.

Report on

The HR department of

“MUTUAL TRUST BANK LTD.”

Submitted by:

Mehzabin Alik Disha 1711039630

Towfiq Ahmed 1520641630
Sajidul Islam Sajal 1511483030
MD. Tawhidur Rahman 1510740030
Sadia An-Noor Sneha 1512406030
Mohammad Kamruzzaman 1520618630
 Letter of transmittal

Quazi Tafsirul Islam (QTI),

Faculty Member of the Management Department,

School of business and Economics,

North South University.

Subject: Report on HR department of MUTUAL TRUST BANK LTD.

Dear Sir,

This is our pleasure to present our report on the HR department of MUTUAL TRUST BANK
LTD. which we were assigned by your instruction.

We have tried our best to complete the report with all the necessary information and suggested
some proposals in quite a good manner as possible.

Sincerely yours,

Mehzabin Alik Disha 1711039630

Towfiq Ahmed 1520641630

Sajidul Islam Sajal 1511483030

MD. Tawhidur Rahman 1510740030

Sadia An-Noor Sneha 1512406030

Mohammad Kamruzzaman 1520618630

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Contents
Letter of transmittal.....................................................................................................................................2

EXECUTIVE SUMMARY.........................................................................................................................4

Background of MTBL.................................................................................................................................5

Methodology...............................................................................................................................................5

Organogram.................................................................................................................................................6

Training and Development........................................................................................................................13

 Need analysis and Design..............................................................................................................13

 Training Period..............................................................................................................................13

 Post training assessment................................................................................................................13

Employee Compensation and Benefits......................................................................................................13

 Paid and Unpaid leaves..................................................................................................................14

 Maternity Leaves...........................................................................................................................14

 Gratuity..........................................................................................................................................14

 Medical Leave...............................................................................................................................14

 Childcare Facilities........................................................................................................................14

 Pay Structures................................................................................................................................14

Strategic Human Resource Management..............................................................................................14

Recommendation.......................................................................................................................................15

Conclusion.................................................................................................................................................16

References:...............................................................................................................................................17

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EXECUTIVE SUMMARY
This report is based on Human resources management of Mutual Trust Bank LTD, which is a
third generation private bank in Bangladesh which operated since 1999. In this report we have
done analysis on Mutual Trust Bank Human resources’ activities and their process of
management as how the HR department is performing their activities as strategic human resource
management. The process of recruitment, selection, training and development, performance
appraisal and the benefits to employees are presented in this report. Through this report we have
found that their organization goal is to maximize their profit and the HR department assisting,
consulting and formulating the strategies to achieve their goal. However there are few things that
HR department should work with and those aspects are given in detail in this report.

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Background of MTBL
Mutual trust bank was built up in Bangladesh as a Private Commercial Bank in 24 October,
1999, under the organization demonstration of 1994. On the next year, on fifth October, 2000,
they got the issuance of permit and the authentication of beginning from Bangladesh Bank under
the Banking Companies Act 1991. At first, they began with an approved offer capital of BDT
1,000,000,000 isolated into 10,000,000 standard offers of BDT 100 each. At present, the
approved offer capital of the organization is BDT 10,000,000,000 partitioned into 1,000,000,000
common offers of BDT 10 each. As incorporated into the Memorandum of Association,
authorized by Bangladesh Bank, the bank is qualified for completing the accompanying tasks:
1. Wholesale Banking

2. Retail Banking

3. International Trade Financing

4. Small and Medium Enterprises (SME) Banking

5. NRB Banking

6. Privilege Banking

7. Card Services

8. Treasury Operations
Counting the head office in Gulshan, Dhaka, the bank is working 95 branches all through the
entire nation. Source : http://www.mutualtrustbank.com/about-us/

Methodology
We have got the data from our working knowledge with MTBL, their annual report, some
circular, various brochures, and MTBL sites.

Primary data: The essential information of the report is the data which is assembled from MTBL
while we interviewed

Secondary data: The auxiliary information of this report is gathered from MTBL Annual Report,
circulars, various vouchers, websites and a few reports.

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Organogram

6
 Culture of Interpersonal Relationship

Mutual Trust Bank is the third generation bank in Bangladesh operated since September 29,
1999. In this competitive market they are doing their best and making sure not to make any
mistakes. Though they have maintained working schedule, but still, if any mistake occurs that
can cost million. That is why, if they face any kind of internal issue, the conflict handled by the
departmental head. And all documentation formalities must be completed in consultation with
the legal department of Head Office.

As they are operating in comparative market, they face the threat of various substitute service,
such as, different types of credit/loan scheme offered by their competitor at lower interest rate.
For these kinds of decision making, the thoughts of their subordinate are highly valued because
individual effort is involved with that particular task.

