Organization Overview

1.0

Profile of the Organization

The importance of financial intermediaries in the development of the overall economy of country cannot be described in short. From the inception of the civilization the banking sector dominate the economic development of a country by mobilizing the saving from the general people and channeling those saving for investment and thus economic development and growth. The importance of commercial banks after the ravage of the liberation war to develop a better economy was severally needed and it is needed now and will be required in future also. In time-to-time Government of Bangladesh agreed to permit the private commercial banking in the country. To fulfill the demand as well as to improve the commercial banking service in our country, The Mercantile Bank Limited is scheduled bank that was incorporated in May 20, 1999 under the Companies Act 1994, commenced its operation on June 2, 1999. It emerged as a new commercial bank to provide efficient banking services and to contribute socio-economic development of the country. It availed its registration as a banking company under the Banking Company Act 1993 from the Bangladesh Bank. The Bank provides a broad range of financial services to its customers and corporate clients. The Board of Directors consists of eminent personalities from the realm of commerce and industries of the country. Recognition and award: Different professional and regulatory bodies have honored MBL frequently. In 2009, The Institute of Chartered Accountants of Bangladesh (ICAB), the highest Accounting Body in Bangladesh awarded the Bank for publishing its Annual Report-2008. In the Financial Sector-Banking Category, ICAB was kind to recognize our Bank with 'Certificate of Merit' for its best Published Accounts & Reports. This ICAB award has proved our financial transparency, efficiency in banking operation and full disclosure of all material

financial and corporate information. In 2009, Refugee and Migratory Movements Research Unit (RMMRU) have also honored MBL with Sonar Manush Sheba Award for its contribution to foreign remittance management. Within a short time the bank has been successful in positioning itself as progressive and dynamic financial institution in the country. The is now widely acclaimed by the business community, from small entrepreneur to big merchant and conglomerates, including top rated corporate and foreign investors, for modern and innovative ideas and financial solution. Thus within this short time it has been able to create an unique image for itself and earned significant solution in the banking sector of the country as a bank with a difference.

Mercantile banks time line overview:

Date May 20, 1999 June 02, 1999 October 29, 2000 July 03, 2002 June 30, 2003 October 21- 22, 2003 December 24, 2003 February 16, 2004 February 26, 2004 December 29, 2004 December 05, 2006 Function Incorporation of the bank Commencement of business Opening of 10th branch Opening of 15th branch Publication of prospectus for IPO Subscription for shares Opening of 20th branch Listed in Dhaka Stock Exchange Listed in Chittagong Stock Exchange Opening of 25th branch Opening of 30th branch

December 17, 2007 November 24, 2008 June 06, 2009 October 22, 2009 December 30, 2009

Opening of 40th branch Opening of 42nd branch Inauguration of brokerage house operation Opening of 45th branch Opening of 65th branch

The Year 2009 was the challenging one for the financial sector. As the Year 2009 was much crucial for the world economy, it had to pass through such an incessant economic catastrophe, originated in USA with the debacle of sub-prime mortgages, which no one witnessed since 1930's. The economic slowdown was so wide-reaching that almost every economy of the world had been affected mainly from September 2008. The world economy's deepest post-war downturn has resulted in higher rate of unemployment in many countries including robust economies like Russia, USA, UK, Japan, China, and India. The economic disaster had impelled huge increase in corporate defaults worldwide. International business volume had been dwindled significantly. In spite of this world economic fall down since 1930's Great Depression, Bangladesh Economy remained resilient in 2009, attaining 5.88 % Real GDP growth in the fiscal year 2008-09. Though it was the lowest growth over the last 5 years, performance of the economy was satisfactory compared to that of other developing nations. Almost all the macro-economic indicators showed positive trend during the period under review. The Year 2009 was the challenging one for the financial sector. The incessant fall-out of international credit market due to world economic meltdown resulting sluggish growth has put significant pressure on financial performance of banks and financial institutions worldwide. Mercantile Bank Ltd. Achieved continuous growth in almost all arenas of its business despite this economic crisis, facing intensified competition of the industry. The Bank remained in financial strong position with its continued focus on the vision of becoming country's finest corporate citizen, providing excellent and need-based customer service.

