HR PRACTICE ON GRAMEEN BANK Essay

In any comprehensive work, like this, recognition must go to the multitude of pot. I am still students and plainly novice. Hence, I absorb taken help from divers(prenominal) deal for preparing my report. straightaway here is a petite effort to show my deep graduate to those helpful lot. First, I commit my selves grateful to Allah for his unlimited engagingness and ut just about helpful hand in continuing my report preparation. I depict my sincere gratitude to honorable supervisor, Ms. Monsura Zaman, Faculty of Business Administration, ASA University Bangladesh, for their guidance and valuable honour slightly the convention of the report. I have come to believe, deeply and firmly, that we tramp create a p everyplacety free world if we want to. I came to this conclusion not as a product of a prayerful dream, simply as a concrete resultof experience gained in the work of the Grameen Bank.It is not micro credit al iodine which will extirpate poverty. Credit is one doo r through which people can prevail from poverty. Many to a greater extent doors and windows can be created to facilitate an easy exit. It involves conceptualizing rough people differently it involves designing a new institutional cast work consistent with this new conceptualization.Grameen bank has taught me both things first our intimacy base about people and their interactions is still very inadequate secondly each individual soulfulness is very important. Each person has fantastic potential. She or he alone can influence the lives of some others in spite of appearance the communities, nations, within and beyond her or his own time.Background of the watchSuccessful gentleman resource prudence makes it possible for the system to acquire the number and types of people necessary to catch the continued operation of the placement by the.. So it acts an important role in HR de agencyment. As a part of BBA program, my honorable supervisor, Ms. Monsura Zaman, .., assigned me to prep ar a report on link up depicted object on world race Resource Management course. I have carryed our report topic as HRM practice in microcredit Sector of Bangladesh (Grameen Bank).. executive director SummaryThe importance of human resources watchfulness (HRM) practices to the success or hardship of organizational phylogenesis system performance has, until youngly, been generally overlooked. In recent course of studys it has been increasingly recognized that getting HR policy and management. In this paper, I take my theoretical point of departure in recent work in organizational economics on systems of human resource management (HRM) practices. Though this program good balance between scheme and practice is gained. Furthermore this is Thesis assignment is a vital demand for obtaining Masters of Business Administration (MBA) program. I worked Grameen Bank, how they practice HRM on their microcredit firmament. Microcredit is the extension of very subtile a ddwords (microloans) to impoverished borrowers whotypically lack collateral, sedate employment and a verifiable credit history. It is intentional not unless to support entrepreneurship and alleviate poverty, but overly in many fibres to commit women and uplift entire communities by extension. In many communities, women lack the extremely stable employment histories that traditional lenders tend to require. Many ar illiterate, and then unable to complete paperwork required to get conventional loans. As of 2009 an estimated 74 million men and women held microloans that measureed US$38 billion. Grameen Bank reports that quittance success rates are between 95 and 98 per cent. describe OverviewIntroductionBackground of HRMHuman Resource Management is defined as the people who staff and manage organization. It comprises of the functions and principles that are applied to retaining, training, developing, and compensating the employees in organization. It is withal applicable to business organizations, such as playing, news presenters and Models etc. Human Resource Management is defined as the set of activities, programs, and functions that are designed to maximize both organizational as well as employee effectiveness. telescope of HRM without a doubt is vast. All the activities of employee, from the time of his entry into an organization until he leaves, come beneath the horizon of HRM. The divisions included in HRM are Recruitment, Payroll, public presentation Management, Training and Development, Retention, Employee Relation, etc.A human resources management (HRM) professional is trusty for successfully acquiring, developing, motivating, and retaining employees. That is, they are on the people side of business operations, and because people do the work of organizations, a companys success rests heavy on the quality of its HRM. An HRM professional is a full business spouse who adds value to business decisions and aligns HR practices with those dec isions. The work calls on you to know about compensation and benefits, labor relations laws, how to forecast working needs, organizational learning, and organizational flip. Students specialty courses include Competitive HRM Practices, Negotiations, and Cultural Aspects of international Business. They withal select an honors seminar in Management of Innovation. In the classroom and on co-op, students gain the acting base of knowledge and the business expertise thats needed as an HRM professional. Human resource management is an effective tool for students pleaseed in helping businesses succeed in a motleyable personnel environment. This templet is found on Human Resource Management in a Business Context, and includes links to extra articles, notes, tips and exercises. It introduces you to the essential elements of HRM, its origins and applications. HRM is viewed as an all-embracing terminal describing a number of distinctive approaches to people management. They help you to u nderstand and tax the different and sometimes ambiguous views of human resource management by investigating its origins, explanatory models, technology and practice. Human resource (or personnel) management has in the sense of getting things through people. Its an essential part of every(prenominal) managers responsibilities, but many