Various Functions of Investment Corporation of Bangladesh
Investment Corporation of Bangladesh (ICB) is a statutory corporation. It is mainly an investment bank. As an investment bank is a financial institution, which mobilized fund from the surplus economic units by savings securities and developed funds to the deficit economic unit also by buying or underwriting securities After liberation in view of social economic changes, the scope for private sector investment in the economy was kept limited by allowing investment in projects up to Tk. 25 lacs. The new investment policy, which was announced in July, 1972 provides for an expanded role of private sector by allowing investment in a project up to Tk. 3 crores. The ceiling has further being raised to Tk. 10 crores in spite of the adequate facilities and incentives provided to the private sectors encouraging response was not for the coming. One of the reasons among other was the lack of institutional facilities, which provides underwriting support (Like former ICB) to industrial enterprise that was required to raise much need equity fund. Thus, the need for reactivation for capital market, stock market was keenly feel.
The Investment Corporation of Bangladesh (ICB) was established on 1st October 1976, under “The Investment Corporation of Bangladesh Ordinance, 1976” (No. XL of 1976). The establishment of ICB was a major step in a series of measures undertaken by the Government to accelerate the pace of industrialization and to develop a well-organized and vibrant Capital Market particularly securities market in Bangladesh. ICB caters to the need of institutional support to meet the equity gap of the industrial enterprises. In view of the national policy of accelerating the rate of savings and investment to foster self-reliant economy, ICB assumes an indispensable and pivotal role. Though the enactment of the Investment Corporation of Bangladesh (Amendment) Act, 2000 (No. of XXIV of 2000), reforms in operational strategies and business polices have taken place by establishing and operating subsidiary companies under ICB.
Institutional Framework of ICB:
Investment Corporation of Bangladesh is a Corporate body as per section 3 of Investment Corporation of Bangladesh Ordinance, 1976 and deemed to be a banking company within the meaning of the Banking Companies Ordinance, 1962 (L VII of 1962). The shares of corporation are listed with the stock exchange. ICB is an authorized broker of DSE.
Objectives of ICB:
The objectives of the corporation are-
- To encourage and broaden the base of investments.
- To develop the capital market.
- To mobilize savings.
- To promote and establish subsidiaries for business development.
- To provide for matters ancillary thereto.
Business Policies of ICB:
The business policies of ICB in the following-
- To act on commercial consideration with due regard to the interest of industry, commerce, depositors, investors and to the public in general.
- To provide financial assistance to projects subject to their economic and commercial viability.
- To arrange consortium of financial institutions including Merchant banks to provide equity support to projects.
- To develop and encourage entrepreneurs.
- To diversify investments.
- To induce small and medium savers for investment in securities.
- To create employment opportunities.
- To encourage investment in Agro-based and ICT sectors.
Functions of ICB:
In order to achieve the previously mentioned objectives, the corporation may carryout the following functions-
- Direct purchase of shares and debentures including placement and equity participation.
- Participating in and financing of joint-ventures companies.
- Providing lease finance singly and through syndication.
- Managing existing Investor’s Accounts.
- Managing existing Mutual Funds and Unit Funds.
- Managing Portfolios.
- Conducting computer training program.
- Providing advance against ICB Unit and Mutual Fund certificates.
- To act as Trustee and Custodian.
- Providing Bank Guarantee.
- Providing investment counseling to investors.
- Participating in Government divestment program.
- Introducing new business products suiting market demand.
- Dealing in other matters related to Capital Market.
Businesses of ICB:
ICB is authorized to act as an agent of issuers and investors for private placement of securities. Under this arrangement, ICB places securities to individuals or institutions on behalf of the issuer for which it charges fees. ICB also acquires shares or securities for its own portfolios.
In order to raise long term debt equity from the primary market, the Government bodies, enterprises, corporation or companies may seek intermediary assistance from ICB in the form of underwriting. Because of its long and proven experience, reputation, asset back up and established network of regional offices, ICB is in an excellent position to attract the potential investors to the proposed issue of shares, debenture and other securities for successful floatation of IPO & placement.
Custodian and Bank to the Issues:
To act as the custodian to the public issue of open-end & mutual Funds, ICB provides professional services. It also acts as the Banker to the issues and provides similar services through the network of its branches. Fees in this regard are negotiable.
Merger and Acquisitions:
Companies willing to expand their business through mergers or acquisitions or to divest projects that no longer fit into present scale of operation contact the corporation. ICB provides professional services & advice in respect of shaping up the cost and financial structures to ensure best possible operation results.