The Bank mobilized deposits of BDT 58.30 billion as at December 31, 2009 compared to BDT 49.54 billion, till 2008. Total loans and advances stood at BDT 48.30 billion at the end of 2009 that was BDT 41.99 billion at the end of 2008. Import business stood at BDT 60.59 billion in 2009 compared to BDT 56.53 billion in 2008. Export business stood at BDT 46.30 billion in 2009 as against BDT 43.11 billion in 2008. The Bank collected foreign remittance of BDT 5.06 billion in 2009 compared to BDT 4.72 billion in 2008. In 2009, the Bank was able to make profit before Tax of BDT 1.66 billion as compared to 1.28 billion indicating 29.73% growth. Net profit attributable to shareholders stood at BDT 807.52 million. The return on equity remained 18.80% during 2009 and Earning per Share (EPS) stood at BDT 37.41. Non Performing Loan (NPL) ratio reduced to 2.54% in 2009 as compared to 2.86% in 2008. MBL made adequate provision against Classified Loans which is significantly higher than last year. Adequate provision made the Bank stronger than before. Tier-1 Capital stood at BDT 4.24 billion at the end of 2009 compared to that of BDT 3.47 billion at the end of 2008. Tier-2 Capital reached to BDT 758.91 million at the end of December 2009 as compared to that of BDT 660.29 million at the end of 2008. Return on Assets (ROA) increased to 1.22% in 2009 from 1.10% in 2008 and Return on Equity (ROE) also increased significantly to 18.80% from 17.75% in 2008. The Capital Adequacy Ratio (CAR) increased to 10.48% in 2009 as against that of 10.17% in 2008. Net Interest Margin (NIM) stood at 3.58% at the end of 2009, suggesting a healthy growth in Net Interest Income.

Efficiency is our strength is the motto of Mercantile Bank Limited. So the motto itself is selfexplanatory to deliver the vision of the bank. Mercantile Bank limited is prepared to meet the challenge of the 21st century well ahead of time. To cope with the challenge of the new millennium and to build its strength it hired experienced and well-reputed banker of the country from the inception. The bank has efficient and dedicated professionals and equipped with modern technology to provide the best service in the need of the people and thus to realize its vision. So the Bank defined: Vision: To make the finest corporate citizen. Mission: Will become most caring, focused for equitable growth based on diversified deployment of resources, and nevertheless would remain healthy and gainfully profitable Bank. Core values: For the customers: Providing with caring services by being innovative in the development of new banking products and services. For the shareholders: maximizing wealth of the Bank. For the employees: respecting worth and dignity of individual employees devoting their energies for the progress of the Bank. For the community: strengthening the corporate values and taking environment and social risks and reward into account.

1.1

Mercantile Bank Limited at a Glance:

Name of The Bank Registered Office Mercantile Bank Limited. Dhaka

Web Address Date of Incorporation Total Number of Branches Chairman Managing Director Auditors

www.mercantilebank.com June 2, 1999 60 (October 2010) Md. Abdul Jalil, M.P AKM Shahidul Haque Morshed Alam Chairman A. S. M. Feroz Alam Director Mohd. Selim Director

Total Capital Fund Paid-up Capital

BDT. 4,995.43Million (December, 2009) BDT. 2,158.42Million (December, 2009)

1.2 Company Image and logo:

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Mercantile Bank limited Bank is a solid, forward looking, modem foreign bank with a long record of sound performance. The effort that Mercantile Bank Limited makes in order to portray the Bank as a brand image is very strong and successful. The general image of Mercantile Bank Limited is that its efficiency is its strength.

1.3 Management of the Bank:

Boards of directors are the sole authority to take decision about the affairs of the business. Now there are 22 directors in the management of the bank. All the directors have good academic background and have huge experience in business. Md. Abdul Jalil is the chairman of the bank. The board of directors holds meetings on a regular basis. Executive Committee: The Executive Committee consists of the seven members from the Board of Directors. This committee exercises the power as delegated by the Board from time to time and approves all matters beyond the delegation of Management. Management Committee: The Management Committee consists of the Acting Managing Director, Deputy managing directors and Senior Executive Vice Presidents. They discuss about the progress on portfolio functions. Different ideas and decisions, guidelines regarding deposits, lending and management of Human and Material resources are the main concern of this committee. All these committees meet on a regular basis for discussing various issues and proposals submitted for decisions.

