Chapter-1

Introduction

1.1 Introduction

Bank plays an important role in the business sectors and in the industrialization of a
country. Basically the banks take deposits from the customers against interest or profit
and lend it to the borrowers against interest or profit for a cessation period. Under these
circumstances of banks offers different interest rates or profit and other options to the
customers to remit and deposit their money. These options are very common among the
entire bank, but only the customer services and other facilities vary from bank to bank.

In our country there is Govt. Banks, Semi-Govt. Banks, and Private sector have
conventional and Islamic bank of Bangladesh and also it is the third generation private
bank in Bangladesh. It started its crucial moment/juncture when Bangladesh economy
was undergoing through massive economy reforms and pursuing unilateral and
multilateral trade liberalization with the backdrop of the World Bank made international
monitory fund recommendations. This UCBL with its fifty one branches in strategic
locations of the country is providing the best quality services to their customers and
clients.

Nawabpur branch is the branch of the UCBL. Mohammad Abu Hanif the head of the
branch. They follows on principal, narrow span of management as a result of which the
management can put directly care on all the departments.
1.2 Background of the study

The term paper program is an opportunity for the students and it bears a great significant
for us. It familiarizes the students with the practical business operations. The students of
term paper program get the chance to understand the real business world closely and
familiarize themselves with internal and external expects of business. It gives them an
opportunity to develop the analytical skill and scholastic aptitude.

All over the world the dimension of banking has been changing rapidly due to
Deregulation, Technological innovation and Globalization. Commercial banks in
Bangladesh have to keep pace with the change in global business. Now banks have to
compete in market place both with the local institutions as well as with the foreign
institutions.

To survive and thrive in such a competitive banking world, an important requirement is

development of appropriate financial infrastructure by the Central Bank and to introduce
skilled banker, only theoretical knowledge in the field of banking studies is not
sufficient. An academic course of the study has a great value when it has practical
application in real life situation. So, I need proper application of my knowledge to get
some benefit from my theoretical knowledge make it more tactful. Such theoretical
knowledge is obtained from a course of study at only the half way of the subject matter.
Term paper implies on other the full application of the method and procedures through
rich acquire of subject matter can be forcefully applied in my day-to-day life situation.
Such a procedure of practical application is known as term paper which program covers a
period of three months of organizational attachment. This period particularly helps us to
get to know the corporate behavior and get acquainted to face new challenges with the
knowledge that we gained in our university life. We all know that the activity of the
supply which ends with the finished products to the customer. The term paper program is
something like that.
1.3 Need for the study

Now a day’s people like to use his/her own vehicle for transportation, because the lack of
public vehicle, security, relaxation etc. So there is a tendency to buy car. For full fill this
need Higher & Higher- middle class people want to purchase car. So they want to invest
their money in ‘UCB’ in different banks. United Commercial Bank Ltd. is also providing
this kind of scheme. This topic will be covered how to evaluate an investment scheme,
how does it work, what’s the reason behind contributing this investment scheme & the
comparison between United Commercial Bank with some other banks. More over one
who wants to be a future investor, he/she can find a real case scenario for investing in
‘UCB’.
1.4 Scope of the Study

This study will mainly focus the Performance appraisal over ‘UCB’ of United
Commercial Bank Ltd. Because of this performance depends on the United Commercial
Banks services & the clients mind to invest here. So the information will be collected
from the United Commercial Bank Ltd., clients & to compare with others, some
information will be collected from some other commercial banks.
1.5 Objectives of the Study

 To study the Performance Appraisal of the UCB

 To know the different types of consumer scheme of UCB.
 To know the required documents for ‘UCB’
 To identify the potential investors ‘UCB’
 To find out the reason to invest ‘UCB’
1.6 Limitation of the study

The time limitation is the main constraint for analysis the performance during my period.
To complete the study, time was limited by three months. It was really very short time to
know details about an organization like UCB.
 Chapter-2

Review of Literature

2.1 Introduction

This chapter served as the foundation for the development of this study. An overview of
the extensive historical research related to performance appraisal, As well as the theories
of motivation related to performance appraisals is presented.

2.2 Review of Literature

Noël et al (2006) define performance management as “the process through which

managers ensure those employees’ activities and outputs are congruent with the
organization's goals". The concept of performance management has contributed a lot in
the development Human Resource Management in recent years. The concept was first
coined by Beer and Ruh in 1976. However, it is barely in the mid 1980’s that it had been
accepted as a distinctive approach.

Dulewicz (1989) says that there is an indispensable human inclination to judge the work
of other people as well as one’s own work. It can thus be said that appraisal is both
unavoidable and universal. Even without the existence of a planned appraisal system,
one can have a tendency and find it natural to evaluate the job performance of another
easily and subjectively.

