Commercial Bank of Ceylon PLC(HR Planning and Strategies Report)

MGT351: Human Resource Management
Section: 07
Report on: HRM Planning and Strategies
of
Submitted To:
Md. Al Amin [MLI]
Lecturer, Department of Management
SBE-NSU
Submitted By:
❖ Muntaka Tasnim Tabassum
❖ Abdullah Sawban
❖ Saharia Azmi Chowdhury
❖ Taysir Quadry
❖ Md. Tanzirul Amin
MGT
351
Date of Submission: Wednesday, 18th
April 2018

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HRM Planning and Strategies
Acknowledgement
Before we start presenting our research and report, we would like to say some few words of
appreciation for the people who have been a part of this assignment right from its inception.
The writing of the report was not an easy task. At first, we would like thanks to Almighty
Allah for helping us finish the project and also give credit to all the group members. The
success of the project is a result of the hard work and dedication of our team. We would also
like to thank our course instructor Mr Md. Al-Amin sir who helped and guided us in making
this report. Without his effort, knowledge, and energy, we couldn’t complete this project.
Lastly, we are much obliged to Ms Irin Parvin, Assistant Manager (HR department), and Mr
Md. Ashique Imtiaz, Sr. Executive Officer (HR department) of Commercial Bank of Ceylon
PLC.

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Letter of Transmittal
April 18, 2018
To,
Md. Al-Amin
Lecturer, Department of Management
School of Business & Economics, North South University
Subject: Submission of the group report on HRM Planning and Strategies of
Commercial Bank of Ceylon PLC.
Dear Sir,
It is indeed a great pleasure for us to be able to hand over our project report on HRM
Planning and Strategies of Commercial Bank of Ceylon PLC.
We tried our level best for preparing this report. The information of this report is mainly
based on the interview with the Assistant Manager and Sr. Executive Officer of HR
department of Commercial Bank of Ceylon PLC. Some other details and information were
gathered from the internet, company website knowledge which has been acquired from the
respective course. All of us gave our hundred-per cent efforts for making this report come
together.
We, fervently hope that you will find this report worth reading, and appreciate our hard work
and excuse the minor errors, if any. Thank you for your cooperation.
Sincerely,
Muntaka Tasnim Tabassum
Abdullah Sawban
Saharia Azmi Chowdhury
Taysir Quadry
Md. Tanzirul Amin

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Executive Summary
This report provides an analysis and evaluation of the structure and the different work
processes of the Human Resource Department of Commercial Bank of Ceylon PLC,
Bangladesh. It includes the organization’s background information, culture of interpersonal
relationship, current HR System, Implication of Strategic Human Resource Management &
some recommendations.
The first part of this report gives an insight about Commercial Bank of Ceylon PLC. Both
primary and secondary data have been collected to complete this report.
The Human Resource Department of Commercial Bank of Ceylon Ltd. is responsible for
developing a competent workforce for the organization’s activities. To do so, it has a strong
and organized structure divided into different units, which are individually responsible for
recruitment, selection, and appointment, formulation of policies, publication of reports,
conducting orientation, training, and appraisal, compensation of employees, eradication of
injustice or violation of rights in the workplace etc.
Commercial Bank of Ceylon PLC’s employees are recruited by going through multiple steps
starting from staff requisition and CV sourcing to written tests, interviews, viva and finally
joining.
The employees are trained through different training programs organized by the management.
The bank offers basic monthly salaries to the organization’s employees along with other
benefits in accordance with Bangladesh Labor Law & other banks salary structure. It offers
performance bonus according to performance grades, two festival bonuses, gratuity for
employees leaving the organization, and provident fund benefits for the retirees. Moreover,
depending on designation employees get allowances, insurance, leaves, and loan facilities etc.
Through the collected data, it has been found that the current HR System is doing well but it
has more scopes to improve.
Through findings, it is recommended that the salary structure should be more competitive,
gratuity for every performing year should be increased in order to motivate employees in
long-term, retirement age should be increased from 57 to 59 like the other banks in the same
industry, efficient manpower should be recruited to reduce work pressure.

