A Working Paper on

Human Resource Practice in

LankaBangla Finance limited (LBFL) in Bangladesh

Submitted by:
Md. Foisal Islam (Id-1905895)
Md. Abdul Mannan (Id-1905942)
MBA in HRM
Department of Management
Faculty of Business Studies
HSTU, Dinajpur

Submitted to:
Md. Mostafizur Rahman
Assistant Professor
Department of Management
Faculty of Business Studies
HSTU, Dinajpur
Organization Description of LBFL
LankaBangla Finance Limited (LBFL) is one of the largest private financial institutes
in Bangladesh. LankaBangla Finance Limited offers the entire spectrum of financial
services to customer segments covering corporate financial services, SME financial
services, and Personal Financial Services and Deposit schemes.
LankaBangla practices participatory management and adheres to industry best practices
in all endeavours and serves with wide operational periphery covering major business
hubs of the country. LankaBangla operates in a centralized administrative framework
through cutting edge technological environment.
LankaBangla is the market leader in the capital market services and giving all-out
effort to develop an efficient, vibrant and transparent capital market in Bangladesh.
Through our subsidiary, LankaBangla Securities Limited we are providing top notch
broking services and leading the industry with cutting edge trading, top rate research
and customer service. Another subsidiary, LankaBangla Investments Limited is a premier
investment bank in the country providing corporate advisory, issue management and
portfolio management services. The other subsidiary, LankaBangla Asset Management
Company Limited is providing professional wealth management services.

Strategic Focus
VISION
To be the most preferred financial service provider in creating, nurturing and maximizing
value to the stakeholders, thereby, “GROWING TOGETHER”.
MISSION
 Be a growth partner for our customers, ensuring financing and superior experience
 Maintain a culture of meritocracy in the DNA of the company
 Be sustainable and ensure quality returns to our valued shareholders
 Uphold efforts to develop our community
CORE VALUES
We have strong values that are well embedded in our culture. We believe that the
following values will help us deliver our strategy.
 Cherish a sense of ownership
 Be customer centric
 Grow as a team
 Act with integrity and professionalism
 Deal with respect

Services and Products of LankaBangla:

 LankaBangla MasterCard / VISA Card
 Home loan
 Real Estate Development Finance
 Term Deposit
 Double Money Term Deposit
 Money Builder term Deposit
 AUTO Loan
 Lease Finance
 Work Order Financing
HR Planning Responsibilities:
HR Planning is dine by an HR committee developed for planning which includes members
 Human Resource Professional
 Operation Management

Our Strategy
We revisited our strategic direction based on broad-head priorities and to execute the
strategies we plan to start big and build momentum through
Diversify portfolio prudently for value with increased focus on core product portfolio
• Build a strong core product portfolio with high focus on corporate financial services
• Drive consumer finance to excel through a differentiated strategy
• Build momentum in SME financial services
• Grow our leading position in capital markets
• Expand geographical reach in the major cities/township of the country
 • Collaborate with large corporate houses for mutual beneficial relationship
• Manage enterprise risk effectively
• Maintain good asset quality and strive to keep incremental infection zero

Prudent Balance Sheet Management

• Strengthen our capital base and improve our funding positions
• Diversify our funding sources
• Optimize the deployment of fund and capital across core business and the subsidiaries
Simplify processes and reduce cost
• Continually improve key areas of customer service
• Simplify processes and ensure disciplined expense management
• Upgrade our technology that will make us more efficient and competitive

Create a sustainable brand

• Invest in brand and promote our services to chosen markets
• Ensure good governance and transparency
• Increase contribution to the national exchequer through increasing profitability
• Increase support to under privileged population in health and education through
LB Foundation
• Assume environmental stewardship and responsibility in changing lives of the
ordinary
• Nurture our people through leadership and skill development
• Nurture high skilled talent poo
• l • Create congenial work environment to deliver the best
• Ensure are active benefit packages
• Promote high ethical standards

Divisions of LBFL:
LankaBangla Finance maintains all of their activity by the use of all separate divisions.
Under these divisions there are some subdivisions or departments. Business divisions are
mainly focused on the business activities that are offered by LankaBangla Finance, the
other divisions are devoted to the operating activities of the organization
Business divisions
 Corporate Financial Services
 SME Financial Services
 Personal Financial Services
 Liability Management Other divisions
 Treasury and FI
Operations Division
 Finance And Accounts Division
 It Division
 Human Resources Division
 General and Infrastructure Services
 Credit Risk Management
 Risk Management
 Board Secretariat