(Weise and Buckley, 1998) Subjective evidence indicates that this practice had a
facilitating influence on subsequent behavior.

Spriegel (1962) and Weise and Buckley(1998) affirm that by the early 1950s, 61 per cent
of organizations regularly used performance appraisals, compared with only 15 per cent
immediately after World War II. De Vries et al. (1981) pointed out the primary tool to be
the trait-rating system, which focused on past actions, using a standard, numerical
scoring system to appraise people on the basis of a previously established set of
dimensions. The main tool, used under here was trait rating system.

The concept of Management by Objective (MBO) was first proposed by Peter Drucker in
1954.
The most known purpose of performance appraisal is to improve performance of
individuals. Cummings and Shwab (1973) held that performance appraisal has basically
two important purposes, from an organizational point of view and these are:

1. The maintenance of organizational control

2. The measurement of the efficiency with which the organizations human resources are
being utilized.

Still, there are also a variety of other declared purposes for appraisal as per Bratton and
Gold (2003) and Bowles and Coates (1993) and some are; improving motivation and
morale of the employees, clarifying the expectations and reducing the uncertainty about
performance, determining rewards, identifying training and development needs,
improving communication, selecting people for promotion, discipline, planning
corrective actions and setting targets.

Furthermore, Bowles and Coates (1993) conducted a postal survey of 250 West Midland
companies in June 1992, where organizations were asked questions pertaining to the use
of Performance management in the organization. These questions included the apparent
purpose of PA in the management of work, its strengths and weaknesses. Through their
survey they found out that PA was beneficial in the following ways:

Kettley (1997) says that when an individual receives feedback from different sources of
the organization, including peers, subordinate staff, customers and themselves, the
process is called 360 degree feedback or appraisal. The employee is then assessed using
those received feedback

Fedor et al. (1989); Ilgen et al. (1979) identified that it is commonly accepted that
negative feedback is perceived as less accurate and thus less accepted by recipients than
positive feedback. Furthermore, Fedoret al. (1989) found that negative performance
appraisal feedback was less accepted and perceived as less accurate than positive
performance appraisal feedback.

Evans (1986) asserts that many employees believe that their promotion or salary
increments depend mostly on their performance. Employees therefore are in a dilemma
and consider this situation as ‘survival of the fittest’. They know for a fact that, their
performance will only be taken into consideration at the end of the day. So, in order to
grow in the company they need to be proactive towards their work. The feedback the
employee receives from his superior, may simply describe the level of performance
achieved.

Hence, it becomes important for the managers to conduct the appraisal technique
correctly. Employees can only accept criticism if it is useful and important to them.
Managers should therefore know how to give information regarding progress made in
performance and how to present criticism as well.

Meyer et.al (1965) carried out a study in General Electric Company where certain points
relating to performance feedback was highlighted. In this study, 92 employees were
appraised by their managers on two occasions over two weeks. The study was carried out
using questionnaires, interviews and observation. The first appraisal highlighted
performance and salary while the second one underlined performance and improvement.
It was observed that lots of criticisms were pointed out by the managers, which lead to
defensive behavior of the employees. The conclusion of the study was that criticism
leads a negative impact on the motivation and performance of the employees. Also
feedback sessions designed to improve performance should not at the same time consider
salary and promotion issues.

Ilgenet al (1979) add that employees who believe that the appraisal system is under any
kind of bias, are most likely to be dissatisfied by their work and can also leave their jobs.

On the other hand Murphy and Cleveland highlighted one possible reason for the
widespread dissatisfaction with performance appraisal in organization as the systems
used by these help neither them nor their employees in meeting the desired goals.

Landy et al. (1978), Klasson et al. (1980), and Tang and Sarsfield-Baldwin (1996) found
evidence that the assignment of raters influences perceptions of fairness and accuracy in
performance appraisals and hence about the whole process itself.

Nevertheless, according to Jacobs, Kafry & Zedeck (1980) employees perceive PA to

give them a proper understanding of their duties and responsibilities towards the
organization. Likewise, organization sees it as a tool to assess employees on a common
ground and one which helps in salary and promotions decisions, training and
development programs.

Researchers have suggested that reaction to performance appraisal is critical to the

acceptance and use of a performance appraisal system (Bernardin & Beatty, 1984; Cardy
& Dobbins, 1994; Murphy & Cleveland, 1995). Reactions may even contribute to the
validity of a system (Ostroff, 1993). Cardy and Dobbins (1994) suggest that “with
dissatisfaction and feelings of unfairness in process and inequity in evaluations, any
performance appraisal system will be doomed to failure” (p. 54). Murphy and Cleveland
(1995) stated that “reaction criteria are almost always relevant, and an unfavorable
reaction may doom the carefully constructed appraisal system”.

