scenario of satisfaction among employees of agrani bank limited of and its impact on banking

Scenario of Job Satisfaction among Employees of Agrani Bank

Limitedof and its Impact on Banking: A Study on Malibag

Branch

An Internship Report Presented to the Faculty of Business Studies for Partial

Fulfillment of the Requirements for the Degree of Masters of Business

Administration (MBA)

By

Md. Shawfiqul Islam

Id. No. M120202085

MBA 4th Batch

Department of Management Studies

Jagannath University

Submitted To

Prof. Dr. A. K. M. Moniruzzaman

Supervisor



Date of Submission

1 | P a g e

DEPARTMENTOF MANAGEMENT STUDIES

JAGANNATHUNIVERSITY, DHAK

April 8, 2015

LETTER OF TRANSMITTAL

April 8, 2015


Supervisor

Management Studies Department

Jagannath University, Dhaka

Subject: Application for the submission of ‘Internship Report’

Dear Sir,

With due respect, I am submitting my Internship Report titled ‘Scenario of Satisfaction

among Employees of Agrani Bank Limited of and its Impact on Banking: A Study on

Malibag Branch, which was assigned to me as partial fulfillment of my internship

program. I have found the study to be quite interesting, & insightful. I have exerted my

best effort to prepare this report. I hope it will serve the purpose.

I consider myself very privileged to prepare this report under your guidance. This has

been an enormous opportunity for me to learn and gather knowledge on a particular field.

It is an effort to focus a detailed scenario of Job Satisfaction level for banking services

where primary and secondary sources have been used to collect information. I am

extremely thankful to you for your valuable guidance, tiresome effort, and, constant

attention whenever required.

Sincerely yours,

Md. Shawfiqul Islam

Id. No. M120202085

MBA 4th Batch

Department of management studies

Jagannath University, Dhaka

SUPERVISOR’S CERTIFICATION

This is to certify that the internship report on ‘Scenario of Satisfaction among Employees

of Agrani Bank Limited of and its Impact on Banking: A Study on MalibagBranch’, has

been prepared by Md. Shawfiqul Islam, bearing Id. No. M120202085, MBA 4th Batch, as

a partial fulfillment of the requirements for the Degree of Masters of Business

Administration (MBA)

The report has been prepared by him under my supervision. And I have gone through the

Report. The texts and documents he presented in this report does not breach any existing

copyright and no portion of this report is copied from work done earlier for a degree or

otherwise.

I wish him every success in future endeavors.

_____________________(Signature of the Supervisor)


Supervisor



ACKNOWLEDGEMENTS

First of all, I would like to express my deepest sense of gratitude to almighty Allah that I

have completed the assigned task within specified time period.

For the fear of surrounding like a vote of thanks speech, I could not possibly thank all of

those people who have contributed something of themselves directly or indirectly in

preparing this report. Of course, some very special people cannot go without mention.

I would like to convey my highest gratitude to Prof. Dr. A. K. M. Moniruzzaman,

Department of Management Studies, Jagannath University for his supervision, personal

guidance, and great encouragement provided to me while preparing the report.

I particularly appreciate the perseverance and contributions of supervision by Md. Selim

Uddin, First Assistant General Manager, Agrani Bank Ltd. Mogbazar corporate Branch,

Dhaka. Without his constant supervision, advice and suggestion, I would have failed to

complete the whole thing in a right manner.

My heartfelt gratitude goes to Md. Abdur Rahim, Executive Officer, Agrani Bank,

Mogbazar branch for his great greatness & open conversation. I would also like to thank

those entire people who helped me by responding to my query and giving me

information. I would also like to thank all the participants I needed for my survey.

EXECUTIVE SUMMARY

In Bangladesh banking sector has seen a huge growth during the last decade. Along with

the publicly run commercial banks a large number of private banks have entered in the

industry. Banks have realized that cost of attracting new customers is higher than

retaining existing customers & emphasizing more on Job Satisfaction.

Thus, in the introduction Chapter, it has been tried to focus the background that where

Agrani Bank ltd. as a public bank is in respect of Job Satisfaction. Total 40 respondents

are asked about the level of their satisfaction.

In the second chapter a scenario has been described in the light of main topic. In the

following chapter, overviews of both the organizations along with comparative SWOT

analysis have been shown.

Through the following, the most vital, chapter of the report findings and analysis the

survey findings are presented and analyzed on the basis of the research questions of the

introductory part. The Questionnaires help in this portion.

Finally, a conclusion has been drawn about the main topic & some recommendations

have been given to improve the present state.

TABLE OF CONTENTS

Chapter Name Sl. No. Contents Page No.

Preliminary Pages

Title Page

Letter of Transmittal

Certificate of Supervisor’s Forwarding

Acknowledgement

Executive Summary

Table of Contents

List of Tables & Figure

List of Figure

Abbreviations

Main Text

Chapter One 1.0 Introduction

1.1 Background of the Study

1.2 Statement of the Research Problem

1.3 Objective of the Study

1.4 Methodology of the Study

1.5 Conceptual Framework

1.6 Literature Review

1.7 Limitations of the Study

Chapter Two 2.0 Scenario of the main topic in Bangladesh

Chapter Three 3.0 Overview of the Organizations

3.1 Historical Background Agrani Bank Ltd.

3.2 Corporate Information

3.3 Vision Statement

3.4 Mission Statement

3.5 Products & Services

3.6 Principal Activities

3.7 SWOT Analysis

Chapter Four 4.0 Findings & Analysis

Chapter Five 5.0 Conclusion & Recommendations

5.1 Conclusion 29

5.2 Recommendations 30

End Matter

References 33

Questionnaire 35

List of Abbreviations

ATM Automated Teller Machine

AL SME Loan

BB Bangladesh Bank

BAL Banking Agreement letter

BFS Business Financial Service

BIL Business Installment Loan

CIB Credit Investigation Bureau

CM Credit Management

CR Credit Risk

CRM Credit Risk Management

BDT Bangladesh Taka

FI Financial Institution

FDR Fixed Deposit Receipt

FY Fiscal Year

IT Internet Technology

ABL Agrani BankLimited

PFC Personal Financial

PDC Post Dated Check

MT Mail Transfer

RU Recovery Unit

SA Service Ambassador

TT Telegraphic Transfer

TIN Telephone Identification Number

FAD Finance and Administration Division

CHAPTER 1: INTRODUCTION

1.1 BACKGROUND OF THE STUDY

In existing competitive business milieu, service-oriented enterprises are playing a

significant role to reform the economic structure of both the home the world as well. And

banking, right now, is one of the most competitive service-oriented industries to

restructure and, most importantly, to fuel the economy to run the reformation program.

