Course Details: Compensation Management Policy.

HRM-
611

Summer, 2021

BRAC UNIVERSITY
 Research Report
On
Compensation Management of Dhaka Bank Ltd.

Course Tittle: Compensation Policies

Course Code: HRM 611

Submitted to:

Dr. Nazmul Amin

BRAC Business School

BRAC University

Submitted by:

Tarif Rahman

19264045

Summer-2021

MBA Program

BRAC University

Date of Submission: 14th September, 2021

 Research Report

On

Compensation Management of Dhaka Bank Ltd

 Letter of Transmittal

th
14 September, 2021.

Dr. Nazmul Amin

Dept. of MBA,
BRAC Business School,
BRAC University.

Subject: Submission of a study paper on “Dhaka Bank Ltd's compensation policy”.

Honorable Sir,

I'm submitting a paper named "Dhaka Bank Ltd. Compensation Management Policy."
This study was written to learn more about Dhaka Bank Ltd's human resources,
compensation practices, and challenges. I have searched through all of the essential data, learnt new
things, and developed a whole new compensation scheme with my best effort. Although I worked
tirelessly to create this the best paper possible, there may be flaws. I'd appreciate it if you could take
those errors into account.
To conclude, I'd want to show my thanks to you for taking us on such a wonderful trip packed with
information and a desire to study throughout the semester.

Sincerely,

Tarif Rahman
ID-19264045
MBA Program
BRAC University

Research Report on Dhaka Bank Compensation Policies iii | P a g e

 Acknowledgment

It wasn't difficult to organize the paper, but managing time and preparing the material in this online
semester proved to be a challenge. I'm thanking the Almighty for providing them with the strength to
complete the task.

It would never be enough for me to express my thanks to my teacher, Dr. Nazmul Amin sir, for this course.
With this report, his advice, encouragement, and continual desire to achieve the highest possible level
showed me the way.

Research Report on Dhaka Bank Compensation Policies iv | P a g e

 Executive Summary

Dhaka Bank Ltd has gained primary location in corporate worship by offering efficient, cost-effective customized

services and accosting the sophistication of corporate loan modalities, servicing various levels of client. Good
governance processes, as well as maintaining the finest regulatory and compliance rules, assist to represent the
dependence watchword excellence in banking and the purpose that DBL has accomplished over the course of its 26-
year journey. In this regard, there are a few difficulties that DBL is dealing with in terms of compensation, most of

which stem from the external environment, such as labor demand and supply, management strategy, and some

misunderstanding. To address the issue of pay, DBL can use a combination of performance-based and competency-

based compensation techniques, as well as a reward-based equity approach. Advanced technology, evolving

management and leadership methods, and a participative work culture are some of the problems that DBL is

experiencing in the twenty-first century. Following an analysis of their difficulties and issues, it is recommended that
DBL adopt a participative work culture in the workplace, pursue advanced technological training, and seek to tailor

fringe benefits for employees. Employees should be given a small percentage of Dhaka Bank's stock so that they may
experience the real-world situation and contribute to the bank's success. Bangladesh's banking industry is
undergoing a significant transformation in terms of economic deregulation and the economy's opening up. Dhaka

Bank Limited abides by all of the Bangladesh Bank's administration's and guidelines' regulations and procedures.

Research Report on Dhaka Bank Compensation Policies v|Page

 Table of Contents

1. Introduction ............................................................................................................................ 1
1.1. Bangladesh's Banking History and Current Situation: .................................................. 1

1.2. Dhaka Bank Ltd's History and Present Continuity .......................................................... 2

1.3. Dhaka Bank's Products and Services: ........................................................................... 4

1.4. Contender: ..................................................................................................................... 5

1.5. HRM of Dhaka Bank Ltd. ……………………………………....................................................... 5

1.6. Purpose: ........................................................................................................................ 5

2. Body of The Main Report: ...................................................................................................... 6

2.1. First Objective: DBL's problems. ............................................................................. 7

2.1.1 Supply of labor:....................................................................................................... 7

2.1.2 External Economic Conditions: ........................................................................ 7

2.1.3 Strategy of Management: ......................................................................................... 8

