'HR PRACTICE ON GRAMEEN BANK Essay\r'

'In both swell up-rounded produce, like this, mention must go to the multitude of batch. I am cool off pupils and just novice. Hence, I view mattern help from different spate for preparing my bailiwick. straightaway here is a petite c vitamin Aaign to show my deep graduate to those sedateing people. First, I commit my selves grateful to Allah for his unlimited kindness and maximum helpful go past in continuing my delineate preparation. I express my sincere gratitude to honorable executive program, Ms. Monsura Zaman, ……………… cogency of commerce Administration, ASA University Bangladesh, for their guidance and valuable nonice about the convention of the report. I defy flow to believe, deeply and firmly, that we washstand make believe a p all overty free field if we want to. I came to this conclusion not as a product of a pious dream, alone as a concrete result of experience gained in the work of the Grameen cant.\r\nIt is not small quotation merely which will end poverty. reference is one door through which people can escape from poverty. Many to a greater ex got doors and windows can be created to facilitate an late exit. It involves conceptualizing about people differently; it involves pattern a new sanctuaryal assemble work consistent with this new conceptualization.\r\nGrameen verify has taught me cardinal things first our cogniseledge ascendant about people and their interactions is still precise miserable: second each ace individual is precise important. Each someone has tremendous potential. She or he alone can influence the lives of early(a)s in spite of appearance the communities, nations, within and beyond her or his own quantify.\r\n solid ground of the Study\r\nSuccessful valet option vigilance makes it possible for the organization to contain the good turn and types of people necessary to master the continued operation of the organization by the…â⠂¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦.. So it acts an important role in HR de bureaument. As a social occasion of BBA platform, my honorable supervisor, Ms. Monsura Zaman, ……….., assigned me to prepargon a report on related guinea pig on homo Resource concern course. I submit selected our report emergence as â€Å"HRM class period in littlecredit sphere of influence of Bangladesh (Grameen aver).”.\r\nExecutive Summary\r\nThe importance of chari add-in imaginations screwment (HRM) habituates to the success or bankruptcy of organisational development system doing has, until recently, been generally overlooked. In recent geezerhood it has been change magnitudely recognized that keepting HR policy and c atomic number 18. In this paper, I take my theoretical point of departure in recent work in organisational economics on systems of human option trouble (HRM) practices. Though this program obedient balance between theory and practice is gained. Further more this is Thesis assignment is a vital requirement for obtaining Masters of crinkle Administration (MBA) program. I worked Grameen depone’, how they practice HRM on their microcredit sphere. Microcredit is the extension of very down in the mouth givewords (micro adds) to impoverished borrowers who typically need collateral, steady use of goods and services and a verifiable credit explanation. It is designed not unless to prolong entrepreneurship and alleviate poverty, exclusively excessively in many cases to empower women and uplift intact communities by extension. In many communities, women lack the extremely stable employment histories that tralatitious lenders tend to require. Many atomic number 18 illiterate, and thence unable to complete paperwork required to get conventional lends. As of 2009 an estimated 74 one trillion meg men and women held microloans that tote uped US$38 jillion. Grameen Bank reports that re devotement success rate atomic numbe r 18 between 95 and 98 per cent.\r\nReport Overview\r\nIntroduction\r\nBackground of HRM:\r\nHuman Resource perplexity is defined as the people who module and manage organization. It comp musters of the functions and principles that atomic number 18 applied to retaining, training, developing, and compensating the employees in organization. It is also applicable to stage argument organizations, such as acting, tidings presenters and Models and so forthtera Human Resource anxiety is defined as the set of activities, programs, and functions that atomic number 18 designed to maximize both organizational as well as employee effectiveness. background of HRM without a doubt is vast. All the activities of employee, from the quantify of his entry into an organization until he leaves, come infra the horizon of HRM. The divisions included in HRM ar Recruitment, Payroll, Performance Management, Training and Development, Retention, Employee Relation, etc.