Banking sector in Bangladesh has displayed a dramatic expansion and an immense

growth during the last one-and-half decade when along with the publicly owned

commercial banks a large number of private banks have entered in this competitive

industry and making more profit by serving at a peak level on a consistent basis.

However, this rapid expansion has also generated a lot of managerial problems. One

buzzword is the low level of employee job satisfaction that brought difficulties, especially

for public banking sector which instead of its largely based human and other resources is

lagging behind in increasing service quality. Basically, employee's job satisfaction affects

the quality of bank service, and therefore affects the degree of customer satisfaction and

organizational growth and development. Although there are many studies on employee

job satisfaction but in Bangladesh there are very limited studies on employee job

satisfaction in public banks, specifically with respect to factors affecting job

satisfaction and its impact on banking sector.

On this background, I have prepared my master paper showing the level of job

satisfaction of the bankers titled ‘Scenario of Satisfaction among Employees of Agrani

Bank Limited of and its Impact on Banking: A Study on MalibagBranch’ .An empirical

survey is conducted to accomplish the purpose and fifty bankers are chosen from different

areasof 4 nationalized banks (Agrani Bank ltd., Agrani Bank limited, Agrani Bankltd. &

Rupali Bank ltd.) as all these banks are equal in terms of its HR practices.

1.2 PROBLEM STATEMENT

Job satisfaction of employee is a very serious topic. The organizations performance is

mostly vary due to the variation in satisfaction level of employees. The study will try to

find out the following questions:

Key factors of bank employee’s satisfaction

Root causes of employee dissatisfaction

Root causes for differences in satisfaction of bank employee in private and Govt.

sector.

Ways to minimize employee dissatisfaction

1.3 OBJECTIVES

This work will help the Banker to understand what he needs to do in order to satisfy the

employee in the organization. This will also helpful to future researcher who will make

new research on banking activities and job evaluation. The main objectives of the work

are to:

Achieve deep knowledge about employee’s job satisfaction level in different

positions of bank.

Achieve deep knowledge about employee’s job dissatisfaction in performing job

in Govt. bank.

gives recommendations to the top level managers so that they can solve the

problem

Help policy makers in taking policies.

Compare and contrast the situation of employee’s job satisfaction between

government and private sector.

1.4 METHODOLOGY OF THE STUDY

Research Design: Descriptive and Analytical research design

The target population was the employees of Agrani Bank limited

Sample Size:20

Sampling Procedure: Non-probability convenience procedure to develop the sample plan

Types & Sources of Data: Both qualitative and quantitative data collected primarily from

customers &employees along with secondary sources like

a) Annual reports, history of different Organizations;

b) Related web sites, electronic books & journals;

c) Newspapers; &

d) Thesis paper & Survey results of different Researchers.

Data collection Methods:

a) Questionnaire: Both open-ended and closed ended questions (Likert Scale) are sent to

respondents to get their responses (schedules mainly).

b) Telephonic Interview: To personnel who are related to the research problem; &

c) Relevant portion of secondary sources, and primary source.

Data Processing: All the raw data are edited, coded, classified, & tabulated by using

Micro-soft Word and Microsoft Excel.

Data Analysis: After tabulation, they were analyzed through bar-diagram&pie-charts.

1.5 DEFINITIONS & TERMS

Job satisfaction

Job satisfaction is one of the most researched variables in the area of workplace

psychology and has been associated with numerous, psychosocial issues the changing

world of work, organizational factors ranging from leadership to job design.

In general, most definitions cover the affective feeling an employee has towards their job.

This could be the job in general or their attitudes towards specific aspects of it, such as:

their colleagues, pay or working conditions. In addition, the extent to which work

outcomes meet or exceed expectations may determine the level of job satisfaction.

Variables on which Employee Satisfaction Depends

Theories of job satisfaction

Job satisfaction theories have a strong overlap with theories explaining human

motivation. The most common and prominent theories in this area include: Maslow’s

needs hierarchy theory; Herzberg’s motivatorhygiene theory; The Job Characteristics

Model

Maslow’s Hierarchy of needs:Although commonly known in the human motivation

literature, Maslow’s needs hierarchy theory was one of the firsttheories to examine the

important contributors to job satisfaction. The theory suggests that human needs form a

five levelhierarchy (Figure 1) consisting of: physiological needs, safety,

belongingness/love, esteem, and self-actualization.

1. Organizational Variables

Organizationdevelopment

Policies ofcompensation & benefit

Promotion & career development

Job Satisfaction

Job security

Working environment & condition

Relationship with supervisor

Work Group

Leadership Style

Maslow’s hierarchy of needs postulates that there are essential needs that need to be met

first (such as, physiological needs and safety), before more complex needs can be met

(such as, belonging and esteem) Maslow’s needs hierarchy was developed to explain

human motivation in general. However, its main tenants are applicable to the work

setting, and have been used to explain job satisfaction. Within an organization, financial

compensation and healthcare are some of the benefits which help an employee meet their

basic physiological needs. Safety needs can manifest itself through employees feeling

physically safe in their work environment, as well as job security and/ or having suitable

company structures and policies. When this is satisfied, the employees can focus on

feeling as though they belong to the workplace. This can come in the form of positive

relationships with colleagues and supervisors in the workplace, and whether or not they

feel they are a part of their team/ organization. Once satisfied, the employee will seek to

feel as though they are valued and appreciated by their colleagues and their organization.

The final step is where the employee seeks to self-actualize;

Where they need to grow and develop in order to become everything they are capable of

becoming. Although it could be seen as separate, the progressions from one step to the

next all contribute to the process of self-actualization. Therefore, organisations looking to

improve employee job satisfaction should attempt to meet the basic needs of employees

before progressing to address higher order needs. However, more recently this approach

is becoming less popular as it fails to consider the cognitive process of the employee and,

in general, lacks empirical supporting evidence

In addition, others have found fault with the final stage of self-actualization. The lack of a

clear definition and conceptual understanding of selfactualisation, paired with a difficulty

of measuring it, makes it difficult to measure what the final goal is or when it has been

achieved.