Many researchers such as Derven (1990) expressed doubts about the effectiveness and
dependability of the appraisal process. Some found the process to be imperfect in nature.

Moreover, Gabris & Mitchell found a disturbing bias in the appraisal process called the
Matthew Effect. It is said to take place in cases where employees keep on receiving the
same evaluation each year. This denotes that there is the belief that if an employee has
work well, he or she will continue on that pace. The Matthew Effect advocates that even
if employees struggle to do well, their past appraisal reports will discriminate their future
progress.

2.3 Conclusion

There are various schools of beliefs as to the validity and reliability of performance
appraisals. While Derven (1990) doubts about its dependability, Lawrie (1990) finds it to
be the most important aspect of organizations.

A recent survey concluded that more than fifty per cent of the workforce wishes that
their supervisors list the performance objectives much more specifically and clearly. The
same survey revealed that 42 per cent of the employees were rather disappointed their
organization's performance appraisal system.

Many supervisors make the wrong use of appraisal. They use it as a punitive tool rather
than helping their subordinates to improve their performance and overcome work
problems.
According to Shelley Riebel, as in the Detroit News (April 11, 1998) often managers are
unsuccessful to explain what they really expect from their employees and fail to well
describe the criteria used for assessing their performance.

The data obtained during the appraisal process should be wisely used and considered.
Still, for performance appraisal to be successful, it is important to carry it out on a
regular and consistent basis. This will allow supervisors to follow and review employees’
work. Raters often make the mistake of emphasizing too much on mistakes committed
by the employees. Rather, if ever some problem is spotted by the supervisor, the issue
should be discussed with the employee concerned and both should try work on a
solution.
 Chapter-3

Conceptual Frame Work

3.1 Introduction

Employee performance appraisal in the modern business environment became a part of

the performance management process. New approaches in this field emphasize that the
influence of organizational context has a significant role in performance measurement.
Considering the above, the main purpose of this paper is to develop a conceptual
framework for employee performance appraisal emphasizing the role of the
organizational context factors in establishing customized performance criteria
considering that performance management should include information on main strategic
processes in order to provide strategic alignment to the major objectives of the
organization. Moreover, according to Pulakos (2009), considering organizational
context in developing employee

performance appraisal systems and processes leads to establishing performance criteria

and standards customized according to employee performance appraisal contexts in order
to define different requirements for different positions. Also, recent studies on the issue
of the organizational context of employee performance appraisal systems and processes
outline the role of the social context emphasizing daily behaviors and interactions as
factors for enhancing efficacy of performance management. Furthermore, Levy,
Silverman & Cavanaugh (2015) underline the role of social context in influencing the
efficacy of employee performance appraisal systems and processes.

3.2 Meaning of Performance

There are different views on what performance means.

According to Brumbrach (1988, cited in Armstrong, 2000):

‘Performance can be actions as well as their consequences. Behaviors originate from a

performer and convert performance from a concept to an act. Not just the instruments for
results, behaviors are also outcomes in their own right – the product of mental and
physical effort applied to tasks – and can be judged apart from results.’
The above definition considers performance to be involving both the actions, in other
word behaviors, taken during the process in attempting to achieve goals and outputs
obtained as a result from the effort.

Following this, Armstrong (2000) emphasizes the need for managers to deal with the
potential of employees and accomplishments while managing performance.

To determine if performance has been achieved, measures have to be developed to

appraise the accomplishments and establish the rate at which it has been accomplished.
Above all, performance should be about the decision and action taken with available
information at any existing situation

3.3 Meaning of Appraisal

Performance appraisal also known as performance review, formally documents the

achievements of an individual with regards to set targets. It is a component of PMS. The
system has become an essential management tool in today’s organizations. Managing
employees’ performance can be said to be as important as any other work that all
managers execute during the year.

Grote (2002) describes performance appraisal as a formal management tool that helps
evaluate the performance quality of an employee. Schneider and Beatty as cited in
Patterson (1987) define it as a process which apart from evaluating also identifies and
develops human performance.

According to Karol (1996) performance appraisal includes a communication event

planned between a manager and an employee specifically for the purpose of assessing
that employee’s past job performance and discussing areas for future improvement.

3.4 Conclusion

From the above reviews, it can be seen that no such research has been done to show if
performance appraisal really acts as a motivator to employees. Bratton and Gold (2003)
and Bowles and Coates (1993) claimed motivation to be one of the purposes of
appraisals. It remains unconditional to know whether performance appraisal has a role to
play in employees’ motivation. The research will therefore try to answer the following
research questions:
 Does the Performance Appraisal System affect employees’ motivation?

 Does the system affect more a specific category of employees?

 How do employees perceive the PAS at the MRA?

 How do employees perceive feedback?