Leadership in HRM

Leadership is an important matter in HR system. Without proper supervision the entire

organization can collapse because, assisting other department is one of the important role for HR.
In MTB, HR head are using three kinds of leadership in general, participative leadership,
situational leadership, and transactional leadership. As we know, if any problem occurs, they
take everyone decisions to solve their problem, is known as participative leadership. Situation
leadership is based on a particular task when it is needed. And the transactional leadership or
management leadership works through creating clear structures where it is feasibly mention that
what is required for their subordinate, what kind of reward they get for their performance and
what is their goal to achieve.

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 HR DEPARTMENT:

HR manager of The Mutual Trust Bank Ltd. pursues measurable course of action to attain the
competitive goals of the bank. HRM Manager is primarily responsible for all HR matters. It
involves induction, recruitment, training, reward, disciplinary matters, welfare cases, career
planning, promotions and develop compensation programmers.

Recruitment process:

1.employment
3.inviting
planning and 2.job analysis
participants
forcasting

 In order to forecast, the HR determines the number of vacancies available in the bank
first, then they make a plan on how they are going to proceed further and after that, they
announce it.
 In job analysis, HR specifies the requirements and skills required from candidates.

Eligibility Criteria:
 For Management Trainee Officer- A minimum CGPA of 2.75 for students of
Bachelors of Business Administration, coming from reputed universities. Masters

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 preferably in Business Administration,
Economics, Finance, Banking, Marketing, Management, Accounting, Statistics,
Computer Science, Physics and other related subject
 Trainee Junior Officer- Masters in any discipline, One first division or Equivalent
without any third division / class / BBA 
 Trainee Junior Officer (Cash)- Masters in any discipline 
 MBAs from IBA, NSU, Jahangir Nagar University, Khulna University, IUB and
MBMs from Bangladesh Institute of Bank Management will be eligible.
 Candidates must be of exceptional promise and aptitude to face the challenge and
hard work needed for a successful career in the Bank.
 Candidates having no past Banking experience must not be over 30 (thirty) years
as on the date of application.
 All new employees should have minimum computer knowledge.
Operational system           : DOS & Windows
Word Processing               : MS Word
Spread Sheet                     : Lotus or Excel

 Finally, they look for potential candidates. Candidates are basically recruited in two
ways, internally and externally. For less number of vacancies, MTB usually prefers to fill
it up with internal candidates. They post about the job vacancy over the company’s
website or intranet. Other than that, they publish it on company’s bullet boards.
Generally, MTB focuses more on external candidates. They follow online recruitment
system adjacently with BDjobs.com. They also publish on newspaper as a traditional
medium of job advertisement, mainly in search of management trainee officers. Besides,
employee referral is a rare case scenario in MTB, generally done on the purpose of
avoiding risk.

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 Selection Process:

The selection process of the Mutual Trust Bank Limited is designed to identify the right
employee for a position. here, they pursue the following selection process:

cv
screening

joining written test

orientation
interview
program

salary backgorund
negotiation check

medical
job offer
test

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 CV Screening: Candidates send their CVs through
application for a specific vacancy, or they send unsolicited CVs for any suitable position. Then
HR department short list the CVs to locate most qualified candidates for the job. If HR
department of MTB find out potential candidates, they are contacted and given a date for taking
a written test.

Written Test: Qualified candidates are given a particular date to appear and sit for a written
test containing job, experience or background related structured questions. The answers are then
matched with standards and the under-performing candidates are eliminated through this process.
Candidates who pass the test are called for an interview.

Interview: MTB follows structural interviews for both entry level and mid-level jobs. For
entry level job position, interview is conducted by Management and MTB Board. In this
interview session candidates are asked some standardized general questions along with some
additional job related questions. In managerial level job interview, candidates are asked some
more questions to verify their depth of knowledge about various sections.

Background investigation: Background investigation is mostly done for the all candidates.
It is another important criteria which the employer undertakes. It includes taking written
references or talking to colleagues, the referee’s former employer, to make sure whether the
information given by the candidate is true, also whether he or she has any criminal records or
not.

Job offer: When all the requirements of candidates are approved by the management,
the HR department will issue a Letter of Employment that will confirm the employee’s

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temporary job status. There is a probation period for entry or
mid-level employees of 3 months and managerial level employees of 1 year. After the
completion of probation period the employer will decide whether to give the employee a
permanent job status.

Medical Examination: Like other organizations MTB also takes physical examination of
the selected employees to find out whether the applicant is fit for the job or not. The recruitment
authority, in many jobs, asks candidates to have some medical tests in their selection process.
The employers actually want to be ensured through this medical screening whether the suitable
candidates are physically sound and capable of dealing with their job or workload.

Salary Negotiation: After medical examination the company negotiates salary with the
passed candidates. Salary is fixed for entry level but the Head of HR Department negotiates the
salary with the suitable candidates whenever it is necessary. The negotiation for managerial level
also takes place during this phase. Once the salary is discussed and concluded, employees are
asked to complete other formalities such as filling up or signing the contracts of employment.

Orientation Program: Prior to the joining of the employees, MTB arranges an orientation
program to introduce new employees to their job, co-workers and the organization. They provide
orientation booklets and the top management usually gives a welcome speech to the new
candidates.

