the highest efficiency and effectiveness from human resource, motivation of employee is very

yees will do their highest when they feel or hope that their hard work are to be rewarded by their managers. In this regard, many factors are available that change employees performance such as worker and employer relationship, working conditions, job

rity, training and opportunity of development, and overall rewarding policies of the bank. In addition, among the factors which impact employee performance, motivation, as a result of

th of different processes which express and control people’s behavior to achieve some specific goals.

Therefore, understanding its importance is very necessary for all organizations managers. their effort is rewarded and

compensated completely. For a long period of time Prime Bank Limited is trying to improve them by establishing a sound relationship among employees. They are trying heart and soul to

re the way of building and retaining good relationship with the customers. For this reason they are rewarding their employees by enhancing their salaries, bonus and incentives. Prime Bank Limited is one of the leading commercial banks

r this in all economic condition of our country it has been working with great confidence and competing tremendously with Government oriented banks, local

mployees performance, motivation, which is the consequence of rewarding, is the most important and essential element. This concept consists of different processes which affect employee’s behavior to achieve some definite goals. Extant

n relationships between job satisfaction with reward and employee exercised in Prime Bank Limited

can’t satisfy the employees equally. Most of the employees are unaware about compensation ollowed by reward and motivation, career growth, training and development,

management style, and job design and responsibilities. It is obvious that compensation practices has not been fully developed and there is the urgent need to employ the

services of HR professionals, consultants and researchers to help shape and develop new directional focus that will ensure an efficient and effective human resource practices.

To sum up, rewards and recognition programmes must connect to the emerging needs and expectations of the workforce and link them with the bank’s overall goals and strategies to be successful. The bank should review existing pay practices so as to offer fair pay, provide

worker relationships in order to

Page 68: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

1.2.3.

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 68

Appendix

1. Bibliography 2. Questionnaire 3. Terms and acronyms

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 69: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Bibliography

Websites:

a. http://www.primebank.com.bd/index.php/home/about_prime_bank b. http://www.primebank.com.bd/index.php/home/mission c. http://www.primebank.com.bd/index.php/home/milestones d. http://www.primebank.com.bd/index.php/home/achievements

e. http://changingminds.org/explanations/theories/extrinsic_motivation.htmf. www.studymode.com g. http://web.dcp.ufl.edu/hinze/h. http://www.salary.com/hr

Books:

a. Strategic CompensationBy- Joseph J. Martocchio, 6

b. Organizational BehaviorBy- S.P Robbins, 14

c. Human Resource Management, By- Garry Dessler, Global Edition 2014

Reports:

a. Bangladesh Bank Annual Report 2013b. Prime Bank Limited Annual Report

c. Prime Bank Limited Annual Report

Journals:

a. Armstrong, M. (2008). Philadelphia: Kogan Page Publishers.

b. A.E. Schwartz (2006). Motivating Employeesc. Beardwell, I. Holden, L. & Claydon, T. (2004).

Contemporary approachEngland.

d. Campbell, J. (2007). Motivation, Attitudes, Goal Setting, Performance and Interactive Effects of Pay for Performance.

e. Cascio, W. F. (2010). Profits. McGraw-Hill/Irwin, Avenue of the Americas, New York, NY, 10020.

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

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http://www.primebank.com.bd/index.php/home/about_prime_bank http://www.primebank.com.bd/index.php/home/mission http://www.primebank.com.bd/index.php/home/milestones http://www.primebank.com.bd/index.php/home/achievements http://changingminds.org/explanations/theories/extrinsic_motivation.htm

http://web.dcp.ufl.edu/hinze/motivation theories.htm http://www.salary.com/hr

Strategic Compensation Joseph J. Martocchio, 6th Edition

Behavior S.P Robbins, 14th Edition

Human Resource Management, Garry Dessler, Global Edition 2014-2015.

ngladesh Bank Annual Report 2013-14 Prime Bank Limited Annual Report-2013

Prime Bank Limited Annual Report-2014

Armstrong, M. (2008). Strategic Human Resource Management: A Guide to Action. Philadelphia: Kogan Page Publishers.