Organizational structure of Mercantile Bank Limited

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Executive Vice President & Head of Branch

Vice President

First Vice President

Asst. Vice President First Asst. Vice President

Principal Officer

Senior Executive officer Executive Officer

Probationary Officer

Officer Assistant Officer

1.4 Ownership structure:

From the top to the bottom management body of Mercantile Bank Limited can be divided into four levels:

Top Level Management Executive Level Management Mid Level Management Junior Level

1.5 Objective of the Bank:

The objective of the Mercantile Bank Limited is specific and targeted to its vision and to position itself in the mindset of the people as Efficiency is our strength. The objectives of the Mercantile Bank Limited are as follows:

Strategic objectives:
To achieve positive Economic Value Added (EVA) each year. To be market leader in product innovation. To be one of the top three Financial Institutions in Bangladesh in terms of cost efficiency. To be one of the top five Financial Institutions in Bangladesh in terms of market share in all significant market segments they serve. To develop the standard of living of the limited income group by providing Consumer Credit. To finance the international trade both in import and export. To carry on the foreign exchange business, including buying and selling of foreign currency, travelers cheque issuing, international credit card issuance etc. To encourage the new entrepreneurs for investment and thus to develop the countrys industry sector and contribute to the economic development.

Financial objectives:
To achieve 20% return on shareholders' equity or more, on average.

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 New technology:
Adopting the state-of-the art technology in banking operations.

1.6 Principal Activities:

The principal activities of the Bank are banking and related businesses. The banking businesses include deposits taking, cash withdrawal, extending credit to corporate organization, organizing syndication deals, retail and small and medium enterprises, trade financing, project financing, lease and hire purchase financing, issuance of local and international credit cards etc. The mode of banking includes conventional and Islamic Banking. The services are provided through both traditional and modern products. It also performs investment banking and advisory services through Merchant Banking and Investment Division Through its Off-shore Banking Units it provides banking business involving Non Resident foreign currency denominated assets and liabilities.

1.7 Strategy:
Banking sector in Bangladesh made satisfactory performance during 2009. Growth of export and record inward remittances had eased pressure on dollar. However, import performance was downsized by decline in prices of commodities and other non-food items (including oil) along with decline in capital machinery import. The situation improved to some extent in the last quarter of 2009. Monetary policy aimed at ensuring highest possible output checking inflation up to tolerable level helped the Banking sector to cope up with the situation. Bangladesh Bank apart from their indirect measures took direct measures to reduce lending rate for corporate and medium size customers with a view to reduce interest spreads of commercial banks.

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Besides, the banking and financial industry experienced further intensification of competitive pressure as the national and international banks operating in Bangladesh strongly pursued the banking and financing needs of the Corporate, Retail, SME and Credit Card sector customers through diversification of products and services and extending automated banking services with ATM, Debit card facilities and Internet Banking. Rates of interest became very competitive for deposit and lending. As a consequence of reduction of interest rates on lending, banks cut their rates on deposit to maintain spread. As the Government maintained the interest rate on savings instruments, a portion of small savers who have long been the stable depositors of the banks were attracted to those Government savings instruments. Besides, the bullish capital market also attracted small savers significantly as the gain from capital market was tax exempted. Mercantile Bank Limited will focus on growing earnings over long term at a rate that will keep it above the peer group benchmark. In doing so, Mercantile Bank Limited will focus on its delivery channels, technology, people and its brand for growth of the shareholders value. The growth plan of Mercantile Bank Limited centered on its five customer group; Corporate, Retail, SME, Merchant and Investment Banking, Treasury. Specific strategies are being implemented for each of them. The plan contains following strategies:

Branch Cluster Management:

An effective Cluster Management (Branch Mentorship) was introduced whereby the Senior Management is becoming directly involved with Head of Branches in their marketing drives for assets, liabilities, and other issues. Now the Head of Branches are exposed to more matured thoughts and ideas through Mentors resulting in qualitative improvement of their business and operational activities.