organizations find it advantageous to yield a specialist division to provide an expert service sacred to ensuring that the human resource function is performed efficiently. People are our most valuable asset is a clich which no fraction of any senior management team would disagree with. Yet, the reality for many organizations is that their people remain under valuedunder trainedunder utilizedpoorly motivated, and thenperform well below their true cap top executiveThe rate of change facing organizations has never been greater and organizations must absorb and manage change at a a great deal faster rate than in the past. In order to implement a su ccessful business strategy to facial gesture this challenge, organizations, large or piddling, must ensure that they have the indemnify people suitable of delivering the strategy. The market place for talented, skilled people is competitive and expensive. fetching on new staff can be disruptive to exist employees. Also, it takes time to develop cultural awareness, product/ dish out/ organization knowledge and experience for new staff members. As organizations vary in size, aims, functions, complexity, construction, the physical nature of their product,and appeal as employers, so do the contributions of human resource management. But, in most the ultimate aim of the function is to ensure that at all times the business is correctly staffed by the right number of people with the skills relevant to the business needs, that is, neither overstaffed nor undermanned in impart or in respect of any one discipline or work grade. These issues motivate a well concept out human resource management strategy, with the precision and detail of suppose a marketing strategy. Failure in not having a guardedly crafted human resources management strategy, can and probably will lead to failures in the business process itself. Origin of the ReportThis report has been cleard as a requirement of the Thesis program based upon the Grameen Bank where my organization supervisor is Golam Morshed Mohammed (Senior Principal Officer, International Program Dept.), and my institution supervisor is Golam Mahbubul Alam,( associate Professor, Department of Business Administration, Stamford University). My institute supervisor duly approved the topic decided for doing the report. Since the MBA program is an integrated, practical and theoretical method of learning, the students of this program are required to have practical exposure in any kind of business organization in stand term of this course. Scope and Objectives of the StudyA clear objective helps in preparation of well embellis h report in which other take the right type of decision. So I come out objective are very a lot important. Our answer of preparing the report is To know the human resource management (HRM) practice of Grameen Bank. To identify the various avenues for improving the HRM policies of Grameen Bank To know about the management ability of Grameen Bank.Suggesting strategies to improve the HRM policies of Grameen Bank. This study covers the HRM policies of Grameen Bank along with some recommendations to improve the HRM policies of Grameen Bank. methodological analysisA sample survey was conducted to collect primary data victimisation two pre-designed survey instruments from concerned groups following an appropriate sampledesign. In view of the complexities involved in generating quantitative data for assessing the real impact, qualitative data were also collected. In the context of the unique features of the area an examine was made to identify the strengths, weaknesses, opportunities a nd threats of the nonpublic HRM sector. Data CollectionThis study is chiefly based on secondary data available from the various divisions and departments of Grameen Bank, in addition to these other necessary information have been collected from the relevant journals, annual reports of the Grameen bank, website and publications of other relevant institutions have also been taken into consideration. uncomplicated sources of dataFace to face conversation with the Grameen Bank administrative dept. and International depts. Officers & staffs. Conversation with the clients.Different manuals of Grameen Bank.Secondary sources of dataProcedure manual produce by the Grameen Bank.Files and documents of the appendage.Annual report of Grameen Bank.Unpublished data.Different text books. nett sites.Unstructured dataThis data was compiled using information from Grameen Bank branch and centre visits, informal discussions with branch managers, field staff and various management train officers co nducted during field and head office visits. Limitations of the StudyAs a student of faculty of Business Administration, this is my first initiative for making a report on HRM Practice in Microcredit sector of Bangladesh A case study on Grameen Bank. By meeting with officers, I was unfeignedly unable to collect enough information from due to their official restrictions. sequence carry out the study I had to face a few limitations,which are mentioned below The main constraint of the study is inadequate admission fee to information. The employees did not disclose much information for the sake of the confidentiality of the organization. Since the bank and other companies personal were very agile, they could provide me very little time. The clients were too busy to provide me much time for interview. The time frame fixed to prepare the study report was hard to be met. As a result, capable concentration could be given on it, which was needed for a much better study.Chapter 2An Overv iew on Microcredit in BangladeshWhat is Microcredit?Much of the current interest in microcredit stems from the Microcredit Summit (2-4 February 1997), and the activities that went into organizing the event. The definition of microcredit that was adopted there was Microcredit programmers extend small loans to very poor people for self-employment projects that generate income, allowing them to care for themselves and their families. Definitions defer, of course, from country to country. or so of the defining criteria used include- size loans are micro, or very small in size target users microenterpreneurs and low-income households utilization the use of funds for income