An analysis of strategic HRM Practices of EBL

1. An analysis of strategic HRM
Practices of EBL
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Md. Saddam Hosen
E-Daffodil International University Mail: md.sopno777@gmail.com

2. INTRODUCTION
With a vision to become the bank of choice and to be the most valuable
financial brand in Bangladesh, Eastern Bank Ltd. (EBL) began its journey in
1992. Over the years EBL has established itself as a leading private commercial
bank in the country with undisputed leadership in Corporate Banking and a
strong Consumer and SME growth engines. EBL's ambition is to be the number
one financial services provider, creating lasting value for its clientele,
shareholder, employees and above all for the community it operates in.
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Mission
EBL will deliver service excellence to customers, both internal and external.
EBL will constantly challenge their systems, procedures and training to
maintain a cohesive and professional team in order to achieve service
excellence. EBL will create an enabling environment and embrace a team
based culture where people will excel. EBL will ensure to maximize
shareholder’s value.

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Vision
The vision of Eastern Bank Limited is to become the bank of choice by
transforming the way they do business and developing a truly unique financial
institution that delivers superior growth and financial performance and be the
most recognizable brand in the financial services in Bangladesh.

5. Values
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 Service excellence
 Openness
 Trust
 Commitment
 Integrity
 Responsible corporate citizen
 Customers’ trust as the lifeline of their business

6. Functions of Human Resource Division
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 Selection and Recruitment.
 Training and Development of Employees.
 Compensation and Benefits Planning.
 Promotion Planning.
 Making Reward and Recognition Policies.
 Policy Formulation for Staff Loans (Car/Housing).
 Policies for Resignation or Termination from Services.
 Employee Gratuity Fund Policy Formulation.
 Employee Provident Fund Policy Formulation.
 Employee Welfare Fund Policy Formulation.

7. Human Resource Division’s Wings
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 Human Resource Division of the Eastern Bank Ltd. has work with six wings.
The wings are-
1. Recruitment.
2. Administration.
3. Training.
4. Pay Benefits. &
5. Performance Appraisal
6. MIS & Strategic Planning.

8. Recruitment Policy
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 All regular employees will appointed by the Managing Director.
 All HR contract and outsource contract employees will be appointed by The
Head of Human Resource Division.
 The schedule of recruitment will be created according to the Service Level
Agreement (SLA).
 The interview board will with The Head of Department of that post, The
Supporting Department Head and The Head of HRD.

9. Leave
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 Annual Leave
 Casual/Sick Leave
 Maternity Leave
 Study Leave

10. Promotion
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Regular Promotion:
 Regular promotion is given according to the employee’s regular performance.
PM Promotion:
 Performance Matter (PM) is the annual performance report of individual
employee of The Eastern Bank Ltd.

11. Training programs of EBL
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 Orientation Training
 In-house training
 Job specific training
 Need based local/foreign training
 Peer or Supervisor’s coaching
 E-learning: Online training and evaluation

12. Compensation
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Pay & Benefits
The remuneration of employees consists of:
 Basic Salary
 House Rent and
 Medical Allowance
Major employee benefits are:
 Retirement plans
 Health promotion programs
 Paid time off
 Family benefits
 Insurance
 Educational

13. Incentives of Eastern Bank Ltd.
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Individual incentive plans:
 Awards bases on individual Employee Performance vs. company standards
 Awards bases on individual Performance standards using Objective &
subjective criteria
 Quantity and / or quality goals
 Quantity of work output How many units produced
 Quality of work output what the quality of the product or service being
produced.
 Monthly sales How much sales was generated
 Work safety record How many hazard or errors are being reduced
 Work attendance If the absent is reduced or attendance is good.

14. Incentives of Eastern Bank Ltd.
Group incentives:
 Group incentive plans
 Customer satisfaction
 Official cost savings
 Material cost savings
 Reduction in accidents
 Services cost savings
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Company-Wide Incentives:
Wide Performance Measures Company
Wide incentives plans
Company profits
Cost containment/prevention
Market share Sales revenue

15. SWOT
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Strength
Capable management.
Adequate capitalization.
Good profitability.
Extremely rapid growth.
Keep records in appropriate
methods.
Well performed employees.
Weakness
Lack of experienced employees in
junior level management.
Centralized power.
Lack of administrative performance.
Lack of business communication
Lack of Promotions system
Manual Recruitment policy

16. SWOT
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Opportunity
Private sector orientation.
Opportunity to contribute in national growth rate.
Scope to reduce non-worked percentage.
Scope to introduce a new sector.
Threats
Foreign & Private Bank are doing business in Bangladesh.
Government interrupts hi the way of development.
Various anti – corrupted groups are always threatened to fulfill their own purpose.
Village areas are being hassle by the local village politician.

17. Conclusion
The Eastern Bank Ltd is a bank that confirms the best service to the customers
as well as to the employees by Human Resource Division. The Eastern Bank
Ltd is the fastest growing Bank in Bangladesh. By working in HR Division the
knowledge was learnt would be helpful enough to sustain with the real
organizational environment. Banking business is an emerging concept from
Bangladesh’s point of view. Day-by-day, it is getting popular in the middle
class people. From very beginning The Eastern Bank Ltd has successfully run
their business with well reputation now they create their own interest on
capacity in banking business. The Banking business has a great prospect in
Bangladesh.
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