Brand Image:
Employees are well trained to provide efficient service thereby enhancing the Brand Image further. Image of the bank would be harnessed through advertisement in TV, Newspapers, different print Medias, outdoor ads, transit advertising and trade 12

shows. It will make Mercantile Bank Limited with its symbol as a bank with different care for its customers.

Capital Adequacy:
To maintain adequate capital base to support the asset growth as well as ensure compliance

Capacity Building:
In order to successfully implement the strategy, the in house capacity development is important. This is to be done through continuous training of the employees.

Stress on new products:

PBL shall continue to provide new services to its customers with support of its superior information technology platform;

Expansion of network for Retail and SME:

Extend business to existing clients through a wider product range and penetrate new markets through expansion of network in rural areas;

Structured finance:
Accelerate the growth of large and medium lending through syndication;

More savings products:

More savings products with attractive features will be developed for the small savers, which will be rewarding for both the customers and Mercantile Bank Limited.

Employee motivation:
To cultivate, develop and motivate the people of Mercantile Bank, rewarding excellence, motivating and enhancing mediocrity. 13

1.8 Financial Product and Services:

The Bank has launched a number of financial products and services since its inception. Among these, Monthly Savings Scheme, Family Maintenance Scheme, Double Benefit Deposit Scheme, Quarterly Benefit Deposit Scheme, 1.5 Times Benefit Deposit Scheme, Advance Benefit Deposit Scheme, Consumer Credit Scheme, Small Loan Scheme, Lease Finance Scheme, Overseas Employment Loan Scheme, Car Loan Scheme, Home Loan Scheme and SME Loan have received wide acceptance among the people. These products and services are described below:

Deposit Products:
Monthly Saving Scheme: It is our significant product; introduced to attract small savers for building up their habit of savings and thereby build up a healthy capital base for the economy. The monthly installments are in various sizes and one can adopt the schemes for a period of 05 years, 08 years or 10 years. Investor gets a lump sum (principal plus interest) at the maturity of the scheme. Installment amount should be deposited within the first 10 days of each month. In case of failure, 5% of monthly installment will be charged as late payment fee which will be added with the installment amount. In case of premature encashment, interest will be paid at Savings rate. The incumbent depositor can get a loan facility of maximum 80% of his deposited amount. At the end of 2009, BDT 13.58 billion was deposited against that of BDT 9.79 billion in 2008 recording 38.71% growth in this scheme.

Monthly Benefit Deposit Scheme: Under this scheme, depositor will get a certain sum of money in each month proportion to his/her deposit during the entire tenure. Benefit starts right from the first month of opening an account under this scheme and continues up to

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five years. On maturity, the principal amount is paid back. Objectives of this scheme are: help the retired persons for investing their retirement benefits, create investment opportunities for Non-Resident Bangladeshi, etc. Minimum deposited amount is BDT 50,000 or its multiples and the tenure is Five (05) years. This scheme is also known as "Family Maintenance Deposit Scheme (FMD)". Under this scheme total amount of BDT 1.86 billion was deposited up to the end of 2009.

Double Benefit Deposit Scheme: Under this scheme, deposited amount will be double in a tenure of Seven and Half (7.5) years. Minimum deposited amount should be BDT 10,000 or its multiples. In case of premature encashment interest will be paid on Saving A/c Rate. Loan may be granted up to maximum 80% of the deposited amount, but minimum principle amount must be BDT 20,000. At the end of 2009 total amount of BDT 6.93 billion was deposited under this scheme. Quarterly Benefit Deposit Scheme: The 'Quarterly Benefit Deposit Scheme' will be maintained for a period of 3 (three) years and the minimum amount of deposit is BDT 50,000.00 (fifty thousand) or its multiples. Interest will be paid on quarterly basis. Benefit starts right from the first quarter of opening the account. On maturity, principal amount will be paid back. Savings account is needed to maintain this scheme. Loan may be granted up to maximum 80% of the forced encashment value on the date of loan processing. During the period of continuation of loan, quarterly benefits will be credited only to the loan account. Deposit under this scheme increased to BDT 229.40 million in 2009 from BDT 145.35 million in 2008. 1.5 Times Benefit Deposit Scheme: Under the '1.5 Times Benefit Deposit Scheme' a deposit of minimum BDT 50,000.00 (fifty thousand) or its multiples will be received for a period of 4.25

