1. Difference between domestic and Multinational
Companies Human Resource practice in Bangladesh
BBA Program
Subject: Human Resource Management
MGT-3122
Section: C
Prepared For
Mohd. H. R. Joarder
School Of Business
Prepared By:
Mohammad Moinul Islam 111 061 087
Farhana Bari 111 072 021
Md. Saiful Islam Mazumder 111 063 103
Farzana Chowdhury 111 072 142
Anika Hassan 111 071 219
United International University (UIU)

2. Letter of transmittal
To
Mohd. H. R. Joarder Sir,
United International University,
Dhanmondi, Dhaka.
Sub:
“Difference between domestic and Multinational Companies Human Resource practices
in Bangladesh"
Dear Sir,
We hereby submit our Term Paper Report on Difference between domestic and
Multinational Companies Human Resource practices in Bangladesh. This report has
been prepared according to your authorization and as the requirement of finishing the
“Human Resource Management” course.
To, submit the report, we have tried our best to gather authentic information and
provide exact explanation of all the points of the specified task. We really enjoyed
working with you in preparing this report and hope this will fulfill your satisfaction.
In fine, we would like to express our heartfelt gratitude for the keen interest and
guidance, you have provided us in preparing this report and hope you would be so kind
as to ask us if you find any deviation from what you thought.
Sincerely Yours
Mohammad Moinul Islaml Farhana Bari Farzana Chowdhury
111 061 087 111 072 021 111 072 142
Md. Saiful Islam Mazumdar Anika Hassan
1111 063 103 111 071 219
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3. Acknowledgement
By the cordial mercy of Allah, now we are able to submit our research paper to
our honorable sir Mohd. H. R. Joarder. We strongly believe that it would not be
possible preparing such a paper without Almighty’s grace.
Now we would like to thank our honorable sir Hasanur Raihan Joarder for his
keen efforts and invaluable guidance, which facilitated the successful completion
of our research paper.
This acknowledgment will remain incomplete if we don’t thanks to those people
who helped and being co-operate with us.
We would also like to express gratitude to my university faculty members. They
should be remembered because they produced the platform of our knowledge.
Finally we are really grateful to the people who help us to gather information
and give valuable advice. Again, we thanks to our honorable teacher for giving
us such a chance in completion of the report
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4. Table of Contents
Acknowledgement 3
Executive Summary 5
Introduction 7
Scope of the Report 10
Objective and limitations of the report 11
Findings and Analysis 13
Recommendations 17
Conclusions 19
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5. Executive Summary
This report is based on the topic “Difference between domestic and
Multinational Companies Human Resource practices in Bangladesh” is verbally
assigned by our honorable course instructor, Mohd. H. R. Joarder Sir as a
requirement of the course Human Resource Management. Most of the things are
similar among the two banks except the factors related to the international
employee which separates the Standard Chartered Bank from City Bank. Among
similarities both the bank maintains the similar ways for recruiting like giving
advertisement in news paper and also in the internet in their own and other job
web side. But the main recruitment is made internally in the both bank. Both the
bank also recruits from employee reference and from those who are doing
internship. Both banks maintain the vertical hierarchy and relationship among
employees in both the banks are quite friendly. When fresh candidates are taken,
both the banks give three months training to the freshers’ then training given at
least once in a year to every employee to increase their knowledge on products
and other issue. Also when a senior post is empty, training is given to an
employee and then promoted to fill up the post. Both the banks also give
promotion based on the performance of the employees. Both banks has sales
target on the basis of which they work and commission given according to that.
Among difference the Standard Chartered Bank recruit foreign employee but
City Bank doesn’t for selecting foreign employee Standard Chartered Bank take
only viva which City Bank doesn’t have to. In the Standard Chartered bank
every employees have to give an examination in each and every month while in
City bank the employees doesn’t have to. The Standard Chartered bank gives
commission depending on the performance of the monthly examination results
but in City bank, as there is no monthly exam so no such commission facility.
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6. Chapter one
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7. Introduction:
Standard Chartered Bank:
The Standard Chartered Group was formed in 1969 through a merger of two
banks: The Standard Bank of British South Africa founded in 1863 and the
Chartered Bank of India, Australia and China, founded in 1853.
Both companies were keen to capitalize on the huge expansion of trade and to
earn the handsome profits to be made from financing the movement of goods
from Europe to the East and to Africa.
