HRM Practices in Ngo Sector - A Comparative Analysis

Project report
On
HRM PRACTICES IN NGO SECTOR:

COMPARATIVE ANALYSIS BETWEEN PALLI DARIDRO
BIMOCHON FOUNDATION (PDBF) AND INTEGRATED
DEVELOPMENT FOUNDATION (IDF)
BBA PROJECT REPORT
Of
United International University
By
Tamanna Akter
1
PROJECT REPORT
ON
HRM PRACTICES IN NGO SECTOR:

COMPARATIVE ANALYSIS BETWEEN PALLI DARIDRO BIMOCHON
FOUNDATION (PDBF) AND INTEGRATED DEVELOPMENT
FOUNDATION (IDF)
Submitted to:
Md.Abul Mohaimen
Assistant Professor
School of Business and Economics

Submitted by:
Tamanna Akter
Id: 111 123 073
A project submitted in partial fulfillment

Of the requirements of the degree of
BACHELOR OF BUSINESS ADMINISTRATION

(Human Resource Management)
Submission Date
4th December, 2018
2
Letter of Transmittal
04th December, 2018

Md.Abul Mohaimen
Assistant Professor
School of Business and Economics
Sub: Submission of Project Paper.
Dear Sir,
It is my great pleasure to submit you my Project Paper on “HRM Practices in NGO
sector: Comparative analysis between Palli Daridro Bimochon Foundation (PDBF)
and Integrated Development Foundation (IDF)”. I have tried my best to complete this
report properly following the guidelines provided by you and concerned organization.
I have confidence that the thesis program has increased both of my practical experience
and theoretical knowledge to a great extent. I will be obliged to answer any query that
may arise during the evaluation of this report. So, I am fervently requesting and hope
that you would be kind enough to accept my report and oblige thereby.
Sincerely Yours,
--------------------------
Tamanna Akter
ID: 111 123 073
3
ACKNOWLEDGEMENT
I have made a project paper on Human resource Management in the context of MFI in
Bangladesh. The Integrated Development Foundation (IDF) and the Palli Daridro
Bimochon Foundation (PDBF) have used as case study for thesis report. IDF and PDBF
are Non- Governmental organizations, which are active in implementing poverty
alleviation programs in Bangladesh. My cordial thanks to Chief coordinator officers field
staffs and Chief Executive of IDF and PDBF for providing me with all the necessary
supports during my investigation.
I also wish to express my gratitude to Md.Abul Mohaimen, Assistant Professor, and

United International University, Bangladesh for providing me all type of logistic
support and advice to make the thesis report.
4
EXECUTIVE SUMMARY
Project report Program refers to a joint program in which Business School

and business houses co-operate. The prime objective of such program is to provide
students on the job exposures and the opportunity to translate the bookish
concentration in real life situation. Though this program has good balance between
theory and practice is gained. Furthermore this is Thesis assignment is a vital
requirement for obtaining Bachelor of Business Administration (BBA) program. I
worked on two NGO’s, how they practice HRM on their organization. My focusing
NGO’s are Integrated Development Foundation (IDF) and Palli Daridro Bimochon
Foundation (PDBF). In first part I have discussed about topic. Here I have discussed
about the title of the study, objective of the study, methodology, and scope of the study,
Rationale, Methodology & Sources of data which contains with primary data, secondary
data & unstructured data.
In part two, I have discussed about the company IDF (Integrated Development
Foundation & PDBF (Palli Daridra Bimochon Foundation). This part focuses all the
activities of these two NGO’s.
In part three, I have discussed about “HUMAN RESOURCE MANAGEMENT

PRACTICES’’ that mean is the process of developing, applying and evaluating
policies, procedures, methods and programs relating to the individual in the
organization.
In part four, I have compared about “HUMAN RESOURCE MANAGEMENT

PRACTICES’’ between IDF & PDBF which contains with analysis of questionnaire,
Graphical presentation of questionnaire etc.
In part five, I have discussed about Findings and Presented Recommendation. At Last
I conclude my Report with conclusion part and also add Appendix, Acronyms &
Questionnaire which I used to gather information from the employee & employer of
IDF & PDBF.
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Table of Contents
Assistant Professor.......................................................................................................................3
Chapter One..................................................................................................................................8
Introduction..................................................................................................................................8
1.1 INTRODUCTION..............................................................................................................9
1.2 RATIONALE...................................................................................................................10
1.3 OBJECTIVE OF THE STUDY........................................................................................10
1.4 SCOPE OF THE STUDY.................................................................................................11
1.5 METHODOLOGY AND SOURCES OF DATA:...........................................................11
1.6 LIMITATIONS:...............................................................................................................12
Chapter Two...............................................................................................................................13
Organizational Profile.................................................................................................................13
1. Introduction and background of IDF:.................................................................................14
2. ATAGLANCE:...................................................................................................................14
3. Corporate/ Legal Structure of the project:...................................................................16
4. Vision, and. Mission:......................................................................................................16
5. Objectives of IDF:........................................................................................................16
6. Main Programs of IDF:................................................................................................16
7. Management and Governance:....................................................................................16
10. PRODUCTS AND SERVICES:.......................................................................................18
11. STAFFING OF IDF:........................................................................................................18
12. LENDING METHODOLOGY:.......................................................................................20
13. SALARY AND INCENTIVES:...................................................................................20
2.1 INTRODUCTION OF PDBF...........................................................................................22
2.2 OBJECTIVES OF PDBF..................................................................................................22
2.3 BACKGROUND OF PDBF.............................................................................................23
2.4 THE STRUCTURE OF PDBF.........................................................................................23
2.5 ACHIEVEMENTS OF PDBF..........................................................................................23
2.6 COVERAGE OF PDBF...................................................................................................24
Chapter Three.............................................................................................................................25
Literature Review.......................................................................................................................25
3.0 CONCEPTUAL FRAMEWORK.....................................................................................26
3.1 INTRODUCTION...........................................................................................................26
3.2 DEFINITION OF HRM..............................................................................................26
3.3 FOUNDATION OF HUMAN RESOURCES MANAGEMENT:...................................27
3.4 MAJOR AREAS OF HUMAN RESOURCE MANAGEMENT.....................................28
3.5 AREA OF HRM ACTIVITIES........................................................................................29
3.5.1 HUMAN RESOURCE PLANNING.............................................................................29
3.5.2 RECRUITMENT and SELECTION:............................................................................35
3, 5.3 attracting and Retaining Human resource:...................................................................36
3.5.4 Compensation:...............................................................................................................37
3.6.5 Administration.............................................................................................................39
3.5. 5 HUMAN RESOURCE DEVELOPMENT.................................................................43
Chapter Four...............................................................................................................................49
Comparison between PDBF and IDF Regarding HR Practices.................................................49
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4.0 ANALYSIS OF THE QUESTIONNAIRE RESULT....................................................50
4.1 The nature/status of the organizations..................................................................................50
4.2 Objectives of the organizations:.......................................................................................50
4.3 Organizational structure of the organizations:..................................................................51
4.4 AREAS OF HRM ACTIVITIES IN YOUR ORGANIZATION?...................................51
4.5 Do you follow the HR planning process in you organization?.......................................51
4.6 The method applied for job analysis in the organization?...........................................51
4.7 What is the recruitment source of your organization?.................................................51
4.8 The major elements that attracts people to do work at the organizations?.......................52
4. .9. Providing types of rewards by different organization to retain employees...................52
4.10 Basis of Distribution of Rewards....................................................................................54
4.11. Practice of Incentive plan..............................................................................................55
4.12 Offering major voluntary benefits to motivate employees by different organization....56
4.13 Use of job evaluation method to provide compensation among the employees............57
4.14 Practice of job tasks and work schedules that influence the motivational level of
employees...............................................................................................................................57
4.15 Use of Performance appraisal method in different organizations..................................59
4.16. Focus of Performance evaluation..................................................................................60
4.17 Outcome of performance evaluation..............................................................................61
4.18 Training to supervisors in methods of conduction performance appraisal.....................62
4.19 The modern technological concepts have been adapted in the organization to compete
the global competitive environment.......................................................................................62
4.20 Steps are taken to maintain a sound organizational environment..................................62
4.21 Comparison between IDF & PDBF, regarding some other organizational issues:........63
Chapter Five...............................................................................................................................65
Findings and Analysis................................................................................................................65
5.0 FINDINGS........................................................................................................................66
CONCLUSION......................................................................................................................67
RECOMMENDATIONS........................................................................................................68
ANNEXES..............................................................................................................................69
BLIOGRAPHY.......................................................................................................................69
ACRONYMS..........................................................................................................................71
Appendix................................................................................................................................72
Questionnaire :..........................................................................................................................72
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1
Chapter One
Introduction
1.1 INTRODUCTION
8
It’s an opportunity for the students to do the project report and it bears a great
significant for us. It gives knowledge to the students with the practical business
operations. The students of project report program have the opportunity to get the
chance to understand the real business world closely and involve themselves with
internal and external aspects of business. It’s an opportunity for them to develop the
analytical adeptness and scholastic aptitude.
To introduce adept employee, only theoretical erudition in the field of NGO studies All
over the world the dimension of NGO has been transmuting rapidly due to
Deregulation, Technological innovation and Globalization. NGO’s in Bangladesh have
to keep pace with the transmutation in ecumenical business. Now NGO’s have to
compete in rialto both with the local institutions as well as with the peregrine
institutions.
To survive and flourish in such an aggressive world, one critical prerequisite is

improvement of "HRM Practices in NGO segment: Comparative investigation among
PDBF and IDF'' in the feeling of building up a proper labor structure and its aptitude
and experience. Isn’t adequate? A scholastic course of the examination has an
incredible esteem when it has handy application, all things considered, circumstance.
Thus, I require legitimate utilization of my insight to get some advantage from my
hypothetical information make it more careful when I connect with myself in such
fields to make legitimate utilization of my hypothetical information in my functional
life circumstance. Such hypothetical learning is acquired from a course of concentrate
at just the most of the way of the topic. Proposition suggests on other the full use of the
technique and strategies through rich obtain of topic can be strongly connected in my
everyday life circumstance.
1.2 RATIONALE
It is true that most of the micro finance organizations in Bangladesh are not practicing in
modem Human Resource Management (HRM). Absence of appropriate HRM practice is very
9
acute in the Micro Finance Organizations-particularly in Integrated Development Foundation
(IDF) and Palli Daridra Bimochon Foundation (PDBF), where employee performance is far
below the acceptable level or the industry standard. Workers unrest is a common issue in
Bangladesh. They are engage in political environment and a section of workers are arrogant and
militant. They are not sincere in the performance of their duties. All of them are not real abiders,
rather rule violators. They are not adequately disciplined also. There is no doubt that all these
factors are making our business enterprises and institutions sick. State enterprises are suffering
from financial losses. Truly speaking, absence of proper human resource Management
system leads to poor organizational performance. Management is in great trouble with
this situation. Absence of appropriate HRM system in micro finance organization
suggests the need of proper & employee friendly human resource management policy
and procedures. Against this backdrop, a study on analysis of HRM practice in micro
finance organizations is considered to be important to make these organizations more
effective and efficient by adopting appropriate HRM system in improving employee
morale and productivity. An appropriate Human Resource Management (HRM) system
is more important to restore industrial peace and progress of the organization.
1.3 OBJECTIVE OF THE STUDY
There are several types of objectives involve here for this study. The objectives of
studies are:
 To have an unmistakable view about what is really occurring in the region of