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years. On maturity 1.5 times of the deposited amount will be paid back to the account holder. In case of premature encashment interest will be paid on Saving A/c Rate. However, no interest shall be paid if premature encashment takes place before expiry of 1 (one) year. Loan may be granted up to maximum 80% of the deposited amount. Total amount of Deposit under this scheme increased significantly to BDT 233.67 million from just 139.37 million at the end of 2008. Advance Benefit Deposit Scheme: Under this Scheme, one can deposit a certain amount of money for two years. The depositor will receive the benefit on yearly basis. The benefit amount of first year will be received in advance at the time of deposit. On maturity, the depositor will get back the principal amount with the benefit amount of second year. That is Interest is paid in two phases, first phase paid initially BDT 9,500 and second phase paid BDT109, 520 after maturity against BDT 1, 00,000. Loan may be granted up to maximum 70% of the deposit. This is also known as "Agrim Munafa Amanat Prokolpo (AMAP)". BDT 76.92 million was deposited under this scheme at the end of 2009.

Loan Products:
Consumer Credit Scheme: Consumer Credit Scheme is one of the popular areas of collateral-free finance of the Bank. People with limited income can avail of credit facility to buy household goods including computer and other consumer durables. Total exposure under this scheme was BDT 49.83 million at the end of 2009. Small Loan Scheme: This scheme has been designed especially for the businessmen longing for credit facility for their business and can't provide tangible securities. Total

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amount of BDT 15.40 million was deployed under this scheme at the end of 2009.

Lease Finance: This scheme has been designed to assist and encourage the genuine and capable entrepreneurs and professionals for acquiring capital machinery, medical equipments, computers, vehicle and other items. Flexibility and term and conditions of this scheme have attracted the potential entrepreneurs to acquire equipments of production and services and repay gradually from earnings on the basis of "Pay as you earn." Total exposure under this scheme was BDT 356.50 million at the end of 2009. Doctors' Credit Scheme: Doctors' Credit Scheme is designed to facilitate financing to fresh medical graduates and established physicians to acquire medical equipments and set up clinics and hospitals and thereby make the medical facilities upgraded and available to the mass people. BDT 7.06 million was disbursed under this scheme till the end of 2009. SME Loan Scheme: Small and Medium Enterprise (SME) Loan Scheme has been introduced to provide financial assistance to new or experienced entrepreneurs to invest in small and medium scale industries with a comparatively low rate of interest as the same is assisted by the Bangladesh Bank with refinancing facilities. Exposure under this scheme experienced significant growth of 44.39% and amounting to BDT 983.39 million at 2009 end from that of BDT 681.08 million at the end of 2008. Personal Loan Scheme: 17

Personal Loan Scheme has been introduced to extend credit facilities to cater the needs of low and middle-income group for any purpose. Government and semi-government officials, employees of autonomous bodies, banks and other financial organizations, multinational companies, reputed private organizations and teachers of recognized public and private schools, colleges and universities are eligible for this loan. Total Loans and Advances under this scheme increased to BDT 364.38 million up to 2009 from that of 279.78 million at the end of 2008. Car Loan Scheme: Car Loan Scheme has been introduced to enable middle-income people to purchase Cars/SUVs/Jeeps. Government and semi-government officials, employees of autonomous bodies, banks and other financial organizations, multinational companies, reputed private organizations, teachers of recognized public and private universities and businessmen are eligible for this loan. Total amount of BDT 201.98 million was disbursed under this scheme up to December 2009. Home Loan Scheme: To meet the growing need of housing for middle and lower-middle income people, MBL has introduced Home Loan Scheme. We also support the Bangladesh Bank's Home Loan Refinance Scheme. The Scheme will also boost up the growth of housing sector. Such loan shall be available for purchase or construction of new apartments for self-residing purpose. Overseas Employment Loan Scheme: Overseas Employment Loan Scheme is designed to facilitate the Bangladeshi youths seeking employment abroad but unable to meet the expenses to reach the workplace from their own sources. The ultimate objective of the scheme is to promote skilled -skilled manpower to different countries across the world as well as to provide support to Government Policy considering priority of this