Corporate Financial Advice:
Companies and Government enterprises intending to go public often seek professional & financial advice on corporate restructuring & reengineering. ICB through its expertise provide such services.
ICB provides lease finance mainly for machinery, equipment and transport. ICB is in a position to provide professional advice and financial to the intending clients. The period of lease, rental, and changes and other terms and conditions are determined on the basis of assets and the extent of assistance required by the applicants.
Advanced against ICB Mutual fund Certificates Scheme:
Advanced against ICB Mutual Fund Certificates Scheme was introduced in 2003, designed for the ICB Mutual Fund certificate holder to meet their emergency fund requirement. One can borrow maximum of 50% value of last one year’s weighted average market price of certificates at the time of borrowing by deposing his or her certificates under lien arrangement from any of the ICB’s offices. The rate of interest on the loan is reasonable and also competitive.
Bank Guarantee Scheme:
As part of ICB’s business diversification Program, the corporation introduced bank guarantee scheme during the year 2002-2003 ICB provides (i) bid bond for enabling the business people to participate in any tender or bidding, (ii) performance bond for helping the business community to continue their business smoothly by fulfilling their obligations promised by them to their clients, (iii) customs guarantee to solving different disagreements between the customs authority and the business classes at the initial stage. The maximum limit of guarantee is tk.2.00 Corer and would be issued against at least 20% cash and 820% easily excusable securities or against 100% cash margin. Re-guarantee from other financial institutional is required for guarantee against the amount exceeding Tk. 2.00 Corer.
ICB Mutual Fund:
ICB has so far floated eight close-ended Mutual Funds. The first ICB Mutual Funds was floated on 25 April 1980, while the Eight ICB Mutual Fund was floated on 23 July 1996. The aggregate size of these funds is Tk. 17.5 Corer. As on 30 June 2004, 33646 certificate holders own these funds. Dividends declared on the funds were very attractive ranging from 14.0 to 200.0 per certificate for 2003-2004. Investors show overwhelming interest in all the ICB mutual funds. One can invest in such funds through the stock exchanges with which these funds are listed. Through corporate restructuring, new mutual funds are being floated through “ICB Asset Management Company Ltd.” –a subsidiary of ICB.
ICB Unit Fund:
It is on open-end mutual fund scheme launched in April 1981, through which the small and medium savers get opportunities to invest their savings in a balanced and relatively low risk portfolio. ICB has so far declared attractive dividends on units every year ranging from Tk. 11.5 to Tk. 25.0 per unit. Investment in units enjoys tax benefits, amount being applicable as per law. However, under the ICB’s restructuring programmed new unit certificates are being sold by ICB’s subsidiary company, the ICB Asset Management Company Ltd.
The Investors’ Scheme was introduced in June 1977. Over the years, this scheme has grown tremendously. ICB, at its discretion, may grant up to two times loan against the assets of an account subject to a maximum limit of Tk. 3.0 lacs. An accountholder may use the combined balance of his or her equities and loan to buy shares or securities. To help the investors to develop diversified and balanced portfolio to minimize risk and earn a reasonable return, ICB provides professional advice and other support services. Under the restructuring Programmed, ICB operates and manages only the old accounts and new accounts are being opened and managed by the ICB Capital Management Ltd.-a subsidiary of ICB.
ICB’s Organizational Structure and Management
Institutional Framework of ICB:
Investment Corporation of Bangladesh is a corporate body as per section 3 of Investment Corporation of Bangladesh Ordinance, 1976 and deemed to be a banking company within the meaning of the Banking Companies Ordinance, 1962 (L VII of 1962). The shares of corporation are listed with the stock exchange. ICB is an authorized broker of DSE.
Regulatory Framework of ICB:
As the mentioned earlier the regulatory framework of ICB is the, Investment Corporation Bangladesh Ordinance, 1976. This ordinance and regulations laid under the authority of the ordinance is the source of all power and authority of ICB. Through the recent enactment of “The Investment corporation of Bangladesh (Amendment) Act, 200” (XXIV) of 2000, scope of ICB’s activities through the formation of subsidiaries have been expanded. In addition to these, to resume its duties and functions, it has to compel by Companies Act 1994, Trust Act 1882, Insurance Act 1983, Security and exchange commission Act 1993, banking companies Act 1993, Foreign exchange regulation 1974, Income Tax act etc.