Functions of HRM:
Planning for Organization, Jobs and People
 Strategic Human Resources
 Human Resources Planning
 Job Analysis
1 Acquiring Human Resources
 EEO (Equal Employment Opportunity)
 Recruiting
 Selection
2 Building performance
 Human Resources Development
 Human Resources Approaches to improving Competitiveness

3 Rewarding employees
 Performance Appraisal
 Compensation and Benefits
4 Maintaining Human Resources
  Safety and Health
 Labour Relation
 Employment Transitions

Recruitment and Selection:

The first and foremost responsibility of HR Can be defined as a systematic and ongoing
activity, which ensures an organization has the right number and kind of people in the right
jobs, at the right time, so that the organization can achieve its ultimate goal. It leaves a lot
of importance on the recruitment and selection process which is discussed below
Internal recruitment: Most companies fill vacancies internally whenever possible. A
number of internal recruitment methods are used for different level of jobs. Lower-level
jobs such as manual and clerical jobs are often called non-exempt jobs because their
incumbents are not exempt from the minimum wage and overtime provisions of the Fair
Labour Standards Act. These people typically are paid an hourly wage. In contrast, higher-
level administrative, managerial, and professional employees are paid on a salary basis
and are exempt from the overtime provisions of the Fair standard Labour Act.
External recruitment: In addition to looking internally for candidates, it is customary
for organizations to open up recruiting efforts to the external community. Through the
recruiting process, the hiring manager should stay in close touch with the recruiter. The
hiring manager should examine resumes or application that have passed initial screening
by the recruiter and should also review some of the application that the recruiter rejected
during the first steps. Such involvement on the part of the hiring manager allows
feedback as to whether or not the recruiter’s decisions are consistent with the hiring
manager’s preferences.

External recruitment methods are often grouped into two classes:

1. Informal and
2. Formal.
Formal method includes:
 Recruitment Advertising
 Internet Recruiting –
 Employment Agencies –
 Public Job Service Agencies -
  Private, For-profit Agencies –
 Unions –
 Additional Recruiting Methods –
 Campus Recruiting -
 Executive Search Firms etc.

Recruitment Process:
 Human Resources Planning
 Job Analysis
 Filling the jobs
 Recruitment sources
 Pool of Qualified Appliance
 Short listing

Selection:
Selection the right employees are important for an organization. First own performance
always depends in part on subordinates. Employees with the right skills and attributes will
do a better job for the company. Employees without these skills won’t perform effectively
and as a result the firm will suffer.
Process of selection:
Selection activities typically follow a standard pattern, beginning with an initial screening
interview and concluding with the final employment decision. The selection process
typically consists of eight steps:
 Initial screening interview
 Completing the application form
 Employment test
 Comprehensive interview
 Background investigation
 A Conditional job offer
 Medical or physical examination
 The permanent job offer.
Initial Screening:
As a culmination of our recruiting efforts, organization should be prepared to initiate a
preliminary review of potential acceptable candidates. This initial screening is, in effect,
a two steps procedure: (1) the screening of inquiries and (2) the provision of screening
interviews.
Completion of the Application Form: Once the in initial screening has been complicated,
applicants are asked to complicate the organization’s application form. The amount of
information required may be only the applicant’s name, address, telephone number and
other information.
Employment tests: Organization historically relied to a considerable extent on
intelligence, aptitude, ability and interest tests to provide major input to the selection
process.
The comprehensive interview: The applicant may be interviewed by HRM interviewers,
senior manager within the organization, a potential supervisor, potential colleagues or some
or all of these.
Background investigation: The next steps in the process are to undertake a background
investigation of those applicants who appear to offer potential as employees. This can
include contacting former employers to confirm the candidate’s work record and to
obtain their appraisal of his or her performance, contacting other job- related and
personal references, verifying the educational accomplishments shown on the application,
checking credit reference and criminal records, and even using third party investigation,
to do the background check

Conditional job offer: If a job applicant “passed” each steps of the selection process
so far, it is typically customary for a conditional job offer to be made. Conditional job
offers usually are made by an HRM representative. In essence, what the conditional job
offer implies is that if everything checks out okay, passing a certain medical, physical
or substance abuse test, the conditional nature of the job offer will be removed and the
offer will be permanent. o
Physical/ Medical Examination: Physical exams can only be used as a selection device
to screen out those individuals who are unable to physically comply with the requirements
of a job.
Job offer: Those individual who perform successfully in the preceding steps are now
considered to be eligible to receive the employment offer.
Selection Criteria :
 Experience
 Past performance
 Physical skills
 Education
 Interest
 Personality measures
 Work Reference
 Tenure on previous job
 Risk acceptable capability
 Flexibility