Human Resource Management of the chose business association.
 To know the methodology of "HRM Practices in NGO segment: Comparative
examination among PDBF and IDF''.
 To get their administrations, building up their abilities, inspiring them to
abnormal amounts of execution, and guaranteeing that they keep on keeping up
their responsibility to the association are basic for accomplishing hierarchical
goals. So it is vital for us as potential business officials to assemble data about
the common situation of Human Resource Management. In this report, I'm more
worried about what is going on other than what should occur in the
HRM/Personnel Department of the chose association.
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 To gain a general thought and think about the HR position of the NGO.
 To discover the current HR issues of the NGO.
 To prescribe answers for the current issue.
 To demonstrate an aberrant target of this report is to have some down to earth
understanding on how the correspondence is done in the business world and
build up our correspondence skill. Solutions to the current issue
1.4 SCOPE OF THE STUDY
This paper is a type of contextual analysis. So the extents of this report are restricted.
The primary extent of this report is to have down to earth understanding about how an
exploration is done in the business associations. This paper has the extension to cover
diverse parts of Human Resource Management, which incorporate Human Resource
Planning, enlistment and determination strategies, choice gadgets, work investigation,
work configuration, preparing and improvement. I'm examine two associations all
through this report, is, Integrated Development Foundation (IDF), and Pollidaridra
Bimochon Foundation (PDBF).
1.5 METHODOLOGY AND SOURCES OF DATA:

The information and data have been collected in 3 ways:
i) Primary data: Compiled using a structured questionnaire. Most of the information
in this evaluation was collected in this way from regional and head office
branches, Primary data will be the only source of information based on which the
report will be prepared, Primary data will be collated through interviews as well as
observation the members of each department of both Ngo’s.
ii. Secondary data: The IDF issues monitoring and reporting statements on a regular
basis. Consultants used a number of these statements for the evaluation; Previous IDF
evaluative studies carried out by other independent researchers/agencies were also
used as secondary data.
iii) Unstructured data: This data was compiled using information from IDF branch and
center visits, informal discussions and staff interviews with branch managers, field
staff and various management level officers conducted during field and head office
visits.
1.6 LIMITATIONS:
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The biggest limitation of this report was the lack of information; IDF is working at
Chittagong and hill Tracts districts. It has 33 branches at 5 districts. Result of such a
small sample does not represent the opinion of the whole institute and might not hold
the complete picture of IDF. On the other hand, the report was done during working
hours as well as continuing my work and duties at the same, After all I have find out
the time and manage to complete this report. Limitations regarding the survey:
• The respondents of the organization did not reveal some of their confidential
documents. Therefore, accurate information could not be gathered.
• Due to heavy workloads at the organizations the sample size was limited that does
not represent the opinion of the whole institution and might not hold the complete
picture of PDBF.
• Selecting only three organizations was another limitation and it might hamper to
Compare with PDBF as a micro finance organization.
• All the explanations were not distinct.
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2
Chapter Two
Organizational Profile
1. Introduction and background of IDF:

Coordinated Development Foundation (IDF) is a non - benefit, nonpolitical and a non-
government miniaturized scale fund association. It was set up in August 1993; it is
fundamentally a smaller scale credit foundation following Grameen Bank Approach. It was
propelled in a little town of the Bandarban slope area in 1993 and steadily extended to the
Chittagong slope tract, regions of Ban darban, Khagracbari and Rangamati (CHT) and
afterward to different parts of Chittagong and Cox's Bazar.
13
In 1993, IDF started its tasks with a little seed store of US$ 7500 issued by the Grameen
Trust. The seed capital of US$ 7500 was not able take care of the-developing demand for
miniaturized scale credit advances around there. As of June 2004, IDF Ms helped 42,342
families in 5 areas of the Chittagong Hill Tracts, Chittagong and Cox's Bazar and dispensed
an aggregate sum of US$. 17.40 million. The aggregate reserve funds gathered by these
families in investment funds assets with IDF starting at 30 June 2004 is US$1.5 million.
2. ATAGLANCE:
Name of Program Integrated Development Foundation (IDF)
Name of CEO Mr. Zahirul Alam, Executive Director
Mailing Address House # 02, Roade: 2, Mirpur-2, City: Dhaka
Zip Code 1216, Country: Bangladesh
Phone 880-2-9005452, 0171538142 (mobile)
Fax 880-8016319, Email: [email protected]
Year of Establishment 1993
14
SL Description Mal Female Total
No e
1 Number of Villages 1170 1170
2 Number of Groups 9179 9179
3 Number of Centers 1777 |1777
4 Number of Area Offices 5
5 Number of Branches 33
6 Number of Staff 181 26 207
7 Number of Loan Officers 127 21 148
8 Number of Members 42342 42342
9 Number of Active Borrowers 39673 39673
10 Total Disbursement 17.436 million 17.436 million
11 Total Paid 14.565 million 14.565 million
12 Total Outstanding 2.871 million 2.871 million
13 Amount Due 14,572 million 14,572 million
14 Savings Balance 1,504,277
15 PAR>30 days (US$) 7224 (.007 7224 (.007
16 Repayment Rate Cumulative million)
99.95% million
99.95%
17 % of Operational Self Sufficiency 136%
18 % of Financial Self Sufficiency 125%
19 Cost per unit of Money Lent 0.09
20 Return on Equity (US$) 6%

21 Return on Equity (US$) 23.55%
22 Portfolio Yield (US$) 25%
23 Profit Margin 27%%
24 Exchange Rate for US$ 1 58.00
25 Total Assets 3137849
26 Total Liabilities 2312980
3. Corporate/ Legal Structure of the project: IDF is a government recognized /

registered NGO. It is registered with the registrar, Joint Stock companies and Firms,
15
Dhaka under Societies Registration Act XXI, 1860 Registration No S-1551 (111 )/93
dated. 20/04/1993. It is also registered with the NGO Affairs Bureau under the
Ministry of NGO, registered No 951 dated 23/05/1995, which entitles IDF to receive
contributions from abroad.
4. Vision, and. Mission: The fundamental vision of IDF is to realize a destitution

free Bangladesh. IDF is an exceptional Grameen replication program. Its
essential mission is to convey money related administrations to the needy
individuals of Chittagong Hill Tracts, Chittagong and Cox's Bazar in a
monetarily economical way and battle destitution through engaging poor people.
5. Objectives of IDF: The principle objective is to build up, a not revenue driven
association. The general targets of IDF are to work with the rustic poor, to help poor
people, the landless, the down and out ladies and kids, little agriculturists and
incapacitated people with the end goal to empower them to access monetary assets.
6. Main Programs of IDF: IDF's main program is micro-credit but it also operates
inother areas such as i)micro health and life insurance, ii) health, sanitation and
water (HTV/HIV/A1DS), iii) agriculture, livestock poultry and fisheries and child
labor and non-formal education,.
7. Management and Governance: The incomparable specialist of IDF is .the

general body made out of 17 general individuals (attach ii). The general body is the
most elevated arrangement making establishment of IDF. An administering body
comprising of 5-11 individuals is chosen from the general individuals from the
establishment through direct decision for a long time. Presently, there are 6
individuals in the administering body. By and large, load up, meeting are held 4
times each year. The administering body is in charge of the definition of plans and
spending plans for the projects and activities. The administering body gives direction
to the Executive Director who is likewise the Chief Executive of the association. The
administrator heads both general and administering bodies. Office gives direction,
supervision and furthermore screens the exercises of the branch workplaces.
Present operational structure of the project is given below:
Head Office Executive Director
16
Regional Office (1) Chief Coordinator
Area Offices (5) Area Manager
Branch Offices (33) Branch Manager
Center (1777) Center Chief
Group (9179) Group Chairman
Group: A group is the lowest unit of IDF's organizational structure. Five like-minded
people from the same village with similar economic status but not related to each other
can form a group. Each group has an elected Chairman and a Secretary.
Centre: The groups are federated into centers. Each center has a Center Chief and a
Deputy Center Chief. Groups and centers hold meetings .once a week or every fortnight
where they discuss their problems and make savings and loan'' installments. IDF Village
Organizers (Vow’s) attend these meetings.
Branch Office: Branch office is set up under the coordination and supervision of the area
and regional office. A branch is the lowest unit from, where all services are channeled
to the members. A Program Organizer heads the branch office and is assisted by 4-6
village organizers (VO).
Area Office: IDF introduced area offices recently. Five area offices are set up in
different locations. Every area office has an Area Manager who supervises and
monitors each branch. Regional office: For better coordination, IDF established a
regional office in Chittagong. The regional office is responsible for coordination
supervision, training, audit, monitoring and assessment of the quality of groups.
Head office: Head office supervises, monitors and guides the activities of branch and
regional offices as well as providing logistical support. It is also responsible for making
decision and auditing of accounts to ensure the smooth implementation of project
activities.
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10. PRODUCTS AND SERVICES:
a. Loan products: IDF provides five kinds of loans i) General loans (group based) for
one year, ii) Micro enterprise loan-1, iii) Micro enterprise !oan-2. IV) Housing loan and
V) Solar Home System.
b. Savings Products: IDF has mainly two types of savings: Compulsory savings and
Voluntary savings. The following table shows the savings products:
SI No. Type of Savings Sources Compulsory/or not Interest rate j