Joining: The newly recruited employees are asked to report to their respective joining
place within the given date.

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 Training and Development
Training and development is done for all employees and even for the position of a Deputy
Manager, for instance, the competency analysis like skill, abilities, experience are checked and
while a position becomes vacant, is usually filled up by the immediate person suited for
becoming the Deputy Manager.

Need analysis and Design

Training is considered to be a reward for the employees who want to learn but it could be a
burden for those who do not want to. In spite of all, MTBL has its own training and development
institute which conducts a lot of scheduled training programs the whole year. The employees
need for training is assessed by the institute and conducted as per requires. Also, the training
calendar helps them to stay updated. The goal of it is to make them competitive for the market.

Training Period
Fresher graduates would receive at least 1 month comprehensive training program and
experienced bankers get 4 to 5 days for their orientation program only.

Post training assessment

A two way communication of taking and giving feedback to the trained employees is done. It is
conducted through written test where series of question are asked and basing on results the
outcome of the program is checked.

Amount spent for Training and Development: MTBL spends around 2 to 3 crore BDT behind its
training and development programme per year.

Employee Compensation and Benefits

 MTBL offers a number of packages of compensation to the employees-
 Basic Salary

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  Provident fund
 Medical fund
 Incentive bonus
 Festival bonus

 Paid and Unpaid leaves

Every employee gets 30 days of unpaid and 10 days of scheduled leaves.

 Maternity Leaves
Employee gets 6 months of maternity leave. It is a paid leave if she has already been employed
by the company for at least a year. Otherwise, the leave is granted without payment.

N.B. paternity leave is not followed in the banking sector.

 Gratuity
For fresh recruits, the payroll confirmation is 5 years and experienced employee from the same
industry gets the entitlement after 3 years.

 Medical Leave
Medical leave, separated from the maternity leave, is 30 days per year and it is paid.

 Childcare Facilities
There are childcare facilities in the head branch of MTBL. 50 percent of the money for the
arrangement is contributed by MTBL and the rest is through concerned employees.

 Pay Structures
MTBL follows a competitive pay structure. Compared to any other private bank, it pays the most
to the freshmen.

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 Strategic Human Resource Management
Strategic Human Resource Management is an approach of managing human resource with the
practice of attracting, developing, rewarding and retaining employees for long term business
supports, goals, and outcomes with a strategic framework. MTB’s mission is to become the bank
of 1st choice by creating value for all the stakeholders and vision is to get identified as the most
admired, dynamic, client focused and recognized bank in the country. To achieve their goals
MTB has set many organizational objectives and moreover HR plays a Strategic hand to comply
with the focused goals. Since, they have many objectives we will just focus on the main ones as
we do not have the scope to discuss all of them. Some are as follows:

 They manage and operate the Bank in a way that it enhances financial performance and
control costs over the fund.
 They trained and developed employees with adequate resources so that customer needs
can be met accurately.
 They maintains their quality and service by providing customer satisfaction.
 They promote organizational effectiveness by communicating about company plans,
policies, practices and procedures.
 They identifies customer credits and other banking needs and works on that to meet
customer requirements.
 They review and update policies, procedures and practices to have the ability to serve the
customers in a better way.
 They are providing high amount of opening salary to the employees comparing to the
other banks.

Moreover, MTB’s salary package is known as the best package in the banking sector.

Recommendation
 MTB maintains a very lengthy process of recruitment, they could have an arrangement
that shortens the recruitment process that would be both cost and time saving.

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  MTB should advertise for their employment
opportunities through newspaper, by not doing this they avoids a large number of
potential candidates who do not have the reach to other media.
 MTB is being deprived from the benefits of external recruitment as they only give their
employees the right to apply for department change or higher position, in case of hiring
employees.
 MTB recruits employees through reference, this can bring biasness in the recruitment
system and can make the system inequitable.
 MTB provides adequate training to their employees, so they should come up with new
ideas, experiments and processes such as time series design or controlled experiment to
evaluate or judge training outcomes and improve performance, as they don’t analyze the
training results properly whether it was effective or not.

Conclusion
Mutual Trust Bank Ltd. is competing for the leading position among the local private
commercial banks. An operational procedure of Mutual Trust Bank can increase the level of
customer service and the efficiency of operation. As a result, Mutual Trust Bank will be able to
improve their competitive advantages over its rival. We think by doing this project and talking to
HR people, who actively work with the HR policies, we came to know that HRM is really an
important part for any business unit. The HR department is an integral and proactive part of
management and strategic plan. HRM evaluate the use and satisfaction among other departments.
For a better workplace HRM strategic plans must meet the organizations goal and mission.

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References:
http://www.mutualtrustbank.com/about-us/

http://www.assignmentpoint.com/business/finance/recruitment-and-selection-process-of-mutual-
trust-bank-ltd.html

http://bankinfobd.com/banks/28/Mutual_Trust_Bank

http://www.banksbd.org/mtbl/branches/?url=mutual-trust-bank

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Picture of our group with HR officers of MTBL.

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