2.1.4 Employee Turnover and Misconceptions about Pay Equity: ........................... 8

2.2. Second Objective: DBL Compensation Methodologies ...................................................... 9

2.3. Third Objective: Challenges in the Twenty-First Century 12

3. Implementation and Recommendation: ............................................................................... 13

4. Conclusion .............
.............
....
15

5. Reference: ............................................................................................................................ 16

Research Report on Dhaka Bank Compensation Policies vi | P a g e

 1. Introduction
Banks are one of the most significant providers of short-term operating capital for businesses, and they have grown more active
in offering long-term company loans in recent years (Rose & Hudgins, 2005) As stated by the Federal Reserve, this encourages
banks to use and spend money in a productive way that accelerates productivity growth (Ashraf Ali & Howlader, 2005).
According to Shahid, Banerjee, and Mamun (2004), Bangladesh's economy has been progressively developing, and as a result, it
needs the backing of a financial framework.

1.1. Banking History and Present Scenario of Bangladesh:

From the barter system, when people used to exchange things for other products, to the inefficiency of this system, people
began to exchange goods for coins, and they felt compelled to store and safeguard this money. The banking system was born
out of this necessity. Various experts and economists have expressed their opinion that banking products have been
operational from the ancient age, based on many clues discovered with archaeological symptoms of Harappa and
Mohenjodaro.
The silver and gold coins known as "Ashrafi" were issued by the government during the Mughul period, when banking was well
developed.
The Bengal bank introduced paper currency during the British era. Many sections of various banks were parts of Pakistan during
the period of India's hiatus. Habib Bank Ltd was relocated to Karachi at that time.

1HRM Practice in Dhaka Bank Limited. (n.d.). Academia.Adu.

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Bangladesh Bank's resilience level was modest in FY 2018. Last year, a few commercial and government-run banks suffered a
slowdown. Banks are in a precarious position. In this deranged pandemic condition, which is wreaking havoc on every sector,
there has been a substantial drop in non-operating revenue due to a lack of remittance. Bangladesh's GDP has been
significantly decreased as a result of COVID-19, according to World Bank, IMF, and ADB projections.

Figure 1: Forecast od BD’s GDP growth during the COVID-19 pandemic

1.2. Dhaka Bank Ltd's History and Present Continuity

When two key elements, perspective and purpose, are present, a wonderful tale emerges. In the narrative of

Dhaka Bank, perspective and purpose are two crucial components. A group of people ponders their excitement for

the nations 25 years ago, with dazzling strong brotherhood of the alliance. Mrs. Afroza Abbas, Mr. Abdul Hai

Sarker, Mr. A.T.M. Hayatuzzaman Khan, Mr. Mainul Islam, Mr. Altaf Hossain Sarker, Mr. Khandaker Md. Shahjahan,

Mr. Aminul Islam, Mr. Md. Amirullah, Mr. Reshadur Rahman, Mr. Abdullah Al Ahsan, Mr. Khondoker Monir Uddin,

25 years ago, Mr. Mohammad Ali Sarker2, this significant partnership, together with 10 corers paid-up capital,

Begin the Dhaka Bank peregrination. Dhaka Bank was founded on the 5th of July in the mid-1990s, and it has been

able to maintain a productive image since then. Dhaka Bank was listed on the Dhaka Stock Exchange (DSE) and the

Chittagong Stock Exchange in 2000. (CSE). Dhaka Bank has a nationwide presence through a network of branches,

ATMs, ADMs, SME networks, and SMS banking, in addition to a long-term corporate bond. As of December 2017,

Dhaka Bank had 101 branches around the country, including two Islamic Banking Branches, three SME Service

Centers, 56 ATMs, 20 ADMs, one Company Kiosk, one Customer Service Center, and two Offshore Banking Units.

In order to meet the demands of Capital.

2Names are culled from Annual Report of Dhaka Bank.

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The Bank has established a subsidiary business named Dhaka Bank Securities Limited, which has six
branches around the nation.