It is to note that no provision of law relating to the winding up of companies or bank shall apply to the corporation and the corporation shall not be wound up save by order of the government and in such manner as it may direct.
Management of ICB:
The head office of the corporation as per the requirement of the ordinance of ICB is located at Dhaka. The general direction and superintendence of the corporation is created in a board of directors, which consist of 11 persons including the chairman and managing director of ICB. The board of directors consists of the following directors:
- The chairman to be appointed by the government.
- The directors to be appointed by the government from among persons serving under the government.
- One director to be nominated by the Bangladesh Bank.
- The managing directors, Bangladesh Shilpa Bank, Ex-Office.
- The managing directors, Bangladesh Shilpa Rin Sangstha, Ex-office.
- Four other directors to be elected by the share holders other than the government, BB, BSB, & BSRS.
- The managing directors of ICB to be appointed by the government. The board in discharging its functions acts on commercial consider rations with due regard to the interests of industry and commerce, investment climate, capital market, depositors, investors and to the public interest generally and is guided in question policy by the institutions, if any, given to by government which shall be sole judged as to whether a question is a questio9n of policy or not.
The managing director is the chief executive of the corporation. The corporation has an executive comprised of 5 people including managing director.
Administration, Human Resource:
Investment Corporation of Bangladesh (ICB) is providing different category of financial and banking services. Nature of the different division departments vary, such that Economic and Business Research (EBR) department requires teamwork, Lone Appraisal division requires professional work. Funds divisions need chain work. Managing director is entrusted with authority to transact the regular business of the organization; he may delegate some authority to officials of the Corporations. However, most of the policy decisions are taken by the different committee with the approval of managing director and where required of the board. it is the discretionary authority of the board to constitute the execute committee and to maintain its Chairman to assist the board in the discharging of the function stated under the ordinance. The board may appoint such other committee (s) as it thinks fit to assist it in the efficient discharge of its function. So far, board has appointed two such committees. Economic and Business Research (EBR) committee and Loan Appraisal committee is headed by General Manager.
The general direction and superintendence of corporation is created in a board of directors, which consists of clever (11) persons including the chairman and managing director of ICB. This is the most powerful board compare to other govt. financial institutions in terms of their experience and knowledge. The managing director is the chief executive of the organization. Two general managers assist him, viz. G.M. (Operation) and G.M. (Admin). Total manpower of ICB at present is 372, of which 241 were officers & 131 subordinate staff. As on 30 June 2005, the total numbers of female e4mployees were 54, including 43 officers, representing 14.52% of the total manpower.
Functions of various departments
This department deals with the human resources of the organizational makes the rules and regulation of the right person to the right place. The process may be held two ways:
- Direct recruitment
This department takes disciplinary action gradually to that employee who volutes the rules and regulation of the organization. This action is two types:
- Light punishment
- Heavy punishment the other functions of this department are as follows:
-To make necessary rules, regulations, policies for efficient administration of the corporation.
-To handle all personnel matters including confirmation, posting, transfer, fixation, leaves
-To process all promotion, time scale encashment
-To process registration, retirement cases, to deal with retirement benefits including gratuity, pension, provident funds e.t.c
– To handle national pay scale, fixation, increment e.t.c
– To explore more sources of financing of foreign training, to arrange seminar/symposia/ work shop where experts in the line may be invited to deliver lectures
– To procure training equipments and facilities for training manpower
– To deal with all matters relating to ICB employees Union and ICB officers Association.
This department deals with purchase and sales of office supplies, office equipment e.t.c. they also maintain the utility service like telephone bill, electricity bill e.t.c. this department dividends cost into two categories. These are:
- Revenue cost
- Fixed cost
For cost, depreciation is charged at a straight- line basis. There are two purchase commodities the purchase. There remains a quality control committee to examine the quality of the product purchased. For the purchase of products, this department gives tender offer to the listed suppliers. In case selling of scraps and wastage, the tender offer is also followed.
Department under merchandising division are showing in the following figure:
- Investor department
- Shares department
- Transaction department
The main task of investors department is to accumulate the investment of small and new investors of capital market by helping them open an investment account in the concern department. This department deals with investor’s scheme.
