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Executive Summary
This report on City Bank's human resource management practices focuses on the company's
strategic approach to recruitment and selection, training & development, performance
appraisal, and compensation. To ensure that employees are well-prepared and aligned with
corporate goals, City Bank uses a combination of new and conventional recruitment
approaches, a multi-stage selection process, and substantial training programs. Competitive
wage and benefits packages, along with a solid foundation in Strategic Human Resource
Management (SHRM), increase employee satisfaction and retention. The bank's dedication to
continuous development and adaptation strengthens its operational excellence and strategic
goals. Recommendations include improving digital recruitment, emphasizing on performance
appraisal methods, work possibilities, and stepping up diversity and inclusion activities.
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Table of Contents
Executive Summary...................................................................................................................2
Introduction................................................................................................................................4
Methodology..............................................................................................................................5
Company Background................................................................................................................6
Findings & Analysis...................................................................................................................7
Recruitment..............................................................................................................................7
Selection Process......................................................................................................................9
Training and Development.....................................................................................................10
Benefit and Services...............................................................................................................11
Strategic Human Resource Management...............................................................................13
Recommendations....................................................................................................................15
Conclusion...............................................................................................................................16
References................................................................................................................................17
Appendicies..............................................................................................................................18
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Introduction
After being introduced by international companies in the late 1990s, human resource
management (HRM) has moved from being a secondary function to a major organizational
priority. In order to demonstrate the growing significance and strategic integration of HRM in
enterprises, this report examines HRM practices in Bangladesh with a focus on City Bank
PLC.
We’ll discuss the core functions of Human Resource Management and how they’re being
implemented by City Bank. We’ll delve into the Recruitment and selection, training and
development, and compensation plan of City Bank, as well as their Strategic Human
Resource Management (SHRM). By analyzing these practices, we hope to gain insight into
how City Bank keeps a competitive advantage in the market, develops an engaged and
productive workforce, and synchronizes its HR activities with its overarching strategic goals.
The results of this study will shed light on how well City Bank's HR procedures work and
suggest future improvements to maintain the bank's growth trajectory in Bangladesh's fiercely
competitive banking market. The report's conclusions will shed light on how well City Bank's
HR procedures work and suggest future improvements.
Methodology
An amalgamation of primary and secondary data collection methods is implemented in the
HRM analysis of City Bank. An interview using a questionnaire with Lamia Tabassum Guria,
Assistant Manager, Human Resources Division, has been used to collect primary data.
Websites, journals, articles, and books are secondary data collection sources. This
methodology offers a thorough assessment of City Bank PLC's human resource management
procedures.
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Company Background
City Bank is a Bangladeshi private bank headquartered in Dhaka. It's one of the few in the
country to have a centralized infrastructure as opposed to a traditional, decentralized,
geographically driven, branch-based business or profit model. Established in 1983, it is one
of the oldest and best commercial banks in Bangladesh, with approximately 133 branches,
4,866 employees, seven priority centers. City Bank has around 1.7 million customers, of
which 1.39 million are cardholders. Human resource management is increasingly common in
various companies, and City Bank is a notable example of its application and growing
importance.
Findings & Analysis
Recruitment
• HR Planning
City Bank sets their goals and targets, and to reach them, they analyze how much manpower
they need. If the existing human resources are sufficient, then no recruitment takes place.
However, if the existing manpower is insufficient, they forecast the number of people they
need, define the employees’ level, and allocate the budget accordingly. After getting
permission from the management, they go for recruitment.
• Job Analysis
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They use already prepared Job Description and Job Specification for new recruits of existing
positions. For a new position, these documents are prepared based on the tasks a recruit will
perform and the qualifications s/he will need.
• Internal and External Recruitments
They go for two types of recruitment- internal and external. Their internal recruitment is
named “Grow Within,” which promotes the employees' growth within the organization. They
first go for internal recruitment; if they fail, they go for external recruitment.
• Succession Plan
For leadership positions, they prepare and groom the employees right next to the specific
position so that if the current position holder leaves or cannot hold the chair anymore for any
reason, they do not need to bring someone from outside.
• Job Posting
1. Internal Recruitment
City Bank has an all-user communication network. All of their employees get this email about
the vacancy and which people can apply, what the criteria are, and the qualifications they
need to do this job.
2. External Recruitment
• For mass recruitment and location-specific recruitment, ads are posted on bdjobs.
• For sensitive high-level roles, they go for LinkedIn.
• Centralized or Decentralized?
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The centralized HR Department oversees the total recruitment and selection process.
However, local branches have limited authority in the recruitment and selection process for
very low-level jobs.
