This report “Organization Overview” part, the details of Prime bank Limited have been provided.
The Prime Bank Limited being a banking company has been registered under the Companies Act 1994 with its Registered Office at 119-120 Motijheel C/A, Dhaka-1000.
The Bank operates as a Scheduled Bank under a Banking license issued by Bangladesh Bank, the Central Bank of the country.
To be the most efficient bank in terms of profitability, customer service and technology application.
- Continuous improvement in the business policies and procedures.
- Cost reduction through integration of technology at all levels.
The Efforts Are Focused on:
The delivery of quality service in all areas of banking activities with the aim to increase value to the shareholders’ investments and offer highest possible value to the customers.
To have sustained growth and to broaden and improve the range of products and services.
About the Bank:
In the backdrop of economic liberalization and financial sector reforms, a group of highly successful local entrepreneurs conceived an idea of floating a commercial bank with different outlook. For them, it was competence, excellence and consistent delivery of reliable service with superior value products. Accordingly, Prime Bank Ltd. was created and commencement of business started on 17th April 1995. The sponsors are reputed personalities in the field of trade and commerce and their stake ranges from shipping to textile and finance to energy etc.
As a fully licensed commercial bank, Prime Bank Ltd. is being managed by a highly professional and dedicated team with long experience in banking. They constantly focus on understanding and anticipating customer needs. As the banking scenario undergoes changes so is the bank and it repositions itself in the changed market condition.
Prime Bank Ltd. has already made significant progress within a very short period of its existence. The bank has been graded as a top class bank in the country through internationally accepted CAMEL rating. The bank has already occupied an enviable position among its competitors after achieving success in all areas of business operation.
Prime Bank Ltd. offers all kinds of Commercial Corporate and Personal Banking services covering all segments of society within the framework of Banking Company Act and rules and regulations laid down by our central bank. Diversification of products and services include Corporate Banking, Retail Banking and Consumer Banking right from industry to agriculture, and real state to software.
The bank has consistently turned over good returns on Assets and Capital. During the year 2005, the bank has posted an operating profit of Tk.1520.34 million and its capital funds stood at Tk.3177.32 million. Out of this, Tk.1400 million consists of paid up capital by shareholders and Tk.1777.32 million represents reserves and retained earnings. The bank’s current capital adequacy ratio of 9.96% is in the market. In spite of complex business environment and default culture, quantum of classified loan in the bank is very insignificant and stood at less than 0.96%.
Prime Bank Ltd., since its beginning has attached more importance in technology integration. In order to retain competitive edge, investment in technology is always a top agenda and under constant focus. Keeping the network within a reasonable limit, our strategy is to serve the customers through capacity building across multi delivery channels. Our past performance gives an indication of our strength. We are better placed and poised to take our customers through fast changing times and enable them compete more effectively in the market they operate.
The management of Prime Bank Limited is consisted of names that reflect the quality of the bank. They are:
- Mr. Azam J. Chowdhury, Chairman
- Quazi Sirazul Islam, Vice Chairman
- Mrs. Shahnaz Quashem, Vice Chairperson
- Mrs. Hasina Khan, Director
- Mohammad Aminul Haque, Director
- Capt. Imam Anwar Hossain, Director
- Qazi Saleemul Huq, Director
- Md. Shirajul Islam Mollah , Director
- Mrs. Razia Rahman, Director
- Meherunnesa Haque, Director
- Ms. Saheda Pervin Trisha, Director
- Manzur Murshed, Director
- Prof. Dr. Ainun Nishat, Ph.D, Director
- Mohammad Delwar Hossain, Director
- Dr. Mohammed Aslam Bhuiyan, Director
- M. Ehsanul Haque, Managing Director
The Executive Committee:
- Capt. Imam Anwar Hossain, Chairman
- Mrs. Hasina Khan, Vice Chairperson
- Mrs. Razia Rahman, Vice Chairperson
Performance at a Glance:
Services Provided by the Bank:
Bank is the largest mobilizer of surplus domestic savings. For poverty alleviation, we need self employment, for self-employment we need investment and for investment we need savings. In the other words, savings help capital formations and the capital formations help investments in the country. The investment in its turn helps industrialization leading towards creation of wealth of the country. And the wealth finally takes the country on road to progress and prosperity. As such, savings is considered the very basis of prosperity of the country. The more the growth of savings, the more will be the prosperity of the nation.