The following are the main functions of this department:
-open and maintain investment accounts
-sanction loans against deposits in investment account
– Buy and sale shares on behalf of investors
-Council investors in respect of building up their portfolios
-With draw funds and shares from investment accounts
-issue income tax certificates, portfolio statement, accounts statement e.t.c
-provide service to investment account holder
-collect commission as a banker to the issue and brokerage commission from the companies
-keep financial records of all investment account
-processing of withdrawal of funds
-confirm fund position of individual accounts and
-posting of all transaction
The shares act as the custodian of securities. These department facilities the physical transfer of shares. For performing the above mentioned activities share department is divided into five sections. These sections are:
-investors portfolio section
-sale and withdraw section
-funds portfolio section
-securities reconciliation section
Investors portfolio section:
This section deals with the purchase of shares in the investors account. The functions of this section are:
-receive shares from transaction department TDS for preservation
-send shares and debentures to the companies at the time of book closing
-receive shares and debentures from the companies after registration
-collect bonus or right shares and allocate to the accounts accordingly
Sales and Withdraw section
This section deals with the sale arid withdrawal of share from the investors account. It performs the following activities:
-receive sale or withdrawal order from investor department
-to examine the actual existence of securities
-to make arrangement for the signature of the attorney and filling up of 117 form and spitting up of share into market lot
-receiving of sale order from the securities purchase and sale committee
-delivering of sold securities to the TDS.
Securities reconciliation section
This section is concerned with the reconciliation of securities to check any discrepancy arise to the actual number and the amount in the accounts
This section is engaged with the collection of dividends interest etc. declared by the companies whose shares are held by ICB and its other accounts. This section update the statements related to book closure, dividend declaration etc. after collecting dividends, this department distributes it to the concerned shareholders and different portfolio.
Transaction department executes the sales and purchase order of shares of following different portfolios, ICB, Unit fund and Government portfolio and the order from investors of investment arid the order from ICB’s branches.
For the portfolio order the securities purchase and sale committee take decision every morning what share be bought and what should be sold for that day. The sale and purchase orders of the investors constitute demand for execution in this regard. Before execution in case of sale this department has to get aware about the physical existence of shares from the share department.
Department under funds divisions are showing in the following figure:
- Mutual Funds Department
- Unit Sales Department
- Unit Registration and Procurement Department
Mutual Funds Department
Broadly the functions of Mutual Funds Department consist of:
-act as manager of all mutual funds
-maintenance of ledger with the name, address and number of certificates along with distinct folio number for each mutual funds separately
-verify the signature of the share holders in the 117 forms
-preparation of dividend list from the ledger position
-Issue dividend warrants to the certificates
Distribution of final dividend warrants to the certificate holders after completing necessary formations
-incase of change of ownership of mutual funds certificate holder facilities the transfer process
-make arrangement for re-issue or duplicate copy of certificate in case of loss or damages of certificates
-receiving application for the change of address, correction of names and forwarding the same to the computer department
– Arrangement for splitting the share scraps as and when necessary in accordance with the stock exchange rules
Arrange for revalidating the date of payment of dividend on dividend warrants.
Unit Sale Department
ICB unit is an open end Mutual Fund through which the small and medium savers get opportunity to their savings in a balanced and the relatively low risk portfolio. It ensures continues and regularly flows of incomes for the holders and is easily excusable. The responsibility undertaken for managing the fund, management fee charges@ TK.1.00 per unit sold. Units are sold through ICB offices & other authorized bank branches. In lieu of cash dividend, one can reinvest his/her dividend income under Cumulative Investment Plan [CIP] to purchase additional units with a price rebate. ICB stopped selling of unit certificates form 1st day of July after the business operation starts of ICB Asset Management Company Limited. The main functions of this department are to sale, repurchase and transfer of unit certificates.
-act as manager of Unit Fund
-Promotion sales of Unit Certificates
-Sell & issue Unit Certificates to the applicants
-Repurchase Unit Certificates
-Issue new Unit Certificates in lieu of mutilated, lost or defaced Unit Certificates
-Reconcile the amount receive and Unit Certificates send to the agents
-Transfer the units if applied for the prescribed form
-Issue & distribution of CIP certificates
-Making of lien on units, if necessary
Unit Registration & Procurement Department
The following are the functions of this department:
-registration and transfer Unit Certificates
-maintain a separate register for unit holder under CIP
-verify signature of transfer deed
-issue dividend warrants and CIP certificates to the holders
-procure unit certificates of various denominations from the printing press
-issue Unit Certificates to ICB sale officers/branches as well as appointed bank branches.