 Does the level of importance given to the system directly affect the employees’
motivation?

 Does the trust put on the appraiser influences the employees’ motivation?
 Chapter- 4

Methodology of the Study

4.1 Introduction

There are four main aspects of the research methodology: design, sampling, data
collection, the data analysis. If inappropriate methodology is used, or if appropriate
methodology is used poorly, the results of a study could be misleading.

4.2 Sources of Data

Both primary and secondary data were used in this study–

 Primary data were collected by interviewing the officials and staffs, clients where
necessary.
 Secondary data sources were files, documents, website of the bank, relevant
books, etc.
 Target Population: All officers and clients of united commercial bank Ltd,
Nawabpur. Branch.

4.3 Sample Selection

In general, Appraisal trials aim to obtain a homogeneous sample which is not necessarily
representative of any target population. Appraisal trials often recruit those participants
who are most likely to benefit from the intervention.3 Thus, the more strict criteria for
inclusion and exclusion of subjects in Appraisal trials often make it difficult to locate
participants: after verification of the eligibility criteria, just one out of ten possible
candidates will enter the study. Therefore, Appraisal trials usually show limitations to
generalize the results to the entire population of patients with the disease, but only to
those with similar characteristics to the sample included in the study. These peculiarities
in Appraisal trials justify the necessity of conducting a multicenter and/or global
studiesto accelerate the recruitment rate and to reach, in a shorter time, the number of
patients required for the study.
In turn, in observational studies to build a solid sampling plan is important because of the
great heterogeneity usually observed in the target population. Therefore, this
heterogeneity has to be also reflected in the sample. A cross-sectional population-based
study aiming to assess disease estimates or identify risk factors often uses complex
probabilistic sampling, because the sample representativeness is crucial. However, in a
case-control study, we face the challenge of selecting two different samples for the same
study. One sample is formed by the cases, which are identified based on the diagnosis of
the disease of interest. The other consists of controls, which need to be representative of
the population that originated the cases. Improper selection of control individuals may
introduce selection bias in the results. Thus, the concern with representativeness in this
type of study is established based on the relationship between cases and controls
(comparability).

In cohort studies, individuals are recruited based on the exposure (exposed and
unexposed subjects), and they are followed over time to evaluate the occurrence of the
outcome of interest. At baseline, the sample can be selected from a representative sample
(population-based cohort studies) or a non-representative sample. However, in the
successive follow-ups of the cohort member, study participants must be a representative
sample of those included in the baseline.14,15 In this type of study, losses over time may
cause follow-up bias.

4.4 Methods of data analysis

Statistical Package for applied for data analysis using the descriptive statistical method
specifically frequency distribution which is simply a compute list of all possible values
or scores for a particular variable, along with the number of times that each value or
score appraisal in the data set.

4.5 Conclusion

It is a great pleasure for me to have practical exposure in United Commercial Bank

Limited, Nawabpur Branch. Because without practical exposure it could not be possible
for me to compare the theory with practice, and it is well established that theory without
practice is blind. I have completed my term paper in Nawabpur Branch of United
Commercial Bank Limited. During the practical orientation, I have observed the function
of Investment Banking, and overall banking activities that comply with the sound
business operations of United Commercial Bank of Bangladesh. Its performance
specially based on prompt and swift services is busier than other department of United
Commercial Bank Limited of Nawabpur Branch & the Bankers are maintaining a
peaceful & reliable relation with the clients or customers. According to my survey I can
find that the potential customers are the Businessmen whose motto to the Car loan for
full fill their business purpose or need. Naturally everybody organization has some
problems but the organizations are not stop their activities, they must go on. I hope the
Bank can find out their problems & solve it as soon as possible. Thought the more and
more customers are coming in the branch through this department resulting deposit of the
branch is increasing day to day.

In a word, the performance of United Commercial Bank Limited, Nawabpur branch is

growing rapidly and the volume of remittance is increasing effectively. At last it can be
said that, United Commercial Bank Limited will be turned into a dynamic Islamic Bank
in the country and will expand its Banking Business all over the country to provide the
banking services to the groups including the deserving Economic groups of the society
who have no easy access to the banking channel. This will help for alleviation of the
poverty, income generation, creation of employment opportunity, up-gradation of the
standard of living of the lower economic groups, which will also contribute to the
emancipation of national economy of the country.
 Chapter-5

Profile of United Commercial Bank Limited

5.1 Introduction

With a firm commitment of the economic and social development of Bangladesh, United
Commercial Bank (UCB) started its journey in mid 1983 and has since been able to
establish itself as one of the largest first generation banks in the country. With a vast
network of 187 branches the Bank has already made a distinct mark in the realm of
Private Sector Banking through personalized service, innovative practices, dynamic
approach and efficient Management.

