Job Satisfaction of the Employee of Mercantile Bank Limited

Main objective of this report is to analysis Job Satisfaction of the Employee of Mercantile Bank Limited. Other objectives are to explain the motivational programmers undertaken by the employer and measure the performance and productivity of the bank through CAMELS rating, risk analysis. Finally identify the credit approval, their securities and monitoring process of Mercantile Bank Limited also identify the amount of outstanding credits and disbursement.


Mercantile bank was established in June 2, 1999 as a private commercial bank and started its operation. The total amount of loan been provided was 47669.29 till 2005 its main investing projects are business, garments, micro credit, construction and others. Activates of this project are quit satisfactory. Import-from the beginning of the bank it has been evolve in foreign exchange to help the countries international trade. Its capital was 58325.20 million till 2005 till December. The activities of the General Banking Department of MBL are mainly divided into the following categories: Account Opening Section, Local Remittance Section, Deposit Schemes Section, Accounts Section, Clearing Section, Collection Section, and Cash Section. Foreign Exchange Department is an international department of the bank. It deals with globally and facilities international trade through its various modes of services. It bridges between importers and exporters.

Bangladesh Bank issues license to scheduled banks to deal with foreign exchange. These banks are known as Authorized Dealers. If the branch is authorized dealer in foreign exchange market, it can remit foreign exchange from local country to foreign country. This department mainly deals with foreign currency. This is why this department is called foreign exchange department. MBL Foreign exchange department started foreign exchange operation three years ago it deals in – Operates import, Operates export, foreign remittance. One of the primary functions of commercial banks is the sanctioning of credit to borrowers. Bank credit is a catalyst for bringing about economic development. Without adequate finance there can be no growth or maintenance of a stable output. Bank lending is important to the economy, for it makes possible the financing of agriculture, commercial, and industrial activities of a nation. At the same time, a bank will, therefore, distribute its funds among various assets in a manner as to derive sufficient income. Various Credit Schemes of MBL are Consumers Credit Scheme (CCS), Car Loan Scheme, Doctors Credit Scheme, Rural Development Scheme, Lease Financing, Personal Loan, Small Loan.


Objective of the study

In order to conduct a worthwhile report preparation of BCBL, it is necessary to go through the profiles of the banks under study. This study aims at analyzing the whole banking in view of commercial bank. Consequently, the study will mainly describe the procedure, system, methods and briefly define the current condition – truly to my sense of perception. It will also contain inputs of my personal findings and/or acuity.

The objectives of the study are as follows:

Wider Objective
  • To get an idea about the overall activities of BCBL and make an industry analysis on the banking sector of Bangladesh.
  • To identify the job satisfaction of the employee of BCBL.

Specific Objective

  • To see the level of job satisfaction of the employee of BCBL
  • To examine the motivational programmers undertaken by the employer.
  • To be acquainted with the background of the bank.
  • To fulfill the partial requirement of the BBA program.
  • To measure the performance and productivity of the bank through CAMELS rating, risk
  • To identify the credit approval, their securities and monitoring process of Mercantile Bank Limited
  • To identify the amount of outstanding credits and disbursement.
  • To identify the different sectors that have or had been provided the different credit facilities and also to identify sectors getting highest or lowest credit facility and. reasons behind for this.
  • To identify the classified loans of different sectors in the last several years and analyzing the changes that had been occurred to them
  • To identify the default problem and its reason of the BCBL.
  • To relevant rules, regulations, theories and practices for banking;
  • To identify the strength, weakness, and critical risk factors of BCBL.


Business roles of  Mercantile Bank Limited:

  • Achieve business vision through quality and customer acceptance by providing financial services.
  • Maintain highest ethical standards in every aspect.
  • Customer focus – a perspective of quality throughout:
  • The entire organization or each department and bank.
  • All processes, systems and services.
  • Compliance – with regulatory requirements.
  • Added valuethrough continuous improvements to benefit customers and the bank.

Roles to the customers

Although, Mercantile Bank Limited is new in the Banking industry, it tries its best to satisfy its customer through developing the efficiency of its function and to reach its ultimate goal of: Winning client Satisfaction. Customer can enjoy withdrawal, transfer and pay utility bills from anywhere in Bangladesh from any of the thirteen branches. More over the bank has started PC banking facility to reduce the time to deliver the service to its customer. Moreover, it charges competitive rate of service to its customers.

Roles to the community

Mercantile Bank Limited performs its roles for the community through:

  • Contributing to higher education (Education Credit scheme).
  • Promoting local industry.
  • Overall development activities through different kind of scheme.


Mercantile Bank Limited does not believe in the traditional banking, it still believes Islamic System Base banking. It tries to increase and maintain its market share in the private banking sector through two types of control techniques:

  • Feed Forward Control.
  • Feedback Control.