The savings rate in Bangladesh is one of the lowest in the world rate of domestic saving being 17.78 %. In order to improve the savings rate, Financial Institutions responsible for mobilization of savings should offer attractive Savings Schemes so that the marginal propensity to save increases. The savings do not, of course, depend only on the quantum of income but largely depend on the habit of savings of the people.
The different saving schemes provided by the bank:
- Contributory Savings Schemes
- Education Savings Scheme
- Short term deposit
- Double Benefit Deposit Scheme
- Resident Foreign Currency Deposit Account
- Non-Resident Taka Account
- House Building Deposit Scheme
- Monthly benefit Deposit Scheme
- Fixed Deposit scheme
- Lakhopati Deposit Scheme
- Foreign Currency Account
- Non-Resident Foreign currency deposit account
- Non-Resident Investor’s Taka Account
- Prime Millionaire scheme
- General Loan
- Lease Finance
- House Building/Apartment Loan
- Small and Medium Enterprise (SME)
- Retail Loan
- Hire Purchase
- Advance against share
Islamic Mode of Operation:
Prime Bank Limited has started its operation as a Conventional Bank in April 1995. But pretty soon afterwards, within few months, the Bank has taken up the Challenge to start Islami Banking Operations. The Challenge is not so much as in operating Islamic Banking but in maintaining both the forms in Parallel. From its inception as an Islami Bank the bank has proven itself to be worthy of its slogan of ‘Bank with a Difference’, through successful operation of Islami Banking.
Prime Bank has started its Islami Banking operation through its first Branch being inaugurated at 19, Dilkusha C/A, Dhaka on 18 December 1995. Since then it has so far has established four more branches at different locations in the Country. Because of its popularity and management’s commitment toward social well being gradual expansion of Prime Bank’s Islami Banking operations is assured. Following are the salient features of Islamic Banking, as is practiced in Prime Bank Limited:
|01.||All activities are conducted according to Islamic Shariah.|
|02.||Interest free monetary operations.|
|03.||Building partnership relation between the Bank and its customers.|
|04.||Following Islamic principles in its investment portfolio.|
|05.||While investing special consideration to social needs is given.|
|06.||Through small and long term deposit schemes providing hope to the poor income group of the society.|
|07.||Client service centric banking, through which making the clients feel special.|
|08.||Conduct welfare activates etc.|
|Prime Bank Limited provides following services under Islami Banking:|
|04.||Remittance and Fund Transfer|
|Weight age Principle in Distributing Profit to the Depositors:|
|Deposits of different A/Cs are not given equal weightage in ascertaining profit rate. Bank gets opportunity to invest fund for long period if the deposit is obtained for long period. If duration of deposit is long term the risk of deposit is higher. Depositors participate in long term investment of the bank and face higher risk. As such, Bank fix up profit on the different weightage against various types of deposit A/Cs on the basis of risk. Profit to the depositors for the year 2004 has been paid as per following weightage and rates:|
|The bank established a Shariah Council to advice and provide guidance on Islamic Banking Operations. The following Islamic scholars having vast knowledge and ideas in Islamic Sharia relating to banking operations sit on the Board:|
Prime Line (Any branch banking):
Prime Bank Limited obtained Principal Membership of Master-Card International in the month of May 1999. Within a period of 6 months, the bank successfully launched Master Card-Credit Card which created a new dimension in its customer service and consumer financing.
The Special feature of the Prime Bank Master Card is that its bears the card holder’s photo on the card, which is the first of its kind in Bangladesh and adds security against misuse. Prime Bank Limited issues 4 types of cards. These are Gold Local & International and Silver Local & International. Local cards can be used in Bangladesh only.
Followings are the main feature of MasterCard Credit:
- Prime Bank Ensure High Level of Security by inserting your Photograph on the Card.