Herzberg’s Motivatorhygiene Theory:Herzberg’s motivatorhygiene theory suggests that

job satisfaction and dissatisfaction are not two opposite ends of thesame continuum, but

instead are two separate and, at times, even unrelated concepts. ‘Motivating’ factors like

pay andbenefits, recognition and achievement need to be met in order for an employee to

be satisfied with work. On the otherhand, ‘hygiene’ factors (such as, working conditions,

company policies and structure, job security, interaction withcolleagues and quality of

management) are associated with job dissatisfaction.

Because both the hygiene and motivational factors are viewed as independent, it is

possible that employees are neither satisfied nor dissatisfied. This theory postulates that

when hygiene factors are low the employee is dissatisfied, but when these factors are high

it means the employee is not dissatisfied (or neutral), but not necessarily satisfied.

Whether or not an employee is satisfied is dependent on the motivator factors.

Moreover, it is thought that when motivators are met the employee is thought to be

satisfied. This separation may aid in accounting for the complexity of an employee’s

feelings, as they might feel both satisfied and dissatisfied at the same time; or neither

satisfied nor dissatisfied.

Whilst the Motivatorhygiene theory was crucial in first distinguishing job satisfaction

from dissatisfaction, the theory itself has received little empirical support. Herzberg’s

original study has been criticized for having been conducted with a weak methodology.

As a result, subsequent attempts to test this theory have obtained mixed results with some

researchers supporting it and others not

Job Characteristics Model:The Job Characteristics Model (JCM)explains that job

satisfaction occurs when the work environment encouragesintrinsically motivating

characteristics. Five key job characteristics: skill variety, task identity, task

significance,autonomy and feedback, influence three psychological states. Subsequently,

the three psychosocial states thenlead to a number of potential outcomes, including: job

satisfaction. Therefore from an organizations’ point of view, it isthought that by

improving the five core job dimensions this will subsequently lead to a better work

environment andincreased job satisfaction.

Unlike the Maslow or Herzberg’s theories, the JCM has received more empirical support.

However, it has also drawn criticism as many studies utilizing this model investigate the

direct impact core job dimensions have on personal and work outcomes, completely

disregarding the critical psychological states. Despite this, the JCM and its impact on job

satisfaction has been the subject of three reviews, which further lend support to the

model.

Further to this, Behson and colleagues’ met analysis of 13studies specifically focused on

the role of critical psychological states, and found these psychological states to play a

crucial practical and theoretical role within the JCM.

1.6 LITERATURE REVIEW

Job satisfaction has been defined as a pleasurable emotional state resulting from the

appraisal of one’s job;an affective reaction to one’s job;and an attitude towards one’s

job.Weiss (2002) has argued that job satisfaction is an attitude but points out that

researchers should clearly distinguish the objects of cognitive evaluation which are affect

(emotion), beliefs and behaviors.

Job satisfaction is a set of favorable environment that affects both administrative and

emotional feelings with which employees consider friendly/congenial for their work.

Locke (1976) has defined job satisfaction as the pleasurable emotional state resulting

from the appraisal of one’s job or job experiences. High productivity and job satisfaction

are closely related. A set of highly satisfied employees can guide an organization to

the peak of its success. Rust et al. (1996) suggested that intention to remain employed

in an organization is strongly influenced by the level of employee satisfaction and that

overall employee satisfaction is driven by satisfaction by managerial processes

related to employee welfare.

In the recent years banking sector has been able to attract young talents who have chosen

banking profession as their preferred career. The nature of work is changing at whirlwind

speed, and the factors that keep an employee satisfied with his or her job is also

changing. Contemporary banking business considers the job of satisfying their

employees most important for retaining their valuable skilled workforce (Islam and

Hasan, 2005).

Rousseau (1995) and Ryness (1993) found that potential employees make their decisions

based on their perception of their values that the organization will place on them. The first

few months with a company are critically important. The introduction that new

employees receive makes a lasting impact on their perception of the organizational

management team. Similarly the first few days on the job can affect the individual

tendency to leave or stay (Graham and McKenzie, 1995). Employees’ desires are

perceived as being satisfied when the organization meets or exceeds their expectations

(Hackman and Oldham, 1976; Hannay and Northam, 2000; Locke, 1976; Rust et al.,

1996).

Employees who can relate to the organization’s product or services can more easily relate

to the organizational culture and make the necessary adjustment to become an active

member of that culture (Coleman and Kleiner, 1999). These studies tend to support the

paradigm that viewing the employee as a customer is much more important than is

generally perceived by management. This viewpoint is also important to an effective

house training program. The employees confess that employee satisfaction will improve if

the types of training program they require are developed for themselves and thus their

needs be better met.

Nocera and Kolb (1998) examine the effect of relationship between supervisor and

their subordinates on their considerations and job satisfaction. Their findings

suggested that supervisor-subordinate relationships are sociologically significant and

may help to reduce turnover. Increasing employee satisfaction may reduce employee

turnover within an organization. Information Week survey reported that the challenges of

the job and the responsibility associated with it tend to matter more than the salary

(Hannay and Northam, 2000; Mateyaschuk, 1999).

Work environment appears to be one of the best predators of job satisfaction (Rust et al.,

1996). According to Benders and Van De Looj (1994) there is no direct relation between

job satisfaction and salary. Their research suggested that younger employees have a

greater tendency to quit their jobs than older employees and demonstrate a greater

tendency to be willing to work overtime. Younger employees also tend to be less satisfied

with their salary.

Vermon (1931) found that the need satisfaction studies emphasized that if the job failed to

gratify employee’s needs of various categories, need-deprivation would tend to cause

absenteeism. Fair salary, pleasant working conditions, good team-work, participation,

feeling of belongingness, opportunity for conversation, and ego-involvement were

observed as factors that affect the level of job satisfaction.

The different studies found different aspects as determinants of job satisfaction. Majority

of the studies revealed that level of job satisfaction highly depends on handsome

salary, congenial promotional policy, supportive working environment etc. In

addition to these, organizational culture, relation with colleagues and superior,

participation in decision making etc also have influence on the level of job

satisfaction. But this study investigates some new aspects such as nature of work,

attitudes of supervisors, communication system etc which also have an impact on the

level of job satisfaction.