DBL has acquired primary position in corporate worship by offering efficient, cost-effective customized
services and accosting the sophistication of corporate financing modalities. DBL is a more corporate-
focused bank since it serves a diverse range of clients, ranging from mid-sized to large-scale
corporations. Quick agility, elimination of goods and services, technical advancement, impel staff with
outstanding way and expertise to comprehend your goal, good governance practice, and best regulatory with
compliance standards These practices assist to portray the dependence watchword "excellence in banking" as well
as the mission that DBL has accomplished throughout the course of its 26-year journey. In the 9th Annual
International Finance Corporation (IFC) Report, the International Finance Corporation (IFC) named the
International Finance Corporation (IFC) as the ‘Best Issuing Bank in South Asia.' Dhaka Bank was awarded the Trade
Awards in 2019 for the best implementation and use of IFC's Global Trade Finance.

3
Program (GTFP).

Figure 2: milestones of DBL

th
3Retrieved from, 2019 Annual Report of DBL.

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Following the corona phase, the economic trend will shift into a new phase, and DBL is prepared to meet the
difficulties with the aid and experience of the last 25 years. The first deposits and loans were Tk.62.54 crore and
Tk.15.89 crore in 1995, respectively, and their 25th Balance Sheet has increased from TK 90,09 core to Tk
28,500.94 core. DBL's total deposits were Tk 20453 corer in December 2019, and total loans were Tk 867,84 corer.
With tremendous faith and connection, they have been blessed to act together and try their best to avert any
challenges for the next better generation over their 25-year trip.

1.3. Dhaka Bank's Products and Services:

DBL's Corporate Banking division offers products and services to meet the banking requirements of large corporations, as well
as Micro-Credit Organizations and Financial Institutions. Their product categories span from short-term finance for day-to-day
business operations to long-term loans for product research and development. They try to figure out what people want.

customers and provide a customized and well-structured solution for their products. DBL also offers a Cash Management
Solution, which includes bulk check processing, Hajj remittance processing, utility bill payment, and other services.

Products and Service of

DBL

Project Finance Trade Finance Working Capital

Finance
* Long term - Mechinerie * Export LC *Funded Finance
* EXIM Bill
*Long term -Construction * Non-Funded Fiance
*Shipping Guarantee
*Foriegn Curruncy Loans
* EDF Loan
*OBU Finance

Figure 3: Products and Service of DBL

4EXIM: export-import
EDF: Expected Default Frequency
OBU: Offshore Banking Unit
Retrieved from: https://dhakabankltd.com/product-and-service/

Research Report on Dhaka Bank Compensation Policies 4|Page

 1.4. Contender:

City Bank, Datch Bangla Bank, Jamuna Bank, BRAC Bank, Modhumoti Bank, United Commercial Bank,
Mutual Trust Bank, South East Bank, Standard Charted Bank are among Dhaka Bank Ltd's competitors.

1.5. HRM of Dhaka Bank Ltd.

Human resource development theory, strategy, framework, and process innovation to build operational resilience, increase

market competition, and improve risk regulation. To provide an effective corporate assurance and encouragement for the

potential for the tr, efforts have been made to deepen the formal reform of the process, improve the operation of the

organizational framework, encourage the creativity of the business structure, improve the workforce framework, reinforce the

creation of skill teams, and extend staff professional growth platforms. In the banking business, competition for high-

performing employees still exists, but it has intensified considerably in recent years. Because, as the banking industry's

competition grows, it's becoming more important for management teams to examine developing technologies in wages,

benefits, and human resource practices in order to develop a successful talent management strategy.

1.6. Purpose:

The following are the goals of this study report:

Identifying the problems that DBL is having with compensation management
Recommending compensation solutions in order to resolve DBL's concerns Expecting DBL to encounter problems in the future.

Research Report on Dhaka Bank Compensation Policies 5|Page

 2. Body of The Main Report:
What’s Compensation?

Compensation management is one of the most essential and crucial aspects of any company's management. It is a
complete and consistent technique of compensating employees for their work-related activities.

According to Milkovich and Newman (1999), pay refers to a monetary reward as well as tangible resources and awards
given to employees. Compensation, on the other hand, refers to a monetary payment as well as tangible resources and
benefits received by employees.