generation, and effort development, but also for community use (health/education) etc. terms and conditions most terms and conditions for microcredit loans are flexible and easy to understand, and suited to the local conditions of the community. trio Cs of CreditCharacter means how a person has handled past deb t obligations Form credit history and personal background, honesty and reliableness of the borrower to pay credit debts are determined. Capacity means how much debt a borrower can comfortably handle. Income streams are analyzed and any legal obligations looked into, which could intermeddle in pay offment. Capital means current available assets of the borrower, such as real estate, savings or investment that could be used to repay debt if income should be unavailable. Microcredit in BangladeshMicrocredit programs in Bangladesh is implemented by NGOs, Grameen Bank, state-owned commercial banks, private commercial banks, and specialized programs of some ministries of Bangladesh government. In the microfinance sector wide loan bully is round TK 248 billion (including Grameen Bank TK 72 billion) and savings TK168 billion. The total clients of this sector is 35 million (including 8.4 million clients from Grameen Bank) that accelerates overall economic development process of the count ry. Credit services of this sector can be categorised into six broad groups i) general microcredit for small-scale self employment based activities, ii) microenterprise loans, iii) loans for ultra poor, iv) agricultural loans, v) seasonal loans, and vi) loans for disaster management. Loan bars up to BDT 50,000 are generally considered as microcredit loans above this amount are considered as microenterprise loans.LICENSING emplacement OF THE NGO-MFIS IN BANGLADESHThe Microcredit Regulatory Authority (MRA), established by the government in August 2006, received applications from 4241 private institutions (NGO-MFIs). But, around 1000 applications of them were found to be very small organizations that had fewer than 1000 borrowers or less than the USD 58,000 in outstanding loans that is generally considered as the minimum initial operating portfolio of a single branched MFI to be sustainable. However, till August 2012 the MRA had approved licenses in estimation of 651 NGOs. There ar e another 210 applications are under process for a final decision although they are mostly small organizations but with some potentiality to become viable in course of time. As of August 2012, 3380 applications have been rejected. Recently MRA has invited new applications for obtaining license to conduct microcredit activities. secern OF MICROCREDIT IN BANGLADESHIn the backdrop of global double-dip recession and over-indebtedness crisis in microcredit sector in several countries, Bangladeshs microfinance sector shows strong resilience and continues to summate towards enhancement of macroeconomic growth. Bangladesh microfinance sector is mature now and its assets constitute around 3 part of GDP in 2011. Total outstanding loan ofthis sector (only licensed MFIs) has change magnitude by 20.0 percent from BDT 145.0 billion in June 2010 to BDT 173.8 billion in June, 2011 disbursed among 20.7 million poor people, helping them to be self-employed and accelerating overall economic develo pment process of the country. The total savings has also increased by 23.25 percent to BDT 63.3 billion in June 2011 compared to previous year from 26.1 million clients, over 93 percent of them are women.Table 2 shows the market scenario of NGO-MFIs in Bangladesh. The top three MFIs contribute 54 percent of total loan outstanding as well as savings of the microfinance sector in Bangladesh. Two of the largest MFIs, viz., BRAC & ASA, are each serving over five million borrowers. There are a few more developing fast. On the other hand the smallest 428 NGO-MFIs have contributed only 4 percent of total loan outstanding and 5 percent of total savings. Institutional concentration ratio is highly skewed in favor of large MFIs just 22 institutions are in surmount of 76 percent of the market share while three largest organizations have control of over 50 percent in terms of both clients and total financial portfolios.Table 3 depicts the scenario of micro enterprise loan, i.e., loans above BD T 50,000, of different NGO-MFIs in Bangladesh. It is observed that micro enterprise loan outstanding is BDT 40 billion which is around 24 percent of total loan outstanding in which the top ten NGO-MFIs contributed around 19 percent. It also shows that BDT 40 billion is disbursed to around 6 lakh borrowers which are only 3 percent of total borrowers. The table expresses that only the top NGO-MFIs are capable to run micro enterprise loan.Selected Indicators of NGO-MFIs in BangladeshIt is observed from table 4 that savings per member has been increasing over the days. In 2006 savings per member was Tk. 1,207 which stands at Tk.2495 in 2011 an increase to more than double within the last five years. The loan outstanding per borrower also increased over the years and average growth rate of loan outstanding per borrower is around 17 percent in 2011 compared to the previous year. The loan outstanding per borrower has increased by more than 100 percent within the last five years. These tw o indicators, savings per member (average saving size) and outstanding loan per borrower (average loan size) increased over time perhaps due to the increase in the income level of the poor resulting in an increase in their need for higher amount of loans from the MFIs.The ratio between borrowers to clients (members) remained steady for the last few years, which is within 70 to 80 percent and the savings to outstanding loan ratio has also been stable from 2006 to 2011. Since the total number of branches of MFIs has increased at a much higher rate in 2011 compared to the previous year, the number of members and borrowers per branch has decreased. cheering rate of increase in the sizes of loans per borrower and savings per member has resulted in a rise in the total loan outstanding and savings in the sector. Consequently outstanding loan and saving per branch has also increased. The loan outstanding amount per branch which was TK 8.42 million in 2010 has increased by 14.4 percent in 2 011.