- 20 to 50 days credit form the date of transaction. When you receive your monthly statement, you can either choose to pay in full or just minimum due amount shown on the statement. No interest is charged if you pay in full within payment due date.
- 24 hours a day, 365 days worldwide service.
- No joining/administrative fees.
- waiver of annual fees for International Card: If you accumulate 20,000 Prime Bank Bonus Point for your Gold Card or, 10,000 Bonus Point for your Silver Card in a year then you enjoy our Card without fees( $ 1 purchase: 1 Bonus).
- Waiver of annual fee for Local Card: If you accumulate 10,000 Prime Bank Bonus Point for your Gold Card or 8,000 Bonus Point for your Silver Card in a year then you enjoy our Card without fees( Tk. 50/- purchase : 1 Bonus point).
- The Highest Prime Bank Bonus Point holder can enjoy free air ticket Dhaka-Bangkok-Dhaka. (Business Class).
- Cash advance facilities.
- 1, 39, 00,000 locations accept MasterCard worldwide.
Prime Bank Limited is one of the first few Bangladeshi Banks who have become member of SWIFT (Society for Worldwide Inter-bank Financial Telecommunication) in 1999. SWIFT is members owned co-operative, which provides a fast and accurate communication network for financial transactions such as Letters of Credit, Fund transfer etc. By becoming a member of SWIFT, the bank has opened up possibilities for uninterrupted connectivity with over 5,700 user institutions in 150 countries around the world.
One Stop Utility Services Scheme:
Like any other country of the world, the people living in the urban areas of our country lead a very busy life. Time is very valuable to them. Despite this, they are to waste their valuable time at the counter of different Banks and other Institutions for payment of their monthly bills of different utility services like Electricity, Telephone, Water, Gas etc. They, as such, face enormous difficulties for payment of their monthly bills in time. Such inconveniences of the urban people can be removed by making an arrangement to collect all the bills of various utility services at One Point.
Scope of the Service:
|With this end in view, Prime Bank Limited has introduced a Scheme entitled “ONE STOP UTILITY SERVICES SCHEME”. The scheme is designed to provide all the required services to the customer in making payment of their following bills on their behalf from the counter of the Bank:|
|Terms & Conditions of Online Branch Banking Service|
02. Moulvi Bazar
03. IBB Dilkusha
05. Kawran Bazar
06. Elephant Road
13. Foreign Exchange Branch
14. Satmasjid Road
15. New Eskaton
18. IBB Mirpur
19. Pragati Sarani
20. Pragati Sarani
22. Asad Gate
26. SBC Tower
27. Jaydevpur Chowrasta
31. Bijoy Nagar
32. Ring Road
36. Adamjee EPZ
37. Gareb-E-Newaz Avenue
03. Jubilee Road
04. IBB O.R. Nizam Road
05. IBB Pahartali
07. Laldighi East
09. Cox’s Bazar
13. Prabartak More
17. Oxygen More
05. Chapai Nawabganj
02. IBB Amberkhana
03. Court Road
09. Subid Bazar
Here, IBB means Islamic Banking Branch.
- Dhaka Division: 22
- Chittagong: 05
- Sylhet: 01
SME Service Center: 06
Concerns (Subsidiary Companies):
Prime Exchange Co. Pte. Ltd.:
Prime Bank Limited established its fully-owned subsidiary “Prime Exchange Co. Pte Ltd.” to offer remittance services to Bangladeshi nationals in Singapore, which started its operation from 8th July, 2006, under remittance license received from Monetary Authority of Singapore (MAS) and approval of Bangladesh Bank. Mr. Azam J Chowdhury, Chairman of the Board of Directors of Prime Bank Ltd., is the Chairman of Prime Exchange Co. Pte Ltd. while Mr. M Ehsanul Haque, Managing Director of the Bank, is the Director of the Prime Exchange Co. Pte Ltd.
The Exchange Company is located at 2A Desker Road, (2nd floor), Singapore 209549 a very convenient place at Serangoon area near Mustafa Centre, where Bangladeshi nationals congregate during weekends for social interaction and money remittance services. Opening of the fully owned subsidiary in Singapore to offer remittance services to Bangladeshi nationals will add new dimension to the Bank’s remittance operation.