Motivating Employees: Motivation: Linking Performance to Goals. Beardwell, I. Holden, L. & Claydon, T. (2004).Human Resources Management: A Contemporary approach. Pearson Education Ltd, Edinburgh Gate, Harlow, Essex CM202JE,

Motivation, Attitudes, Goal Setting, Performance and Interactive Effects of Pay for Performance. Minneapolis, MN: Capella University. Cascio, W. F. (2010). Managing Human Resources: Productivity, Quality of Work Life,

Hill/Irwin, Avenue of the Americas, New York, NY, 10020.

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

http://changingminds.org/explanations/theories/extrinsic_motivation.htm

: A Guide to Action.

: Motivation: Linking Performance to Goals. Resources Management: A

. Pearson Education Ltd, Edinburgh Gate, Harlow, Essex CM202JE,

Motivation, Attitudes, Goal Setting, Performance and Interactive Effects

Managing Human Resources: Productivity, Quality of Work Life, Hill/Irwin, Avenue of the Americas, New York, NY, 10020. 56.

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“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

This study is a requirement for fulfillment of BBA programme at The purpose of the study is to determine the effects of compensation on employees’ motivation. I have used Prime Bank Ltdorganization with information necessary to help improve on the employee motivation and this will intern improve on employees’ productivity. will be treated with confidentiality.

PART I – DEMOGRAPHIC 1. Gender: Male Female 2. Age: 20-30 30 3. Education: Graduation Degree Masters PhD Other:……………… 4. Marital status: Single 5. How long have you worked for <5 years 5-10 yrs 10 6. Designation: Assistant Officer Senior Manager ART I – DEMOGRAPHIC INFORMATION

PART I I – TYPES OF COMPENSATION

Extrinsic compensation

1. Does your organization provide c Ans:-

2. Is there any practice of Ans:-

3. Does ‘merit based pay Ans:-

4. Does your organization provide incentives based upon performance? Ans:-

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

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Questionnaire

This study is a requirement for fulfillment of BBA programme at Leading Universityhe purpose of the study is to determine the effects of compensation on employees’ motivation.

Prime Bank Ltd . as the case study organization; the findings will provide the organization with information necessary to help improve on the employee motivation and this

rove on employees’ productivity. This is an academic exercise and all information will be treated with confidentiality. Your participation is highly appreciated

DEMOGRAPHIC INFORMATION

: Male Female

30 30-40 40-50 Over 50

on Degree Masters PhD Other:………………

Married

. How long have you worked for ‘Prime Bank Ltd’

10 yrs 10-15 yrs 15-20 yrs >20 years

Assistant Officer Officer Assistant Manager

Senior Manager Executive Senior Executive INFORMATION PART DEMOGRA FORMATION

TYPES OF COMPENSATION

Does your organization provide cost of living adjustment to your salary?

practice of ‘seniority pay’ in your organization?

erit based pay’ prevail in your organization?

Does your organization provide incentives based upon performance?

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Leading University, Sylhet. he purpose of the study is to determine the effects of compensation on employees’ motivation.

findings will provide the organization with information necessary to help improve on the employee motivation and this

This is an academic exercise and all information

on Degree Masters PhD Other:………………

Assistant Manager Manager

Others FORMATION

ost of living adjustment to your salary?

Does your organization provide incentives based upon performance?

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“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

5. Have you observed ‘person focused pay

Ans:-

Intrinsic compensation

1. Does your organization value skill varieties? Ans:-

2. Does your organization Ans:-

3. To what extent can you work independently Ans:-

4. Do you get proper feedback

Ans:-

Please tick (✓) the box that best fits your opinion for each statement In addition to my pay for the work I do, I am entitled to the following benefits.