Feedback control technique monitor output of a process and feed into the system to obtain desired outputs. On the other hand feed forward control technique monitor inputs into a process to ascertain weather these are as planned; if they are not, the inputs are changed in order to get the desired result.

Roles towards ethics and society

Mercantile Bank Limited strongly believes in banking ethics and social responsibilities. It is fully devoted to fulfilling the satisfaction of the customer as well as it employees. It performs its social responsibilities through involving in different type of social development activities to develop the socio-economy of the country.


Divisions of MBL.

The Head Office of Mercantile Bank has nine major divisions and each comprising of various departments. The major divisions in the Head Office are as follows:

Investment Division

This division has the authority to determine the party or the client who will get the credit facility from the bank. The credit clients are selected according to the criteria of credit policy. This division has the fu]l authority to take any decision against or favor the client and these divisional works is supported by the Credit Services Division.

Financial Administration Division

This division can handle the credit proposal, disbursement, monitoring and credit recovery position that is given by all branches. Each branch has their own credit division and all branch-wise activities are reported to the head office credit services division.

Audit & Inspection Division, H.O

This division can control all the financial position, activities of overall organization. They provide the total budgetary limitation to every department for the respective year. They also carry out the financing activities with the access and operational activities.


Marketing & Public Relation Division

This division mainly works for

  • To improve the marketing network through out the country
  • To implement the marketing strategies and the concept of Trade Marketing
  • To improve the procedure which is ultimately provide date regarding to competition and relative market.
  • To arrange several workshop and seminar which can improve the quality of existing officers.

 Common Services Division

This division can handle all the general activities except the credit and financial sector. All the administration activities are designed and implemented by this division.

Human Resource Division (HRD)

This division deals with the employees as the core resources of the organization. They mainly emphasize on the recruitment of employees and the employee benefits & services. And, the main philosophy is to motivate the employee to work with efficiently and effectively.

Computer It Division (IT)

This division can handle the IT activities. Each branch has their own IT division and all branch-wise activities are reported to the head office IT division


General Banking

In fact, bank operates with the people’s money. And this process starts with the General Banking department. The activities of the General Banking Department of MBL are mainly divided into the following categories:

  • Account Opening Section,
  • Local Remittance Section,
  • Deposit Schemes Section,
  • Accounts Section,
  • Clearing Section,
  • Collection Section,
  • Cash Section,

Account Opening System

The relationship between Banker and customer begins with the opening of an account by the customer. Opening of a account binds the Banker and customer into contractual relationship. But selection of customer for opening an account is very crucial for a Bank. In fact, fraud and forgery of all kinds start by opening account. So, the Bank should take extreme caution in its selection.

Types of Account:

  • Saving Account
  • Current Account
  • Fixed Deposit Account
  • Short Term Deposit (STD) Account
  • DPS Account

Documents Necessary To Opening An Account

  • Account opening form dully filled up.
  • Two copies of passport sdize photographs.
  • Mandate or authority form filled up for opening an individual, proprietorship is to be obtained if a customer want to authorize another person to operate an account on behalf of him.
  • Citizenship Certificate.


Documents Needed For Each Account

Current / Savings Deposit account:

Introduction of the applicant by a current account holder of this branch.

Proprietorship Firm

  • Name of authorized persons, designation, specimen signature card.
  • Trade licence.
  • Passport (if there is no introducer)
  • Citizenship Certificate

Partnership Firm

  • Account must be opened in the name of the firm.
  • Thre form should describe the names and addresses of all partners.
  • Partnership deed is required.
  • Trade licence from city corporation is needed.
  • Letter of authority is achieved.

Limited Company:

  • Certificate of incorporation
  • Certificate of Commencement of Business (In case of Public Limited Company only.)
  • Form XII. (List of all Directors, Designation, Address, Specimen Signature)
  • Memorandum of Association
  • Article of Association
  • Power of attorney.
  • Resolution of the Board of Directors authorizing opening of an account.


Other than above mentioned common documents resolution of who will operate the account must be noted.


Current Account

It is purely a demand deposit account. There is no restriction on withdrawing money from this account. As many withdrawals are allowed the customers. It is suitable when funds are to be collected and money is to be paid away at frequent interval. Current Account is most suitable for private individuals, traders, merchants, importers and exporters, mill and factory owners, limited company’s etc. For opening of a Current Account minimum deposit of TK.1000/- is required along with introductory reference. No interest is given the Current Account deposited money.