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Table of Contents
Titles Page#
1. Introduction…………………………………………………………………………………… 05-06
1.1 Introduction 05
1.2 Methodology 05
1.3 Background Information 06
2. Description.......................................................................................... 07-16
2.1 SHRM 07
2.2 HR Planning 09
2.3 Recruitment & Selection 10
2.4 Training & Development 12
2.5 Performance Appraisal 14
2.6 Benefits and Compensation 15
3. Conclusion……………………………………………………………………………………… 17-18
3.1 Conclusion 17
3.2 Recommendations 17
3.3 Appendix 18
3.4 References 19

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1. Introduction
1.1 Introduction:
Human Resource Management is significant source of competitive advantage and also plays
key role in organizational strategies. Moreover, it has impact on organization’s workforce
which eventually impact organization’s performance. HRM processes mainly get directly
affected by some external forces such as economy, labor unions, legal environment etc.
Firstly, in HRM, a job and the behaviors necessary to perform are defined through job
analysis. Secondly, there are the types of orientation and training and development process.
Thirdly, the strategies for retaining competent, high-performing employees; there are
different ways to do so such as written essays, critical incidents, graphic rating scales, BARS,
multi person comparisons, MBO, and 360-degree performance appraisals. Lastly, there are
the contemporary issues in managing human resource; managers may manage downsizing
through compensations or providing benefits to the employees. (zkjadoon, 2015)
1.2 Methodology:
For our primary research, in order to find about the actual information related to Human
Resource Management Department’s function of Commercial Bank Of Ceylon PLC, we
conducted an interview with Ms Irin Parvin, Assistant Manager (HR department), and Mr
Md. Ashique Imtiaz, Sr. Executive Officer (HR department) of Commercial Bank of Ceylon
PLC. We have visited the main branch of the bank which is located in Gulshan-2, near Hadi
Tower to observe how functions of the HR Dept. of the organization are carried out.
For our secondary research, we visited websites authorized by Bangladesh government,
website of Commercial Bank of Ceylon PLC, and several weblogs and web journals.

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1.3 Background Information of Commercial Bank of Ceylon PLC:
Having set a benchmark in private sector banking in Sri Lanka, CBC PLC has set standards,
created an identity and forged an unsurpassable trend. Powered by state-of-the-art technology
and driven by a team of highly motivated, dynamic individuals Commercial Bank Of Ceylon
PLC has become one of the leaders in private banking in Sri Lanka.. Having made a
distinctive mark in Sri Lankan banking history, Commercial Bank stands out for its
superlative service and technological superiority.
Commercial Bank Of Ceylon PLC is a multinational bank, rooted from Sri Lanka, which has
been operating in Bangladesh since 2003. It provides Banking facilities to individuals and
businesses. For individuals, it offers Savings, Deposits, Cards, Current Accounts, and Loans
Services. For businesses, it offers Corporate Banking, SME Banking Services & Treasury.
The bank has 11 branches and around 220 employees currently in Bangladesh (Company
Overview of Commercial Bank, 2018).
Over the period of last 15 years of operation in Bangladesh, Commercial Bank Of Ceylon
PLC has expanded its branch network to 11 branches, 2 specialized OBU sections in Dhaka
(Gulshan) and Chittagong (CEPZ) and 6 SME centres in Bangsal Road (Dhaka), Progati
Sharani (Dhaka), Shantinagar (Dhaka), Tongi (Dhaka), Jubilee Road (Chittagong) and CDA
Avenue (Chittagong). It also has 1 Card Centre in Dhanmondi (Dhaka), 3 offsite
ATMs,which are in Dhaka, Narsingdi & Sylhet. Unique products and services, superior
service quality and efficient and customized solutions to the requirements of corporate and
personal banking customers are hallmarks of the successful stride of CBC in Bangladesh.
(www.combank.net/bdweb)
Vision of Commercial Bank Of Ceylon PLC:
"To be the Bank of Excellence in Service and Commitments"
Mission of Commercial Bank Of Ceylon PLC:
"To deliver optimum value to: Customers, Employees, Shareholders and the Nation, while
ensuring good Corporate Governance."