The Bank has expanded its arena in different and diverse segments of banking like Retail
Banking, SME Banking, Corporate Banking, Off-shore Banking, and Remittance etc.
Besides various deposit and loan products of Retail Banking, the Bank caters export and
import loan to deserving candidates which in turn helps the overall economy of the
country through increased earning of foreign exchange. Other consumer products like
UCB Cards have been showing tremendous success and growth since its inception in
2006 and soon became the leader in local market with around 40000 card holders.

The Bank also provides its clients with both incoming and outgoing remittance services.
Thus the expatriates find an easy way to send money through proper channel.

With a firm commitment to promote SME sector, the Bank is also assessing and
monitoring business loans, managing business financing risks, pricing products and
working for further development of SME. Its Corporate banking service consists of
simple business of issuing loans to more complex matters, such as helping minimize
taxes paid by overseas subsidiaries, managing changes in foreign exchange rates or
working out the details of financing packages necessary for the construction of a new
office, plant or other facility. Its area of expertise is in-depth knowledge in financial
analysis with analytical capability of financing large project including RMG and
infrastructure development projects.
The Bank, aiming to play a leading role in the economic activities of the country, is
firmly engaged in the development of trade, commerce and industry by investing in
network expansion and new technology adoption to have competitive advantage.

5.2 Background of United Commercial Bank

United Commercial Bank Limited (UCBL) incorporated on 26 June 1983 as a public

company with limited liability under the Companies Act 1994. The bank started banking
operations with an authorised capital of Tk 100 million divided into 1 million ordinary
shares of Tk 100 each. The paid up capital was Tk 35.5 million. Later, both authorised
and paid up capital were increased several times and on 31 December 2009, they stood at
Tk 1,000 million and Tk 299 million respectively. Of the total paid up capital, Tk 284.56
million was paid by its 37 sponsors and Tk 114.54 million by 3,048 public shareholders.
The remaining Tk 14.44 million was subscribed by the government of the People's
Republic of Bangladesh. Reserve funds of the bank comprised statutory reserves and
general reserves of Tk 2205.00 million in 2009 as against Tk 85.88 million in 1990. The
management of the bank is vested in a 20-member board of directors with the managing
director as the chief executive. The bank is listed with Dhaka and Chittagong stock
exchange.

Basic facts and economic indicators (in million Taka).

Indicators 2004 2005 2006 2007 2008 2009

Authorised capital 1000 1000 1000 1000 1000 1000

Paid up capital 230 230 230 299 299 299

Reserved Fund 783 1045 1272 1606 1889 2205

Deposits 20970 24559 33016 42296 54485 77730

a) Call Deposits 5057 5772 6280 8510 8761 12282

b) Term Deposits 15913 18787 26736 33786 45724 65448

Loans and Advance 15385 20211 26110 37566 44446 62350

Investment 3020 2877 6101 5518 7317 9346

Total Asset 25059 28813 38408 50181 64911 90484

Total income 2554 3188 4118 6052 7850 9540

Total Expenditure 1696 2036 2766 4034 5301 6415

Foreign Currency Trading 35406 45708 62377 89516 100974 103239

a) Export 10470 14785 20803 27230 36500 38518

b) Import 24386 29408 39853 60329 60008 58857

c) Remittance 550 1515 1721 1957 4466 5864

Total Manpower 1878 1949 2029 2102 2292 2508

a) Officers 1180 1236 1284 1315 1519 1783

b) Staff 698 713 745 787 773 725

Correspondent Banks 317 322 334 345 115 257

Total Branches (in numbers) 80 80 84 84 84 98

a) Domestic 80 80 84 84 84 98

b) Overseas - - - - - -

Agriculture Credit

a) Loan Disbursed - - - - - 204

b) Realised - - - - - 111

Industrial Credit

a) Loan Disbursed 1733 2381 3660 4303 3071 13657

b) Realsied 527 329 457 1246 1856 2975

Loan Outstanding by Sector

a) Agriculture and Fisheries 225 451 - - - 90

b) Industry 1539 2198 3804 6131 9571 13624

c) Trade and Commerce 8560 13620 16506 23461 26788 34931

d) Poverty Reduction - - - - - -
5.3 Vision of United Commercial Bank

The main vision of the United Commercial Bank Limited is to develop the economy of
Bangladesh by profitable investment of public money and build up their confidence to
the private institution. To ensuring highest standard of clientele services through best
operation of latest information, technology, making due contribution to the national
economy and establishing ourselves firmly at home and abroad as a front ranking bank
of the country is our cherished vision.

5.4 Mission of United Commercial Bank

The missions of the United Commercial Bank Limited are as follows: The aim of UCBL
is to become one of the leading Banks in Bangladesh by its prudence, fair and quality of
operation.