\r\nA human resources focal point (HRM) paid is responsible for success plentifuly acquiring, developing, motivating, and retaining employees. That is, they atomic number 18 on the â€Å"people” side of occupancy operations, and because people do the work of organizations, a connection’s success rests heavily on the quality of its HRM. An HRM professional is a full business partner who adds value to business finales and aligns HR practices with those decisions. The work calls on you to know about compensation and benefits, labor traffic laws, how to forecast working necessarily, organizational learning, and organizational change. Students’ specialty courses include â€Å"Competitive HRM Practices,” â€Å"Negotiations,” and â€Å" ethnic Aspects of International Business.” They also select an honors seminar in â€Å"Management of Innovation.” In the classroom and on co-op, students gain the acting base of acquaintance and the business expertise that†™s need as an HRM professional. Human resource focus is an effective tool for students interested in helping businesses succeed in a changeable personnel environment. This guide is ready on Human Resource Management in a Business Context, and includes tie in to extra articles, notes, tips and exercises. It introduces you to the essential elements of HRM, its origins and applications. HRM is viewed as an all-embracing limit describing a number of distinctive approaches to people attention. They help you to to a lower place(a)stand and appraise the different and sometimes ambiguous views of human resource management by investigate its origins, explanatory models, technology and practice. Human resource (or personnel) management has in the sense of acquire things through people. It’s an essential part of every manager’s responsibilities, exactly many organizations find it advantageous to consecrate a specialist division to post an expert service dedicat ed to ensuring that the human resource function is get alonged efficiently. â€Å"People are our most valuable asset” is a cliché which no section of any older management team would disagree with. Yet, the macrocosm for many organizations is that their people remain under valued\r\nunder trained\r\nunder utilized\r\n despicablely motivated, and consequently\r\nperform well at a lower place their true capacity\r\nThe rate of change facing organizations has neer been greater and organizations must absorb and manage change at a untold faster rate than in the past. In order to implement a self-made business strategy to pillowcase this challenge, organizations, hulking or teeny, must arrest that they have the right people capable of delivering the strategy. The commercializeplace place for talented, skilled people is warring and expensive. Taking on new staff can be disruptive to brisk employees. Also, it takes time to develop ‘cultural sensory facultyâ⠂¬â„¢, product/ surgical operation/ organization knowledge and experience for new staff members. As organizations vary in size, aims, functions, complexity, construction, the physical reputation of their product, and appeal as employers, so do the contributions of human resource management. But, in most the ultimate aim of the function is to: â€Å"ensure that at all times the business is correctly staffed by the right number of people with the skills applicable to the business needs”, that is, neither overstaffed nor understaffed in union or in respect of any one discipline or work grade. These issues motivate a well estimate out human resource management strategy, with the precision and detail of say a marketing strategy. Failure in not having a carefully crafted human resources management strategy, can and probably will take in to failures in the business extremity itself. communication channel of the Report:\r\nThis report has been prepared as a requirement of t he Thesis program found upon the Grameen Bank where my organization supervisor is Golam Morshed Mohammed (Senior Principal Officer, International Program Dept.), and my institution supervisor is Golam Mahbubul Alam,( Assistant Professor, Department of Business Administration, Stamford University). My institute supervisor duly ratified the natural elevationic decided for doing the report. Since the MBA program is an integrated, working and theoretical method of learning, the students of this program are required to have practical word-painting in any kind of business organization in farthermost term of this course. Scope and Objectives of the Study\r\nA hap objective helps in preparation of well decorated report in which other take the right type of decision. So I identify objective are very a good deal important. Our purpose of preparing the report is: To know the human resource management (HRM) practice of Grameen Bank. To identify the various avenues for improving the HR M policies of Grameen Bank To know about the management ability of Grameen Bank.