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2. Description
2.1 SHRM:
Strategic Human Resource Management is an approach to manage human resource which
supports long term business goals and outcomes with a strategic framework. It typically
includes basic human resource components such as hiring, training, payroll, and also involves
working with employees in a cooperative manner to accelerate retention, improve the quality
of the skills of the employees and lastly maximize the mutual benefit of both the employees
and the employer. CBC PLC developed a Strategic HR plan of HR initiatives to achieve and
promote the behaviours, culture and competencies needed to achieve organizational goals.
The strategic planning process begins with four critical questions:
• Where are we now? (Assess the current situation.)
• Where do we want to be? (Envision and articulate a desired future.)
• How do we get there? (Formulate and implement a strategy and strategic objectives.)
• How will we know if we are on track toward our intended destination? (Establish a
mechanism to evaluate progress.)
Then they align the HR function to the organization's business strategy. The HR alignment
process is often driven by workforce composition issues. When the HR strategic planning
team has fully evaluated the current situation, CBC PLC considers what the ideal future
would look like from an organizational perspective. The question "Where do we want to be?"
can be answered and clearly articulated by creating statements of vision, mission and values.
A vision statement provides a description of what an organization wants to become or hopes
to accomplish in the future.
CBC PLC uses 4 different perspectives such as:
i. Financial Perspective: Use of revenue, expense, net income & cash flow
measures.

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ii. Customer Perspective: They use customer satisfaction, brand strength &
customer retention.
iii. Internal Process Perspective: In this term, they use resource allocation & cycle
time.
iv. Learning/Growth Perspective: For the learning perspective they use employee
satisfaction, employee skill, and employee turnover & employee education.
In order to achieve strategic goals of the organization and to satisfy the bank’s Mission,
Vision along with maximizing mutual benefit and develop human resource management,
Commercial Bank Of Ceylon PLC’s HR Dept. has adapted the following policies
(www.combank.net):
• Ensure a fair and consistent wage policy
• Manage talent effectively to maximize the employee’s potential
• Staff training and development
• Retain the bank’s position as ‘most preferred’ employer

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2.2 HR Planning:
Human Resource Planning is a systematic process of forecasting both the prospective demand
for and supply of manpower and employment of skills with the objectives of the organization.
HR planning involves anticipating need for labour and supply of labour. Planning the
programs is important to ensure that the organization will have the right mix of employees
and skills when and where they are needed.
Commercial Bank of Ceylon is very careful in their HR planning. They generally use trend
analysis. They set a goal first and after that they plan for the recruitment. For this they need to
find out how many positions they need and the amount of people they need. They generally
recruit through:
I. Requirement/need basis: They analyze the need of the employee. They recruit their
employee based on their needs.
II. Performance basis: They also recruit through performance basis. They also recruit
employees from the intern students based on their performance.
Internal and External Candidates: CBC PLC recruits their candidate from both internal
and external sources. For top managers they use internal recruitment and they follow
personnel replacement chart .By this they can easily get the current performance of
employee and chances of their portability. For the mid-level candidates they use manual
system to track employee qualification and also they use Intranets and bulletin boards. For
external recruitment process they use BDjobs website and sometimes the national daily
newspapers.
Centralized recruitment: CBC PLC follows the centralized recruitment system. They
make their recruitments decision centrally. Since, it is cost and time efficient; they have
fewer amount of branches compared to other banks so this decreases redundancy.