PBL Exchange (UK) Ltd.:
- Company in UK established on 19 Nov 2009
- Registered office : The Limes 1339 High Road, Whetstone London N209HR, United Kingdom
- Company fully owned by Prime Bank Limited
- Board of Directors : Mr. Azam J Chowdhury, Capt Imam Anwar Hossain and Mr. M Ehsanul Haque
- Nature of business: Remittance (Money Transfer)
- Office locations : London, Birmingham, Manchester where Bangladeshi community lives
- Tentative date of opening: 26 March 2010;
- Mode of payment to beneficiaries :
- Instant Cash Payment through Prime Bank’s Branch and SME centers all connected under online banking
- Over the counter cash payment through 400+ Branch network of BURO Bangladesh
- Prime Bank’s account credit and withdrawal facility through network of 550+ ATMs
- Account credit to any other banks in Bangladesh
- Full remittance amount paid to beneficiaries in Bangladesh without deduction of any charge
- Dedicated team of officials of Central Foreign Remittance Cell (CFRC) ensure efficient customer service
- Money transfer operation in UK is carried out through online software
- This is second such initiative after success in Singapore (2006)
- Initiative in Singapore was first for any private sector bank in Bangladesh.
INTRODUCTION TO THE STUDY:
Rationale of the Study:
Commitment of the employees carries utmost importance as far as an organization is concerned. It is the employees that create the organization and their motive and focus makes or breaks the organization. If the employees’ commitment is towards the betterment of the organization, that organization needs very little to succeed. On the other hand, if the employees’ commitment is towards his or her own betterment, that means if he or she is in the organization for the designated post only, then the organization’s road to success will be full of stumbles.
This is why this study is being proposed. In case of Prime Bank Limited, most of the employees’ reaction is mixed about their job. Their opinion regarding their satisfaction varies from time to time. When they are getting promoted, they are very satisfied. Whenever their bosses or colleagues oppose their ideas, that satisfaction runs out instantly. In my one month period as an intern, I have not seen that an employee is more satisfied that dissatisfied, or more dissatisfied than satisfied about their job. Their reactions are very much variable. The reason should be found out.
Banks have been an important part of the economy of Bangladesh. In the beginning, there was no private bank. And today, there is no public bank except Bangladesh Bank. Employees are at the core of an organization, regardless of the type. In all these years, the perception and thinking pattern of the employees has changed significantly. Organizational commitment is an important part of the perception of the employees. And in this way, comes my research. Here, have chosen the employees of Prime Bank Limited as the target group of Bangladesh.
Organizational commitment is the most important driving force for the employees to work well for the organization. But most of the employees and the organizations fail to recognize the importance of the term. Other commitments to the job are also important but this particular commitment is the most contributing factor to employee’s productivity. This commitment is difficult go grow among the employees. This is a long term procedure if it grows in an employee. As this deals with the whole organization, formation of these takes time. Sometimes it may take ten to fifteen years. It is only after that that the employees start to feel the psychological attachment to the organization and feels reluctant to leave the organization.
In Bangladesh, in former nationalized banks, most of the employees are there for more that ten years. And in private banks, there is a question of “gratuity” in front of the employees. So, I thought that employees of these banks can be the perfect target group for a research in this field. As my internship was in Prime Bank Limited, chose the employees of this bank as my target group.
The area of research, according to me, is neither too narrow nor broad. The worked on the organizational commitment of the employees of Prime Bank Limited. The reason that chose this area is that I am from the BBA department. This is why my attention always remains on the business related terms. And organizational commitment is a vast topic to work with.
There are many things to learn from this research. As going to be a future employee of an organization, this will help to a great deal. will be able to know what factors contribute to the well being of an employee. Coming back to the area of research, this is the most powerful element to motivate an employee. If an employee is motivated to work in a better fashion for the organization, no matter the position or is working in, his or her satisfaction level will be high. will feel himself as a part of the organization, a proud one. The intend to find the extend of this in the employees of Prime Bank Limited.