The bank was founded by James Wilson following the grant of a Royal Charter
by Queen Victoria in 1853. Chartered opened its first branches in Mumbai
(Bombay), Calcutta and Shanghai in 1858, followed by Hong Kong and
Singapore in 1859. it had its traditional business in cotton from Mumbai
(Bombay), indigo and tea from Calcutta, rice in Burma, sugar from Java, tobacco
from Sumatra, hemp in Manila and silk from Yokohama. Standard Chartered
played a major role in the development of trade with the East which followed the
opening of the Suez Canal in 1869 and the extension of the telegraph to China in
1871. In 1957 Chartered Bank bought the Eastern Bank together with the Ionian
Bank's Cyprus Branches. This established a presence in the Gulf.
In African continent, Standard Chartered was founded in the Cape Province of
South Africa in 1862 by John Paterson. Commenced business in Port Elizabeth,
South Africa, in January 1863 was prominent in financing the development of the
diamond fields of Kimberley from 1867 and later extended its network further
north to the new town of Johannesburg when gold was discovered there in 1885.
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8. Then the expansion was made in Southern, Central and Eastern Africa and by
1953 had 600 offices. In 1965, it merged with the Bank of West Africa expanding
its operations into Cameroon, Gambia, Ghana, Nigeria and Sierra Leone.
In 1969, the decision was made by Chartered and by Standard to undergo a
friendly merger. All was going well until 1986, when a hostile takeover bid was
made for the Group by Lloyds Bank of the United Kingdom. When the bid was
defeated, Standard Chartered entered a period of change. Provisions had to be
made against third world debt exposure and loans to corporations and
entrepreneurs who could not meet their commitments. Standard Chartered
began a series of divestments notably in the United States and South Africa, and
also entered into a number of asset sales.
From the early 1990s, Standard Chartered has focused on developing its strong
franchises in Asia, the Middle East and Africa using its operations in the United
Kingdom and North America to provide customers with a bridge between these
markets. Secondly, it would focus on consumer, corporate and institutional
banking and on the provision of treasury services - areas in which the Group had
particular strength and expertise.
In the new millennium we acquired Grindlays Bank from the ANZ Group and
the Chase Consumer Banking operations in Hong Kong in 2000.
Since 2005, we have achieve several milestones with a number of strategic
alliances and acquisitions that will extend our customer or geographic reach and
broaden our product range.
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9. City Bank Ltd
City Bank Ltd started its operations on 28 March 1983 with an authorized capital
of Tk 200 million divided into 2,000,000 ordinary shares of Tk 100 each and paid
up capital of Tk 34 million, of which Tk 30 million was paid up by its promoters
and the remaining amount by the government of the People's Republic of
Bangladesh. In 2000, the bank's paid up capital rose to Tk 160 million, of which
Tk 80 million was subscribed by the sponsors/promoters and the remaining
amount by the general public. On 31 December 2000, the bank's reserve fund was
Tk 263.1 million as compared to Tk 125.22 million in 1995. But there was shortfall
in total capital adequacy ratio of the bank during 1997-2000 as per BIS (Bank for
International Settlement) standards to be followed by banks operating in
Bangladesh.
Methodology of the research work
To build up a meaningful report we needed to collect some information. And for
the required information we are supposed to collect two types of data which are-
(1) Primary data
(2) Secondary data.
But for some problems we were unable to collect Primary data. So we only
collect secondary data through below process--
A. Books
B. Internet
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10. Sources of information-
Secondary: We get the secondary information through prospectus, Web side etc.
Study Approach: Study Approach is survey type.
Study Instruments: The instruments are questionnaire, paper, pencil, phone,
computer, printer, photocopier etc.
Scope
This report is based on the difference between domestic and Multinational Companies
Human Resource practices in Bangladesh. So after reading this report, readers will
have a clear picture about the basic differences regarding the local and
international bank in operating and also the similarities in perspective of the
HRM practices.
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11. Objectives
Broad Objective
To know the difference between domestic and Multinational Companies Human
Resource practices in Bangladesh
Specific Objectives
• To know about the recruitment and selection process of City and Standard
Chartered Bank
• The organizational hierarchy of both the bank by which they operate
• The relationship among the employees
• The training and development process of both the bank
• Extra facility or training (if any) for the foreign employee in case of
Standard Chartered Bank
• Other HRM practices of both the bank
Limitations
• As the interviewers were quite busy, so we had difficulty in interviewing
them as a result, more required information regarding the research
purpose was not collected.