01 Compulsory Member's savings Yes 5%
Savings
02 Voluntary Member's savings No 5%
Savings
c. Insurance Services:
Types of Insurance: IDF offers 3 types of Insurance
i) Health Insurance: If any member may become sick, IDF grants a,' maximum of Tk.
1500 (US$26) for treatment of the clients or any member of the family under the
Health Insurance.
ii) Death Insurance: Up to Tk. 2,000 (US$ 34) is provided to the client's family in the
event of a death of any income earner in the family.
iii) Micro Enterprise Loan. Insurance: IDF will give 20% ..of the’ initial value of the loan
to the client if any loss is incurred to the ME business.
d. Other products and Services: Sanitation and Water, STD/HIV/ AIDS, Child rights,
'Non formal Education, Agriculture, Livestock and Poultry, Renewable Energy, Skill
development, Housing, Disaster Management and Environment.
11. STAFFING OF IDF:
Head office: A total of 11 staff are working at the head office in Dhaka and 25 staff are
working in the coordination office in Chittagong. Out of 36 staff, 21are working with
the micro credit program the staffing of the head and regional office are as follows:
SL Department Head Office Regional Total
18
No Office
Male Female Male Female Male Female
1 Monitoring and 3 2 5 - 8 2
Supervision
2 Administration 2 - 3 2 5 2
and Accounts
3 Human Resource - - 2 - 2 -
Department
4 Internal Audit - - 2 - 2 -
5 Agriculture - - 1 - 1 -
6 Health - - 2 - 2 -
7 Education - - 2 - 2 -
8 Engineering - - 2 - 2 -
9 Support staff 2 2 2 2 4 4
Total 7 4 21 4 28 8
The percentage of make female staffs in each office is as follows:
Office Total staff Male Female % of Male Dropout rate

Female
Head Office 11 7 (64%) 4 (36%) Male 30
Coordination 25 21 (84%) 4 (16%) (77%) and 2%
office Female 9
Area Office 3 2 (67%) 1 (33)%
(23%)
Branch 191 162 (85%) 29 (15%) 5%
Office
Total 230 192 (83%) 38 (17%)
12. LENDING METHODOLOGY:

1. Lending Major components of Grameen Model : Target member  Group Centre
 Group training  Group recognition  Savings  Loan disbursement  Collateral
free  Loan repayment  Loan supervision etc.
19
Categories of Members: As it is found, 15% of the IDF members are now extremely poor,
75% are moderate poor and 10 % are non-poor.
Poverty Definition % of poverty level

Level of IDF members
Extremely The family, which lives in absolute poverty, earns
poor through manual labor with no other sources of 15
income, may or may not have homestead- or cultivable
land.
Moderately The families, which have some cultivable land and 75
poor oilier sources of income but the total income is below
the poverty line.
Non poor The families, which have income above poverty line. 10
13. SALARY AND INCENTIVES:

i) Staff position. The various staff positions within the IDF are shown below: Village
Organizer (VO), Senior Village Organizer (SVO), Assistant Program Organizer (APO),
Program Organizer (PO), and Senior Program Organizer (SPO). ii) Salary: IDF's salary
structure is very similar to the Government's salary structure,
The Executive Director receives the highest basic pay of US$ 310 and
guard/messenger the lowest at US$ 26. IDF has seven groups of "basic salary
employees. The basic pay of a village organizer is Tk.3500, equivalent to US$ 60 and
program organizers receive Tk.5, 275, equivalent to US$ 91. The salary structure is
included in annex-xxiii,
iii) Staff incentives: IDF staffs are provided with two festival bonuses every year
equivalent to the basic salary scale.. Besides this, staff are provided with house rent,
medical allowance, performance allowance (10% of basic salary on five performance
indicators), welfare allowance generated by 1% of basic salary (refundable) every month
and 1% from net profit and provident fund (only staff contribution).
Client's incentives: IDF members are provided with health services at nominal and
Tk.500-1,500 grants for medical treatment. The family of a deceased member is provided
with a Tk. 2,000 grant as compensation for the loss of the income earner.
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Physical Sustainability: In terms of management infrastructure, system, manpower, skills
and experiences, IDF is in a better position and very capable of expanding its outreach to the
remaining areas of CHT and other plain land areas, IDF has efficient field staff, experienced,
trained and committed mid-level officers (from Grameen Bank) who have a clear
understanding of micro credit program. So IDF has physical strength to sustain its program.
Financial attainability: IDF has continually pursuing diversified sources of funds In the
meantime; IDF has US$3137849 in assets and US$ 2312980 in liabilities and an equity-
holding of US$ 824868. IDF also has accumulated US$3040961 million as a revolving loan
fund.
Also IDF is a financially viable organization. Operational self-sufficiency and financial self-
sufficiency are 136% and 125% respectively.
2.1 INTRODUCTION OF PDBF
Palli Daridro Bimochon Foundation (PDBF), committed to the disposal of provincial

destitution in Bangladesh has risen as one of the biggest miniaturized scale fund
organizations in charge of the task of smaller scale credit program upheld via preparing and
21
social improvement exercises. Built up by an Act of Parliament in November 1999, the
Foundation was made as a free, independent, practical and self-supporting miniaturized scale
fund establishment devoted to the reason for mitigating rustic neediness and advancing
financial progression of the burdened provincial individuals.
Throughout the years, PDBF has made impressive progress in satisfying its main goal of
assembling the poor into movement gatherings, giving successful money related help and
aptitudes preparing to enable them socially and in addition financially. PDBF has accepted a
main job in the nation's smaller scale credit division by fortifying and growing the household
budgetary limit and setting up best practices for miniaturized scale credit administration and
activities.
2.2 OBJECTIVES OF PDBF
The objectives of the Palli Daridro Bimochon Foundation (PDBF) is to alleviate poverty and
promote the social and economic development of the rural targeted poor and the
disadvantaged.
This is accomplished by assisting enlisted poor by:
 Providing financial support through disbursing credit and collecting regular savings ;
 Providing training to strengthen their capacity for self-employment by acquiring
various skill for income generation and;
 Providing training on social development and gender issues to empower members
and increase their awareness.
PDBF is striving to help members for improving the quality of their lives and
emphasizes holistic development approach to ensure that members achieve both
economic and social development.
2.3 BACKGROUND OF PDBF
The creation of PDBF is the result of successes achieved and lessons learned from the Rural
Poor Program, RD-12 Project and the Rural Bittoheen Programme implemented since
1984 by the Bangladesh Rural Development Board (BRDB) with financial and technical
22
assistance from Canadian International Development Agency (CIDA). It is the first
government sector programme for the disadvantaged to have been transformed into a
permanent, autonomous and self-reliant institution. It is one of the largest human resource
development programmes along with the major component of micro finance that CIDA has
ever assisted.
2.4 THE STRUCTURE OF PDBF
PDBF (Palli Daridra Bimochon Foundation) is run by the 11-member Board of Governors
(BOG) with a Managing Director as Chief Executive. The clients have four representatives
on the Board and another three members each represent Government and the private sector.
Out of total 11, at least three members must be women. At present there are four women
members in the Board. PDBF is headed by the Managing Director along with three divisional
directors and nine managers constitute a management team to run the organization
smoothly. A Chief Auditor is responsible for the internal audit department under the direct
supervision and guidance of the Managing Director.
There are 11 Regional Offices located at the field level along with 167 branch offices
throughout the country over 25 districts. Each of the branch office is located at the
upazilla head quarter headed by a Branch Manager (BM) along with 12-15 credit and
support staffs. Each branch provides services to around 2500-3500 beneficiaries, who are
the targeted poor and disadvantaged people, especially the rural poor women.
2.5 ACHIEVEMENTS OF PDBF
About 2.10 million men, women arid children so far has been covered by the Foundation
under its micro-credit and social development programmer and disbursed a total of
Taka, 8,000 million as loans to the members with a cumulative recovery rate of 98 %
since its inception. The loans disbursed from a revolving fund of Taka. 663 million
provided by CIDA and the Government of Bangladesh, were granted to the members for
various income generating activities supported by over 5 million person days of training.
This increased the quality of life of the asset-less poor. Over 1, 00,000 women enhanced
their control in the family and the community in terms of social and economic decision
making, 'Meanwhile, many members have graduated to become self-supporting or self-
employed through income generation activities. At least 176 of these women and 36 men
23
have been elected to union parishad (local government institution) as members who
serve as a mechanism for their (communities) social up-liftment. PDBF's successes have
been achieved through hands on approach, commitment to provide service and efficient style
of management.
2.6 COVERAGE OF PDBF
Presently PDBF has been operating in 167 upazilas of 25 districts working with around
4,00,000 asset less women and men who organized into groups of five in 1,595
Societies (Village Organization). These upazilas constitute about one third of the
geographical area of the country with the highest incidence of rural poverty. About 91%
of the beneficiaries are women. Micro-credit combined with mobilization, training and
linkages with the country's nation -building departments has proved to be an essential
and effective means of alleviating poverty.
24
3
Chapter Three
Literature Review
3.0 CONCEPTUAL FRAMEWORK
25
3.1 INTRODUCTION
Organization require many things to be effective: a method for producing a
product or service (i.e., plant and equipment), financial resources, a way of
marketing whatever product or service created, and human resources. While
all of these are important to organizational effectiveness, the only factor that
represents a potential competitive advantage is Human Resources and how
these resources are managed. The production technology, financing, and
customer connections (marketing) can all be copied easily. The basics of
managing people can also be copied, but the most effective organizations
find unique ways to attract, retain, and motivate employees.
In HRM there is a greater emphasis on strategic issues and on the way which human
resource contributes to the achievement of corporate objectives. HRM underlies the
importance of flexibility and the ability to react and adapt quickly to changes in the
organizational environment.
3.2 DEFINITION OF HRM

Human resource management (HRM) involves all management decisions and practices that
directly affect or influence the people, or human resources, who work for the organization. In
recent years, increased attention comes from the realization that an organization's employees
enable an organization's success. The term "word class", or ranking foremost in the world, is
frequently mentioned as aspiration of organizations. In the context of HRM world class in
indicated by a HR group with a shared vision as to its constituents and how best to serve
them. A service orientation and a willingness to be in partnership with constituents
Characterized excellence in HRM. Specific earmarks of world class HRM include:

• Having a HR vision oriented to the strategic needs of the organization.
• Having a philosophy and values consistent with those of the organization.
• Being seen as a business unit within the firm and operating in the same way as other
Units: having customer and quality management
• Being organized in a way that brings maximum service to the customer jind maximum
motivation to the customers.
• Championing HR programs that fulfill the agendas of the HR group and thef. customer.
• Having a HR vision that is actively shared by the entire group.
• Being a proactive, not reactive, group.
• Being involved in the key business issue discussions.
26
• Being seen as successfully creating a great place to work.
The number of activities involved in human resource management is potentially large,
depending on the size of the organization and its needs.
3.3 FOUNDATION OF HUMAN RESOURCES MANAGEMENT:
HR Management is the piece of the association. HRM can be seen iris one of two
different ways. Initially, HRM is a slow down', or bolster, work in the association, Its
job is to give help with HRM matters to line representatives, or those straightforwardly
engaged with creating the associations merchandise and ventures. Second,
HRM is a component of significantly' administrator's activity. Regardless of whether

one works in a "formal" HRM division, the reality remains that to adequately oversee
representatives requires all chiefs to deal with the exercises.
HRM is a approach consisting of four basic functions: (1) Staffing. (2) Training &
development. (3) Motivation, (4) Maintenance. In less academic terms, it may be said that
HRM is made up of four activities: (1) Getting people (2) Preparing them (3) Stimulating
them (4) and Keeping them.
3.4 MAJOR AREAS OF HUMAN RESOURCE MANAGEMENT
27
Major Areas Related Topics
Planning for organizations, Jobs, and Human Resource Management Practices
People Retrenchment strategy
Strategic management of Human Resources Strategic compensation
Human Resource Planning Forecasting the demand for labor
Job Analysis: Procedures and choices Career and succession planning
Methods of job analysis
Purpose of job analysis
Acquiring Human Resources Title VII of the civil Rights Act
Equal Employment Opportunity: The legal Affirmative Action
Environment Evaluating Recruiting Sources
Recruiting and Job Search Realistic job Previews
Measurement and Decision-making Issues Reliability
in Selection Determining the validity of a
selection device Interviews Selection test
Building Individual and Organizational Principles of learning
Performance Training Methods
Human Resource Development Total Quality Management
Human Resource Approaches to Improve Employee Participation Schemes
Competitiveness
Rewarding Employees Methods of Appraisal
Performance Appraisal System Providing Feedback to employees
Compensation System Development Evaluation the Worth of Jobs
Incentive Compensation and Benefits Controlling benefit costs
Maintaining Human Resources Occupational safety and Health act
Safety and Health: A Proactive Approach Stress at work
Labor Relations and Collective Bargaining How unions are formed
Selection Out Collective Bargaining
Employment-at-will Reductions in Force
Staffing of foreign Plants Selection and
training at expatriates
Managing Human Resources in Micro Barriers to adopting strategic HRM
Finance Organizations the Process of Transformation to
strategic HRM
28
Making it Happen
making the change to strategic Human
Resource Management
3.5 AREA OF HRM ACTIVITIES
The HRM system mainly covers the following areas:

3.5.1 Human Resource Planning
3.5.2 Recruitment and Selection
3.5.3 Human Resource Information System (HRIS) Management
3.5.4 Compensation Management
3.5.5 Administrative Affairs
3.5.6 Human Resource Development
3.5.1 HUMAN RESOURCE PLANNING
Why Human Resource Planning?

Human Resource or Workforce arranging is a standout amongst the most vital issues
that HR experts are discussing today. In any case, many have not past the talking stage.
The assignment of really actualizing HR arranging is overwhelming in light of the fact
that it is so hard to characterize. The accompanying proposals are intended to demystify
what HR or workforce arranging is and to talk about the reasons why each HR division
should actualize such an exertion.
Being prepared is better than being surprised: Human Resource or Workforce arranging
is an efficient, completely incorporated authoritative process that includes proactively
preparing to maintain a strategic distance from ability surpluses or deficiencies. It depends on
the commence that an organization can be staffed all the more proficiently in the event that it
gauges its ability needs and also the genuine supply of ability that is or will be accessible.
HR ought to know about the business cycle: HR experts always whine about the difficult blast
and-bust cycle of spending cuts, quick development, and more spending plan cuts] What they
29
need is dependability. Shockingly, the manner in which that HR individuals act or neglect to act
intensifies the agony of the blast or bust stages.
Everybody realizes that the business cycle has good and bad times. There are times of
development and times of subsidence; each appears to happen at regular intervals. Interestingly,
HR individuals, instead of plan tweaked approaches for the diverse periods of the business cycle,
have a tendency to do things a similar way regardless of what the monetary atmosphere. HR
offices have fallen into the innocent device of working freely of the business cycle.
The effect of good human asset arranging: Good workforce arranging impact sly affects a
business. Some of most noteworthy include:
1. Killing amazements. HR should confine the upsetting "injury" identified with being amazed.
HR ought to have room schedule-wise to plan procedures and answers.
• Rapid ability substitution: Having the capacity to quickly make sense of positions that are empty
because of sudden (or unavoidable) turnover with the goal that generation or administrations don't
overlook anything.
2. Smoothing out business cycles. You can. Smooth out the cycles by creating forms that
increase and down your ability stock and work adequately amid both great occasions and lean
occasions.
• No delays: Ensuring that the organization can meet creation objectives by utilizing the
correct number of individuals.
• The right aptitudes: Ultimately expanding item improvement speed on the grounds that the
organization has the most brilliant individuals with the correct abilities to take items through to
their dispatch—on time.
• Employee advancement: The capacity to increase quickly on new ventures on the

grounds that the organization has arranged and prepared inner ability to meet the undertaking
needs.
3. Recognizing issues early. In the event that you have a smoke-locator framework set up to
advise administrators before an ability fire escapes hand, it will be considerably simpler to limit the
30
potential harm. HR ought to build up a framework, of "cautions" to caution, administrators of
minor issues (that they can redress with little exertion) before they turn' into significant issues.
4. Averting issues. Settling issues is costly and excruciating. A better methodology is than keep
issues from consistently happening.
• Lower turnover rates: Employees are constantly prepared for new open doors that fit
their profession advantages and abilities. They progress effectively and quickly to them.
• Low work cost: The ability is created to quickly lessen work costs without the
requirement for substantial scale cutbacks of lasting representatives.
• No cutbacks: Avoiding the requirement for cutbacks by overseeing head
Check guarantees that the organization won't have an "overflow" of ability.
5. Exploiting openings. Given adequate lead-time, you can accumulate assets and the ability
important to exploit positive chances. When you're always battling flames, you for the most part
rniss notwithstanding observing the chances, and there is only occasionally enough vitality left to
react to them.
• Take favorable position of chances; Efficient administration will free up HR experts so they
can exploit ability sourcing openings (like end of the week poaching) from a contender as an
approach to discover excellent ability amid extreme financial occasions.
6. Improving your Image. Appearing as though you're continually in a rushed state does
nothing to rouse certainty or enhance your specialization's picture. By being all around arranged for
any projection, you assemble your picture, your image, and your validity, so CFOs will probably
put resources into you.
Key regions of human resource arranging: Human resource arranging are a fascinating field.
Nobody can concede to its definition, and there is even less lucidity with regards to posting its
essential exercises. At the point when human asset arranging frameworks are structured, exercises
can be sorted into three fundamental territories of core interest:
31
The ability estimate. Ability determining is a procedure for anticipating forthcoming changes in
the interest for and the supply of ability. Figures are by and large separated into four zones:
• Estimated increments or declines in organization development, yield, and income.
• Estimates of the relating change in ability needs that originate from that development.
Evaluations can incorporate the number and sort of representatives and also where and. when they
will be required.
• Projections of future opening.
• Estimates of the inside and outside accessibility of the ability expected to meet gauges.
The expectations that outcome from the estimate has two essential purposes:
• To teach or give a heads-up to chiefs and HR about what they ought to expect on the ability
front.
• To give particular data on the supply of and interest for ability crosswise over ventures.
Along these lines, particular activity designs can be produced in the following piece of the ability
arranging process (ability activity designs) to give the association favorable position over its rivals.
Activity designs are for the most part created in every one of the diverse determined regions,
including selecting, maintenance, redeployment, unforeseen workforce, authority advancement,
and progression arranging
Ability activity designs. Ability activity designs layout what particular activities all (HR or
something else) supervisors should take in tetras of ability administration. Each activity plan has an
arrangement of objectives, a person who is in charge of ensuring the arrangement targets are met, a
financial plan, a timetable, and a quantifiable outcome. Ability activity designs can be separated
into three general exercises:
• Sourcing and selecting a satisfactory supply of pioneers and key ability:
• Internal advancement and supply of qualified pioneers and key ability
32
• Forecasting the hole between ability needs and its accessibility:
The incorporation plan: Action designs must be completely actualized whether an organization
will meet its anticipated ability needs. Sadly, most ability designs come up short or drop off when
they go to the usage stage.
Real segments of human asset arranging: There is no standard configuration or equation for a
workforce plan. Some workforce designs contain numerous segments, while others contain only a
progression plan for senior chiefs. There is nobody measure fits-all model. While there are some
essential parts that all designs ought to incorporate, there are some beneficial segments that can and
will work preferable for a few organizations over others.
Coming up next is a rundown of the most well-known parts of a human asset arranging:
• Forecasting and appraisal. Evaluations, for instance, of the inner/outer free market
activity; work costs; organization development rates; and friends income.
• Succession arranging. Assigning, for instance, the movement plan for key positions,
• Leadership advancement. Assigning high-potential workers; instructing; tutoring,

turning individuals into various activities.
• Recruiting. Evaluating requirements for head tally, positions, area, timing, and that's only
the tip of the iceberg.
• Retention. Determining turnover rates, distinguishing who is in danger and how to keep
them.
• Redeployment. Choosing who is qualified for redeployment, and from where to where.
• Contingent workforce. Assigning the level of workers will's identity unexpected, and in
what positions.
• Potential retirements. Making sense of who is qualified, when they are qualified, who
will supplant them, and what elective work courses of action are accessible that could keep a
retirement issue.
33
• Performance administration. Organizing "constrained positioning" or distinguishing
who ought to be "oversaw out."
• Career way. Profession guiding for representatives to enable them to climb,
• Backfills. Assigning key-position reinforcements
• Internal position. Creating work posting frameworks for inward representatives to get a
decisive advantage over new openings
• Environmental figure. Figures of industry and natural patterns, and additionally a

contender appraisal
• Identifying employment and competency needs. Completing an abilities and-intrigue

stock
• Metrics. Recognizing measurements to decide the adequacy of workforce arranging Look

toward the future:
The essential explanation behind doing human asset arranging is' financial matters. Whenever
done well, human asset arranging will expand profitability, cut work costs, and significantly slice
time-to-showcase since you'll have the correct number of individuals, with the correct aptitudes, in
the correct spots, at the opportune time.
Human asset arranging works since it powers everybody to start looking toward the future, and
counteracts shocks. It expects directors to prepare and to think about all consequences. Successful
workforce arranging is an incorporated ability administration framework that has been underused
and undervalued..
Work compel arranging and usage: The association will have the capacity to exhibit work stepping
stools and cross sections, or, in other words for profession arranging by representatives and
additionally the business. Bosses will be in a superior position to indicate which occupations
require at work preparing, which require boss supported preparing and which require preparing
through some other foundation. Workers will approach critical data to choose whether or not they
need to exhaust the time and vitality expected to get what it takes for different employments in the
association.
34
As associations choose their future human asset needs, the data got through this activity
investigation model should help the association in building up an arrangement to address those
issues.
3.5.2 RECRUITMENT and SELECTION:
• Recruitment: Enrollment shapes the primary phase of procurement work which is

the way toward finding potential contender for choice. Enlistment is the way toward
finding and drawing in able candidates for business. It is the disco veiling of potential
contender for real or foreseen hierarchical opening. The enrollment capacities include
the accompanying advances:
• Assessing recruitment
• Fixing standards
• Advertisement and publicity
• Making initial contact with prospective candidates
• Preliminary perusal and assessment of applications
• Short-listing of probable candidates for selection
• Selection process like interviewing or testing
• Recording and documentation
Factors affecting recruitment: There are many factors that affecting recruitment-which
may be considered into two broad groups:
a. Internal factors:
 Image of the organization
 Image of the job or attractiveness of the job
 Size and growth potential of the organization
 Internal policies
 Trade union requirements
 Recruiting budgets
b. External factors:
• Demographic factors
• Government requirements
• Industrialization
• Labor market
35
• Sources of Recruitment: There are mainly two sources of recruitment: internal
external. Promotion from within an organization is called internal source and recruiting
new people from outside the organization is known as external source.
1. Selection: Selection is a process of hiring suitable people for job. Right person for right
job is the main goal of selection. Selection is a decision making process. Well-designed
selection process involves the following steps:
• Reception of application
• Screening
• Application Blank
• Employment tests
• Interview
• References
• Medical examination
• Hiring decision or employment
3, 5.3 attracting and Retaining Human resource:

Every organization is made up of human resource, acquiring their services, developing
their skills, motivating them to high level of performance, and ensuring that they
continue to maintain their commitment to the organization are essential to achieving
organizational and objectives. It is an endless process of the organization. Getting and
keeping good and competent employee is critical to the success of every organization. This
is also a continuous & endless process of the organization.
To ensure attracting and retaining human resources each and every organization tries to
practice and implement the following attempts:
•Motivation of Human Resources: Towards every organization goal of having a

productive group of employees, they should not assume that the proper selection and
development of our personnel will necessarily give us desired result. We can hire
individual with extraordinary competence develop their abilities, and still not be assured
they will perform satisfactorily. A major missing ingredient is motivation, that is,
activating the potential of our employees.
36
People who are "motivated" exert a greater effort to perform than those, who are "not
motivated".
Basic Motivational Process:
Unsatisfied Tension Drivers

Search Goal Need Reduction of
Need Behavior achievemen Satisfaction Tension
t
It is observed that, an unsatisfied need creates tension, which stimulates drives within the
individual. These drives generate a search behavior to find particular goals that, if attained,
satisfy the need and lead to the reduction of tension. Therefore, organization must be
concerned with providing the stimulus that converts employee talent in to successful job
performance.
3.5.4 Compensation: Compensation is what employees receive in exchange for their work.
It is a particular kind of price that is, the price of labor. Compensation is an important
human
Resource function. The goal of compensation administration are to design the lower-cost pay
structure that will attract, motivate, and retain competent employees, and that also will be
perceived as fair by these employees.
Pay dissatisfaction may cause many problems that includes- lower performance, reduce
productivity, decline in the quality of work life, increase grievances, encourage workers to
search for new jobs, and increase absenteeism and turnover. The management of
compensation must meet the following objectives:

Acquire competent & qualified human research-Compensation needs to be high
enough

to attract competent applicants

Retain the existing employees- Compensation levels must be competitive in. order
to retain the skilled employees otherwise they must quit.

Ensure equity-1\\Q management of wage and. salary strives for internal and
external. Equity. Internal equity means that similar jobs should get similar pay.
External equity involves paying workers at a rate equal to the pay that similar
workers receive ten another firms.

Reward desire behavior- Good performance, experience, loyalty, new responsibilities
other behaviors can be rewarded through an effective compensation plan :

Control costs- Both over pay and underpay are harmful. Effective compensation
program -help an organization obtain and retain its work force at a reasonable costs.
37
Compensation objectives are not rules they are guidelines. Be that as it may, the better
attempted goals are pursued, the more the wage and compensation administration will be.
To meet these destinations, the embodiment of pay administration is work assessment and
foundation of a compensation structure Intention Compensation Plans: Incentive designs
ought to be seen as an extra measurement of the wage structure. Motivations can be paid
dependent on individual, gathering, or association wide execution.
 Benefits and Services: Benefits and services are important to the field of human resource
management. To motivate and retain the employees organization provides some voluntary
benefits that may be as follows:
• Pay for rest period
• Pay for vacations
• Pay for sick leaves
• Pay for leaves of absence
• Pension program
• Insurance
 Social and Recreational Events: In addition to benefits, organizations can offer a wealth
of services that employees find desirable. These services can be provided by the
organization at no cost to the employees or at significant reduction from what might have
to be paid without the organization's support. There are some social and recreation events
that are provided by the organizations are:
 Company-Sponsored events
 Cultural activities
 Housing
 Other services (free coffee, an organization's cafeteria,
 Organization provided transportation etc)
Rewarding:
 Rewarding the Productive Employees: Organizations use requires to motivate
People. They rely on rewards to motivate job candidates to join the organization. They
certainly rely on rewards to get employees to come to work and perform effectively once
they are hired. There are number of ways to classify rewards:
• Intrinsic versus Extrinsic rewards: Intrinsic rewards are the satisfactions one gets from
the job itself.
38
• Financial versus Non-financial rewards: Direct financial rewards are wages,
bonuses, profit sharing and Indirect financial rewards are pension plans, vacations,
paid sick leaves and purchase discounts.
• Performance-based rewards: Performance-based rewards are exemplified by the use of
commissions, piece work pay plans, incentive systems, group bonuses, or other forms
of merit pay plans.
• Membership-based rewards: Membership-based rewards include cost-of-living
increases, profit sharing, benefits and salary increases attributable to labor market
conditions, seniority or time in rank, credential or future potential.
Now the thing is, these rewards are distributed on the basis of the following criteria:
• Performance
• Effort
• Seniority
• Skills held
3.6.5 Administration
Job analysis: It is something that analyzing the tasks we need to done in order to
complete a job. It doesn't need to be troublesome or confused. Occupation investigation
is the way toward taking a gander at precisely what an occupation involves with the
end goal to decide the essential employment capabilities.
Whatever system is utilized, the activity examination ought to be founded on detectable

practices or work items. By chronicle conduct and work items in the activity
examination, the investigation focuses on those parts of the activity, which are
observational evident.
• Performance Management System:

Performance appraisal is a process in an organization whereby each employee is evaluated to
determine how he or she is performing. Employee may be appraised against absolute
standards, relative standards, and objective.
The appraisal process consists of six steps:
• establish performance standards
• communicate performance expectations to employees
39
• Measure actual performance
• compare actual performance with standards
• discuss the appraisal with the employee and
• initiate corrective measure/action
Performance appraisal is an important tool for motivating and improving Employee
performance. Performance appraisal can serve a strategic function by focusing employee
Efforts on the type of behaviors required for successful strategy implementation,. Appraisals
are also used:
 To make administrative decisions about employees
 To provide feedback for employee development, and
 To evaluate HR policies and programs
 Strategic Importance of Performance Appraisal: Strategically organizations strive to
do the following at all levels:
 Design jobs and work systems to accomplish organizational goal
 Hire individuals with the abilities and desire to perform effectively
 Train, motivate, and reward employees for performance and productivity
A good performance appraisal system should measure job characteristics, be free from
extraneous or contaminating influences, and encompass all important aspects of the job.
A number of types of rating procedures can be used, including:
• Essay Appraisal: The simplest method of appraisal is to have the 1 rater .write a narrative
describing and employees strengths, weaknesses, past performance, potential,
suggestions for improvement..
9 Checklist: In the checklist, the evaluator uses a list of behavioral descriptions and check
of those behaviors that apply to the employee. It is usually evaluated by the staff
personnel department, not the manager doing the checklist.
• Graphic Rating Scale: Graphic rating scale scan be used to asses factors such as quantity
and quality of work, job knowledge, cooperation, loyalty, dependability, attendance,
honesty, integrity, attitudes, and initiative.
 Individual Ranking: The individual ranking method requires the evaluator merely to list
the employees in an order from highest to lowest. Only one can be "best".
2. MBO Method: An additional appraisal system - MBO a very popular individualized

method of evaluating the performance of managers and professionals.
Job Evaluation:
There are four basic methods of job evaluation currently in use:
40
 Ranking Method: The ranking method requires a committee typically composed
of both management and employee representatives to arrange job in a simple rank
order, from highest to lowest. The committee members merely compare two jobs
and judge, which one is more important or difficult. The Ranking method is simple,
inexpensive, fast, and easy to understand.
 Classification Method: These classifications are created by some common
denominator skills knowledge, responsibilities with the desired goals being the
creation of a district classes or grades of jobs.
 Factor comparison Method: Factor comparison method is a sophisticated and
quantitative ranking method. The evaluators select key jobs in the organization
as standards.
 Point Method of job Evaluation: The last method that allocates points to each of
various criterions. Depending on the importance of each criterion to performing
the job, appropriate weights are given, points are summed, and jobs with similar
point totals are placed in similar pay grades.
Four steps are followed in applying the point method.
i. Selection of compensable factors
ii. Establishment of factor scales
iii. Assignment of points to degrees
iv. Application to organizational jobs
Human rights in MFI:

Human rights belong to all people, and all people have equal status with respect to these
rights are to respect an individual's human right. The weight as failure to respect
depending on the person's gender, race, ethnicity, nationality or any other distinction.
Inalienability of human rights: Human rights are inalienable: others can't take them
away, nor one we can surrender them voluntarily. Indivisibility of human rights:
Human rights are unified in two detects. In the first place, there is no order among
various types of it. Common, political, monetary, social and social rights are on the
whole similarly essential for an actual existence of nobility. Second, a few rights can't
be stifled with the end goal to advance others.
Acknowledgment Of human rights: Human right is acknowledged when people appreciate
the opportunities secured by that privilege and their delight in the privilege is secure. A man's
41
human rights are acknowledged whether and just if social assertions are set up adequate to
secure her standard dangers to her satisfaction in opportunities secured by those rights.
The area of human rights

Human right and human advancement share a typical vision and a
regular reason to anchor the opportunity, well - being and nobility surprisingly
all over the place. To anchor:
• Freedom from separation by sexual orientation, race, ethnicity, national, source

religion.
• Freedom from need to appreciate a nice way of life.
• Freedom from dread of dangers lo individual security, from residency, self-

assertive capture and other savage acts.
• Freedom from bad form and infringement of the control of law.
• Freedom of thought and discourse and to partake in basic leadership and frame
affiliation.
• Freedom for average work - without misuse.