1.7 LIMITATION OF THE STUDY

The major limitation that might face while conducting this research is the knowledge

constraints about the subject matter. There might be several other limitations that might

need to take care of like

For this research paper, the first & foremost limitation is data accuracy. It is matter of

fact that 100% accurate cannot be provided as the sample size is too small. The

second biggest limitation is the shortage of time for preparing this report.

Another limitation I will face is about the size of the sample group. For this research

report purpose, I should conduct to survey at least 100 people. But for 100 surveys

need at least more than 6 weeks, which is more than the limit for data collection, I

will not be able to conduct more than 20 surveys.

Another factor is, there are many potential employees outside Dhaka, mainly in. Due

to time constraints, those customers were not covered.

CHAPTER 2: JOB SATISFACTION SCENARIO IN BANGLADESH

In modern competitive business, service-oriented companies such as commercial banks

play a significant role to shape the economic structure of world economy. These

companies aim at achieving their long term goals connected to the company strategy

through various issues. Now-a-days to attain the specific goal companies strive to build a

sustainable and profitable relationship with their employees though employee satisfaction

because employees are the actual performer of company’s work process.

To ensure the continuity of the growth and development of an organization, the particular

management should pay concentration to the employees’ job satisfaction. The banks are

not exceptional. In Bangladesh all the bank both public and private banks are

continuously try to satisfy their employees in order to ensure their goals achievement.

As in Bangladesh there are two types of banks are available, their facilities towards

employees are also different. And for that the satisfaction of employee are also vary, their

position also vary. Private bank with more satisfying workers has already held a good

position in the banking system. On the contrary, public bank with fewer rewarding

employees has been unable to hold a lucrative position in the banking sector. This

discrepancy between the performances of the two banking sector is because improving

quality and productivity that Private bank has been able to maintain through job

satisfaction of its employees.

CHAPTER 3: OVERVIEW OF AGRANI BANK LIMITED

3.1 HISTORICAL BACKGROUND OF AGRANI BANK LIMITED

Agrani Bank Limited (ABL) was incorporated as a SOC Bank on 17 May 2007 under the

Companies Act 1994. Agrani Bank emerged as a Nationalized Commercial Bank

following the Bangladesh Banks (Nationalization) Order 1972 vides President’s Order

No. 26 of 1972. On a going concern basis ABL took over the business, assets, liabilities,

rights and obligations of Agrani Bank through a vendor’s agreement signed on 15

November 2007 between the Ministry of Finance of the People’s Republic of Bangladesh

& the Board of Directors of ABL with retrospective effect from 1 July 2007.

3.2 CORPORATE PROFILE

Table 05: Corporate Profile of Agrani Bank Limited

Company Name Agrani Bank Limited

Legal Status Public Limited Company

Shareholder Pattern 100 % share owned by Government of the People’s Republic of Bangladesh

Chairman Chairman Khondoker Bazlul Hoque, PhD

MD & CEO Managing Director & CEO Syed Abdul Hamid, PhD, FCA

Company Secretary Company Secretary Badal Chandra Dey

Registered Office Registered Office 9/D Dilkusha, Dhaka 1000, Bangladesh

Authorized Capital Tk. 2, 500.00 Crore Total Deposits Tk. 34,867.52 Crore

Paid up Capital Tk. 2, 072.29 Crore Loans & Advances Tk. 20,296.54 Crore

Operating Profit Tk. 1, 063.93 Crore Total Equity Tk. 3,564 Crore

Tax Identification No. 0022001223 Vat Registration No.19011031730

Credit Rating 2012 by CRISL (Rating Date: 7 October 2013) – Stable outlook

Entity Rating (as guaranteed by Govt. bank) AAALong term ST-1 Short term

Surveillance Rating BBB Long term ST-3 Short term

Phone +88-02-9566153-4, +88-02-9566160-9, +88-02-9566074-5

Fax +88-02-9562346, +88-02-9563662, +88-02-9563658

Swift Code AGBKBDDH

E-mail [email protected], [email protected]; [email protected]

Website www.agranibank.org

(Source: Annual Report 2013, ABL.)3.3 ORGANIZATION STRUCTURE

Figure 01: Organogram of Agrani Bank Limited

(Source: Annual Report 2013, ABL.)

3.4 NUMBER OF BRANCHES

Table 06: Number of Branches

Domestic & International Networks & Brunches

Circles Offices 11 Zonal Offices 62

Corporate Branches 27 General Branches 922

Authorized Dealer Branches 40 Online Branches 309

Q-Cash & ATM Location 5 Correspondents 335

Exchange Houses 63 Nostro A/C 38

Bangladesh Overseas

Board of DirectorsChairman & Directors

Managing Director (MD) & Chief Executive Officer(CEO)

Deputy Managing Director (DGMs)

Assistant General Managers (AGMs)

Senior Principal Officers (SPOs)

Principal Officers (POs)

Senior Officers (SOs)

Officers/Officers (Cash)

Attorny Assistants

Clerical Staff Members

Non Clerical Staff Members

Su

bsi

dia

ries

Agrani SME Financing Company Ltd., BD

Agrani Equity & Investment Limited, BD

Agrani Exchange House Private Ltd. , Singapore

Agrani Remittance House SDN, BHD, Malaysia Agrani Exchange Co. ( Australia) Pty. Limited

Agrani Remittance House Canada, Inc.

(Source: Annual Report 2013, ABL.; Website www.agranibank.org)

3.5 NUMBER OF EMPLOYEES

Table 07: Detailed List of Number of Employees

Position Name (Officers) Number Position Name (Staff) Number

Managing Director & CEO 01 Sub-assistant Engineer 02

Deputy managing Director 04 Clerical 1, 085

General Manager 16 Non Clerical 2, 460

Deputy General Manager 103 Total Staff 3, 547

Chief Medical Officer 01

Assistant General Manager 286

Senior Principal Officer 854

Principal Officer 774

Executive Engineer 03

Senior Officer/Equivalent 3, 468

Assistant Engineer 03

Officer/Equivalent 4, 945

Total officers 10, 458

Total (Officers: 10, 458 & Staff: 3, 547) = 14, 005

(Existing Employees as on December 31, 2013, Source: Annual Report 2013, ABL.)

3.6 VISION STATEMENT

To become the best leading state owned commercial bank of Bangladesh operating at

international level of efficiency, quality, sound management, excellent customer service

and strong liquidity.