H. Bernardin's notion of compensation encompasses all types of monetary compensation as well as the physical benefits
that employees get as a result of their job. Cash compensation, which is the employer's direct pay for the employee's job,
and fringe compensation, which alludes to the employer's indirect pay for the employee's labor, are the two components
of compensation.

5
to projects involving deferred compensation According to Bernardin (2003),

Compensation is the amount of money paid to employees, and how it is packaged and delivered
may inspire, excite, and drive their conduct. (Bernardin, 2003)
Compensation management is the total of all payments or awards given to employees for completing tasks that help the
company accomplish its objectives. Compensation is divided into two categories: financial and non-financial.
Primary compensation consists of a set amount of money paid in the form of wages and salaries.
Supplementary compensation consists of incentives and other variable rewards based on individual performance.
Organizations may encourage employees via compensation, which is connected to job satisfaction performance.
According to Thierry (1987), an effective compensation system must have three perceived features: openness, fairness,
and controllability.

5According to H. Bernardin, Retrieved from A Literature Review on Compensation Management Practices

https://www.academia.edu/38859028/A_Literature_Review_on_Compensation_Management_Practices

Research Report on Dhaka Bank Compensation Policies 6|Page

 2.1. First Objective: DBL's problems

Compensation problems facing by Dhaka Bank Ltd (DBL):

String Compensation issues, the necessity to be aware of employment trends, the significance of knowledgeand
qualifications for various positions and sectors, negotiating abilities, and so on.
6
business expenditures, and the organization's bottom line

2.1.1 Supply of Labor:

The fluctuations in labor market demand and supply might have an impact on pay decisions. When labor supply is
plentiful, compensation tends to be cheap, and when demand is strong but supply is scarce, businesses must recruit
competent workers.

Compensation packages must be appropriate in terms of its degree and arrangement to recruit,
retain, and encourage qualified employees to generate shareholder or stakeholder value.
value. (Larker, Tayan 2011, p. 237).

Dhaka Bank hires top-tier workers, and in order to attract them, DBL must provide a generous salary package

that exceeds that of its competitors. When there is a strong demand for labor, DBL's management creates new

pay packages, which might conflict with existing employee compensation packages. If the market is sluggish,

managers may get minimal recruiting or rewards, which can be harmful to long-term corporate value growth.

(Larcker, Tayan 2011, p. 203).

2.1.2 External Economic Environment:

The external environment refers to the state and atmosphere of the organization from the outside. The external impact
of the COVID-19 pandemic, which now confronts every business and institution, is the environmental impact. DBL
focuses on a performance-based remuneration strategy.

Employees using a performance-based compensation structure are particularly concerned about the COVID-19
pandemic's impact. Because of the epidemic, DBL encourages employees to work from home, which has become the
new normal, and this distance makes it difficult for the HR staff to monitor employee performance. Although the DBL
HR staff has this productivity and has made every effort to track employee performance.

6 Idea Retrieved from Top Challenges of Compensation Management- In Industry 4.0. By Ameet Naik

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 2.1.3 Strategy of Management:

Bank boards take excessive risks in order to generate enormous amounts of income in the shortest
length of time. Excessive risk is caused by a misalignment of short-term incentives with long-term value
creation, according to Bhattad and Kanchan (2011). According to researches,

The imposition of increased pricing and financial goals for management encourages excessive risk-
taking (and treats risk more as a profit-than-loss potential) (Erkens, Hung, Matos 2009; Bechmann,
Raaballe 2009; Harman, Slapnicar 2007)

When the bank pays a high salary range, the management body and workers assume a low risk; but, when the bank pays big
bonuses and offers employees a share, employees take a higher risk.

DBL's HR department is having difficulties with this. DBL's board of directors seeks to increase market share while increasing
revenue, and DBL follows performance-based remuneration, which is why DBL workers have taken little risk. According to
Balachandran, Kogut, and Harnal (2010), remuneration based on equity (i.e. reserve stocks and options) increases the risk of
penury, but pay based on non-equity (i.e. cash bonuses) lowers the chance of default.

2.1.4 Employee Turnover and Misconceptions about Pay Equity:

DBL offers performance-based rewards, and anybody may earn them by putting up their best efforts and delivering their best
results. Some senior employees think they should be promoted based on their qualifications and other factors. They believe it is
inappropriate for this activity. This assumption causes problems and frequently leads to staff churn.