 Its effort for expansion of its activities in home and abroad by adding new
dimension to its banking services is contributed unabated.
 It is also putting highest priority in ensuring transparency, accountability, and
improved clientele services as well as to its commitment to serve the society
through which it wants to get closer and closer to the people.
 Its goal is to act as a caring companion in uplifting the national economic
standard through continuous gradation and diversification of its clientele services
in line with national and international requirement.
 It intends to meet the needs of its clients and enhance its profitability by creating
corporate culture.
 It believes in strong capitalization.
 Its aim is to ensure its competitive advantages by upgrading banking technology
and information system.
 It maintains high standard of corporate and business Seth’s. It provides high
quality financial services to strengthen the well being and success of individual,
industries and business communities.
5.5 Objectives

The objectives of United Commercial Bank Limited are mentioned below:

 Offering quick and improved clientele services through application of modern

information technology.
 Playing an important role in the national progress by including improved banker-
customer relationship.
 Ensuring highest possible dividend to the respected shareholders by making best
use of their equity.
 Pushing the policy of nurturing balanced growth of the bank in all sectors.
 Consolidating our position in the competitive market by introducing innovating
banking products.
 Ensuring highest professional excellence for our workforce through enhancement
of their work efficiency, discipline and technological knowledge
 Expanding the bank’s area of investment by taking part in syndicated large loan
financing.
 Increasing finances to small and medium enterprise sector including agriculture
and agro based industries, thus making due contribution to the national economy.
 Upholding the image of the bank at home and abroad by pushing dynamic and
time befitting banking activities.
 Ensuring maintenance of capital adequacy and highest profit through successful
implementation of the Management Core Risk Program.

5.6 Corporate Cultural of UCBL

Culture is a strong medium to uphold the rich heritage and tradition of our country.
Regular cultural programs are a must to keep our tradition moving forward. Believing so,
UCB contributes in culture throughout the year. We also support any kind of endeavors
to explore the country’s rich cultural heritage. Our initiatives are taken mostly from
grass-root level so that the talents and skills may come from rural and district level. Our
activities in "Culture" include:

 Financial support to different cultural groups and associations.

  Financial support to poor artists.
 Donation to institutions/ associations who work for development of art & culture
etc.
 Organizing art competition, photography completion etc to provide opportunity
to children to blossom their latent talent.
 Arranging and supporting different classical cultural events.
 Promotion and support to local cultural traditions.
 Awareness on preserving rich cultural heritage of Bangladesh.
 Financial support and Scholarship to young and budding talents.
 Initiatives taken for the purpose of study /exploration of our socio-cultural
revolution.

5.7 Management hierarchy of UCBL

Principles and Values:

United Commercial Bank Limited is committed to five core business principles:

 Outstanding customer service.

 Effective and efficient operations.
 Strong capital and liquidity.
 Prudent lending policy.
 Strict expense discipline.
 The business principles are supported by loyal and committed employees who
make lasting customer relationships and international teamwork easier to achieve.
 United Commercial Bank Limited also operates according to certain key business
values.
 The highest personal standards of integrity at all levels.
 Commitment to truth and fair dealing.
 Hands-on management at all levels.
 Commitment to quality and competence.
 A minimum of bureaucracy.
 Fast decisions and implementation.
5.8 Social Responsibility of UCBL

United Commercial Bank Ltd. has a long history of associating itself in different
spectrum of social responsibility and there are numerous glaring instances in which we
can take pride. Over the past 30 years, UCB has rendered extensive financial assistance
for benevolent purpose. As a responsible corporate body, we have adopted CSR practices
in a formal, structured manner in line with our organizational vision to help the
disadvantaged population of our country by taking socially responsible initiatives.

The "social contract" between the corporation and the community is of critical
importance for United Commercial Bank. CSR is ingrained in our corporate culture and
it is a part and parcel of what we do. UCB has incorporated CSR activities into its core
strategic business planning and translated it into action across different areas and
community of the country. The Bank has organized its CSR activities around seven main
areas:

 Education:

 Health:
 Disaster Management:

 Environment:

 Sports:

 Socio-Economic Development:
5.9 Conclusion

UCBL is well positioned to meet the challenge and will take the opportunity of benefit
from economic growth. The bank would serve as partner and advisor of the clients to
trade, commerce and industry. This strategy is supported by wide spectrum of products
and services.

The mission of the bank is to be utmost trustworthy stakeholder, careful, committed for
equitable and sustainable growth based on diversified deployment of fund/resources
leading the bank to the peak of healthy and wholesome financial institution. If the bank
is going to succeed internationally, it must know as much or more than its customers and
competitors. A single misstep may not only cost its company business, it can lead to big
delays and stiff fines. Unfortunately, most information about international trade is
targeted at big companies with large logistics and legal staffs that know how to navigate
the maze of import-export rules and regulations. Small and midsize companies lack the
resources – and often the training – of larger corporations.