Job Analysis :
The process of job analysis
 Strategic choice
 Gather information
 Process information
 Job Description
 Job specifications

Training:
The process of teaching new employees the basic skills they need to perform their
jobs. Training refers to the methods used to give existing or newly recruited employees
the skills they need to perform their jobs, or enhancing their existing skills. Training
might thus mean showing a machinist how to operate his or her new machine, a new
salesperson how to sell his or her firm’s product, or a new supervisor how to interview
and appraise employees. Trainings are basically provided to the entry-level employees.

On the job training: It means learning by doing. This helps the employees to train
themselves at their desk while they work. It is basically a practical situation oriented
training program. Employees direct supervisor or experienced peer helps them as they are
yet to learn the process.
Off the job training: Off the job training refers to the trainings that are provided to
the employees out of the organization premises, in a separate training institute for a
particular period of time. During this time the employee does not have to go to office.
Online training: Usually refers to customized software designed to deliver specific
guidelines, online tests, video conference and seminars for geographically dispersed
situation. In LankaBangla Finance Limited E-learning is there where employees ase
assigned with specific tests followed by automated results and evaluation.

Training Method :
 Case study
 Incident method
 Role playing
 Audiovisual method
 Serving on committee
 Programmed learning
 Discussion method
 Induction method

Training Design :According to

 BIBM
 BD Jobs training
 Intimate training
 Bangladesh Bank training Institute
 Overseas training
General steps of trainings at LBFL (in line with Gagne’ Briggs Theory)
Different types in training methods help different types of people. Not necessarily all
learners will be beneficial from a single pattern of training session equally, it depends
on the persons learning styles. Someone learns through reading whereas someone can
recall thins better if there are videos on it. However in present corporate arena when
we have to train a lot of people within a short time in a same platform to cope with
the cost benefit analysis, it’s not always possible to customize the training program to
match with each individual’s learning style. Nevertheless there are some generalized steps
in a training program where we can cast the maximum possible benefits out of the
session.
1. Gaining attention (reception) This is the first step and here the objective is to gain
the attention of the trainees. When attention is gained, learning is much easier. Otherwise,
they have to force attention (learning becomes tedious, painful)
2. Announce objectives (expectancy) After everyone’s attention has been obtained, we
can then proceed to the learning objectives, i.e. the goal of the training. The goals and
objectives are then explained to the trainees
3. Stimulate recall of past knowledge (retrieval) Here the instructor tries to recall trainee’s
knowledge of past material because when they remember parts of it or have some basic
foundation in the topic, learning is faster and better
4. Present the material/stimulus (selective perception)
5. Providing learning guidance (semantic encoding) Here the instructor gives advice to
the trainees on how to learn the topic better and what ways will speed up the effectiveness
and efficiency of learning the training material
6. Elicit / bring out performance (responding) This involves giving trainees an opportunity
to demonstrate what they have learned, through performance.
7. Giving feedback (reinforcement) This involves showing the trainees what went right
and what went wrong, giving tips and pointers, showing and demonstrating the right way
to do the job
8. Assessing performance (retrieval) Here, the trainer compares the performance of the
training program with the original objectives to see whether learning has been successful
(outcome evaluation)
9. Facilitate/ enhancing retention and transfer (generalization)
This involves putting the trainees in a different, creative situation where they can use
the skills and abilities learned in the training program to solve a real-world case (or
something different in nature)

Training Needs Analysis:

1. The Trigger The training needs analysis (TNA) begins with a trigger, an event that
indicates that Actual Organizational Performance (AOP) < Expected Organizational
Performance (EOP). Usually this trigger is reported by a high authority, or a top
management figure.
2. The Input Phase The next step in the TNA model is the input phase, which consists
of an organizational analysis, an operational analysis and a person analysis
a. Organizational Analysis
b. Operational Analysis
c. Person Analysis
2(a) Organizational Analysis An organizational analysis is a scanning of the organizations
environment, such as its corporate culture, its mission and vision and the training and
other systems currently in place to see how they are affecting employee performance.
Blockages or other resistances are then discovered
2(b) Operational Analysis An operational analysis is an analysis of the organization’s
jobs, i.e. what are the specific duties and responsibilities of the jobs and what KSA’s
are required to do them. So, in other words, it is like a job description. Remember that
a job description also gives the performance standards of the job and the conditions in
which they are carried out.
2(c) Person Analysis A person analysis gives information about employees, i.e. what
kind of person is required to do the job and what KSA’s and other abilities they should
have. So, in other words, it is like a job specification. Expected Performance (EP) is
the level of performance required in a particular job. Actual Performance (AP) is the
level of performance that actually occurs in the job.
3. The Process Phase In the process phase, the expected performance level is compared
to the actual performance level to see whether there is a performance gap.
• Performance Gap (PG) = Expected Performance (EP) – Actual Performance (AP)
Development:
Development programs are basically provided for the mid/higher level managerial employees.
Management development is any attempt to improve managerial performance by imparting
knowledge, changing attitudes, or increasing skills. The ultimate aim of such development
programs is, of course, to enhance the future performance of the organization itself. For this
reason, the general management development process consists:
(1) Assessing the company’s needs (for instance, to fill future executive openings, or to boost
competitiveness)
(2) Appraising the managers performance, and
(3) Developing the managers (and future managers) themselves.
Methods of Training and Development:
There are some training and development methods which are given in a chart as below:
Selection tests:
 Written test
 Achievement test
 Intelligent test
 Work samples
 Altitude test
 Psychological test
 Personality test
 Performance test
Orientation at LBFL:
LankaBangla Finance Ltd. arranges the orientation program in a formal way. They
introduce their selected employee with their senior level manager or board of director
arranging a meeting session. LBFL also provide hand books that contain the details about
the orientation program.

Employee handbook:
This thing is developed for the employee keeping the both side of employee relation
in mind that employee can get maximum answer of their quarry. It emphasizes the
contribution of the employee.
LankaBangla recognizes all their employees as their family member.
It includes
 Mission, vision of the organization- as same as the organizational
mission and vision
 Terms and condition
 Rules
 Compensation benefits and other facilities

E-learning process in LBFL:

With the advancement of technology formerly highly expensive and unreachable distant
learning has been transformed as both effective and efficient medium of learning. E-
learning is the learning procedure through the use of electronic technologies to access
educational curriculum outside of the traditional class room. Maximum time it refers to
a course program or degree completely delivered through online.
The market for corporate interactive distance learning is now known as 'e-learning,' has
boomed along with the growth in the Internet and corporate intranets. This is the
definition of E-learning from business point of view
LBFL is preparing to introduce a new session of their training called E-learning this
is also included as the HRIS learning procedure. It is a separate learning procedure here
all reading materials are related with the LBFL details their operations, business history,
about their division, the recent information about the organization, the financial condition,
new level of business etc. For this preparation only backward foundation like the
questioner is under processing. The developments of this reading portal depend on every
year’s updated independent information about LBFL.
E-learning communication topology
Synchronous
 Virtual learning environments
 Insert massaging service
 Audio and Video conferencing Digital Char Rooms
 Shared white board applications Application sharing
Asynchronous
 Email Discussion forums
 Threaded discussion Selfpaced learning

Performance appraisal:
Performance appraisal can be defined as evaluating an employee’s current or past
performance against organizations performance standard. It can also be evaluating
employee’s current performance in contrast with his/her past performance. The appraisal
process therefore involves:
1. Setting work standards.
2. Assessing the employee’s actual performance relative to these standards.
3. Providing feedback to the employee with the aim of motivating the person to
eliminate performance deficiencies or to continue to perform above per.
Steps in Appraising Performance:
The performance appraising process contains some steps in evaluation and delivery of
the reports. They are:
Preparation: This mainly emphasizes the strategic roadmap of the organization what
the organization wants to achieve in future and the assignation of the workforce toward
that strategic achievement are declared here.
Assessments: The mail performance appraisal activities are dependent over this
assessment system this is the manager’s critical responsibility in performance appraisal
system it also include the timely feedback of the employee from the manager.
Reviewing documents: Before sitting down with the employee, review all documentation
from the year. Take a look again at the objectives that authority and the employee
agreed to and documented at the beginning of the year. Examining previous appraisals
for any recommendations that employer may have received about the employee during

Appropriate setting: Appropriate setting indicates the field of criteria on which the
appraisal will be calcul
If there the existent of any good or bad news deliver it clearly or otherwise it could

Encouragement: Presenting the appraisal in a way that encourages employees to do

more of what they do well and to improve where they can. It helps to make them feel
valued.