Account and Finance Division
Departments under account and finance division are showing in the following figure:
Account and finance
- Central account department
- Project loan department
Central Account Department:
All kinds of receipts and payments of ICB are done by the Central Account Department. The bill of all departments end destination is account department. Account department holds and maintain all accounts separately. For this reason adjustment and rectification of any transaction of all departments become easier to this department. The functions of this department are to:
-preparing income tax return and matters relating to accounts
-preparing bills including projects accounts and maintenance of project accounts
-prepare salary statements, overtime statements e.t.c
-prepare final accounts
-keep accounts of Unit and Mutual funds
-Keep accounts of govt. loan and debentures
-make correspondence with the Government, financial institutions, branches e.t.c
-maintain liaison with external audit and commercial audit
-maintains of investors accounts and portfolio ledgers
-calculating of quarterly interests
-posting and balancing of ledgers
-furnishing of information to other departments related to investors scheme
-determine sources of fund, rising of fund ensure proper utilization of fund
-prepare fund flow statement of the corporation
-ensure proper budgetary and cost control
Project Loan Accounts Department:
The function of this department is to maintain project loan accounts and supply the management up to-date relevant information of the project. In addition to this the department is to:
-issue check to the project after getting disbursement order from the project implementation department and any recoverable amount in the disbursement.
-calculating interested on the disburse amount.
-maintain loan ledger, interest suspense ledger e.t.c
-classify the loan as per as rules and make appropriate provision
-prepare necessary statement related to project loan
-make necessary account adjustment for interest waved as per decision of authority
System analysis department
The main functions of this department are:
-system administration of the entire network setup
-performing system analysis wherever ICB feels the need for periodic change in computerization set up
-performing miscellaneous small hardware and software related servicing tasks on the many workstations, network system, server and other components and provide training to staff of other departments about computer usage
-any other assignment given by the management
The following are the main functions of this department are:
-developing new software for ICB
-customization the software developed in the present computerization phase according to the changes of the requirements of the ICB with time
-provide active assistance to the staff of system analysis department for training of the staff of other department about computer usage
-handling peak load of data entry and processing work for all other department of ICB
Data management department:
The following are the functions of this department:
-handling peak load of data entry and processing work for all other department of ICB
-any other assignment given by the management
Loan appraisal department:
ICB provide credit facilities to the public limited companies to meet heir equity gap.
There are two modes by which ICB provides credit facilities to the prospective public limited companies, through:
- Direct underwriting for BMRE and
- Underwriting through bridge financing
The main functions of loan appraisal department are:
Received investment proposal from sponsors
-place appraisal reports to the board
-apprise management on technical aspect of the projects
-prepare appraisal report on project appraisal committee
-issue sanction letters to the projects
-conduct meeting of the project appraisal committee
-To develop capital market
-placement of share and debenture
-participating in bond financing
-act as on debenture on behalf of the bondholder
Planning Research and Business Development:
In a simple term PRBD is the spokesman of ICB. Basically it is decision making decision. The major functions of this department are.
-to take part in the portfolio management decision
-collect information about OS Li, CS Li, public issue and half yearly accounts of the listed companies etc
-prepare and distribute annual report of ICB, Mutual funds and unit funds
-conduct meeting of the securities purchase and sales committee
-convey securities sales or purchase decisions to the merchandising division
-prepare 5 years performance appraisal reports of the listed companies
-prepare board memo regarding declaration of divisions on ICB’s own portfolio, unit and mutual fund
-make arrangement for offloading of government portion of shares in different companies and state owned institutions
-maintain liaison ministry of finance, Bangladesh Bank and provide ICB related information ton interested parties.
Public issue department:
Recently ICB has adopted certain strategic changes in sanctioning bridge loan to unsatisfactory recovery of loans sanctioned by corporation, bridge loan would only be considered for very selective sectors. Priority has given to direct underwriting, direct investment in debenture and equity participation through placement of share. The ultimate objective of providing direct underwriting and placement of shares is to help the projects to go for public issue.
Law department handles any kind of legal affairs of ICB. The functions of this department are as follows:
-prepare legal document, advance agreements, share agreements, demand promissory notes, memorandum and deposit of little etc.
-arrange exception of underwriting-cum-advance agreement, underwriting agreement and supplementary documents etc.
-process litigation cases, prepare legal notice and refer cases to legal advises and coordinate with legal advisor in court.
-prepare necessary memos for placement in the board meeting related litigation and legal affairs
-handle the legal issue related to employee’s loan facilities and other issues related to law.