The following points are important,

  • A current account is a running and active account, which may be operated upon any number of times during a working day. There is no restriction on the number and the amount o0f withdrawals from a current account.
  • The Banker is under an obligation to repay these deposits on demand, so they are called demand liabilities of a Banker.
  • The primary objective of current account is to save big customers as businessmen, join stock companies, public authorities, etc. from risk of handling a lot of cash themselves.
  • The cost of providing current account facilities is considerable to the Bank since they undertake to make payments and collect the bills, drafts, cheques, for any number of times daily. The Bank is, therefore, do not pay interest on current deposits while on the other hand, some Banks charge for incidental charges on such accounts.
  • The Bank provides overdraft facilities also in certain cases


Savings Account

This deposit is primarily for small-scale savers. The main object of this account is promotion of thrift. Hence there is restriction on withdrawals in a month. Heavy withdrawals are permitted only against prior notice.


  • Any Bangladeshi National residing home or abroad may open savings account with BCBL
  • This account may be opened in single/joint name.
  • Minimum amount of TK.500.00 is required as initial deposit.
  • Frequent withdrawal is not encouraged
  • Normally withdrawal not allowed more than ¼ th of the balance with maximum of TK.1000/- in a week.
  • 7 days notice is required for withdrawal of large amount.
  • The rate of interest is 7.75% against S.B Account.

Requirement for opening of the A/c.

  • Account opening form as per format below. The account opening form and signature card to be filled in and duly signed.
  • Two copies passport size photographs of the account holder.
  • Photograph of nominee (if any) duly attested by the account holder.
  • Photocopy of the 1st 7 pages of the passport for non-resident Bangladeshi national.
  • Signature in the account opening form/card must be same with the signature of the passport.


Fixed Deposit Account

It is popularly known as “Time Deposit”. Because these deposits are not repayable on demand but they are withdraw able subject to a period of notice. The prospective fixed deposit holder is expected to fill up an application form prescribed for the purpose, stating the amount and the period of deposit. The application itself contains the rules and regulations of the deposit including the space for specimen signature.


  • Payment made on expiry of agreed period.
  • Payment demanded before expiry of agreed date then Penalty is charged.
  • Introducer is not needed.
  • Copies of Party and 2 copies of Nominees photograph are needed.
  • Loan is sanctioned against FDR.

Interest Rate:  Rate of Interest is varies on the period of maturity date.

DurationRate of Interest
3 months8.75%
6 months9.00%
12 months9.25%
24 months9.50%
36 months10.00%


STD & DPS Account

  • STD Account

Short Term Deposit or STD Account opening procedure is similar to that of the Saving Account. The rate of interest on this type of account is 6% per annum.

  • Deposit Pension Scheme Account (DPS)

DPS is a pension scheme, which was recommended by the Government in the eighties. Now day’s banks are reluctant to open such an account because the Government is not showing its interest any more. The Branch is only maintaining those accounts opened previously… The interest rate on this account is 15% per annum. A Depositor can open any Deposit Pension Account for deposit of TK.100/-, TK.200/-, TK.300/-, TK.400/-, and TK.500/- in each month. And for this the depositor will have to deposit the specified amount of money by the 8th day of each month either in cash or in cheque. The depositor of this account can select more than one nominee for claiming the deposited money after his death. A depositor can withdraw the total amount of deposit (Principal + Interest) at a time after a specific period of 10 or 20 years.


Documents given to the account holders

After all the account opening formalities have been completed, Bank opens an account in the name if the applicant. Bank then provides customers with –

  • Deposit Slip.
  • A cheque Book.

Issuing Cheque Book To The Customer

Issuing cheque book (For new account)

  • When a new account is opened and the customer deposits the minimum required money in the account the account opening form is sent for issuance of a cheque book
  • Respected Officer first draw a cheque book kept under his own disposal. He / she then sealed it with branch name.
  • He / she enters the number of the cheque book in cheque Issue Register. He / she also writes down the name of the customer and the account number in the same Register.
  • Account number is then writing down on the face of the cheque book and on every leaf of the cheque book including Requisition Slip.
  • The name of the customer is also written down on the face of the Cheque book and on the Requisition slip.
  • The word “Issued on” along with the date of issuance is written down on the requisition slip.
  • Number of cheque book and date of issuance is also written on the application form.
  • Next, the customer is asked to sign in the cheque book issue register.
  • Then the respected officer signs on the face of the requisition slip put his initial in the register and hand over the cheque to the customer.

Issuance of Cheque Book (Old Account)

All the procedure for issuing a new cheque book for old account is same as the procedure of new account. Only difference is that customer have to submit the requisition slip of the old cheque book with date, signature and his/her address. Computer posting is then given to the requisition slip to know the position of account and to know how many leaf/leaves still not used.  The number of new cheque book is entered on the back of the old requisition slip and is signed by the officer.

  • If the cheque is handed over to any other person then the account holder an acknowledgement slip is issued by the bank addressing the account holder with details of the cheque book. This acknowledgement slip must be signed by the account holder and returned to the bank. Otherwise the bank will not honor any cheque from this cheque book.
  • At the end of the day all the requisition slips and application forms are sent to the computer section to give entry to these new cheques.