3.7 MISSION STATEMENT

To operate ethically and fairly within the stringent framework set by our regulators

and to assimilate ideas and lessons from best practices to improve our business policies

and procedures to the benefit of our customers and employees.

3.8 PRODUCTS & SERVICES

1. Deposit

a) Taka Account

Current Deposit (CD)

Savings Deposit (SB)

Fixed Deposit (FDR)

Special Notice Time Deposit (SNTD)

Non-Resident Special Taka Account

(NRSTA)

Non-Resident Investors Taka Account

(NRITA)

Agrani Bank Pension Scheme (APS)

Agrani Double Benefit Scheme (ADBS)

Monthly Deposit Scheme (MDS)

Monthly Income Scheme (MIS)

Students Savings A/C (School Banking)

Farmers A/C

Freedom Fighters A/C

b) Foreign Currency Account

Foreign Currency (FC) A/C

Non-Resident Foreign Currency

Deposit (NFCD) A/C

Resident Foreign Currency Deposit

(RFCD) A/C

Exporters Retention Quota (ERQ) A/C

2. Loans & Advances

a) Continuous Loan

Cash Credit (Hypo)

Cash Credit (Pledge)

Secured Overdraft (SOD

b) Term Loan

Inland Bill Purchase (IBP)

Export Cash Credit

Industrial Credit (IC)

Housing Loan (General & Commercial)

Consumer Credit

Loan for Overseas Employment

Weavers’ Credit

c) Rural & Agro Credit

Crop Loan

Fishery Loan

Animal Husbandry Loan

AgriMachinary Loan

Rural Transport Loan

Swanirvar Loan

Poverty Alleviation Loan

d) Small and Medium Enterprise Loan

Service Sector Loan

Trading Sector Loan

Manufacturing Sector Loan

e) Import Finance

Loan Against Imported Merchandise

(LIM)

Loan Against Trust Receipt (LTR)

Payment Against Document (PAD)

f) Export Finance

Export Cash Credit

Packing Credit (PC)

Local / Foreign Bills Purchased (FBP)

Loan Against Export Development

Fund (EDF)

Advance Against Cash Incentive

3. Treasury

a) Money Market

Maintaining CRR and SLR

Call Money Transaction

Term Placement (FDR)

Treasury Bills

Treasury Bonds

Secondary Trading of Govt. Securities

Repo & Reverse Repo

Custodian Services

Other Investments

b) Foreign Exchange Market

Selling Foreign Currency for Import

Payment

Buying Foreign Currency against

Export Proceeds

Fixation of Exchange Rate

Foreign Currency Buying and Selling

SWAP Transactions

Forward Transaction

Term Placement

4. Letter of Credit

Letter of Credit - Sight

Letter of Credit - Usance

Back to Back L/C

5. Letter of Guarantee

Advance Payment Guarantee

Bid Bond

Performance Guarantee

Shipping Guarantee

Guarantee - Others

Standby Credit

6. Other Foreign Exchange Service

Documentary Bill Collection

Advanced Payment for Import & Export

Foreign Remittance (In & out)

Issuance of Draft, TT

Collection of Draft, Cheque, TC

Opening of Student File, Medical File

7. Cash Service

ATM Service

Cheque Encashment

Foreign Currency

(Source: Annual Report 2013, ABL.)

8. Fund Transfer

Inter-Branch Money Transfer

SWIFT

Telegraphic Transfer (TT)

Issuing Foreign Draft

Encashing Foreign Draft

Bangladesh Electronic Fund Transfer

Network (BEFTN)

Bangladesh Automated Clearing

House (BACH)

Online Deposit to Accounts

9. Value Added Service

Locker Service

Utility Bill Collection

10.Merchant Banking Service

Issue Management

Underwriting

Portfolio Management

11.Islamic Banking Service

a) Deposit

Al Wadiah Current A/C

Mudaraba Savings A/C

Mudaraba STD A/C

Mudaraba Term Deposit

Mudaraba Special Scheme Deposit

b) Investment

3.9 PRINCIPAL ACTIVITIES

Although earned from variety of operations, the difference between interest earned from

lending and interest given for borrowing makes the major portion of bank’s income.

Generally, branches include three operational divisions to earn such interest and these are:

General Banking;

Loan and Advance; &

Foreign Exchange.

The principal activities of its subsidiaries are to

Carry on the Remittance Functions: To carry out remittance and to undertake and

participate in any or all transactions and operations commonly carried or undertaken

by remittance and exchange houses established in Singapore and Malaysia;

Move in Microcredit Activities: To vibrant the Micro credit activities over the

country, the Bank has established a subsidiary company named Agrani SME

Financing Company Limited as per Government decision;

Begin Monetary Operations: It has start the operation as a nonbanking financial

institution as permission of Bangladesh Bank; &

Develop Country Capital Market: For developing the capital market of the country,

the Bank has also open another subsidiary company named Agrani Equity and

Investment Limited for providing necessary support to the Investors which has been

incorporated as a Public Limited Company.

In addition to above three basic activities Agrani Bank Limited has been started some

banking services which are related to socio-economic aspects, and the growth and

development of our country. Agrani bank limited, to conduct the operations with ease and

to better serve its customers whether corporate or in general, has diversified its services

under significant headings like:

Corporate banking;

Merchant banking;

SME banking;

Export-Import banking;

NRB banking;

Islami banking etc.