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 2.2. Second Objective: DBL Compensation Methodologies

Compensation Management Approaches or Strategies;

There are several types of compensations, e.g. external, internal, direct, and indirect. In terms of payment, an organization can
follow a job-based structure, performance-based compensation, merit compensation, results-based compensation,
competency-based compensation, equity-based compensation, and so on
Job based structure is structure, where employees are concern only about his/her own job. It is traditional method of
compensation. This is time based or membership based compensation strategy.

J ob-based pay is also known as participation and seniority-based pay, in which the employer gives the form,
degree, and/or quantity of monetary and non-monetary compensation depending on the job's quality ( e.g. rates
of pay are assigned according to the expertise, contributions, duties and conditions of employment of
employees)
7
Scarpello, 2002; Figart, 2000; McShane & Von Glinow, 2005).

While this type of pay package may still be acceptable and important in effective and highly stable market
conditions (Wilton, 2010; Mahoney, 1992; Kanter, 1989), it is increasingly viewed as insufficient to recruit,
retain, and empower skilled people to enhance organizational efficiency (Bergmann & Scarpello, 2002; Maurer
et al. 1995).
The person-based structure or expertise-based structure, on the other hand, are modern compensation
dimensions. HR departments are changing their pay systems from a skill-based wage job to one that allows
employees to support company goals.

7Idea Retrieved from Relationship between Performances Based Pay, Interactional Justice and Job Satisfaction:
A Mediating Model Approach by Azman Ismail, Hasan Al -Banna Mohamed.

Research Report on Dhaka Bank Compensation Policies 9|Page

 Performance-based pay, also known as individual-based pay, is a kind, degree, and/or total of non-monetary
and monetary remuneration provided by an employer.

Staff abilities, experience, talents, and/or credentials are considered. (Bender, 2003; Blau

& Kahn, 2003; Henderson, 2009).8

Many businesses, particularly in the service industry, employ outcome-based remuneration. Several key
aspects for this result-based compensation were highlighted by Banker, Lee, Potter, and Srinivasan
(1996) in order to excite workers, obtain competitive benefits, appreciate and focus on customer
demands and satisfaction, and so on.

Boyatzis (1982) popularized the term "competence" in the early 1980s in the United States. He defines it
as an underlying personality trait that is causally linked to efficient or better performance. A
competency-based compensation approach is a pay system that compensates employees based on their
performance at work.
Dhaka Bank offers a market-driven pay plan that combines short-term benefits and long-term benefits
such as provident funds, gratuity, and superannuation fund for hospitalization benefits. Employees of
Dhaka Bank also have access to healthcare at lower prices and goals thanks to a business partnership
with a number of famous hospitals in Bangladesh and overseas. We also provide our employees soft
loans, such as employee housing development loans and provident fund loans.

Dhaka Bank Ltd (DBL) places a strong emphasis on a performance-based framework. According to Delery and Doty
(1996), Leistungs or Performance-Based Compensation is an important element of workers' compensation.
Compensation as the single most important determinant of work performance and explicit financial incentives
9 DBL's HR staff should use mix compensation schemes to tackle competency-related challenges. DBL can use a
competency-based framework in addition to performance-based competency. DBL should tell all workers and staff
about ways before establishing competency, so that no senior employees feel deprived.
As we all know, performance based includes two aspects: group performance and individual performance. DBL
offsets are now available for specific purposes, such as merit pay, lump sum bonuses, promotional incentives, and
variable compensation. (Milkovich & Newman, 2009)

8Idea Retrieved from Relationship between Performances Based Pay, Interactional Justice and Job Satisfaction:
A Mediating Model Approach by Azman Ismail, Hasan Al-Banna Mohamed.
9 Idea retrieved from Effect of Compensation on Job Performance: An Empirical Study, by Nuray Akter University
of Chittagong · Department of Management Studies

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Because pay-based employment increases performance and efficiency via wiser use of human capital, DBL can only compensate
for job-based performance for those sectors that need a high concentration of labor and productivity.