Transfer of an Account

When an account is transferred from one office to another, the account opening form etc. signed at the time of opening account and any forms or documents signed subsequently which are necessary for its proper conduct at the time of transfer, must be forwarded under cover of form, to the office to which the account is transferred together with the relative mail transfer, specimen signature card(s) and standing instruction if any, no exchange should be charged on such transfer. Attention is also invited in this connection.

As far as possible, the fullest, information regarding the character, means and standing of the constituents and the way to the account has been conducted must be given to the receiving office.

A banker can close the account of his customer or justifies the stoppage of the operation of the Account under following considerable circumstances: —

  • Notice given by the customer himself.
  • Death of customer.
  • Customer’s insanity and insolvency.
  • Order of the court.
  • An application to close the account from customer is received.
  • Signature is verified
  • Draw amount from the A/C keeping TK 200 for Savings and TK 500 fo Current A/C as closng charge.
  • Cheque book is destroyed.

Remittance  Department

A lot of cash handling from one place to another risky. So, Bank remits funds on behalf of the customers to save them from any awkward happening through the network of their branches. There are three modes of remitting money from one place to another. These are –

  1. Pay Order (PO)
  2. Demand Draft (DD)
  3. Telegraphic Transfer (TT)
  4. Mail Transfer (MT)

Pay order

A pay order (P.O) is an instrument from one branch to another of the same Bank to pay a certain sum of money to the person thereon or to his order. Unlike cheque, there is no possibility of dishonoring pay order because before issuing P.O Bank takes out money of the pay order in advance.

Reasons for issuing P.O

  • Remittance purpose
  • Advices pay
  • Payment against bill submitted to the Bank

MBL charges commission on the following rate—

  • For Tk. 1 to 100000, the commission is Tk.25.
  • For Tk. 100000 to 500000, the commission s Tk. 60.
  • For Tk 500000 to above, the commission is Tk. 75.

Following procedure is maintained for the issuance of PO:

  • Customer is supplied with PO
  • After filling the form the customer pays the money in cash or by cheque.
  • The concerned officer then issues PO on its specific block.
  • This block has three parts, one for bank and other two for the customer. ‘A/C Payee’ crossing is sealed on all Pay Orders issued by the bank.
  • The officer then writes down the number of the PO block on the PO
  • Two authorized officers sign the block.
  • At the end customer is provided with the two parts of the block after signing on the back of the bank’s part.


Demand draft

Demand Draft (DD) is issued in favor of a customer who maintains an A/c with this branch. It can be issued against Cash, Cheque etc. If DD amount is more than Tk 20,000, a text code is given on IBCA.

Issuing of Demand Draft (D.D)   

  • Customer is supplied with DD/MT form.
  • Customer fill up the form which includes the name of the Drawer, name of the Payee, amount of money to be sent, exchange, name of the branch, signature and address of the drawer.
  • The customer may pay in cash or by transferring the amount from his/her account (if any).
  • After the money is paid and the form is sealed and signed accordingly it is given to the DD issuing desk.
  • Upon receiving the form concerned officer issue a DD on a particular block.
  • DD block has two parts, one for bank and another for customer.
  • Bank’s part contains issuing date, drawer’s name, payee’s name, sum of the money and name of the drawee branch. Customer’s part contains issuing date, name of the payee, sum of the money and name of the drawee branch.

After furnishing all the required information entry of the DD is given in the DD/MT issue register and at same time bank issue a DD confirmation slip addressing the drawee branch. This confirmation slip is entered into the DD advice issue register and a number is put on the confirmation slip from the same register. Later on the bank mails this slip to the drawee branch.


Duplicate DD

In some cases, it may happen that the DD is lost and reported to the concerned Branches. In this case, issuing Branch will communicate with the paying Branch and will obtain confirmation regarding non-payment of  the DD & Paying Branch will exercise cautions  against  payment  of   DD  including caution marking on the respective DD  Advice  with the words “Care Reported Lost” issuing Branch will then issue a  duplicate  DD on obtaining of  indemnity bond from the Applicant signed by two persons known to the Bank as Sureties. In such case, duplicate DD be marked with the words



Issuing of Demand Draft:

  • Customer is supplied with DD/MT form.
  • Customer fills up the form, which includes the name of the Drawer, name of the Payee, amount of money to be sent, exchange, name of the Drawee branch, signature and address of the drawer.
  • The customer may pay in cash or by transferring the amount from his/her account (if any).
  • After the money is paid and the form is sealed and signed accordingly it is given to the DD issuing desk.
  • Upon receiving the form concerned officer issue a DD on a particular block.
  • DD block has two parts, one for bank and another for customer.
  • Bank’s part contains issuing date, drawer’s name, payee’s name, sum of the money and name of the drawee branch. Customer’s part contains issuing date, name of the payee, sum of the money and name of the drawee branch.