Medical

Pension

Paid leave

Insurance

Car loan

Meals

Child-care

Severance pay

Part III: E MPLOYEE BENEFITS AT PRIME BANK LTD

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

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person focused pay’ in your organization?

rganization value skill varieties?

rganization measure your performance?

To what extent can you work independently?

Do you get proper feedback for you work?

) the box that best fits your opinion for each statement

In addition to my pay for the work I do, I am entitled to the following

MPLOYEE BENEFITS AT PRIME BANK LTD

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Yes No

Page 72: Role of compensation practices on employees’ motivation: A study on Prime Bank Limited

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

PART IV – WORK MOTIVATION & REWARD Please answer this section by box on the side of each question, where strongly agree, which best corresponds with your opinion.

Prime Bank Ltd provides fair promotion opportunities

Promotion at Prime Bank is based on performance

I have the possibility to be promoted in my work

My basic pay is well balanced for the work I do

My basic pay is well balanced compared to other employees at Prime Bank Ltd

My basic pay is reviewed periodically

My boss provides clear instruction

My boss allows me to work independently

It is essential for managers to empower employees

I am fairly compensated for the use of my skills

We get rewarded when Prime Bank achieves its set target

I am satisfied with the working environment

Prime Bank values my service well

I am satisfied with the salary provided by Prime Bank

An increase in my basic pay will motivate me to improve on my performance

Prime Bank Ltd Staff are very highly motivated

Overall, I am highly satisfied with my career at Prime Bank

My success is measured periodically

We often get bonus when profit is made

Prime Bank often organizes activities when profit is made

My boss recognizes the extra effort I put at work

Rewards should be based on performance

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

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WORK MOTIVATION & REWARD

Please answer this section by (✓) rating the following statements by ticking only one appropriate box on the side of each question, where 1= strongly disagree, 2 = Disagree, 3 = fair, 4 = Agree, 5 =

, which best corresponds with your opinion.

MOTIVATION

Prime Bank Ltd provides fair promotion opportunities 1 2 3

Promotion at Prime Bank is based on performance 1 2 3

I have the possibility to be promoted in my work 1 2 3

basic pay is well balanced for the work I do 1 2 3

My basic pay is well balanced compared to other 1 2 3

My basic pay is reviewed periodically 1 2 3

My boss provides clear instruction 1 2 3

me to work independently 1 2 3

It is essential for managers to empower employees 1 2 3

I am fairly compensated for the use of my skills 1 2 3

We get rewarded when Prime Bank achieves its set target 1 2 3

working environment 1 2 3

Prime Bank values my service well 1 2 3

I am satisfied with the salary provided by Prime Bank 1 2 3

An increase in my basic pay will motivate me to 1 2 3

very highly motivated 1 2 3

Overall, I am highly satisfied with my career at Prime 1 2 3

REWARDS

My success is measured periodically 1 2 3

We often get bonus when profit is made 1 2 3 Prime Bank often organizes activities when profit is made 1 2 3

My boss recognizes the extra effort I put at work 1 2 3

Rewards should be based on performance 1 2 3

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

rating the following statements by ticking only one appropriate 1= strongly disagree, 2 = Disagree, 3 = fair, 4 = Agree, 5 =

4 5

4 5

4 5

4 5

4 5

4 5

4 5

4 5

4 5

4 5

4 5

4 5

4 5

4 5

4 5

4 5

4 5

4 5

4 5

4 5

4 5

4 5

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“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Please tick (✓) the applicable box

Thank you very much for your valuable time. Thank you very much for your valuable time. Thank you very much for your valuable time. Thank you very much for your valuable time. Your effort is much appreciatedYour effort is much appreciatedYour effort is much appreciatedYour effort is much appreciated