Different treatments have been utilized to allocate remuneration to all workers engaged in different job elements in DBL using
performance-based pay and task performance. DBL's HR management's capacity to effectively implement performance-based
pay will attract, retain, and empower workers to accomplish the organizational pay system's main objectives of productivity,
such as improving performance, quality, and personalized compensation.

DBL can also adopt a reward-based expectation strategy, which will encourage and satisfy staff, therefore increasing DBL's

profitability. A reward and incentive scheme is based on the principle of expectations, which implies that workers are more

likely to be motivated to succeed when they believe there is a clear correlation between their success and the reward they

earn, according to research on the impact of rewards on employee performance in Bangladeshi commercial banks (Fey and

Bjorkman, 2001; Guest, 2002; Mendonca, 2002). In other words, the incentive system, such as benefit sharing, contributes to

success by linking workers' interests to the team's and company's, resulting in increased effort and outcomes (Kalleberg and

Moody, 1994; Huselid, 1995; Kling, 1995). Despite the fact that monetary incentives are attractive, according to Nelson and

Spitzer (2002),

Although employees accept it, managers should never use it as a motivating tactic.

DBL, on the other hand, can use a combination of techniques to inspire workers, including competency and performance-based

approaches as well as a reward-based expectation strategy.

10 Retrieved from Aktar, S., Kamruzzaman Sachu, M., & Md. Emran, A. (n.d.). The Impact of Rewards on Employee
Performance in Commercial Banks of Bangladesh: An Empirical Study.

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 2.3. Third Objective: Challenges in the Twenty-First Century:

One of the most important activities for HR administrators is HR preparedness. Organizations have evolved from

being hidden behind the curtain to being the primary differentiator of sectors in terms of HR functions in the

twenty-first century. DBL, like other banks, has to deal with these issues.

Accepting new technologies is one of the obstacles. Technology, e-commerce, workforce diversity, and

globalization, which are an organization's moral concern that can affect competitive advantages directly or

indirectly, and in particular technology advances, which influence recruitment, training, growth, and job efficiency,

are the most significant obstacles for HRM. Our study revealed that the banking business has evolved dramatically

over the previous several generations. HRM has made this sector more aware of the need of having an effective

and efficient human resource that may play a more strategic role in an organization's success. The job of the HR

Manager is changing as the competitive market environment changes. Bangladesh has great potential capability,

but workers need to be evaluated, motivated, and mentored on a regular basis through well-planned HR

management techniques. As a result, developing HR departments is critical for the financial industry.

Another issue that might arise is one of security.

The COVID-19 epidemic has compelled us to do a variety of things, including working from home. However,

working from a distant location is insecure in several ways, such as data loss. Employees have their own computers

at home and other data-transferable machines, such as a flash drive, but they couldn't utilize any cables or gadgets

at the office to transmit data or other items. This behavior has increased the danger of a data breach; more viral

attacks or pandemics will occur in the future; DBL must act now to prepare for this.

International corporations' foreign human resources management (IHRM) operations or human resource

management strategies. The various foreign human resource roles practices substantially affect the total talent

management of the Bangladeshi banks, accounting for about 65 percent of the difficulties relating to human

resource personnel.

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Another issue might be a lack of suitable workers in a participative community. HR managers in the twenty-first
century must create a culture that embraces such changes as a result of acquisitions and fusions (Williams, 2003)
This is certainly a positive thing because diverse brains may lead to new discoveries and concepts, but navigating a
society where individuals have different minds to convey cultural values through is undoubtedly tough. The root of
every workplace's culture is the people who work there.