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2.3 Recruitment & Selection:
Recruitment process basically starts with the analysis of job description and job specification
for a specific job. Job analysis and job specification ideally provide the information about the
job title, location, salary scale, skill & knowledge a candidate must have. Respective head of
the department prepare the job description basically and send it to the HR dept.
Employment sources: Human resource department of CBC PLC decides how to fill the
vacant position, whether through internally or externally.
Internal sources: Recruitment from internal sources are usually done when recruiting
for a new project, mid-level and top-level positions. For top level positions they use
internal source. Advertisements are posted on intranet and also on bulletin boards of
CBC PLC. They also recruit top positions through evaluation basis promotions.
External sources: CBC PLC recruits from external sources for entry-level positions
and also for some positions which require certain technical expertise and experience
which the employees in their talent pool do not have. Advertisements are posted
online at: www.bdjobs.com and sometimes in the national daily newspapers.
Employment Type: CBC PLC hires only in permanent & probationary position. The bank
do not hire for any part-time jobs. At times, it hires consultants.
Application Calling: Job applications against each vacant position are collected by HR
department. Candidates can not appear for more than 1 interview within 1 year and
probationary employees are also not allowed to apply for interview for any other position.
After one year of probationary period, interns can apply for a fixed position.
Selection Process: the steps HR Dept. of CBC PLC follows for selecting a candidate are,
Sorting and listing of Applications: HR department of the bank collects and compiles
applications after closing the job advertisement. The applications are profiled against the
given job advertisement and then HR department assesses the applications for further
screening. Short listing criteria include:
• Academic qualification
• Relevant degrees

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• Job experience (If applicable)
• Skills set such as MS Word, MS Excel etc.
• Participation in Extra Co-curricular activities
Entrance exam (Written test): The applicants that meet the above criteria are then called for
a written test. No matter whatever the position is, each of the applicants has to go through this
written test and gain satisfactory marks to be eligible for the next step. The written test
consists of 200 marks; there are 100 marks for maths & 100 marks for English (Essay-50,
Letter-25, and Case Study-25). Through this test, the applicants’ analytical ability and skills
on English are tested.
Interview (Viva): The applicants that successfully pass the written test are then called for
interview with a board. The board consists of Head of HR & other Dept. Heads. The board
tests the applicants’ adaptability to work environment, stress endurance, confidence,
execution style etc.
Medical exam and Police verification report submission: The applicants who pass the
above tests are considered to be eligible for the job primarily. However, they are asked to
submit a medical test report and a police verification report in order to make sure that they
are physically fit for the job & do not have any unethical history.
On-Board: If the applicant passes all the above mentioned tests, he/she is put into
probationary period for 18 months which is considered as training period also.
Joining: After these 18 months of probationary period ends, the applicant is called for
another interview where job-related questions are asked. Upon passing of this test he/she is
finally appointed as officer. If failed in this test, the applicant is put into probationary period
again for another 6 months or 12 months.

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2.4 Training & Development:
Training is the process of teaching existing and new employees the basic skills they need to
perform their jobs. Commercial Bank of Ceylon PLC trains its employees at different phases
according to the needs in order to develop the expertise level and experience curve of the
employees and also to benefit the organization from it. The bank focuses on off-the-job
training rather than on-the-job training.
Training for probationer: Other than MTOs, the bank follows off-the-job training method
to train its probationary employees. CBC PLC has an in-house training centre for the new
employees, which is located at the Gulshan branch. Usually, first 18 months of the
probationary period is considered as training period. The in-house training session usually
takes place around 4 to 6.30 pm.
Training for permanent employees: The training program for the permanent employees is a
bit different. The program depends on the designation of the employees, the needs and so on.
So the training is given on-
➢ Skills Development
➢ Profitability
➢ Timeliness
➢ Business Continuity Policy
➢ Loan Policy
➢ Anti-Money Laundering
➢ Regulatory Issue (Audit)
➢ Deposit
➢ SME Lending
➢ Foreign Exchange Policy
➢ Credit Proposal
➢ Credit Risk Management
➢ Green Banking etc.
Trainers are happened to be experts of the banking sectors. They are hired from Bangladesh
Bank or professionals. Sometimes experts might come from Colombo (Sri Lanka, the parent
country of the bank) as well. Often executive coaches are hired. The training programs are
mostly local based. Overseas trainings are very rare in this bank.