Telegraphic Transfer (TT)

Telegraphic Transfer is effected by telegram, telephone, telex or Fax as desired by the remitter. Transfer of funds by telegraph is the most rapid and convenient but expensive method. The drawer and the payee should have accounts with MBL. TT is issued against cash, cheque, and letter of instruction.


Tk 25 or 0.15% of the principle, which is higher.

Issuing of Telegraphic Transfer (T.T)

  • Customer fills up the TT form and pays the amount along with commission in cash or by cheque.
  • The respected officer issues a cost memo after receiving the TT form with payment seal, then signs it and at last give it to the customer.
  • Next a TT confirmation slip is issued and its entry is given in the TT issue register.
  • A test number is also put on the face of the slip. Two authorized officer signs this slip.
  • Telex operator then transfers the message to the drawee branch mentioning the amount, name of the payee, and name of the issuing branch, date and test number.
  • The confirmation slip is send by post.

Payment of Telegraphic Transfer (T.T)

  • When a TT arrives through telex it is sent to the respected officer for the verification of the test number. If the test number is OK, the officers write down “Test Agreed” on it and sign it. Otherwise a message is sent back to the issuing branch for the correction of the test number.
  • After agreeing the test the branch issues a debit voucher and accredit voucher – debiting the issuing branch and crediting the payees’ account. Branch also issues a credit advice slip addressing the payee informing him/her about the arrival of the money.
  • Later, when the confirmation slip arrives the contra date, on which the payment was made, is put on it and the officer sign it.


Mail Transfer (M.T)

It is a non-negotiable instrument and generally is not handed over to the customer rather sent through post office to the concerned Branch for credit to the perspective amount. When the transfer of fund from one branch to another takes place by mail but most of the time over telephone, it is called MT. The process of TT and MT is almost identical, only difference is the media. Procedures of issuing and payment of an MT is discussed below:

Issuing of Mail Transfer (M.T)

  • Customer is provided with the MT form.
  • Customer fills up the form, deposits the amount to be sent along with exchange and mail or telephone charge.
  • A cash memo is then issued in favor of the customer mentioning the amount paid by the customer, name of the drawee branch, name and account number of the payee and the date. The officer then signs it and gives it to the customer.
  • An MT is then issued on a prescribed block, known as the MT block. Two authorized officers sign it and a test number is put on it.
  • The number of MT is entered into the MT issue register along with other details, such as name of the drawee branch, name of the payee, date of issuance, amount, and exchange, name of the drawer and test number.
  • If it is to be sent by mail then the branch mail it by normal post or by courier, depending on drawers’ request.
  • If it is to be sent over telephone, the message is sent over telephone with test number as soon as possible and the following sentence is written on the MT block –“Message is conveyed over telephone”.
  • This block is then sent by the mail.

Payment of Mail Transfer (M.T)

  • When the branch receives an MT over phone or telex the test number is checked.
  • If the test is OK the MT is given entry in the DD/MT advice register.
  • A credit voucher is issued on the same time – debiting the issuing branch and crediting the payees’ account.
  • Later on when the branch receives the MT block it checks in the MT advice register to see whether the payment is made or not. If it is paid on then contra date is put on the block and it is vouched.
  • If it is not paid on before, then it is entered in the MT advice register and payment is made to the respective payee.


Cash Section

Cash section is a very sensitive organ of the branch and handle with extra care. I was not authorized to deal in this section because of its sensitivity. But I was fortunate enough to know the procedures of this section. Operation of this section begins at the start of the banking hour. Cash officer begins his/her transaction with taking money from the vault, known as the opening cash balance. Vault is kept in a much secured room. Keys to the room are kept under control of cash officer and branch in charge. The amount of opening cash balance is entered into a register. After whole days’ transaction, the surplus money remain in the cash counter is put back in the vault and known as the closing balance. Money is received and paid in this section.

Cash Receipt:

  • At first the depositor fills up the Deposit in Slip. There are two types of deposit in slip in this branch. One for saving account and another for current account.
  • After filling the required deposit in slip, depositor deposits the money.
  • Officers at the cash counter receives the money, count it, enter the amount of money in the scroll register kept at the counter, seal the deposit in slip and sign on it with date.
  • Then this slip is passed to another officer who enters the scroll number given by the cash counter in his/her register along with the amount of the money, sign the slip and keep the banks’ part of the slip. Other part is given to the depositor.
  • All deposits of saving account are maintained by one officer and other accounts by another officer.
  • At the end of the day entries of both of these registers are cross checked with the register kept at the cash counter to see whether the transactions are correct or not.