• Lack of time, always a constraint as due to lack of information, other
information’s related to HRM practices is not sufficiently collected
• Also we were unable to provide more required information regarding the
topic as some of the information was confidential.
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12. Chapter Two
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13. Finding and Analysis
The similarities between the City (local) and Standard Chartered
(international) bank
Recruitment
Both the bank maintains the similar ways for recruiting. If they want to recruit,
they give advertisement in news paper and also in the internet in their own and
other job web side. But the main recruitment is made internally in the both bank.
Both the bank also recruits from employee reference. Another way they recruit is
taking eligible candidates from those who are doing internship.
Selection
In case of local bank those who applied, first they have to sit for a written
examination. Then few of them got initially selected and then finally in Viva the
required people are selected. In case of international bank the applicants give CV
to the bank and bank initially choose their desired candidate and call for viva
from where they finally select their employee. Both the bank also select employee
internally. Also some applicants were selected among the interns.
Organizational Hierarchy
Both the banks have vertical hierarchy as lots of different posts are there in both
the banks and so limited span of control.
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14. Organizational Relationship
Both the bank has very good relationship among the employees and call sir to
their seniors.
Training and development
When fresh candidates are taken, both the banks give three months training to
the freshers so that the new employee’s will find it easier to adjust with the
environment and know how the banks operate. Then training given at least once
in a year to every employee to increase their knowledge on products and other
issue so that they can motivate the consumer as well as the employee in building
up their career. Also when a senior post is empty, training is given to an
employee and then promoted to fill up the post. Both the banks also give
promotion based on the performance of the employees. Both banks has sales
target on the basis of which they work and commission given according to that.
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15. The difference between the City (local) and Standard Chartered
(international) bank
Recruitment
Only difference in recruitment is in case of local bank they recruit only domestic
candidates but in case of international bank they recruit both domestic and
international candidates.
Selection
In case of City bank their selection process is both written and viva but in case of
Standard Chartered bank only the viva foreign employee has to give to get
selected.
Organizational Relationship
In City bank the same level employees call each other ‘sir’ but in Standard
Chartered bank the same level employees call each other ‘brother’.
Training and development
In the Standard Chartered bank every employees have to give an examination in
each and every month while in City bank the employees doesn’t have to give
examination in each and every month. The Standard Chartered bank gives
commission depending on the performance of the monthly examination results
but in City bank, as there is no monthly exam so no such commission facility.
Foreign employee gets one more extra training regarding the local countries
culture which Standard Chartered Bank gives but City Bank doesn’t have to.
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16. Chapter Three
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17. Recommendations
Based on our findings, our recommendation is as follows:
• City Bank should also recruit foreign employees in order to develop their
network globally and also so that local employee will learn more about
the foreign environment.
• City Bank can also include monthly exam and give commissions in order
to motivate employee and also evaluate their performance regularly.
• Standard Chartered Bank should be careful about designing facilities in
case of both foreign and local bank so that it doesn’t vary much between
foreign and local employee in order to keep both grouped employee
satisfied.
• Sometime the target given to the employee regarding sale for getting
commission as their performance output is almost impossible to achieve.
So Standard Chartered Bank should give such a target which can be
achievable which will also make the employee motivated.
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18. Chapter Four
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19. Conclusion
Though both the City Bank and Standard Chartered Bank apply the similar HRM
practices like the recruitment, training etc. yet the difference between them is
clearly noticed according to expectation as domestic and international bank can’t
run in exactly the similar way, keeping in mind that both are bank. Mainly the
difference between the banks is the international factors like whatever the
difference, it is because one is domestic and another one is international. The
facilities vary in case of international as most of the foreign employee’s family
members live outside Bangladesh. Training is also given to them to adopt
Bangladesh’s culture and characteristics which domestic bank doesn’t have to
give as they hardly have any foreign employee. Other than the international
factors, the banks hardly have any other difference suggests that most banks
operate in a similar manner. Doesn’t matter whether bank is local or
international, bank mainly focuses on the basic issues of HRM by means of
recruitment, selection, training etc. in order to achieve the right number and kind
of people at the right place and at the right time for efficient performance of the
required tasks in order to achieve the organizational goals and objectives.
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