Appraisal Methods: The appraisal itself is generally conducted using predetermine and
formal methods. Often in organizations, more than one of the methods mentioned below
are used in the appraisal process.
1. Graphic Rating Scale
2. Alternation Ranking Method
3. Checklists
4. Behaviourally anchored rating scales
5. Work standards
6. Essays and
7. Management by objectives.
Strategic issues in performance appraisal :
 Quality of output
 Quantity of output
 Timelines of output
 Presence at work
 Cooperativeness

Compensation :
Strategic issue of compensation
 Salary range: Minimum salary TK 15000 and maximum TK 240000
 Basis of salary determination
 Annual total salary TK 225, 477, 13500
 Leave policy

Health and Safety and Employee Relation:

Health and Safety
 LBFL Follows the health and Safety rules and Regulation
 All the rioms are air conditioned
 The workplace is cleanand clear
 Food is free for employees during working time
Employee Relation:
 The Relation Between employees and employers is satisfactory good
 There is no labor union,Trade union
 Maintain a friendly relation with all people

Findings :
Critical Observations
During my internship at LankaBangla Finance Limited I had some observations which
according to my perspective leave some room for improvement to the process. As one
of the core objectives of this report is to identify the problems of the processes of
LankaBangla Finance Limited I am presenting my findings in this chapter. I have come
up with the following findings after three months of my internship period:
  Some of the positions in HR division contains interesting job description where
as some other remains quite monotonous and kills productivity. As a result
amount of motivation doesn’t run equally among the team
 The training and development process in LBFL is not prerogative.
 Organization culture doesn’t encourage leaving office sharp on time, causes
working overtime which is injurious to Work – life balance.

 HR practice in LBFL is less strategic. It’s the transactional HR practice rather

than the transformational one.
 The condition of employees hard file maintenance is poor. Unworthy store
management.
 The difficulty level of the post training MCQ test is too low, drops the standard
to serve its objective.
 The importance of background checking of the new employees is under estimated.
 Absence of enhanced exit interviews causes failure to minimize employee turnovers.
 Trainings are mostly outsourced and off the job which engages lot of employees
on a working day thus interrupts processes.
 Requirements of training initiatives are top down approach, less information
obtained regarding what employees think they need.
 Employees are not motivated enough to receive the trainings.
Despite some of these critical observations of mine the HR at LBFL is doing a great
job and the process are smooth in their transitional way. However I tried to give my
own recommendations based on these findings in the next chapter.

Recommendations:
From the theoretical study and practical observation over the activities of the human
resource of LBFL, some recommendations are required. As I have presented my critical
observations in the previous chapter I have some recommendable suggestions which
might fill up the rooms for the scope of development. They are:
 Initiating job-rotation is necessary to reduce monotony and develop multitasking
skills.
 Should give more concentration on training and development of employees.
  In an eight hour working day organization should encourage timeliness both for
attending and leaving office in time so that employees can maintain a healthy work-
life balance.
 Should try and move over transformational HR and adopt new ideas.
 Should improve the store where all the hard files are archived.
 The recruitment and learning team under HR division is running the periodic
initiatives but the department should give more concentration on their training
and development program as in to realize the necessity on making it qualitative
rather than looking after the activities mere obligatory periodic routines.
 Though the organization has the customized software interface for employees to
sign up for specific training participation it needs some more close observation
for trainee nomination through direct supervisors.
 Maintain the employee motivational activity often through department meetings
rather than relying on that - employees should be self-motivated.
 Should also go for some negative reinforcement rather than depending only on
positive ones.
 Should develop the question paper of the post training test by raising its difficulty
level. Developing in house training programs are also necessary.

Conclusion:
In perfection this is important to plan the right human resource policy which would
match the organizational goal, the entire training and development of all the employees
under LBFL all over the country is dependent on the organizational HR policy. Therefore
making right choices will reduce the cost of human resource management along with
enhancing credibility in the organization. It will be necessary to customize training and
development programs to the unique needs of an employees as well as organization so
the system will remain flexible and relevant throughout the life of the company or
enterprise.
It was very pleasant to work in LankaBangla one of the renown non-banking financial
organization in Bangladesh. LankaBangla finance providing the best service for their
client and customer along with their employee that is conducted by HR division. By
working in HR division the knowledge was learnt would be helpful enough to sustain
with the real world situation.