Cash Payment:

  • When a person comes to the bank to cash a cheque, (s) he first gives it to the computer desk to know the position of the check and posting of the cheque. If the account has sufficient fund the computer in charge will post it into the computer, will sign it and seal it.
  • This cheque is then sent to the concerned officer. There are two officers who verify the cheques – one for savings and similar types of account and another for current and similar types of account.
  • After receiving the cheque respected officer first checks it very carefully for any kind of fraudulent activity. He also checks the date of the cheque, amount in word, amount in figure and signature of the drawer.
  • If the instrument is free of all kind of error the respected officer will ask the bearer to sign on the back of it.
  • He will then put his/her initial beside the bearers’ signature.He will also sign it on its face, will write down the amount by red pen and will put on a scroll number from his/her scroll register.
  • Then the cheque will be sent to the cash counter. At the cash counter bearer will be asked again to sign on the back of the instrument. The cash officer will then enter the scroll number in his/her register and will pay the money to the bearer.
  • At the end of the day these scroll numbers of the registers will be compared to ensure the correctness of the entries.


HR Programmes in MBL

HR programmes which taken up comprehensively lead to the complete and satisfactory implementation of the HR system. MBL may broadly identify five clear programmes:

HR planning involving:

  • Forecasting manpower needs
  • Forecasting manpower supply both within and without the organization.
  • Arriving at a net plus or minus position.
  • Initiating required politics and steps.

HR information system involving:

  • Creation of a wide database for up-to-date information on all aspects.

HR development involving:

  • Career management.
  • Skill up gradation.

HR relationship involving:

  • Dealing with individual and collective problems.
  • Negotiation with trade unions and staff associations
  • Attempts to increase cooperation and trust and increase employee involvement.

HR utilization involving:

  • Attempting to increase relationship with customers.
  • Method study
  • Work study
  • Job analysis
  • Job enrichment etc.


Components of HRM in MBL

Components of HRM: The major components of HRM in Mercantile Bank Limited are:

  • Human Resources Planning
  • Recruitment, Screening and Selection
  • Training and Development
  • Performance Appraisal and Promotion
  • Job Analysis and Design
  • Organizational Culture

Human Resource Planning of MBL

HR planning is in effect, a systematic approach to ensure that the right people will be in the right place at the right time. It may be looked upon as a strategy for the acquisition, utilization, improvement and preservation of an enterprise’s human resources.  HRD of MBL always concern about the HR planning. The HR division emphasis the most valuable planning for acquiring the most efficient and honest personnel who will contribute to the bank. Like other organization MBL created a good Human Resource Planning.

Objectives of the HR planning of MBL

  • Planning and control
  • Realization of organizational goals
  • Existing deployment, Creating and maintaining inventory
  • Adjust with the external environment.
  • Help organization to meet the goal through mission, vision, structure and objectives.
  • Ensure the right people in right place.
  • Reduce the labor costs, Utilize employee capabilities effectively
  • Establish employment equity goals.
  • To develop recruitment tools and strategies that attracts and promotes faculty and staff from diverse groups who enhance the reputation and distinctiveness.



Recruitment and Placement Process of MBL


Mercantile Bank Limited (MBL) is committed to have best possible stuff and to retain them through continuous development. The organization believes in integrity and merit for its employees who have the potential to enhance and utilizes their skills and knowledge. MBL fully supports the philosophy of non-discrimination in employment.

Job Analysis

Jobs are the building blocks of the structure of any organization. Jobs can be sources of psychological stress and even mental stress and physical impairment.

The process of determining the tasks that make up a job and the skills, abilities, and responsibilities needed to perform the job. Knowledge about jobs and their requirements are collected through a process of job analysis. Simply stated, job analysis is a procedure for obtaining pertinent job information.

Job analysis consists of three distinct components, which are:

  1. Job description
  2. Job specification and
  3. Job performance standards

So, Job Description + Job specification + Job Performance Standards = Job Analysis.

The new job description and job specification as well as job performance standard will increase management’s understanding and involvement in determining the level of responsibility attached to each job.  MBL always follow the HR procedures and that’s why the organization analysis the job carefully and this job analysis involves in the following steps:

  • Determine the use of job analysis information
  • Collect background information
  • Select the positions to be analyzed
  • Collect job analysis data
  • Review information with participants
  • Develop a job description and job specification


Performance Appraisal Process.

Performance appraisal process is important for any organization to its human resource department. MBL’s human resource department evaluates the employee performance in a effective way so that the HRD examine the employee’s skills, performance, abilities and professional competencies. The HRD department always monitors employee’s previous and current performance records.