The priorities for human rights-development policies
• Ensuring civil and political rights freedom of speech, association and
participation- to empower poor people to claim their social, economic and cultural
rights.
• For the state, meeting its human rights obligations to implement policies and
policy-making processes that do the most to secure economic, social and cultural
rights for the most deprived and to ensure their participation in decision making.
• Human rights measures ranges from the virtually cost-free to those demanding substantial
resources for public-its to provide schools teachers and judges, for corporations to put in
place or working conditions that respect core labor standards.
42
• Relevant Labor Law
The labor law that relates to requirement as follow:
(1) Health & Hygiene

• Cleanliness of the Organization
• Overcrowding in the organization:
• Lighting in the organization:
• Drinking Water:
• Latrines and urinals:
• Welfare officer'.
(2) Working Hours of Adults

• Weekly hours:
• Weekly Holiday:.
• Compensatory Weekly holiday:
• Interval for rest time:
• Extra allowance for overtime:
(3) Leave and Holidays with Wages

• Annual Leave with wages:
• Festival holidays:
• Causal leave and sick leave:
• Wages during or holiday period:
3.5. 5 HUMAN RESOURCE DEVELOPMENT
•Training and development

Training and development of employees in an association is imperative. Preparing is
expected to keep the representatives' aptitudes current. Additionally seeing that it fills in as an
establishment for professional success, it assumes a critical job in the maintenance of
workers.
Career counseling is another compelling formative apparatus. Ordinarily the
supervisor is the best profession advisor for the worker since the director can affect
work assignments, which can cultivate vocation advancement. The means in profession
directing include:
43
• Evaluating the worker's advantages. Books, exercise manuals and surveys to help
assess interests are accessible through libraries, book shops, and advisors.
• Evaluating the worker's qualities and constraints.
• Exploring vocation alternatives and openings
• Creating a profession improvement plan.
HR preparing are a critical expansion to any foundations. An association needs

balanced, prepared and experienced individuals to play out the exercises that must he
done. Rather, quick occupation changes are happening, requiring worker aptitudes to be
changed and regularly refreshed. In organizations, this is happen through what we call
worker preparing. Preparing is a learning background in that it looks for a moderately
lasting change in a person that will enhance the capacity to perform at work.
Training Approaches:
It is the most popular training & development methods on- the-job or off-the-job
training. We will briefly introduce the better-known techniques category.
On the job training: The most broadly utilized preparing strategies occur at work. On
the job training places the representatives in genuine work circumstances and
influences them to give off an impression of being promptly beneficial. It is learning by
doing.
Off the job training: Off-the-job training covers a number of techniques-classroom
lectures films, demonstrations, case studies and other simulation exercises, and program
induction.
Employee development method:

Some improvement of person's capacities can happen at work. We will survey a few
strategies, three famous at work procedures work pivot, aide to program, board of
trustees task and three off-the-work systems address course 85 classes,' reenactment work
out, and out entryway preparing.
Job rotation:
44
Job rotation involves moving employees to various positions. Job rotation can be either
horizontal or vertical. Vertically rotation is nothing more than promoting an employee
into a new position.
Job rotation represents an excellent method for broadening about individual's exposure
to company operations and for training a ; specialist into a generalist. In addition to
increasing the individuals experience and allowing him/her to absorb new information.
It can reduce boredom simulate the development of new ideas perform many duties
under the watchful eye of a supportive coach.
Committee Assignment:
Committee assignments can provide an opportunity for the employee to share in
decision making to learn by watching others, and to specific organizational problems.
Appointment to permanent committees increases the employee's exposure to other

member's of the organization, broadness his/her understanding, and
provides an opportunity to grow and make recommendations under the security of other
committee members.
Simulation:
While basic in preparing representatives on real work encounters, simulation are most
likely even e prominent for worker advancement. The more generally utilized
reenactment practices included contextual analyses, choice diversions, and pretend.
Outdoor training:
In representative advancement has been the utilization of open air preparing. The
essential focal point of such preparing is to show students the significance of working
Together: gelling as a group. The reason for such preparing is to perceive how
representatives respond to the troubles that nature presents to ism. The dishonesty is that
the present business condition does not allow workers to "stand alone" this has rain
constrained the significance of working intimately with one another, wilding confiding
seeing someone find prevailing as an individual from a gathering.
Disciplinary Process:
These systems of disciplinary procedures to be pursued in| the occasion of either
45
• Unsatisfactory execution which has kept after the arrangement of a sensible open
door for development; or
• Misconduct/genuine unfortunate behavior. As expressed in the methods,

disciplinary move may just be made by the Vice Chancellor and just as per the terms of
the systems.
The steps that are taken before implementing the disciplinary procedures
The aim of the methods is that disciplinary activity be utilized if all else fails. In many
examples identifying with the execution or direct of staff, guiding of staff individuals
ought to be considered as an option in contrast to setting out on more formal
disciplinary activity.
Regardless (with the Exception of genuine unfortunate behavior), advising ought to be

the starter to disciplinary techniques the director should take the accompanying before
implementing the disciplinary procedures.
For unsatisfactory performance
The use of disciplinary procedures for unsatisfactory performance cannot be initiated until the
processes of the performance management scheme have been completed. The performance
management scheme clearly outlines the supervisor's initial responsibilities and obligations
with respect to process and counseling in the situation of unsatisfactory performance.
For unsatisfactory performance

Annual performance management review
↓
Unsatisfactory performance identified
↓
Development of performance improvement plan
↓
Completion of performance improvement plan
↓
46
Unsatisfactory performance continues
↓
Disciplinary procedures for unsatisfactory performance
For misconduct/serious misconduct:

Act of alleged misconduct/
serious misconduct serious misconduct  Summary dismissal
Counseling and warning

↓
Record of counseling and warning ↓
↓
Misconduct continues/recurs
↓
Disciplinary procedures for misconduct/serious misconduct
Initiating disciplinary action
Where thought is being given to actualizing the disciplinary methodology, contact staff in
the Human Resources Unit at the most punctual chance.
Termination Of employment: There is an extensive variety of enactment applicable

to end of business. The most imperative bit of enactment for representatives secured by
government grants is the Workplace Relations Act 1996. The demonstration depends
on the guideline of a "reasonable go all round" and centers around beginning placation
of all end claims.
Written Warning: The second step in the progressive discipline process is the written
warning. It is the first formal stage of the disciplinary procedure and it’s become part of
the employees official personnel file. This is achieved by not only giving the warning to
the employee's permanent record.
Suspension: A suspension or layoff is the next disciplinary step. Usually it is taken
only if the prior steps have been implemented without the desired outcome. Exception -
where suspension is given without any prior verbal or written warning-occasionally
occur if the infraction is of a serious nature, A suspension may be for one day or several
weeks.
Dismissal: This is the administration extreme disciplinary discipline is rejecting the
issue worker, Dismissal to be utilized just for the most genuine offenses. A rejection
choice is given long and hard thought.
47
4
48
Chapter Four
Comparison between PDBF and
IDF Regarding HR Practices
49
4.0 ANALYSIS OF THE QUESTIONNAIRE RESULT
4.1 The nature/status of the organizations
Answered by:
PDBF: An independent, autonomous, sustainable and self-supporting micro-
finance institution for alleviating rural poverty and promoting socio-economic
advancement of the disadvantaged rural people. PDBF has been established by an
act of Parliament in November 1999 and is run by 11 - member Board of
Governors (BOG) with a Managing Director as Chief Executive.
IDF: An independent, autonomous, sustainable micro credit organization for

alleviating poverty of the rural poor. IDF has been established in 1993 and is run
by 20-member Board of Governors (BOG) with a Chief Executive.
4.2 Objectives of the organizations:

Answered by:
IDF: The objective is poverty alleviation of the rural poor along with' the
empowerment of the poor women.
50
PDBF: The objective is alleviating rural poverty through credit delivery and
promoting socio-economic advancement of the disadvantaged rural people.
Another component is to provide skill training for the clients.
4.3 Organizational structure of the organizations:

IDF: It is found that IDF has no Human Resource Division in the organizational
structure. They have the administration division and separate training division.
Administration is responsible for the recruitment & personnel records and
establishment department is responsible for disciplinary action.
PDBF: It is found that PDBF has the HRM department under Human Resource
Division. HRM department perform the HR related activities.
4.4 AREAS OF HRM ACTIVITIES IN YOUR ORGANIZATION?

Answered by:
IDF: Major areas of HRM activities are recruitment, confirmation, compensation
& benefits, transfer & posting, disciplinary action, promotion and performance
evaluation.
PDBF: All standard HRM activities like HR planning, recruitment & selection,
employee management, compensation management, benefit administration and
employee relation.
4.5 Do you follow the HR planning process in you organization?

Answered by:
IDF: This company does not follow HR Planning yet.
PDBF: No, but currently is being practiced.
4.6 The method applied for job analysis in the organization?

Answered by:
IDF: IDF follows the observation method of job analysis to determine the tasks to
successfully accomplish the job.
PDBF: the company does not applied any method for job analysis.
4.7 What is the recruitment source of your organization?
51
Answered by:
IDF: Follow both internal and external sources of recruitment with emphasize on
external sources as example for internal recruitment to promote the competent
employees within the organization & for external recruitment published advertisement
to newspaper and also through online.
PDBF: Mostly follow internal recruitment to promote the competent employees
within the organization.
4.8 The major elements that attracts people to do work at the organizations?
Answered by:
IDF: Major elements are Career progression, working environment, job
satisfaction, rewarding productive employees, training & development opportunity,
special pension package etc.
PDBF: Autonomous organization, career progression, working environment, job

satisfaction, rewarding productive employees, training & development opportunity
and standard compensation benefits etc.
Graphical Presentation of Questionnaire
4. .9. Providing types of rewards by different organization to retain employees

Answered by:
IDF : Financial vs. Non-financial (a), Intrinsic vs. Extrinsic (b),
Performance based (c)
PDBF : Financial vs. Non-financial (a), Intrinsic vs. Extrinsic (b),
Performance based (c)
Types of Rewards No. of Organizations Percentage

a) Financial vs. Non-Financial 2 37%
b) Intrinsic vs. Extrinsic 2 26%
c) Performance based 2 36%
d) Membership based x x
52
d) Membership based, 0
c) Perf ormance based, a) Financial vs. Non-

a) Financial vs. Non-financial
3 financial, 3
b) Intrinsic vs. Extrinsic
c) Performance based
d) Membership based
b) Intrinsic vs. Extrinsic,