As a result, Human Resources managers must put in a lot of effort to foster a positive culture.
11

3. Implementation & Recommendation:

Dhaka Bank ltd should establish a procedure in which employees are required to work from remote
locations. They used to perform this procedure once a year, similar to HSBC, before the epidemic.
Because this epidemic is new to Bangladesh and all industries, it required time for everyone to change
their working style and routine to these new circumstances. If DBL implements this practice every year,
when workers work from home, it will be simpler for employees to work from home in any subsequent
pandemic or critical crisis, such as the COVID-19 pandemic, as well as during maternity or unexpected
leave when they need to stay at home.
A solid networking infrastructure amongst employees should be employed for the SWIFT
Communication Service. To avoid the hack, Dhaka Bank's IT, engineering, and other personnel must be
trained. By assuring this, DBL may gain consumer faith in the security of its money vaults, which will lead
to an expansion in DBL's client base.
Because the authority does not accept the recommendations of the bottom line staff, DBL's HR team
should guarantee a participation culture, because if the authority enables the bottom line and
management to participate in the decision-making process. This technique will assist employees in
comprehending the scope and complexity of the problem.
Employees who have worked for DBL for more than 5 years are eligible for a restricted percentage of the
company's stock. Employees will be more willing to take risks since they will be shareholders in DBL and will work
hard to accomplish the company's goals and achievements. Employee loyalty and willingness to go above and
beyond for Dhaka Bank will rise as a result of this.

DBL has the ability to tailor fringe benefits in terms of compensation. Flexibility, or what is known as a cafeteria
approach to benefits, is a new trend in employee remuneration. This allows an employee to pick from a variety of
benefits rather than salary.

11 Zafar Nasir, S. (2017). Emerging Challenges of HRM in 21st Century: A Theoretical Analysis. Emerging
Challenges of HRM in 21st Century: A Theoretical Analysis ,

Research Report on Dhaka Bank Compensation Policies 13 | P a g e

An employee who is a bachelor may choose cash instead of child care. This is a good concept, albeit it may be more

expensive for businesses. Employee wages and benefits are, in general, the most important aspects of any

business, whether monetary or non-monetary, and are extremely important to individual employees.
The concept of Globalized Human Resources Management (GHRM) should be used to train qualified people or

administrators globally, with HR managers in mind, in order to solve the globalization problem and compete with

international banks such as HSBC, City Group, Habib Bank, Standard Chartered Bank, and Bank of Ceylon.

It is advised that Dhaka Bank's HR managers remember that they are expected to take a proactive rather than a

reactive approach. It takes time for HR managers to be aware of the ever-changing landscape in which businesses

operate. Sticking to traditional ways to handle specific requirements rather than applying contemporary strategies

to create effective and productive outcomes is not a smart idea. To be effective as HR managers, they must be well

prepared with the necessary tools. HR managers must become transformation pioneers by showing the mentality

of a changing business adviser in order to adapt to the challenges of the twenty-first century.

Research Report on Dhaka Bank Compensation Policies 14 | P a g e

 4. Conclusion

Dhaka Bank is one of Bangladesh's most highly rated private banks. Their HR operations are distinct from those of

the group. They're not the same. It is the country's principal development funding institution and may play a

significant role in this respect. It contains a code of conduct for HR rules to be implemented by workers, and

specific concerns affecting HRM and many important elements are studied, but it lacks monitoring behavior to

determine whether the management operator and his employees are complying with his system and laws. The

Bank has continued to innovate in theory, methodology, human resource management structure, and process

with the goal of boosting organizational vitality, improving market competitiveness, and strengthening risk

management. Efforts to deepen official framework reform, improve organizational management structure,

promote organizational model creativity, optimize staff structure, reinforce talent team creation, and broaden

employees' career growth plans in order to ensure a good corporate and talent-based guarantee for the bank's

entire reform.

Despite such excellent amenities, there are certain difficulties with compensation management that need to be addressed, and

Dhaka Bank's HR staff is working to develop strategies to respond to quickly changing market conditions and obstacles. In the

twenty-first century, Dhaka Bank's HR staff must deal with a variety of difficulties, including change management, dispute

resolution, multi-generational workforce management, pandemic challenges, workforce diversity, globalization, fast hacking

challenges, and so on. HR is in charge of boosting organizational productivity and efficiency by providing value and gaining a

long-term competitive edge over competitors.

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 5. Reference:

Reference has conferred alphabetically.

Ahmad, D. J. U. A. (2020, January 15). Evolution of banking in Bangladesh and the current status. The Asian
Age. https://dailyasianage.com/news/214133/evolution-of-banking-in-

th
bangladesh-and-the-current-status (penetrate on 30 August,2020)
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