Procedure of Performance Appraisal

Employee performance appraisal of MBL is different from other banking organization. The performance appraisal of MBL comprises two parts which are included the following content:

  • Part I: Personal Data, Educational Qualification, Job History, Training and Workshop, Promotion and Reward Record.
  • Part II: Personal Traits, Subject Rating (Personal aspect, Business aspect, Business Performance etc).

Evaluation system

Probationary officer and Officer are evaluated the following grading system:

Grade A: 85% or above marks obtained is recognized as an outstanding performance. Grade “A” is conferred for scoring that marks.

Grade B:  75% – 84% marks obtained is recognized as a very good competent employee and consequently Grade “B” is bestowed for obtaining that marks.

Grade C : The employees whose obtain 74% -65% marks they got grade “C” which is accepted as  competent employee.

Grade D : Grade “D” is given who obtained 55%-64% marks and they are recognized as incompetent employee.


Employee Welfare and Benefit.

MBL offer ample benefit and welfare to its employee. Because HRD of MBL believes that human resource is the heart of an organization. So if the employee gets proper financial support and other facilities they will be motivated as well as the workforce will be faster. Employee of MBL gets the following benefits:

  1. Transport Investment Scheme: The top-level officer gets these facilities. The bank provides the car under transport investment scheme.
  1. Housing Investment Scheme: In housing investment scheme, the employee can make arrangement for comfortable accommodation. MBL provide financial support to its employee through investment scheme.
  1. Provident Fund: The bank will cause to be established and maintained in the bank the fund by contributors to be made partly by the members and partly by the bank in accordance with the provisions of the rule.
  1. Recreational Pay and Tour: The employee of MBL gets recreational facilities and a handsome amount is paid to the employees for this recreation and also the employee get 15 days leave. The annual picnic is arranged every year at branch wise where employees of MBL participate.
  1. Leave Facilities: The employees of MBL get casual leave, recreational leave, festival leaves etc.
  1. Rewarding: HRD arrange reward ceremony for the talent and best employee among all the branches. The rewarding ceremony is organized once in a year. Handsome cash with certificate is endowed and these rewarding programs is arranged by HR department of MBL.
  1. Reimbursement Benefit: If any employee occurs severe injured or death then HRD gives one time big amount of money to that employee’s family.


Job Satisfaction.

General Job satisfaction means better quality of life, better health    (both mental and physical) mirror job stability and probable greater co-operativeness. The fast steps toward improving job satisfaction are determining its causes and correlates. Compared job satisfaction with the river system stated that “the picture we present resembles the path     of a major river system in which rain falls on the terrain through out the river basin and dissolves particles of soil and rock, a process that corresponds to the actual events the person experience.

AT the area of operational research are greatly over looked in the country’s hospital of systems, low salaries, limited promotions, few paths, restricted research choice and insufficient training, lack of access to information, inadequate support staff and weak infrastructure.


Background information of Job Satisfaction:

The idea of job satisfaction is not new it is the result of an interaction between the person and his environment. In  1939, Roetheisberger and Dickson wrote that workers attitude towards objective in the work environment can be referred the relation between and organism and its physical environment likert (1961) observed “The subordinated reaction to the supervisory act as perceived by the subordinates” Rosen and Rosedin (1955) view job satisfaction as on consequence of discrepancy between percepts and value standards.

Specific aspects of the Job:

Job contents, working conditions co-workers, job status, wage, salary, supervisory, promotion job security, communication, organization structure and limit, management and work schedule, rewards and recognition.

There are three important dimensions to job satisfaction.

First, job satisfaction is an emotional response to a job situation. As, such, it cannot be seen; it can only bi inferred

Second, job satisfaction is often determined by how well out comes meet or exceed expectations

Third, job satisfaction represents several related attitudes Smith Kendall, and Hulling have suggested that there are five job dimensions that represent the most important characteristics of a job about which people have affective responses.

  • Pay
  • The work itself
  • Promotion opportunities
  • Supervision
  • co-worker.


Outcomes of Job Satisfaction:

Job satisfaction in and of it is a desirable out come. However, from a pragmatic management and organizational effectiveness perspective, it is important to know how, if at, satisfaction relates to outcome variables. For instance, if job satisfaction is high, ill the employ perform better and the organization be more effective? it job satisfaction is low, with there be performance problems and ineffectiveness? This question has been ascended by both I hear. There are many simple answers. In examining the out comes of job satisfaction, it is important to brisk down the analysis into a series of specific subtopics. Among some analyst regarding job satisfaction Fred Luthans is mostly famous. For our purposes, job satisfaction will be defined as the amount of overall positive affects that individuals have toward their jobs. When we say that an individual has high job satisfaction, we mean that individual generally and feel positively toward it.