No

1 ‘Employee compensation’ plan at Prime Bank Ltd is well formulated

2 Prime Bank Ltd. ensures good balance of salary payment among its employees

3 Prime Bank Ltd. offers little or no incentives for gaining new skills or knowledge

4 We are often given the opportunities for training and development

5 There exist a system in the company of compensating employees if they achieve their targets

6 The benefits are important to me, they are one of the reasons I have not moved from Prime Bank Ltd.

7 The benefits I receive from the Bank motivates me to do well at my work

Part V – EMPLOYEES’ PERCEPTION TOWARDS COMPENSATION

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Page 73

the applicable box

Thank you very much for your valuable time. Thank you very much for your valuable time. Thank you very much for your valuable time. Thank you very much for your valuable time. Your effort is much appreciatedYour effort is much appreciatedYour effort is much appreciatedYour effort is much appreciated....

1 2 3 Strongly Agree

Agree

Neutral Disagree

‘Employee compensation’ plan at Prime Bank Ltd is well formulated

Prime Bank Ltd. ensures good balance of salary payment among its employees

Prime Bank Ltd. offers little or no incentives for gaining new skills or

We are often given the opportunities for

There exist a system in the company of compensating employees if they achieve

The benefits are important to me, they are have not moved from

The benefits I receive from the Bank motivates me to do well at my work

EMPLOYEES’ PERCEPTION TOWARDS COMPENSATION

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

4 5

Disagree Strongly Disagree

EMPLOYEES’ PERCEPTION TOWARDS COMPENSATION

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“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

AD Authorized Dealer ADC Alternative Delivery ChannelALCO Asset Liability CommitteeATM Automated Teller MachineBB Bangladesh Bank (Central Bank of Bangladesh)B/L Bad/Loss BA Bangladesh Accounting StandardBIBM Bangladesh Institute of Bank ManagementCAMELS Capital, Asset, Management, Equity, Liability and Sensitivity CRR Cash Reserve RequirementCRG Credit Risk Grading CSR Corporate Social ResponsiblyCPI Consumer Price IndexCDBL Central Depository Bangladesh LimitedCBS Core Banking SoftwarePBTI Prime Bank Training InstituteDP Depository ParticipantsEPS Earning Per Share ERG Existence Relatedness GrowthKSA Knowledge, Skill & AttributesPBTI Prime Bank Training InstituteFY Fiscal Year (July to June)GDP Gross Domestic ProductHOB Head of Branch ICAB Institute of Chartered Accountants of BangladeshIT Information TechnologyLC Letter of Credit LFA Leave Fair Assistance MTO Management trainee officerNCBs Nationalized Commercial BanksPECL Prime Exchange Co. Pte.Ltd.PBIL Prime Bank Investment Ltd.PBSL Prime Bank Securities Ltd.RMG Readymade Garments ROA Return on Assets (excluding contingent itROE Return on Equity R&D Research and DevelopmentSME Small and Medium EnterpriseSLR Statutory Liquidity Requirement

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

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Terms and acronyms

Alternative Delivery Channel ALCO Asset Liability Committee

Automated Teller Machine (Central Bank of Bangladesh)

Bangladesh Accounting Standard Bangladesh Institute of Bank Management

Capital, Asset, Management, Equity, Liability and Sensitivity Cash Reserve Requirement

porate Social Responsibly Consumer Price Index Central Depository Bangladesh Limited Core Banking Software Prime Bank Training Institute Depository Participants

Existence Relatedness Growth Knowledge, Skill & Attributes Prime Bank Training Institute Fiscal Year (July to June) Gross Domestic Product

Institute of Chartered Accountants of Bangladesh Information Technology

Management trainee officer Nationalized Commercial Banks Prime Exchange Co. Pte.Ltd. Prime Bank Investment Ltd. Prime Bank Securities Ltd.

Return on Assets (excluding contingent items)

Research and Development Small and Medium Enterprise Statutory Liquidity Requirement

“Role of compensation practices on employees’ motivation: A study on Prime Bank Limited”

Capital, Asset, Management, Equity, Liability and Sensitivity