Selection Process
• For the masses or the lower positions, they have to pass a written exam before being
called for an interview.
• There are two segments in managerial interviews - behavioral and technical.
Behavioral interviews assess interpersonal and problem-solving skills, technical
interviews measure job-specific knowledge and skills. City Bank also emphasizes
leadership and innovation in their managers. These competencies make sure that
candidates align with the bank's core values.
• Senior-level positions have a slightly different process. Rather than a traditional
question-and-answer interview, City Bank conducts a formal discussion. Senior
officers and managing directors participate in in-depth discussions. In the end, it is up
to the board of directors to decide whether the candidate is a good fit.
• All the Candidates must undergo a medical and physical examination to join the bank.
Upon passing these tests, City Bank issues the appointment letter, marking their
official appointment.
Training and Development
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Designing Robust Training Programs
• Orientation Training: The City Foundation Program is a mandatory, seven-day, in-
personseminar designed for employees who have joined City Bank within the past
month.
Participants are introduced to the various divisions within City Bank.
• Job-specific training: Job-specific training is provided to employees based on the
assessment and discretion of their department heads. This targeted approach ensures that
each employee receives the training necessary to excel in their particular role.
• Need-based local/foreign training: Employees benefit from a multifaceted training
program that draws on a wealth of skills from a variety of sources.
• E-learning: City Bank has introduced City Shikhi, an innovative online training
platform.It offers a wealth of resources, including e-books, instructional videos, and
interactive learning materials and tests, accessible to all City Bank employees free of
charge.
Assessment of Training
• Orientation: Training equips new employees with the necessary skills and knowledge to
perform their job effectively.
• Product Launching: When a new product is launched, training must be taken by
employees from experts.
• Lack of Performance: When employees exhibit a lack of performance, it often indicates
aneed for targeted training to address skill gaps, knowledge deficiencies, or motivational
issues.
• Transfer to new department: When employee are transferred to new department training
is must for developing & gathering knowledge about new department manner,
culture ,working procedure etc.
• On-the-job Training
City Bank focuses widely on On-the-job Training. Here, employees are put in an actual
work situation and learn effectively.
• Off-the-job Training
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Off-the-job training is given through several techniques: classroom lectures, film
demonstrations, case studies, and programmed instruction.
Benefit and Services
Direct Financial Payments:
City Bank uses the direct financial payment method when offering rewards to employees.
They cover it with commissions, bonuses, incentives, wages, and salaries.
➢ Wages and salaries: Regular monthly payments.
➢ Incentives: Additional financial rewards based on performance.
➢ Commissions: Compensation determined by income or achievement goals.
➢ Benefits: Additional payments made on a regular basis in accordance with output or
business profitability.
➢ Performance bonus: For staff members who have worked for at least six months, this
option honors their services and achievements.
Indirect Financial Payments:
Additionally, City Bank provides a range of indirect financial payments, such as:
➢ Insurance coverage: Covering hospital stays and offering cash support in times of
medical need.
➢ Sick leave: A total of 12 days in a year that can be used for any health-related or private
purpose.
➢ Casual leave: 14–15 days a year, which are available for private use.
➢ Mandatory leave: Nine days are given off a year to guarantee that workers have time
to recover and refresh.
➢ Maternity leave: Payment in full for a period of six months, extendable in the event of
difficulties or multiple deliveries.
➢ Festival leave: Two times a year, at any religious or cultural holiday of the employee's
choosing.
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City Bank Provident Fund and Gratuity Plans:
City Bank provides provident fund and gratuity plans in order to offer its workers stability
and financial security in their post-retirement years. The features and advantages of these
schemes include:
Provident fund: A voluntary savings plan through which workers contribute a set percentage
of their monthly income and are paid in full upon departure or pension.
➢ The company will match the amount that the employee contributes to the provident
fund, which ranges from 5% to 15% of their base pay.
➢ After ten years of service, the employee can withdraw up to fifty percent of their
accumulated balance from the provident fund; after fifteen years, they can withdraw up
to ninety percent of their balance.
Gratuity: An extra benefit that the employer is required to provide as reward for the worker's
effort and loyalty. It is calculated using the number of years of service and the most recent
salary that was drawn.
Provident Fund Calculation:
Total Salary: Tk. 43,000
Basic Salary: Tk. 26,000
Provident Fund @ 5% (5%-10%)
Employee’s contribution (5% of 26,000) = Tk. 1,300
Employer’s contribution (5% of 26,000) = Tk. 1,300
Total contribution to PF per month = Tk. 2,600
Total contribution to PF per year (Tk. 2,600 * 12) = Tk. 31,200
Gratuity Calculation:
For each full year of service, the employee will earn a gratuity equal to one month's basic pay.