XXIV | P a g e

Figure: Principal Activities of Agrani Bank Limited

Principal ActivitiesCorporate BankingInvestment BankingLoan Syndication

Project Financing

Commercial BankingCurrent & Fixed A/C

Personal BankingAccount , Deposit,

& Card Services Saving Deposits, FDR, Farmers Account

Marchent BankingIssue Management

Underwriting

Portfolio Management

Islami Banking

SME BankingSME FinancingServices to Women Entrepreneurs

Nari Agrani

Environmental Friendly Banking

Foreign Aided Credit ProgramsNGO Linkage

Program

Cluster Based SME Financing

SME ProgramsEmployment Generation Project for the Rural Poor

Marginal and Small Farm System Crop Intensification Project

Solar Energy, Bio-gas and Effluent Treatment Plant Credit Scheme

SME Small Transport Credit Program

Daridra Bimochon Karmasuchi

Agri & Rural BankingRral Agro Credit Services

Farmers A/C Services

NRB BankingResident Foreign Currency Deposit

Wage Earner's Development Bond

Resident Special Taka A/C

Export-Import FinancingImport Financing

Payment Against Documents

Loan Against Export Development Fund

Loan Against Imported Marchendise

Export FinancingExport Cash Credit

Reshipment Credit

3.10 SWOT ANALYSIS OF AGRANI BANK LIMITED

3.10.1 Strengths, Weaknesses, Opportunities, & Threats of Agrani Bank

Limited

Table 09: List of SWOTs of ABL

STRENGTHS WEAKNESSES

Strong corporate identity;

A large number of branches within the reach

of customers all over the country;

Govt. support;

Huge capital & reserve;

Multiple products & services;

Low cost products and services;

Vast customer base & greater reliance;

A large employee base with least chance of

turnover;

Strong connectivity with exchange houses

and correspondents; &

International connectivity, membership with

SWIFT, ensuring security;

Lack of skilled manpower due to Lack of

proper motivation, training and job

rotation ;

Backdated T&D Program;

Absence of teamwork

Absence of effective promotional

initiatives;

Habituated to paper and pencil work,

outdated software and hardware instead of

using modern ICTs;

Only 5 ATMs in Dhaka;

Frequent rate devaluation and foreign

exchange rate fluctuation;

Lack of good working environment

flexibility to adopt to any change;

Weak Regulatory performance creates

problems to recover loan;

Existence bureaucracy;

Rigid structure & centralized activity;

OPPORTUNITIES THREATS

Opportunity to recruit and select qualified and

efficient human resources;

Possibility to access quickly with online

services all over the country;

Including up-to-date T&D programs;

Increasing Customer service;

Utilizing infrastructure & other resources

diversely all over the country;

More ATM access & improved technologies;

Increase market share through growth of

loanportfolio;

Launching innovative products and services

with least charge and achieve a competitive

edge;

Branch in remote location;

Broaden the sector of investment;

Illicit competition among various

commercial banks;

Competition with establishes commercial

private banks and newly formed banks;

Introduction of diversified and

personalized services of other banks;

New entrants;

Other commercial banks with qualified

human resources;

Privatization move;

Economic recession and absence of govt.

facility; &

Evolution of large scale e-banking;

Changing rules and regulations of gvt.

3.10.2 CONCLUSION REGARDING SWOTS

Reviewing SWOTs of it could be concluded that the ABL is in strong position

exceptionally in terms of a huge line of low cost products & services, number of

branches, volume of capital, number of clients, govt. facilitated rules, regulation,

infrastructural environment, & moderate international connectivity although it is in weak

position alarmingly in terms of Human Resources (HR) with quality training and

developmental programs, modern technologies, regulatory procedure, ATM facility,

skilled & well-structured pay scale, promotion, & increment facilities to satisfy its

employees.

3.10.3 AGRANI BANK’S ACTION PLAN

Agrani Bank Limited may use its strengths like branches & customers to introduce

specialized, techno based modern & secured services at shortest possible time and cheap

price. That is whenever they will come in bank or they receive services they will feel

happy. On the other hand, employees’ may be given better working place, well salary, job

security, with minimized workload, advancement opportunities, new technologies and

interesting projects.

CHAPTER 4: PRACTICAL EXPERIENCE GATHERED THROUGH INTERNSHIP

Time management

Time management is the great virtue for each & every person. As a University student, I

spent only 4 to 5 hours in the university campus with gossiping, taking tea & snacks. But

in the professional life like bank, each & every employee reach in the office not more

than 9.30 am and go out from office not less than 6.30 pm due to heavy working pressure.

So, I also maintained my office time. They do their task in daily basis. I also helped them

to make their task easier.

Formal dress code

In the 3 months internship period I maintained the dress code regularly and I’m

habituated with this now.

Teamwork

Theoretically I read what is team and teamwork but practically I did not have experience

about it. In the professional life there’s exist team like Bangladesh cricket team. Each &

every team member has some responsibilities and target to fill up. I observed it very

closely and helped them to make their task easier.

Other potential benefits

The potential benefit of internship is that a student can get an opportunity to have

experience of corporate world which they are going to face in near future. So here I

would say I have earned some experience of corporate world.

Description/Nature of the Job learned

Throughout the tenure of my internship, I was involved in General Bankingsection,

Investment sectionand Clearing section. During this period, my specific responsibilities

were asfollows.

GB (General Banking) Department:

At first, I was assigned to GB (General Banking). It was very arduous, but very fruitful.

I had a wide variety of responsibilities at GB:

InvestmentLong term

Short Term

Bringing out the cheque books for the customers, verifying them, receiving them

from the courier.

Writing and later on printing pay orders

Sometimes I did the FD (Fixed Deposits) and DPS (Deposit Pension Scheme), but

it was under strict supervision.

Counting the voucher of GB

Finding the FD, DPS and old account opening forms

Opening account for new customers and aiding them in the process

Opening FD and DPS for new customers

Putting 5 different types of seals for clearing

Preparing the bill for the branch’s expenditure for that day

Making solvency certificates

Typing other documents given by my in charge

Keeping things in order and at arm’s length

The work was difficult at GB. I also had to hear many complaints from the customers.

At first, I was demoralized. Nevertheless, later on I learned how to deal with it.

Investment Department

At the time of internship, clients came to the department who wants to take loan for their business purpose.

Figure 1: Types of Investment

I was in the Investment Department for 2 weeks. Although much work was not assigned

to me, I did assist this department in every way possible.

• I had to rearrange all the customer files

• Help when the audit came

• Printing, typing and photocopying documents

Clearing Section

Clearing Section is very important section in General banking division. Almost every

section of different has been linked with this section there are many types of work I did in

this section like-

I learnt how to receive a clearing Cheque from the clients

How to record the Cheque in the OBC book and giving the OBC number

I suffix crossing seal, OBC and authorized seal.

Making the list of OBC Cheques in MS Excel sheet and then I posted the Cheques at local office for collection

CHAPTER 5: FINDINGS & ANALYSIS

After collecting responses from respondents I have found a scenario regarding customer

(internal &external) satisfaction. At the end of this chapter major findings are analyzed

based on following criterion:

Criterion for Employee job Satisfaction

Contentment with the present salary

Job security benefits

Promotion opportunity in the organization

Relationship with coworkers

Condition of working environment

Degree of supervision over the employee

Future pecuniary benefits

Interesting projects

Vacation opportunity

Satisfaction with the nature of employee’s current job.