Statement of the Problems:
At the end of the study, the following questions that would be important for conducting my research should be answered:
- In which way the employees of Prime Bank Limited are committed?
- Does Job Satisfaction affect their Organizational Commitment?
- If yes, then in which way, positively or negatively?
- What other factors affect the organizational commitment?
- If the commitment that the employees have is not for the best of the bank, what are the possible ways to cope up with that?
Scope and Delimitation of the Study:
The scope of this study is vast. Such concepts like job satisfaction, workplace environment, job impact, infrastructural condition of the bank, the creativity that employees can or cannot practice etc will be used. Through all these variables the commitment of the employees can be reflected. Through interviews of the employees the primary data will be collected. The supervisor at the bank, the branch manager will also help me with secondary data. The also take help from online journals and articles to collect secondary data as well. The only limitations that will affect the study will be the limitation of time as there is always a scope of betterment if the time limit increases.
Organizational commitment is a vast issue. What constitutes commitment in organizations? In one view, commitment is the total capacity to act in ways that meet the organization’s goals and interests. Although a simple enough definition, it is inadequate. The problem is that commitment has now been defined in a number of widely varying ways. The sociologist Etzioni argues that commitment, and the authority that organizations have over members, is rooted in the nature of employee involvement in the organization. It is not constructed by a single entity. There are some contributing factors to that. In the Bangladeshi context, the factors that are the most important according to me are: job satisfaction, workplace environment and job involvement.
Job satisfaction is the level of satisfaction that the employee feels to be in the respective job. Job satisfaction, a worker’s sense of achievement and success, is generally perceived to be directly linked to productivity as well as to personal wellbeing. Job satisfaction implies doing a job one enjoys, doing it well, and being suitably rewarded for one’s efforts. Job satisfaction further implies enthusiasm and happiness with one’s work. For the organization, job satisfaction of its workers means a work force that is motivated and committed to high quality performance.
Increased productivity, the quantity and quality of output per hour worked, seems to be a byproduct of improved quality of working life. It is important to note that the literature on the relationship between job satisfaction and productivity is neither conclusive nor consistent. Unhappy employees, who are motivated by fear of job loss, will not give 100 percent of their effort for very long. Though fear is a powerful motivator, it is also a temporary one, and as soon as the threat is lifted performance will decline.
Probably the most important point to bear in mind when considering job satisfaction is that there are many factors that affect job satisfaction and that what makes workers happy with their jobs varies from one worker to another and from day to day. Apart from the factors mentioned above, job satisfaction is also influenced by the employee’s personal characteristics, the manager’s personal characteristics and management style, and the nature of the work itself. Managers who want to maintain a high level of job satisfaction in the work force must try to understand the needs of each member of the work force.
For example, when creating work teams, managers can enhance worker satisfaction by placing people with similar backgrounds, experiences, or needs in the same workgroup. Also, managers can enhance job satisfaction by carefully matching workers with the type of work. For example, a person who does not pay attention to detail would hardly make a good inspector, and a shy worker is unlikely to be a good salesperson. As much as possible, managers should match job tasks to employees’ personalities.
In the opinion, in the context of Bangladesh, the factors that most contribute to job satisfaction is compensation and the process of performance evaluation
Workplace Environment: An employee’s workplace environment is a key determinant of their level of productivity. How well the workplace engages an employee impacts their level of motivation to perform. This then influences that employee’s:
- error rate
- level of innovation
- collaboration with other employees
- How long they stay in the job.
The most important of these workplace environment factors that either lead to engagement or disengagement are shown in the following diagram. A close consideration of each of these factors is also very useful in ensuring that employees apply the skills they learn during training programs once they return to their workplace. Tending to the structural and interpersonal aspects of each of these factors enables employees to apply the required skills in a consistent and habitual way.
Employees are involved in setting meaningful goals and performance measures for their work. This can be done informally between the employee and their immediate supervisor or as part of an organization’s formal performance management process. The key here is that each employee is actively engaged in the goal-setting process and takes ownership of the final agreed goals and measures.