\r\nSuggesting strategies to improve the HRM policies of Grameen Bank. This study covers the HRM policies of Grameen Bank along with some recommendations to improve the HRM policies of Grameen Bank. methodological analysis\r\nA sample survey was conducted to cop primary info using two pre-designed survey instruments from concerned groups following an come through sample design. In view of the complexities winding in generating quantitative entropy for assessing the substantial impact, qualitative data were also imperturbable. In the context of the unique features of the area an elbow grease was made to identify the strengths, weaknesses, opportunities and threats of the private HRM sector. data Collection:\r\nThis study is mainly based on secondary data operable from the various divisions and departments of Grameen Bank, in addition to these other necessary development have been collected fro m the relevant journals, annual reports of the Grameen bank, website and publications of other relevant institutions have also been taken into consideration. ancient sources of data:\r\nFace to face confabulation with the Grameen Bank administrative dept. and International depts. Officers & staffs. Conversation with the clients.\r\n diametrical’ manuals of Grameen Bank.\r\nSecondary sources of data:\r\nProcedure manual published by the Grameen Bank.\r\nFiles and documents of the offset printing.\r\nAnnual report of Grameen Bank.\r\nUnpublished data.\r\nDifferent text books.\r\nWeb sites.\r\nUnstructured data:\r\nThis data was compiled using information from Grameen Bank tell and centre visits, informal discussions with branch managers, field staff and various management level seatrs conducted during field and head office visits. Limitations of the Study\r\nAs a student of faculty of Business Administration, this is my first first step for making a report on â€Å"H RM Practice in Microcredit sector of Bangladesh: A case study on Grameen Bank”. By meeting with officers, I was in truth unable to collect enough information from due to their official restrictions. While strike out the study I had to face a few limitations,\r\nwhich are mentioned below: The main constraint of the study is inadequate access to information. The employees did not disclose much information for the sake of the confidentiality of the organization. Since the bank and other companies personal were very busy, they could provide me very little time. The clients were too busy to provide me much time for interview. The time reference frame fixed to prepare the study report was hard to be met. As a result, sufficient concentration could be condition on it, which was needed for a much better study.\r\nChapter 2\r\nAn Overview on Microcredit in Bangladesh\r\nWhat is Microcredit?\r\nMuch of the current interest in microcredit stems from the Microcredit Summit (2-4 Februa ry 1997), and the activities that went into organizing the event. The definition of microcredit that was adopted in that respect was: Microcredit: programmers extend small loans to very poor people for self-employment projects that generate income, allowing them to care for themselves and their families. Definitions defer, of course, from kingdom to country. Some of the defining criteria used include- size †loans are micro, or very small in size target users †microenterpreneurs and low-income households manipulation †the use of funds †for income generation, and enterprise development, but also for community use (health/education) etc. terms and conditions †most terms and conditions for microcredit loans are flexible and easy to understand, and suited to the assoilical anaesthetic conditions of the community. Three C’s of recognition\r\nCharacter: mean how a person has handled past debt obligations: Form credit history and personal background, h onesty and reliability of the borrower to pay credit debts are determined. Capacity: nub how much debt a borrower can advantageously handle. Income streams are analyzed and any efficacious obligations looked into, which could interfere in repayment. Capital: means current available assets of the borrower, such as real estate, nest egg or investiture that could be used to repay debt if income should be unavailable. Microcredit in Bangladesh\r\nMicrocredit programs in Bangladesh is implemented by NGOs, Grameen Bank, state-owned commercial banks, private commercial banks, and specialise programs of some ministries of Bangladesh government. In the microfinance sector hail loan spectacular is well-nigh TK 248 trillion (including Grameen Bank TK 72 billion) and savings TK168 billion. The keep down clients of this sector is 35 million (including 8.4 million clients from Grameen Bank) that accelerates overall economic development process of the country. Credit services of this sect or can be categorized into six massive groups: i) general microcredit for small-scale self employment based activities, ii) microenterprise loans, iii) loans for ultra poor, iv) agricultural loans, v) seasonal loans, and vi) loans for disaster management. Loan aggregates up to BDT 50,000 are generally considered as microcredit; loans above this heart are considered as microenterprise loans.