Contentment with the present salary.

For measuring job satisfaction under these criteria I went to both banks and surveyed

employees’ job satisfaction by using a questionnaire that is given in the appendix. For the

sake of simplicity in measuring employees’ satisfaction I put a numerical value on each

option. These are shown below.

Table: Score for Satisfaction Level (assumed)

Options Value (Score)

Highly satisfied 10

Satisfied 8

Moderately satisfied 6

Dissatisfied 4

Highly Dissatisfied 2

And by using this procedure I have found following satisfaction scores from the employees of both banks.These scores of satisfaction level are presented in graph and compared them with each other.

Table: Satisfaction with the nature of work

States No. of employees Percentage of Satisfaction

Highly Satisfied - 0.0

Satisfied 2 0.10

Moderate 8 0.40

Dissatisfied 7 0.35

Highly Dissatisfied

30.15

Figure: Satisfaction with the nature of work

Satisfied10%

Moderate40%Dissatisfied

35%

Highly Dissatis-

fied15%

Employee’s job satisfaction depends on work nature. If the work done by an employee is preferable or interesting to him/her, he/she feels enjoy and gets satisfaction from the work. Here we see that most of the employees in the Agrani Bankltd. are not highly satisfied with the nature of their work that indicates their work nature is not very much interesting to them and do not feel enjoy to do jobs.

Table: Satisfaction with the level of supervision


Highly Satisfied 3 0.15

Satisfied 4 0.20

Moderate 10 0.50

Dissatisfied 2 0.10

Highly Dissatisfied

10.05

Figure : Satisfaction with the level of supervision

Highly Satisfied 15%

Satisfied20%

Moderate 50%

Dissatisfied10%

HighlyDissatisfied5%

Nobody likes the supervision of the boss over him/her, it’s natural. The employees of Agrani Bankltd. are not different from it, most of the employees dislike the supervision of the boss over them but to run business/organization successfully supervision is needed. As organization’s success is their success they are not highly dissatisfied they are moderately satisfied.

Table Satisfaction with the present salary


Highly Satisfied 0 -

Satisfied 4 0.15

Moderate 10 0.35

Dissatisfied 2 0.35

Highly Dissatisfied

10.15

Figure 03: Satisfaction with the present salary

Satisfied15%

Moderate 35%

Dissatisfied35%

High-ly-

Dis-satis-fied15%

Salary is a highly effective factor of job satisfaction. High salary turns an employee to High job satisfaction and lower salary turns an employee to lower job satisfaction. In this bank employees’ salary is lower than that of other private bank as a result here employees’ job satisfaction is lower.

Table: Satisfaction with promotional opportunities



Satisfied 6 0.30

Moderate 8 0.40

Dissatisfied 3 0.15

Highly Dissatisfied

10.05

Figure: Satisfaction with promotion opportunities


Satisfied30%

Moderate 40%

Dissatisfied15%


Promotion is also a highly effective factor of job satisfaction. Promotion opportunity encourages employees to work at their best effort. The employees of Agrani Bankltd. are not satisfied to their Promotion opportunities.

Table: Happiness with the Relationship with Coworkers



Satisfied 4 0.35

Moderate 10 0.15

Dissatisfied 2 0.15

Highly Dissatisfied

10.05

Satisfied35%

Moderate 15%

Dissatisfied5%

High-ly-

Dis-satis-fied15%

Figure: Happiness with the Relationship with Coworkers

In the following graph, horizontal axis bears employees name and vertical axis measure the level of satisfaction with the relationship with coworkers. This graph shows that averagely employees are satisfied. So there coworker’s relationship is much satisfactory.

Table 08: Satisfaction of the Employee with the Vacation Opportunity



Satisfied 4 0.20

Moderate 10 0.50

Dissatisfied 2 0.10

Highly Dissatisfied

10.05


Satisfied20%

Moderate 50%

Dissatisfied10%


Figure: Satisfaction of the Employee with the Vacation Opportunity

In the graph, horizontal axis bears employees name and vertical axis measure the level of satisfaction of the employee with the vacation opportunity. The vacation opportunity of Agrani Bankltd. Ltd is not satisfactory at all. Because graph shows some employees are fully dissatisfied and some are little satisfied

Table 09: Pleasure with the Condition of Working Environment


Highly Satisfied 0 -

Satisfied 4 0.15

Moderate 10 0.35

Dissatisfied 2 0.35

Highly Dissatisfied

10.15

In the following graph, horizontal axis bears employees name and vertical axis measure the level of satisfaction of the employee with the condition of working environment.

Satisfied15%

Moderate 35%

Dissatisfied35%

High-ly-

Dis-satis-fied15%

Figure:Pleasure with the Condition of Working Environment

The condition of working environment of Agrani Bankltd. Ltd is not satisfactory at all. The graph reveals that some employee’s satisfactory level is negative when some have little positive satisfaction level.

Table: Satisfaction with Other Future financial Benefits



Satisfied 6 0.30

Moderate 8 0.40

Dissatisfied 3 0.15

Highly Dissatisfied

10.05

Figure: Satisfaction with Other Future financial Benefits


Satisfied30%

Moderate 40%

Dissatisfied15%


Figure: Satisfaction with Other Future financial Benefits

This graph shows that employees are averagely satisfied with their future financial benefits.

CHAPTER 5: RECOMMENDATIONS & CONCLUSIONS

5.1 CONCLUSION

As employee satisfaction is a key point to acquire the strategic goal of organization, the

management should be more serious to ensure some tactics that can be effective for

gratifying the workers. In recent times, the successful managers deal with their workers

using different tools and techniques to satisfy their needs. In this section, some well-

designed tools and tactics are recommended to the management of Agrani Bank ltd.

5.2 RECOMMENDATIONS

High pay

Managers should be aware of paying employees not poorly rather than highly. High pay

or salary is an instrument to attract high quality employees to the organization.

Focus on the intrinsic parts of the job

Besides offering a handsome salary the managers can focus on the intrinsic parts of the

job. They should emphasize on making the work challenging and interesting for the

workers.

Reduction of cognitive dissonance

Managers should also aware that employees will try to reduce any incompatibility

between two or more attitudes or between behavior and attitudes.