The organization has determined what motivates its employees and has set up formal and informal structures for rewarding employees that behave in the way required. Rewards may consist of a mix of internal rewards, such as challenging assignments, and external rewards, such as higher compensation and peer recognition.
Skilled and respected people are available to employees to help them perform better in their current role and to assist them develop further into a future role. Mentors and coaches may be internal to an organization or external. Either way, they possess the necessary facilitation skills to assist employees develop and apply new skills. Time and material resources are available to employees, enabling them to perform to the best of their ability. Individual workloads and organizational systems and processes do not hinder employees from applying established skills or from practicing newly learned skills.
Models of job satisfaction:
Edwin A. Locke’s Range of Affect Theory (1976) is arguably the most famous job satisfaction model. The main premise of this theory is that satisfaction is determined by a discrepancy between what one wants in a job and what one has in a job. Further, the theory states that how much one values a given facet of work (e.g. the degree of autonomy in a position) moderates how satisfied/dissatisfied one becomes when expectations are/aren’t met.
When a person values a particular facet of a job, his satisfaction is more greatly impacted both positively (when expectations are met) and negatively (when expectations are not met), compared to one who doesn’t value that facet. To illustrate, if Employee A values autonomy in the workplace and Employee B is indifferent about autonomy, then Employee A would be more satisfied in a position that offers a high degree of autonomy and less satisfied in a position with little or no autonomy compared to Employee B. This theory also states that too much of a particular facet will produce stronger feelings of dissatisfaction the more a worker values that facet.
Dis positional Theory:
Another well-known job satisfaction theory is the Dispositional Theory Template: JacksonApril 2007. It is a very general theory that suggests that people have innate dispositions that cause them to have tendencies toward a certain level of satisfaction, regardless of one’s job. This approach became a notable explanation of job satisfaction in light of evidence that job satisfaction tends to be stable over time and across careers and jobs. Research also indicates that identical twins have similar levels of job satisfaction.
A significant model that narrowed the scope of the Dispositional Theory was the Core Self-evaluations Model, proposed by Timothy A. Judge in 1998. Judge argued that there are four Core Self-evaluations that determine one’s disposition towards job satisfaction: self-esteem, general self-efficacy, locus of control, and neuroticism. This model states that higher levels of self-esteem (the value one places on his/her self) and general self-efficacy (the belief in one’s own competence) lead to higher work satisfaction. Having an internal locus of control (believing one has control over her\his own life, as opposed to outside forces having control) leads to higher job satisfaction. Finally, lower levels of neuroticism lead to higher job satisfaction.
Two-Factor Theory (Motivator-Hygiene Theory):
Frederick Herzberg’s Two factor theory (also known as Motivator Hygiene Theory) attempts to explain satisfaction and motivation in the workplace. This theory states that satisfaction and dissatisfaction are driven by different factors – motivation and hygiene factors, respectively. An employee’s motivation to work is continually related to job satisfaction of a subordinate. Motivation can be seen as an inner force that drives individuals to attain personal and organizational goals.
Motivating factors are those aspects of the job that make people want to perform, and provide people with satisfaction, for example achievement in work, recognition, promotion opportunities. These motivating factors are considered to be intrinsic to the job, or the work carried out. Hygiene factors include aspects of the working environment such as pay, company policies, supervisory practices, and other working conditions.
While Hertzberg’s model has stimulated much research, researchers have been unable to reliably empirically prove the model, with Hackman & Oldham suggesting that Hertzberg’s original formulation of the model may have been a methodological artifact. Furthermore, the theory does not consider individual differences, conversely predicting all employees will react in an identical manner to changes in motivating/hygiene factors. Finally, the model has been criticized in that it does not specify how motivating/hygiene factors are to be measured.
Job Characteristics Model:
Hackman & Oldham proposed the Job Characteristics Model, which is widely used as a framework to study how particular job characteristics impact on job outcomes, including job satisfaction. The model states that there are five core job characteristics (skill variety, task identity, task significance, autonomy, and feedback) which impact three critical psychological stat