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• Orientation & Code of Conduct Training: These are the trainings for the new
employees so that they can get introduced themselves to the other employees of this
bank. The new employees come to know about the rules, regulations and policies of
the bank through the orientation session.
• Training on Corporate Culture: The employees (usually freshman) are given idea
about the corporate culture of CBC PLC through this method. They are notified about
the formal dress code for males which implies on Sunday to Thursday. There is no
fixed dress code for female employees but it has to be decent and modest according to
Bangladesh’s local values and customs.
• Off-the-job Training: These training sessions are mostly organized at the
Bangladesh Institute of Bank Management (BIBM) at Mirpur, the sessions may
include: seminars, short courses, professional degrees etc. Usually, CBC PLC
encourages their permanent employees and new executives to take such trainings.

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2.5 Performance Appraisal:
Performance Appraisal is the process of evaluating of employee’s work and rewarding
accordingly. Performance appraisal is primarily used for promotion decisions and salary-raise
of employees. Appraisal process also helps to identify the employee’s strengths and weakness
and decide on training and development of employee. It’s an useful tool for career planning
and human resource management.
Commercial Bank of Ceylon PLC also uses performance appraisal to evaluate their
employees. They evaluate the performance of the employees twice a year. The CBC PLC
reporting immediate supervisor and country manager used this performance appraisal to
evaluate employees every 6 month.
Process of Performance Appraisal: The process of performance appraisal of Commercial
Bank of Ceylon PLC -
For appraising the performance of individual employees, individual documents and report
card are used. After every six months, supervisor and country manager analyse the individual
goals and performance with the standards and company’s mission, and then give the final
review.
Feedback: Based on the final review, feedbacks are given to the employee on his or her
performance in order to correct any deficiencies and to create increased opportunities. CBC
PLC generally provides two-way feedbacks. CBC PLC uses 360 degree feedback system to
evaluate the performance of the employees. 360 degree feedback means employee receives
feedback from peers, bosses or supervisors, subordinates, internal and external customers.
Another feedback is given by line managers and Country manager to maintain the goal and
perfection of the workflow in relation with the overall company motives and future goals.
Country Manager Supervisor Employee

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2.6 Benefits & Compensation:
The employees of Commercial Bank of Ceylon enjoy both monetary and non-monetary
benefits provided by the organization.
• Festival Bonus: Employees get basic salary of 1 month as bonus on each Eid
festivals.
• Performance Bonus: Depending on solely performance, employees get basic salary
of 1/2/3 month yearly as performance bonus. The performances of the employees are
evaluated semi-annually.
• Provident Fund: Permanent employees who work for a certain time period are
eligible to receive provident fund. CBC PLC’s policy for this fund is -
Basic’s 10% as in own contribution + Basic’s 10% as in Company’s Contribution
The provident fund is run by Trustee Board. To be eligible to get the provident
fund’s money to the fullest, an employee must have to work for more than 5 years
for the bank.
No. of years served Percentage of employers’ contribution
5 years+ 100%
4 years 80%
3 years 60%
2 years 20%
Less than 2 years No Provident Fund
• Gratuity: Employees who have worked more than 5 years get gratuity at the time of
their retirement. CBC PLC adds 1 year basic salary for every performing year to its
employees who are eligible to receive gratuity.
• Sick leave: CBC PLC follows the rule of “Bangladesh Labor law 2006” regarding
sick leave. Each of the employees gets 14 days sick leave a year with full payment.
(Laws of Bangladesh, 2010)
• Maternity leave: Mothers who conceive babies are entitled to enjoy 6 months
maternity leave which is 8 weeks a year (60 days) according to Bangladesh Labor
Law. (Laws of Bangladesh, 2010)

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• Allowances for foreign employees: All necessary expense like home rental facility
and car facility are paid from the bank when foreign employees come to work for a
country other than their own.
• Medical facility: In case of major operation, the bank gives either a percentage or a
lump-sum of 50,000 BDT to pay for hospital bill.
• Group Insurance: All the employees of CBC PLC enjoy health and life insurance
from ALICO Life Insurance Company.
• Vacation facility: Each employee of CBC PLC enjoys 30 days yearly (2.5 days per
month) vacation without holidays each year with full payments.