UCBL is maintaining a well-structured communication from top to bottom level. Each

official should be valued and treated as a part of the bank and they must have the
privilege to devote themselves for the betterment of service of the bank. UCBL places
utmost importance on managing foreign exchange. The whole process includes
management of export, import, remittance, Foreign Exchange Risk, and successful
completion of trade.

The bank always tries to increase its foreign exchange performance. As the bank is
located in commercial area it is a great opportunity for the bank to attract customers.
Though it has some problem with its foreign exchange department, it is always trying to
accelerate its foreign trade.

Overall, the bank must make a positive attempt to be more outward looking in their goals
and aware of what is happening. They must also emphasize on the domestic scenario
more closely and analyze any certain trends and strategies of their competitors. The bank
must accept any failures and think of them as an objective to pursue future goals instead
of blaming such failures on other factors.
 Chapter-6

Analysis and Findings

6.1 Introduction

The analysis is based on the feedback of the customers who are receiving services from
the bank. The results are presented according to the various services quality and
customers satisfaction. Each dimension consists of two specific questions. The results of
the survey are presented according to these questions that were asked to the respondents
with the help of a structured questionnaire. The analysis is as follows:

6.2 Performance appraisal practices

Performance appraisals are perhaps the best way to not only let your employee know
how she’s doing, but also to get feedback about how your organization is doing, whether
your employees are committed to your goals, and what you can do to improve morale. A
performance appraisal that is mutually beneficial to both an employee and an
organization requires an effective strategy and starts with preparation.

It’s crucial for you to have a solid performance review plan in place from start to finish
so you can avoid stress, engage your employees, and increase productivity. In a BLR
webinar titled “Stress-Free Performance Appraisals: Increase Productivity, Engage
Employees, and Retain Top Talent,” Sharon Armstrong outlined some performance
appraisal best practices to help employers hone the process and get the most benefit.
6.3. Findings of the Study


 It is a lengthy process.

 To get the loan Client have to open an account in the bank

 Bank provides average range of loan amount.

 In yearly they get low Investors/ Clients for this scheme

 Bank is flowing the same rate for this scheme from the last 3 years.

 The Banks in Bangladesh has faces a lot of illegal pressure from Political
persons, Directors and Management of the Bank for approval of loan. In that
cases UCBL also are bound to approve the loan without any assessment and
rationality for them.

 The risk managers have often insufficient time for credit risk management. Huge
workload and hurries for loan approval prevent them from through assessment.
So, it is very troublesome to manage the risk in a prudent manner for the risk
managers.

 A third party (CPV- Contract Person Verification) verifies the account holders or
grantors all documents as the relevant required document are perfect or not
perfect. In CPV there is no one for bank and customers. Banks have to depend on
CPV verification to approval the loan.
 Chapter-7

Conclusion and Recommendation

7.1 Introduction

Bank is a financial institution which deals with money. Not all banks are the same. There
are different types of banks: co-operative banks, savings banks, investment banks and
central banks. Because of its transitional role, banking system occupies a vital place in a
country’s economy. It confirms distribution and re-allocation of assets and keeps up the
motion of economic activities. As monetary intermediaries, banks stand between
investors who invest capital and debtors who demand capital. It assembles asset for both
the public and private sectors, and provides inventive answers to meet the requirements
of entrepreneurs and government agencies. Thus the banking segment plays a key role in
the evolution of Bangladesh’s economy. After the independence of Bangladesh in 1971,
six state owned commercialized banks were composed, two state owned banks that
specialized in lending to the agriculture and industry, three foreign banks including
Standard chartered bank. The banking industry has faced momentous expansions from
1980’s.

Private Banks has entered in banking industry, Micro finance banks grew rapidly, which
has provided assistance to meet the needs of poor citizens. Foreign trading is a large
business which is run by commercial banks. Foreign trade means the exchange of
capitals and services across the border. Expertise is provided by commercial banks.
Foreign trade requires a flow of goods from seller to buyer and payment from buyer to
seller. Here, bank plays as a conciliator between the buyer and seller.

7.2 Recommendations

The process of sanctioning an auto-loan is very time consuming. Management should

give more effort to reduce the time of processing a loan.

The branch manager should have some discretionary power to sanction the Auto loan.

They should renew their Scheme rate by proper authorization of Bangladesh bank.s
They should create awareness among the new investors for this Scheme by providing
some advertisement in newspaper, magazine or in other media.

The Auto Loan Policy of the Bank is very complicated. Bank need to make it easy and
understandable. So that all credit officer can understand the instruction and follow this
instruction correctly at the time of risk management.