2
ASSESMENT:
From the chart as well as from the graph, this can be understood; the two organizations
are commonly follow Financial vs. non-financial rewards, Intrinsic Vs Extrinsic and
Performance based rewards. None of them follow Membership based Reward.
53
4.10 Basis of Distribution of Rewards
Answered by:
IDF : Performance (a), Effort (b), Seniority (c),
PDBF : Performance (a), Skills held (d),
Basis of No. of Percentage
Distribution Organizations
Rewards
a) Performance 2 43%
b) Effort 1 29%
c) Seniority 1 14%
d) Skills held 1 14%
d) Skills held, 1
a) Performance
c) Seniority, 1 a) Performance, 3
b) Effort
c) Seniority
d) Skills held
b) Effort, 2
ASSESMENT:
In this portion, distribution of rewards is graphically represented. Here IDF follow Performance,
Effort and Seniority based rewards, Where PDBF follow only Performance and Skills held based
rewards.
54
4.11. Practice of Incentive plan
Answer by:
IDF : Individual incentive (a), Group incentive (b),
Organizational incentive (c)
PDBF : Individual incentive (a)
Incentive plan No. of Organizations Percentage

a) Individual incentive 2 60%
b) Group incentive 1 20%
c) Organizational incentive 1 20%
d) Above all x x
c)
Organizationa d) Above all
l incentive a) Individual incentive
0%
20%
b) Group incentive
c) Organizational
incentive
b) Group a) Individual
incentive incentive d) Above all
20% 60%
ASSESMENT:
In this chart Individual Incentive plan followed by PDBF.And IDF also Follow Individual
incentive but they also prefer Group and organizational incentives.
55
4.12 Offering major voluntary benefits to motivate employees by different
organization
Answered by:
IDF : Pay for Vacation (a), Pension Program (c), Insurance (d)
PDBF : Pay for Vacation (a), Insurance (d)
Major Voluntary Benefits No. of Organizations Percentage

a) Pay for Vacation 2 43%
b) Pay for leave of absence X x
c) Pension Program 1 14%
d) Insurance 2 43%
d) Insurance, 3
2.5
1.5 c) Pension Program,

1
1 d) Insurance,
c) Pension 43%
0.5
Program, 14%
0
c) Pension Program d) Insurance
ASSESMENT:
From the chart of voluntary benefits, above two organizations offers pay for
vacation and insurance Program to motivate employee. IDF has the pension
program with a special focus on service duration so that the employees can avail
the pension facilities after 10 years’ service. If PDBF can introduce the similar
type of pension program it would be helpful to achieve the organizational
sustainability as well as to improve its productivity.
4.13 Use of job evaluation method to provide compensation among the employees
Answered by:
56
IDF : They not mention yet
PDBF : They not mention yet
Use of Job Evaluation No. of Percentage

Method Organizations
a) Ranking Method x x
b) Classification Method x x
c) Factor Comparison Method 1 100%
d) Point Method x x
d) Point Method x
d) Point Method x
0.5
0
x
ASSESMENT:
From the above the chart, it is very much clear that most of the micro finance
organization does not follow any particular method. That’s why PDBF should
introduce the point method of job evaluation to provide compensation among the
employees.
4.14 Practice of job tasks and work schedules that influence the motivational level
of employees.
Answered by:
IDF : Job enrichment (a), Job rotation (b)
PDBF : Job enrichment (a)
57
Job tasks & Work schedules No. of Organizations Percentag
e
a) Job enrichment 2 60%
b) Job rotation 1 40%
c) Work module x x
d) Flex time x x
a) Job
enrichment
3
2.5
b) Job rotation
2
1.5
a) Job
1
enrichment b) Job rotation
0.5
ASSESMENT:
The above chart and graph have presented some alternative job tasks and work
schedules that make job more interesting. In the survey, it is observed that IDF think
that job enrichment and job rotation influences motivational level of employees,
whereas PDBF thinks that only job enrichment influences the motivation level of
employees. It is recommended that PDBF should include job rotation system along
with job enrichment and work module for influencing the motivational level of
employees.
58
4.15 Use of Performance appraisal method in different organizations
Answered by:
IDF : Individual ranking (d), MBO method (e)
PDBF : Individual ranking (d)
Performance appraisal No. of Percentage

method Organizations
a) Essay appraisal method x x
b) Checklist x x
c) Graphic rating scale 1 20%
d) Individual ranking 2 60%
e) MBO method 1 20%
3
3
2.5
1.5
1 1
1
60%
0.5 20% 20%
0
c) Graphic rating d) Individual ranking e) MBO method
scale
ASSESMENT:
In this part the method of performance appraisal plays a vital in the expectancy model
of motivation. It is observed that Individual ranking method commonly used in all of
the two organizations (IDF and PDBF). A very popular method of evaluating the
performance of managers and professionals is management by objectives (MBO) that
are partially followed by IDF. PDBF emphasizes that target orientated and competency
based performances that are not mentioned in the questionnaires. If PDBF follows
MBO method it will ensure the success of the organization.
4.16. Focus of Performance evaluation

Answered by:
IDF : Job performance with due satisfaction (a)
59
PDBF : Job performance with due satisfaction (a),
Job assignment of job output (b)
Focus of the performance No. of Organizations Percentag

e
a) Job performance with due 2 60%
satisfaction
b) Job assignment of job 1 40%
output
c) Variance analysis x x
d) Job rectification x x
a) Job performance w ith due

b) Job satisfaction
assignment of job b) Job assignment of job output
output, 2, 40%
a) Job
performance with
due satisfaction,
3, 60%
ASSESMENT:
IDF and PDBF accomplish performance appraisal for the employee’s satisfaction with
their job. In this case, the focus of the performance evaluation in PDBF is similar
compare to other organizations.
4.17 Outcome of performance evaluation
Answered by:
60
IDF : Effective (a)
PDBF : Satisfactory (b)
Outcome of the job evaluation No. of Organizations Percentag

method e
a) Effective 1 33%
b) Satisfactory 1 67%
c) Excellent x x
a)
Effective
33%
b) a) Effective
Satisfacto b) Satisfactory
ry
67%
ASSESMENT:
The above chart shown, most of the organizations are satisfied whatever the method
they are using. PDBF is also satisfied. This is the positive sign for all the organizations
that are motivating the employees.
4.18 Training to supervisors in methods of conduction performance appraisal

Answered by:
IDF : Yes, through management development plan.
PDBF : Yes, through management development plan.
ASSESMENT:
61
In this portion, IDF and PDBF all these organizations have the same answer.
4.19 The modern technological concepts have been adapted in the organization to
compete the global competitive environment.
Answered by;
IDF: Adopted sophisticated technology in most of the activities.
PDBF: Modern technological concept has been well adopted in PDBF.
ASSESMENT
Sophisticated modern technologies have been adopted in all of the 02 micro finance
organizations to improve the performance quality and productivity.
4.20 Steps are taken to maintain a sound organizational environment.

Answered by:
IDF: To maintain sound organizational environment, priority has. given to the
employee opinion, employees participation, developing organizational culture, mutual trust,
good interpersonal relation and importance of employees problem.
PDBF : To maintain sound organizational environment, priority has given to the
employee opinion, employees participation, developing organizational culture, mutual trust,
good interpersonal relation and importance of employees problem.
ASSESMENT:
In this discussion all the organizations give the right answer. They are very much
concern regarding maintaining sound organizational environment. As it increases attention,
speed and productivity of the employees to their work. It can be suggested that to maintain
sound organizational environment PDBF can add more things that is conflict resolution
committee. This committee will resolve any sort of interpersonal, intra-individual, as well
as organizational conflict.
62
4.21 Comparison between IDF & PDBF, regarding some other organizational
issues:
A Employment & Personnel Phase: IDF PDBF
Appointment letter is given to the employee Yes Yes
Promotion and increment is given to the employee. Yes Yes
To create awareness of the basis of promotion and appointment Yes Yes
Provide training and skill development Yes Yes

Service rule partial Yes
B Discipline & disciplinary action
There are no unfair deductions from salary as a punishment No No
Employees are not dismissed without giving any reason No No
After resignation the employees get their financial dues Yes Yes
accordingly without much suffering
Disciplinary action can be taken with the respect of the law of land Yes Yes
C Discrimination Phase:
All employees are free from Gender Yes Yes
All employees are free from Region Yes, Yes
All employees are free from Race Yes Yes
All employees are free from Union Affiliation Yes Yes
All employees are free from Social ethnic Yes Yes
All employees are free from Nepotism Yes Yes
All employees are free from Political opinion Yes Yes
Non-restriction on to carry out religious practice Yes Yes
D Health, Safety and environment IDF PDBF

Employees are trained to know the person who trained to Yes Yes
Yes operate fire extinguishers
Exits are not locked during work hours not locked not locked
Wholesome drinking water is easily available throughout Yes Yes
the floor
Toilets are neat and clean Yes Yes
Access to treatment in sickness, the factory reimburses Yes Yes
Yes accidental injury cost, medical leave with pay
Use of personal Protective equipment No No
Office is completely non-smoking area
E Compensation and work hours
Work for 6 days in a week and 8 hours in a day Yes No
Over-time is voluntary
Salary and over-time wages is paid at once by the date No No
of 7th of the month
F Employee’s Feeling
Suggestion box is available for collecting employees No No
suggestion regarding any things can be pointed to the
univetrsity management
63
G Grievance Procedures
Employees can easily communicate with the Yes Yes
management for any complaint
Management takes action for any complaint Not always Not always
Employee can access to the top management yes not always
Welfare office is appointed for the convenient of no no
employee’s grievance
H Freedom of Movement IDF PDBF