Factors affecting Job Satisfaction:

(A) Pay: Is such an important determinant of job satisfaction because if is instruments in fulfilling so many of the needs. Money facilities the obtaining of food, shelter, and clothing and provides the mean   to enjoy valued leisure interests outside of work. More over, pay can serve as a symbol of achievement and a source of recognition.

(B) The Work itself:  Along with pays the content of the work itself plays a very role in determining how satisfied Bank employees are with their jobs. By and large, employees want jobs that are challenging they do not want to be doing mindless jobs day after day. The two most important aspects of the work itself that influence job satisfaction are—

  1. Variety and control over work methods
  2. Work pace

A job with too little variety causes workers to feel bored and fatigue. Job with too much variety and stimulation causes workers to fell psychologically stressed and “burned out”

(C )Promotion: Promotion opportunities have a moderate impact on job satisfaction. A promotion to a higher level in an organization typically involves positive changes in supervision, jog content, and pay, promotions take acuter of different forms and have a variety of accompanying rewards. Promotions take number of different forms and have a variety of accompanying rewards.

(D)  Supervision: Two dimension of supervision style, in particular, seem to have some impact on employee job satisfaction. The first dimension is employee centeredness or cogitation. Supervisors who establish a supportive personal relationship with subordinates and take a personal interest in them contribute to their employee’s satisfaction. Second dimension of supervisory style that seems to contribute to employee’s satisfaction is influence, or participation, in decision-making.

Senior officer who participate in decisions that affect their jobs display a much higher level of satisfaction with their supervisors and with their over able work situation.

(E) Work group: The work group serves as a social support system for employees. People often use their co-workers as a sounding board for their problems or as sources of comfort. In study called what you really want from

your job researchers found that while employees said they were very satisfied with the friendliness of their co- workers, they rated the work group only fourteenth in importance out of eighteen factors.

(F) Working condition: working condition to contribute in a modest way to job satisfaction, features such as temperature, humidity ventilation, lighting and noise, work schedules, cleanliness of the work place and adequate tools and equipment can all effect job satisfactory. Ventilation, lighting and noise, work schedules, cleanliness of the work please and adequate tools and equipment can al l effect job satisfactory.


Way of improving Job Satisfaction:

The team diagnostics offered by OD – ONLINE are used to enhance the overall dynamics of the team. How well members interact with each other, how equipped members feel to conduct their respective tasks, and the amount of personal trust among team members are all measured by OD – ONLINE diagnostics

(I) Team Member Interaction:

How well do the members of your team interact with one another? Scales in this category measure how cohesive members are with one another, the level of conflict within the group, the openness of communication within the group, and the overall satisfaction of individuals as team members.

(II) Team Performance:

These measures assess how much support the team feels the organization provides, whether resources are available when the team needs them, the level of feedback the team receives, and how degree to which roles and expectations are defined.

(III) Interpersonal Trust:

Do members of your team trust one another? It’s one thing to get along with each other, but quite another to actually have faith in the abilities of your teammates. Measures in this category include faith in fellow teammates, confidence in the abilities of teammates, and the degree of shared values among team members.



During the internship in Bangladesh Commerce Bank Limited (BCBL) and using the pre-designed structured questionnaire, the following observations are notable and these are:

  • Employees are over burdened by work.
  • Number of employee is not sufficient for the branch.
  • Compensation is not equitable for the skilled people.
  • The salary structure is not lucrative for all categories of employees.
  • Salary does not comply the employee’s experience.
  • Modern HR practice is yet to apply.
  • The employees of BCBL are satisfied with the performance appraisal systems.
  • The working condition is not apposite in every branch except head office. So the employee can’t work smoothly in rush hour.
  • The employee of BCBL has less opportunity to participate in policy formulation.
  • The service of customer care department is not satisfactory.
  • Loan sanction is not examined in proper way.
  • Foreign exchange is not running smoothly.
  • The General Banking System is not so much smooth like other private banks.
  • Sometimes probationary officers behave is not that much good with internee.


The overall activities of Bangladesh Commerce Bank Limited (BCBL) and as well as Human Resource Practice of BCBL are running smoothly. The overall activities along with managing human resource may be improved by the following steps:

  • Job analysis may be done in a regular basis and accordingly employees should be informed about the changes.
  • Employees may be given opportunity to contribute in policy formulation.
  • The working environment should be established at outstanding way so that the employee can fulfill their job in most effective manner and smoothly.
  • The percentage of women employee should be increased.
  • Employment planning should be done scientifically so that everybody comfortably does his or her duties.
  • Incentive policies may be changed to attract people to ensure retention of skill manpower.
  • Management should ensure the job security.
  • Recruitment should be done systematically to ensure the right person in the right job.
  • Inter-personal communication may be improved to have better supervisory understanding.
  • In order improve the behavior, especially who are involved with dealing customer, may be send to the training course on “Human Relations” or any other relevant training courses.