The management must be careful to sanctioning that auto-loan which is recommended by

powerful bodies. Because these loans sometimes become more risky.

To reduce the auto-loan risk the original documents of the client must be verified
thoroughly. If manager sanction the auto-loan without the verifying original documents,
that may involves more risk.

To reduce the default risk the repayment capacity of loan of the auto-loan client should
be properly investigated. Otherwise, here have the chance to default.

Bank has a few numbers of tools and techniques such as DBR (Debt-Burden Ratio) to
assessment the auto-loan risk. Bank need to introduce new and advance risk assessment
tools and techniques.

7.3 Conclusion

It is a great pleasure for me to have practical exposure in United Commercial Bank

Limited, Nawabpur Branch. Because without practical exposure it could not be possible
for me to compare the theory with practice, and it is well established that theory without
practice is blind. I have completed my internship in Nawabpur Branch of United
Commercial Bank Limited. During the practical orientation, I have observed the function
of Investment Banking, and overall banking activities that comply with the sound
business operations of United Commercial Bank of Bangladesh.

Its performance specially based on prompt and swift services is busier than other
department of United Commercial Bank Limited of Nawabpur Branch & the Bankers are
maintaining a peaceful & reliable relation with the clients or customers. According to my
survey I can find that the potential customers are the Businessmen whose motto to the
Car loan for full fill their business purpose or need. Naturally everybody organization
has some problems but the organizations are not stop their activities, they must go on. I
hope the Bank can find out their problems & solve it as soon as possible. Thought the
more and more customers are coming in the branch through this department resulting
deposit of the branch is increasing day to day.

In a word, the performance of United Commercial Bank Limited, Nawabpur Branch is

growing rapidly and the volume of remittance is increasing effectively.

At last it can be said that, United Commercial Bank Limited will be turned into a
dynamic Islamic Bank in the country and will expand its Banking Business all over the
country to provide the banking services to the groups including the deserving Economic
groups of the society who have no easy access to the banking channel. This will help for
alleviation of the poverty, income generation, creation of employment opportunity, up-
gradation of the standard of living of the lower economic groups, which will also
contribute to the emancipation of national economy of the country.
Appendix


 Personalized appraisal process

 Targeted observation of teaching and links between teaching practices and
student learning

 Appraisal includes reflection about practice and outcomes for learners

 Teaching as Inquiry

 Range of robust information used, including perspectives of students and parents

 High quality feedback about teaching practice and next steps provided

 Appraisal goals linked to learning/outcomes/wellbeing and the school’s/service’s
strategic goals

 Appraisal goals are specific and can be verified by objective measures or
indicators

 Appraisal identifies support and PLD needed

 Opportunities for data-based discussion between teachers and leaders about
student learning and its relationship to teaching

 Senior leader responsible for both completion and quality of appraisals

 Senior leader who makes final endorsement decision is assured of the quality and
breadth of appraisal process and evidence

 Processes are well documented to support the teacher’s application for the
practicing certificate

 Templates and observation schedules provide guidance about goals, process,
evidence, observation of teaching

 Time is allocated for goal setting, appraisal observations and discussions

 PLD on effective appraisal processes and evidence, using PTC, providing
constructive feedback, and coaching, promoting consistent understanding of
expectations for teaching

 Board is assured about teacher status - certification/endorsement and completion
of appraisal

 Endorsement and appraisal procedures and practices reviewed and improved
regularly
Bibliography

Suggested Citation: "National Research Council. 1991. Pay for Performance:

Evaluating Performance Appraisal and Merit Pay. Washington, DC: The National
Academies Press.

Thelma Crivens is assistant professor in the School of Industrial and Labor Relations at
Cornell University. She received a master's degree in industrial and labor relations from
Michigan State University and a law degree from George Washington University.
Crivens teaches labor law relating to the federal and private sectors and employment
discrimination. Her areas of research are in labor law and employment discrimination.

Suggested Citation: National Research Council. 1991. Pay for Performance: Evaluating
Performance Appraisal and Merit Pay. Washington, DC: The National Academies Press.

Patricia W. Ingraham is associate professor and director of the Master's Program in

Public Policy and Administration at the State University of New York at Binghamton.
She is coeditor of Legislating Bureaucratic Change: The Civil Service Reform Act of
1978 and The American Public Service: An Agenda for Excellence, and has published
extensively on the American federal bureaucracy. She has an M.A. from Michigan State
University and a Ph.D. from the State University of New York at Binghamton.

Anne S. Mavor is associate study director of the Committee on Performance Appraisal

for Merit Pay. Trained as an experimental psychologist, her current interests include
performance measurement, information processing, and decision making. Prior to joining
the National Research Council she spent several years as a consultant in the behavioral
and social sciences working in the areas of information system design, training, and
program evaluation.