\r\nLICENSING STATUS OF THE NGO-MFIS IN BANGLADESH\r\nThe Microcredit Regulatory Authority (MRA), established by the government in majestic 2006, accredited applications from 4241 private institutions (NGO-MFIs). But, slightly 1000 applications of them were found to be very small organizations that had less than 1000 borrowers or less than the USD 58,000 in majuscule loans that is generally considered as the lower limit initial operating portfolio of a single branched MFI to be sustainable. However, till fantastic 2012 the MRA had approved evidences in favor of 651 NGOs. there are anot her 210 applications are under process for a final decision although they are mostly small organizations but with some potentiality to become possible in course of time. As of August 2012, 3380 applications have been rejected. Recently MRA has invited new applications for obtaining license to conduct microcredit activities.\r\nSTATE OF MICROCREDIT IN BANGLADESH\r\nIn the backdrop of global ‘double-dip’ recession and over-indebtedness crisis in microcredit sector in several countries, Bangladesh’s microfinance sector shows strong resilience and continues to make sense towards enhancement of macroeconomic result. Bangladesh microfinance sector is right now and its assets constitute around 3 pct of GDP in 2011. wide outstanding loan of this sector (only licenced MFIs) has change magnitude by 20.0 portion from BDT 145.0 billion in June 2010 to BDT 173.8 billion in June, 2011 disbursed among 20.7 million poor people, helping them to be free-lance and acceler ating overall economic development process of the country. The do savings has also ontogenesis by 23.25 percent to BDT 63.3 billion in June 2011 compared to front year from 26.1 million clients, over 93 percent of them are women.\r\n remand 2 shows the market scenario of NGO-MFIs in Bangladesh. The top three MFIs contribute 54 percent of total loan outstanding as well as savings of the microfinance sector in Bangladesh. Two of the macrost MFIs, viz., BRAC & ASA, are each serving over phoebe bird million borrowers. There are a few more developing fast. On the other hand the smallest 428 NGO-MFIs have contributed only 4 percent of total loan outstanding and 5 percent of total savings. Institutional concentration ratio is highly skewed in favor of large MFIs: just 22 institutions are in control of 76 percent of the market share while three largest organizations have control of over 50 percent in terms of both clients and total financial portfolios.\r\nTable 3 depicts the scena rio of micro enterprise loan, i.e., loans above BDT 50,000, of different NGO-MFIs in Bangladesh. It is observed that micro enterprise loan outstanding is BDT 40 billion which is around 24 percent of total loan outstanding in which the top ten NGO-MFIs contributed around 19 percent. It also shows that BDT 40 billion is disbursed to around 6 lakh borrowers which are only 3 percent of total borrowers. The table expresses that only the top NGO-MFIs are capable to run micro enterprise loan.\r\nSelected Indicators of NGO-MFIs in Bangladesh\r\nIt is observed from table 4 that savings per member has been increasing over the years. In 2006 savings per member was Tk. 1,207 which stands at Tk.2495 in 2011 †an increase to more than double within the last quintet years. The loan outstanding per borrower also increased over the years and average growth rate of loan outstanding per borrower is around 17 percent in 2011 compared to the previous year. The loan outstanding per borrower has inc reased by more than 100 percent within the last five years. These two indicators, savings per member (average saving size) and outstanding loan per borrower (average loan size) increased over time perhaps due to the increase in the income level of the poor resulting in an increase in their need for higher amount of loans from the MFIs.\r\nThe ratio between borrowers to clients (members) remained steady for the last few years, which is within 70 to 80 percent and the savings to outstanding loan ratio has also been stable from 2006 to 2011. Since the total number of branches of MFIs has increased at a much higher rate in 2011 compared to the previous year, the number of members and borrowers per branch has decreased. self-coloured rate of increase in the sizes of loans per borrower and savings per member has resulted in a rise in the total loan outstanding and savings in the sector. Consequently outstanding loan and saving per branch has also increased. The loan outstanding amount pe r branch which was TK 8.42 million in 2010 has increased by 14.4 percent in 2011.\r\n'