No restriction on visit to the toilets access. No No
No restrictions to talking with co-employees in case of No No
emergency
Employees are allowed to leave campus in case of Yes Yes
emergency
No restriction for breast-feeding at necessary interval Yes Yes
I Harassment and Abuse
Management cares enough for any type of harassment Not always not always
J Leave and Holidays
Employees are allowed to take casual, sick, earned, public Yes Yes
holiday, maternity leave.
Emergency, compensation & encasement leave is Yes ; Yes
All leave with pay
provided. No No
K Others
Festival bonus. Yes Yes
Attendance allowance No No
Entertainment facilities No No
Group life insurance No Yes
Employee provident fund Yes Yes
Computerize attendance-processing system No No
Canteen facilities Yes No
Child cares facilities No No
In -house -clinic with registered doctor No No
Training & development in line with present demand Yes Yes
64
5
Chapter Five
Findings and Analysis
65
5.0 FINDINGS
The result of the study that IDF has no structured HR Division whereas PDBF has a HR
division. The two major micro finance institutions -IDF & PDBF, do not practice the modern
HRM policy and procedures. Both organizations perform various HRM activities according
to their own policy procedures or in other words IDF follow a tailor-made personal
management system that also helps them to ensure the organizational goals and objectives. It
should be noted that although IDF engaged only 200 of employees in a small stage, they have
no trade union activities because of more actively motivated employees to their jobs. On the
other hand, PDBF practices the modern HRM system to ensure a sound and unique
employee management style in the micro finance organizations as well as in handling trade
union activities that inherited from BRDB.
As NGO IDF is a modern micro finance institution where trade union, laws, and other
HRM system is not following properly but in all respect organization is maintaining
their good performance on the ground. Job satisfaction of the staffs, personal and official
demand of the staffs, work environment in the office and field are satisfactory.
It is found by the study that most of the cases IDF and PDBF are not following fully HRM
procedures. Labor law, disciplinary procedures, Leave and holiday, benefits system are not
same like Government organization. Grievance procedure is not followed by any
organization. Work hours both in office and field are more than 8 hours per day. But there
is no any extra financial benefit for over time Although PDBF providing overtime
allowances to their few non officers.
IDF has no any completed approved service rule for the interest of employees. PDBF has a
service rules book which is not followed properly.
Both the organization IDF & PDBF do not have any adequate recruitment procedure.
Regarding job analysis, job evaluation and performance measurements are not practicing
as modern HRM in both IDF and PDBF. In spite of many limitations in the field of HRM
IDF and PDBF is doing their job perfectly. Both organizations are doing different type of
work but excellent work for the interest of poor people as well as poverty reduction of the
country.
66
CONCLUSION
This paper is prepared for the purpose of academic under thesis program of United
International University. As information of this study will be used only for academic
purposes and secrecy will be maintained properly. Thesis program of UNITED
INTERNATIONAL UNIVERSITY is a dynamic initiative for the students where
students can gather more practical knowledge under supervising teacher. At the same
time, Students can get opportunity to be engage with the organizations as well as
employee of the organization and learn more HR management system. Finally, I want to say
that this paper highlights a good number of aspects regarding Human Resource
Management (HRM) system. This paper shows that a sound and employee friendly HRM
policy & procedures are beneficial for the micro finance organizations if it is practiced
fairly and consistently. The major HRM activities, such as HR planning, recruitment
and selection, attracting and retaining the employees, compensation & benefit, and
performance appraisal system should be practiced in such a manner that help in
improving employee morale and motivation resulting the achievement of organizational
goals and objectives in the micro finance sector. I have learnt many information and
system related HR management from this program that may be used for the development of
other organization.
HR hone in Bangladesh is superior to the past. In the past HR job was concentrated to
employing terminating and letter issuance dispatching, filling stage and Compliance were
disregarded. Presently it has begun to perform more than that. For example, representative
inspiration, worker improvement, worker maintenance, encourages hierarchical
advancement activities and in this manner commitment to the accomplishment of
authoritative objectives. These esteem included occupation has quite recently started in
Bangladesh, for a decent tomorrow, this is a beginning stage.
Boss has begun to comprehend that the more they put resources into HR the more output
is likely which lead them to accentuate on representative capacity advancement. In that
capacity finds numerous associations, worker improvement is seen as a major aspect of
strategy for success. Boss and Employee relationship is superior to the past; managers
currently perceive the significance of worker's investment in business arranging, real basic
leadership and hierarchical change process. Numerous associations presently lead worker
67
supposition studies for gathering representative criticism and enhance business
representative relationship.
Some HR activities have legitimate ramifications. Be that as it may, in the nation's setting
lawful clarification does [not seem to be satisfactory. There is absence of consistency in
the understanding of law that prompt practice by association in various ways. There is
likewise uncertainty of existing lawful arrangement or definite approach structure on HR
activity is by all accounts fragmented.
In future the general HR hone is relied upon to be more splendid in each part in
Bangladesh, on the grounds that:
• More are feeling the need of a set up HR office in both in institutional and
hierarchical structure.
• Employer and additionally Employee relationship is relied upon to move forward.
• It will be a piece of HR rehearses, which will make HR activities, basic leadership

process quicker and exact.
RECOMMENDATIONS
There are different approaches of human resource management-which provide

complementary themes that help HR professionals keep the HR functions and its activities in
the proper perspective. (Compare to other micro finance organizations although PDBF has
a well-structured HR Division, still it has the scope to improve the HR activities that helps
in achieving organizational goals and objectives.) Now given below some steps required
to follow by which, I think PDBF can identify its lacking as well as also can be able to
minimize some sort of problems.
a) Approaches of HRM: PDBF should review their approaches to HR management

that may be as follows:
 Strategic approach- HR management must contribute to the strategic success of the

organization. If the activities of the HR professionals do not help the organization
68
achieve its strategic objectives, resources are not being used effectively.
 Proactive approach- HR management can increase the contribution to the
employee and the organization by anticipating challenges before they arise, If its
efforts are reactive only, problems may be compounded and opportunities may be
missed.
b) Motivation of Human Resources: It has been suggested, to motivate human

resources PDBF should provide accurate open feedback to individuals about their
performance. If they ensure that high productivity and good work performance
lead to the achievement of the personal goals, employee will be more active
motivated to their jobs.
c) Performance Management System: To evaluate employee performance PDBF

should follow a tailor made performance appraisal method that will ensure the reward
for good performer and penalty for the non-performer as well.
d) IDF should have the complete service rule.
e) PDBF Should follow the approved service rule.
Reference
ANNEXES
BLIOGRAPHY
 AKKAS A.M. “Readings in Human Resource Management”.

 Annual Report of IDF and PDBF
 Brochure of PDBF and IDF
 Griffin. W. Rick “Management Book”
 Policy and Guidelines of PDBF and IDF
 Readings in Human Resource Management By Prof. M .A. Akkas.
 Web site: www.pdbf.org/www.IDF.org
69
ACRONYMS
AM = Area Manager
BM = Branch Manager
BRAC = Bangladesh Rural Advancement Committee
CARE = Cooperative for American Relief Everywhere
CC = Center Chief/ Chief Coordinator
CHT = Chittagong Hill Tract
CDF = Credit Development Forum
DCC = Deputy Center Chief
DMRI = Debt Management reserve Investment
ED = Executive Director
GB = Grameen Bank/ General body
GT = Grameen Trust
GF = Grameen Foundation
GC = Group Chairman
GS = Group Secretary
GGN = Grameen Global Network
HRM = Human Resource Information System
HKI = Helen Keller International
IDF = Integrated Development Foundation
MBO = Management by Objectives
ME = Micro Enterprise Loan
NGO = Non Government Organization
PDBF = Palli Daridro Bimochon Foundation
Tk. = Bangladeshi Currency
VO = Village organizer
70
Appendix
Questionnaire :
1. What is the nature /status of your organization?
2. What are the objectives of your organization?
3. What is the organizational structure of your organization?
4. What are the areas of HRM activities in your organization?
5. Do you follow the HR planning process in your organization?
6. Which method is applied for Job analysis in your organization?
7. What is the recruitment policy of your organization?
8. What are the major elements that attract people to do work at your
organizations?
9. What types of rewards mostly given in your organization to retain employees?

a) Financial versus non-financial rewards
b) Intrinsic versus extrinsic rewards
c) Performance-based versus
d) Membership-based rewards
10. In your organization rewards are distributed on the basis of

a) Performance
b) Effort
c) Seniority
d) Skills held
11. In your organization which incentive plan would you practice?

a) Individual incentives
b) Group incentives
c) Organization incentives
d) Above all
71
12. What are the major voluntary benefits that your organization offered to motivate
employees?
a) Pay for rest period
b) Pay for leave of absence
c) Pension programs
d) Insurance (group life insurance, health insurance)
13. Which job evaluation method do you use to provide compensation among the
employees?
a) Ranking method
b) Classification method
c) Factor comparison method
d) Point method
14. In your organization which job tasks and work schedules influence the motivational
level of employees?
a) Job enrichment
b) Job rotation
c) Work module
d) flex-time
15. What type of performance appraisal method does your organization use?
a) Graphic rating scale
b) Checklist
c) Individual ranking
d) Essay-Appraisal method
e) MBO
16. What is the focus of the performance evaluation?

a) Job performance with due satisfaction
b) Job assignment and job output
c) Variance analysis
d) Job rectification
72
17. What is the outcome of performance evaluation?
a) Effective
b) Satisfactory
c) Excellent
18. Do you train your supervisors in methods of conducting performance appraisal

interview?
19. How much the modern technological concepts have been adapted in your
organization to compete the global competitive environment?
20. What are the steps you take to maintain a sound organizational environment?
*** The End ***
73

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Project report

HRM PRACTICES IN NGO SECTOR:

BBA PROJECT REPORT

United International University

HRM PRACTICES IN NGO SECTOR:

School of Business and Economics

Id: 111 123 073

A project submitted in partial fulfillment

BACHELOR OF BUSINESS ADMINISTRATION

04th December, 2018

Sub: Submission of Project Paper.

ID: 111 123 073

I also wish to express my gratitude to Md.Abul Mohaimen, Assistant Professor, and

Project report Program refers to a joint program in which Business School

In part three, I have discussed about “HUMAN RESOURCE MANAGEMENT

In part four, I have compared about “HUMAN RESOURCE MANAGEMENT

To survive and flourish in such an aggressive world, one critical prerequisite is

1.3 OBJECTIVE OF THE STUDY

 To have an unmistakable view about what is really occurring in the region of

1.4 SCOPE OF THE STUDY

1.5 METHODOLOGY AND SOURCES OF DATA:

1. Introduction and background of IDF:

19 Cost per unit of Money Lent 0.09

20 Return on Equity (US$) 6%

26 Total Liabilities 2312980

3. Corporate/ Legal Structure of the project: IDF is a government recognized /

4. Vision, and. Mission: The fundamental vision of IDF is to realize a destitution

7. Management and Governance: The incomparable specialist of IDF is .the

Present operational structure of the project is given below:

Head Office Executive Director

Area Offices (5) Area Manager

Branch Offices (33) Branch Manager

Center (1777) Center Chief

Group (9179) Group Chairman

SI No. Type of Savings Sources Compulsory/or not Interest rate j

11. STAFFING OF IDF:

SL Department Head Office Regional Total

The percentage of make female staffs in each office is as follows:

Office Total staff Male Female % of Male Dropout rate

12. LENDING METHODOLOGY:

Poverty Definition % of poverty level

13. SALARY AND INCENTIVES:

2.1 INTRODUCTION OF PDBF

Palli Daridro Bimochon Foundation (PDBF), committed to the disposal of provincial

2.3 BACKGROUND OF PDBF

2.4 THE STRUCTURE OF PDBF

2.5 ACHIEVEMENTS OF PDBF

2.6 COVERAGE OF PDBF

3.0 CONCEPTUAL FRAMEWORK

3.2 DEFINITION OF HRM

Characterized excellence in HRM. Specific earmarks of world class HRM include:

3.3 FOUNDATION OF HUMAN RESOURCES MANAGEMENT:

HRM is a component of significantly' administrator's activity. Regardless of whether

3.4 MAJOR AREAS OF HUMAN RESOURCE MANAGEMENT

3.5 AREA OF HRM ACTIVITIES

The HRM system mainly covers the following areas:

3.5.1 HUMAN RESOURCE PLANNING

Why Human Resource Planning?