Suppose the employee leaves after 10 years:
Basic salary for the first 5 years: Tk. 26,000
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Basic salary for the next 5 years: Assume a 5% annual increment
Yearly basic salary:
1. Tk. 26,000
2. Tk. 26,000
3. Tk. 26,000
4. Tk. 26,000
5. Tk. 26,000
6. Tk. 27,300
7. Tk. 27,300
8. Tk. 27,300
9. Tk. 27,300
10. Tk. 27,300
Total: (26,000 * 5) + (27,300 * 5) = 130,000 + 136,500 = 266,500 Tk.
Strategic Human Resource Management
Strategic Human Resource Management is aligning the HR Department of City Bank with its
organization goals. City Touch is a prime example of that.
City bank is working to make everything “paperless”. They’re aiming for making the banking
process digital and creating E-systems.
City Bank intends to cut costs and promote eco-friendly methods. They aim to develop a
more financially and environmentally responsible organization.
1. Making the Bank Digital: City Bank wants to enhance the core MIS group. This will
make sure that all the information is conveniently kept in one location. It records the
activities of employees, such as taking a leave of absence and arriving late to work as
well. . Using analytics to gain insights into workforce trends, helping the bank make
data-driven HR decisions.
2. Performance Improvement Plan (PIP): PIP stands for performance improvement
plan. Three zones exist: yellow, red, and green zones. when a worker fails to produce
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work that is up to par, they’re under constant watch. In order to perform better, they
are also trained.
3. Maternity Leave: City Bank arranges a six-month maternity leave. which support
them in becoming ready both physically and psychologically for the significant life
transition. As a result, the organization's productivity rises.
4. Retirement programs: City bank is committed to taking care of the welfare and
wellbeing of their employees. They have a management committee of 20 people.
They plan a farewell for the employee as they have dedicated their whole life to the
organization.
5. Succession planning: City bank looks for succession planning. To look for people
who are in a position lower than the position that has to be filled in. The employees
will be motivated to work for the organization and give their best for the betterment of
the organization since they know their organization best.
6. Talent management and development: Providing ongoing training and development
to ensure employees have the necessary skills and knowledge to perform effectively -
Implementing career development plans that align with both employee aspirations and
organizational needs.
7. Employee Engagement: Employee recognition and reward programs are held to
motivate the employee. In this severe inflation era, salary adjustment is taken
seriously. Employees are rewarded with silver coins or other testament to their
outstanding service.
8. Corporate Social Responsibility (CSR) SHRM incorporates CSR into HR practices
by encouraging employee participation in CSR activities, for example, going green.
Recommendations
1. Improve Work-Life Balance and Employee Well-being: To improve employee
satisfaction and productivity, implement remote work choices, and flexible working
hours.
2. Increase Company Digital Hiring Strategies: Utilize cutting-edge digital platforms
and technologies to optimize and speed the hiring process. Employ artificial
intelligence (AI) -powered hiring platforms, and social media to draw in a wider
range of candidates.
3. Improve Strategies for Performance Appraisal: Implement a more thorough and
ongoing system for performance reviews that incorporates 360-degree feedback.
Implement performance appraisal methods to evaluate the hard-working employees.
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4. Encourage Programs for Equality and Diversity: Ensure that all employees have
equal opportunity by creating and implementing strong policies related to inclusion
and equality of opportunity.
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Conclusion
City Bank's HR practices demonstrate a comprehensive approach to employee supervision
and development. The bank's commitment to attracting top talent and executing successful
employee development and retention strategies has resulted in an industrious and diverse
workplace. City Bank not only boosts employee satisfaction but also drives business success
through thorough training programs, performance evaluation systems. To maintain its
competitive advantage and ensure long-term growth, City Bank must continue to invest in
cutting-edge human resource practices. City Bank sets a model for the industry by prioritizing
employee well-being and career growth, emphasizing the critical role that effective human
resource management plays in achieving organizational goals. To summarize, City Bank's HR
practices reveal a great connection between organizational goals, mission and vision.
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References
1. City Bank PLC. (2024). *Home*. Retrieved May 29, 2024, from
https://www.citybankplc.com/home
2. Wikipedia contributors. (n.d.). City Bank (Bangladesh). In Wikipedia, The Free
Encyclopedia. Retrieved May 29, 2024, from
https://en.wikipedia.org/wiki/City_Bank_(Bangladesh)
3. Dessler, G. (2020). Human resource management. Pearson.
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