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3. Conclusion
3.1 Conclusions:
Throughout the whole report, functions of Human Resource Management Dept. of
Commercial Bank of Ceylon PLC have been discussed such as Organizational Culture,
Recruitment, Selection Process, Training & Development, Performance evaluations and
Benefits offered. How the HR Dept. helps the bank to achieve its strategic goals has also been
discussed. In today’s world, to achieve a sustainable development, the bank should come out
of its traditional HR Practices and undertake more flexible and beneficial steps to retain
employees in the long-run; and also use SMART tools to define the standards, goals and
positive growth of the whole organization and its stakeholders.
3.2 Recommendations:
Through findings, It has been seen that current HR system of Commercial Bank Of Ceylon
PLC is doing good but It can improve the HR Policies to get the best output from the
employees.
The salary structure should be more competitive.
The retirement age in this bank is 57 years which is 59 years in other banks in the industry.
Currently gratuity is 1 gross salary for every performing year which the bank should double.
Staff interest rate for home, car, and personal loans should be reduced.
Car allowance should be started from assistant manager instead of manager.
To evaluate the employees they should start integrated quantitative measures.

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3.3 Appendix:
Interview Questionnaire:
1. How do you forecast the number of people you need to hire?
2. Do you have any fixed vacant positions? How do you fill those out?
• Trend Analysis: Do you investigate the past activities?
• Ratio Analysis: Do you identify some specific factors which may affect each
other
• Scatter Plot: Do you use any kind of graphical representation to find out the
data?
3. Do you prefer external or internal recruitment? Would you go for external
recruitment for the higher positions of the company?
4. What are the sources you use while recruiting externally? (job sites, agencies,
referrals etc.)
5. Do you think it is possible to reach older candidates through internet?
6. How do you fill out the new empty positions if you promote internally?
7. What are the sources for job posting in case of internal recruitment? (e.g. intranet,
bulletin boards, rehire old employees)
8. Do all the branches recruit employees individually?
9. Please discuss the process by which Commercial Bank of Ceylon plans to recruit
its top executives. What are the various methods used to collect the relative job
description?
10. How do you select the right candidates for your organization? Please explain
11. How do you investigate the background and verify the information provided by
the candidates?
12. Do you prepare set of predetermined questions before interviewing people?
13. What sort of questions do you ask them: Work related hypothetical situation or
based on past incidents
14. How do you identify whether training is required? What are the costs associated
with training?
15. Is there any connection between the training session and the actual job
environment?
16. How does Commercial Bank of Ceylon aims to train it’s existing and new
employees?

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3.4 References:
Dessler, G. (2013) Human Resource Management (13 ed.). Pearson Education Inc.
Laws of Bangladesh (2010) Retrieved from: http://bdlaws.minlaw.gov.bd/index.php
Zkjadoon (2015) What are the Functions of Human Resource Management. Retrieved from:
http://www.businessstudynotes.com/hrm/human-resource-management/what-are-the-
functions-of-human-resource-management/
Company Overview of Commercial Bank (2018) Retrieved from:
https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapid=2566670
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Website links:
https://www.combank.net
http://www.combank.net/bdweb
https://www.bb.org.bd/
https://www.bibm.org.bd/
http://www.sec.gov.bd/
Thank you!

Commercial Bank of Ceylon PLC(HR Planning and Strategies Report)

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