Ensuring work safety

Every worker needs safety in the workplace. So, managers should be concentrated to

ensure the work that is both physically and mentally safe for the workers.

Maintaining a friendly work environment

Now-a-days high quality employees prefer the work that possesses a sociable and

gracious environment in the workplace. For this, the management should focus on

observing the work situation whether it maintains friendly or not.

Advancement opportunities

Advancement opportunities give the employees chance to borrow from the organization

before receiving the basic pay to meet up the sudden and unexpected financial needs.

Such a provision of financial support to the employees makes them satisfied about their

job.

Regular Supervision

Managers should supervise the work of the employees at the right time. By this, a

relationship is established between managers and workers that can be effective to the job

performance.

Provision of training

Training can be influential to improve the work efficiency and effectiveness of the

workers. Again, trained workers are highly paid for their performance. And this may be a

tool to the job satisfaction level.

Work Independence

Managers should ensure that the workers are independent in their fields of work.

Actually, when employees tend to feel independent in case of working and thinking, they

become more satisfied with their jobs. But employees should remind it that independence

should be in favor of the organizational outcomes.

Special Remuneration

Managers should provide special pecuniary benefits to the employees giving priority to

their performance. Such remuneration will inspire the workers to extend their best effort

to the organization as they are satisfied with the job.

Promotion

Promotion facility is a determinant of the job satisfaction level. So, management should

pay attention to the promotion facility of the employees according to their work

performance. Promotion enhances the workers’ chance to be highly satisfied and

committed to their job. Actually, promotion is the most effective technique to satisfy the

workers.

Emphasis on work group and work team

Managers can assign the scheduled work forming groups and teams. Burden of work can

be minimized to a great extent when a group of individuals work collectively and

collaboratively. In fact, group and team members are more satisfied with their jobs.

Participation of the workers in decision-making

To increase the satisfaction level of workers with their job, managers can ensure the

participation of them in decision making process. Through this process the latent qualities

of the workers can be utilized for the betterment of organization.

Incentives to remove workers’ conflict

Conflicts between the workers are the reasons of job dissatisfaction. So, the managers

should take necessary steps to remove conflicts.

Value of employees’ personality

Managers should allocate the work activities among the employees giving value to their

personality. Job satisfaction can also be attained providing opportunity to the workers to

exercise their personality.

Value of emotions and moods

Managers should also value the emotions and moods of the employees to achieve their

satisfaction with the jobs.

Frequent Negotiation

Service businesses should negotiate with their employees regularly to make the job

satisfaction level higher.

References

Berry, L, (1981). The Employee as customers. Journal of Retail Banking, 3 (March) pp.

33-44

Cheung, C. K., and Scherling, S. A. (1999) “Job Satisfaction, Work Values, and Sex

Differences in Taiwan’s Organizations”.The Journal of Psychology, 133 (5), 563-

575.

Ganguli, H. C. (1994) Job Satisfaction Scales for Effective Management: Manual for

Managers and Social Scientists, Concept Publishing Company, New Delhi.

Gronoos, C. (2000). Total Relationship Marketing.Chichester, UK: Wiley, 2000.

Karl, K. A., and Sutton, C. L., (1998) “Job Values in Today’s Workplace: A Comparison

of Public and Private Sector Employees”. Public Personnel Management, Winter,

27(4), 515-528.

Levitt, T. (1983). Relationship Management Marketing Imagination, McMillan Inc., New

York, PP. 111-126

Locke, E., (1976), “The Nature and Causes of Job Satisfaction”, in Handbook of

Industrial/ Organizational Psychology Edited by M.D. Dunnette (Chicago: Rand

McNally, 1976): 901-969.

Nunnally, J. L. (1979), Psychometric Theory, New York: McGraw Hill Company.

Pugliesi, K., (1995) “Work and Well-Being, Gender Differences in the Psychological

Consequences of Employment”.Journal of Health and Social Behavior, 36, 57-71.

Smith, P. C., Kendal, L. M., and Hulin, C. L., (1969) “The Measurement of Satisfaction

in Work and Retirement” in: Huang, H. J., (1999) Job Rotation from the

Employees’ Point of View, Research & Practice in Human Resource

Management, 7(1), 76.

Steffy, B. D., and Jones, J. W., (1990) “Differences between Full-Time and Part-Time

Employees in Perceived Role Strain and Work Satisfaction”.Journal of

Organizational Behavior, 11, 3210-329

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Publishing company ltd.

Questionnaire

Dear respondent,

As a partial fulfillment of MBA, program, from Jagannath University I am conducting a research onJob Satisfaction of commercial bank of Bangladesh, A comparative Study between Govt. bank and Private Bank. For that I need some information from you. The information gathered will be used for academic purpose only. All the personal information will be kept confidential.

Part 1: Personal information

1. Employee name:

2. Age: a)21-30 b)31-40 c)41-50 d)51-60

3. Post:

4. Gender: a) male b) female

Part 2: Questions from job satisfaction view point:

1) How satisfied are you with the nature of your work?

a. Highly satisfied b. satisfied c. Moderate

d. Dissatisfied e. Highly Dissatisfied

2) How satisfied are you with the level of supervision over you?



3) How satisfied are you with the present salary?



4) How satisfied are you with promotion opportunities?

a. Highly satisfied b. satisfied c. Moderately satisfied


5) Happiness with the Relationship with Co-worker



6) Satisfaction of the Employee with the Vacation Opportunity



7) Pleasure with the Condition of Working Environment



8) Satisfaction with Other Future Pecuniary Benefits



9) Give a list of additional facilities that you may want from the bank:

10) Are you happy with the system of job evaluation?

a. yes b. no

11) Arrange the following factors according to the merit (give most important factor 5 and then arrange sequentially)

Key factors Ranks

Fear of losing job

Fear of demotion

Illegal challenge from the co- employees

Fear of transfer from current location

Fear of unfair promotion

12) Arrange the facilities according to necessity (arrange sequentially from5 to 1)

Facilities Ranks

Transportation facilities`

Training facilities

Loan facilities

Technological facilities

Accommodation facility

scenario of satisfaction among employees of agrani bank limited of and its impact on banking

Documents

scenario of satisfaction

internship program

banking services

degree of masters

shawfiqul islamid

faculty of business

tiresome effort

partial fulfillment