Personnel department (PD) of ICB
Human resource or personnel department is very common term for every organization .organization can not perform well without practice of HRM. From establishment HRM practice of Bangladesh, ICB started its personnel department. ICB has two main wings. They are operation wing and administration wing. Administration wing has five divisions. They are administration, accounts and finance, legal affairs, implementation & recovery and branch & subsidiaries control division. Administration division has two departments. They are personnel department and establishment department.
Objectives of PD of ICB
Objectives are predetermined goals at which individual or group activity in an organization is aimed. The central focus for HR management must be on contributing to organizational success. The objectives of human resources department of ICB are given below:
- To maintain and sustain organizational peace. Without peace, prosperity is not possible. It is true for a nation as well as for a business organization. Without industrial peace, all resources remain under utilized.
- To improve the productive contribution of people to the organization. In a competitive environment, productivity improvement is very significant. Productivity is the function of ability and motivation. Training and education can improve ability. Excellent companies of USA also encourage productivity through people.
- To attract and secure appropriate people capable of performing effectively and efficiently the organization’s specific tasks. This is important for obtaining and sustaining competitive advantage.
- To generate maximum individual development of the people within the organization. Individuals get internally developed through training and experience.
- To recognize and satisfy individual needs.
- To maintain a high morale and better human relationship inside the organization.
Importance of HRM:
HRM involves all management decisions and practices that directly influence the people and human resources, who work for the organization. Obviously HRM is concern with the people’s dimension in organization. The core points are:
Hire the right person for the jobs:
Human resources management hires the right person for the specific job. Specialized people can done their specific work very properly then any other unspecialized people.
It reduces turnover, HRM look after the benefits, incentives, compensation, which results reduce the turnover.
Make the people of the organization do their best:
When an employee is more skilled & knowledgeable his devotion will be higher & his performance can give the benefits to the organization much effectively.
If wrong people are selected for organization than organization have to higher new one that is more time wasted process. But HRM practice can save this time by hiring the right person for the right job.
Avoid discriminatory actions:
HRM obey the discriminatory rule regarding on the employee rights.
Fair remuneration/ Compensation:
HRM determine the salary, wages & compensation fairly according on the basis of position, nature of the duty, responsibility, work time etc.
Identify training needs:
HRM decide the appropriate training for employee that is done by on the orientation or other ways can be on the job training & of the job training.
Lower unfair labor:
HRM fairly design compensation, so the person who is competent & who has requirement get the proper compensation.
Simply put, HRM is a management function that helps managers’ recruit, select, train and develops members for an organization obviously. HRM is concerned with people’s dimension in organization.
Human resources planning:
HRP systematically forecasts an organization future demand for & supply of employee. HR planning is also called to develop staffing plans that support the organizations strategy by allowing it to fill job openings proactively.
Recruitment & selection:
Recruitment is the process of finding & attracting capable applicants for employment. The process begins when new recruits are sought & ends when their applications are submitted. The result is a pool of applicants from which new employees are selected.
Placement decision is taken offer the selection process. This is the process of put the right person for the right place according to their skills & qualification.
Orientation & training:
Employee should be oriented about the organization. How the work is performed that process is called training. It’s the teaching about gaining the practical knowledge.
Performance evaluation is a way to measure how well employees perform his work. That is important for increase the effectiveness of the employee’s performance.
Compensation & protection:
Employee should be compensated by the wages, salary & fairly. If the compensation is too low then employee face dissatisfaction & if the compensation is too high than it could be against of company low. Deciding appropriate compensation can motivate the employee’s performance.
Employee relation & assessment:
It maintains the relationship between whole unions of organization & assesses the work activities.
There are very few government owned organizations in Bangladesh that can earn profit. Investment Corporation of Bangladesh (ICB) is one of them. It was established in 1976 with the objective of encouraging and broadening the base of industrial investment. I have completed my internship program in this organization.
Human Resource Management is the set of activities directed at attracting, developing, and maintaining the effective work force necessary to active a firm’s objective. HRM deals with the design of formal systems in an organization to ensure the effective and efficient use of Human talents to accomplish organizational goals. Investment Corporation of Bangladesh (ICB) has a human resource department, which is called Personnel Department (PD)
It is true that human resources management is a complex and rapidly developing field of practice in Bangladesh. The PD of ICB tries their best to perform their functions successfully. But their tools and techniques of managing human resources are too much traditional so that they can not perform properly.