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sector. By availing loan under this scheme, the active youths of middle and lower middle class can get overseas employment by avoiding borrowing from the illustrious class or village 'mohajon' at a very high cost or selling their paternal properties. The scheme will also help fetching foreign currency for the country as well as fulfill the Bank's commitment to encourage Micro-lending for poverty alleviation, improve the quality of life and thereby contribute to socio economic development of the country. Financial highlights for the year 2009 & 2008:

(BDT in million)
SL NO. 1 2 3 4 5 6 7 8 9 PARTICULARS Paid-up Capital Total Capital Fund Capital Surplus/Deficit Total Assets Total Deposits Total Loans and Advances Total Contingent Liabilities and Commitments Credit Deposit Ratio (in %) Percentage of Classified Loans against Total Loans and Advances (in %) 2009 2,158.42 4,995.43 226.86 66,166.52 58,033.47 48,295.55 21,757.17 83.22 2.59 807.52 261.24 629.70 1.09 8.81 57,471.28 8,695.24 8.75 1.22 696.66 37.41 37.41 2008 1,798.68 3,387.17 120.41 55,928.72 49,538.35 43,419.36 1 9,917.86 87.65 2.96 615.88 348.47 5 78.20 9.19 4 9,941.85 5,986.87 10.46 1.10 520.33 28.53 28.53 19

10 Profit after Tax and Provision 11 Amount of Classified Loans during the year 12 Provision kept against Classified Loans 13 Provision Surplus 14 Cost of Fund (in %) 15 Interest Earning Assets 16 Non-interest Earning Assets 17 Return on Investments (ROI) (in %) 18 Return on Assets (ROA) (in %) 19 Income from Investments 20 Earning Per Share (BDT) 21 Net Income Per Share (BDT)

22 Price Earning Ratio (approximate)

11 Times

12 Times

1.9 SWIFT:
SWIFT is the Society for Worldwide Inter-bank Financial Telecommunication, a memberowned cooperative through which the financial world conducts its business operations with speed, certainty and confidence. Mercantile Bank enables its clients to transfer funds to their beneficiaries through the most efficient channels, which are available from the bank. They facilitate quick and easy transfer of their funds by assuring complete security. Sl. No. 1 2 3 4 5 6 7 8 9 10 11 SWIFT Branches List: Branch name Main Karwan Bazar Agrabad Rajshahi Dhanmondi Banani Khatun gonj Nayabazar Mohakhali Motijheel Elephant Road SWIFT code MBLBBDDH001 MBLBBDDH002 MBLBBDDH003 MBLBBDDH004 MBLBBDDH005 MBLBBDDH006 MBLBBDDH007 MBLBBDDH011 MBLBBDDH012 MBLBBDDH013 MBLBBDDH014

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12 13 14 15

Mirpur Jubilee Road Uttara Gulshan

MBLBBDDH015 MBLBBDDH016 MBLBBDDH017 MBLBBDDH019

1.1.0 Mercantile Bank Limited Brokerage House:

Mercantile Bank Limited Brokerage House has been developed to ensure development of sound capital market and to provide higher, better and diversified services to a wide range of customers. MBL is offering high quality products and services at a competitive rate. Mercantile Bank Limited Brokerage House offers full-fledged international standard brokerage service with margin loan facility. We are also a full service Depository Participant (DP) of Central Depository Bangladesh Ltd. (CDBL). The brokerage service is designed to provide customers with necessary support profitably in the stock market. MBL is dedicated to provide high level of professional and personalized services to its domestic and international clients at a reasonable cost. MBLs services are comprehensive in nature, including brokerage, margin loan, CDBL facilities, and research and custodian needs of customers.

Reason for MBL Brokerage House:

Professionally trained staffs are engaged. Chosen as the preferred broker by most foreign/international and high-net worth investors Corporate member of Dhaka Stock Exchange Depository Participant (DP) of Central Depository Bangladesh Ltd Margin Loan facilities Maintains International 21

MBL has a strong commitment to its corporate, institutional and individual clients.

1.1.1 Card facilities:

MBL card holder can enjoy the following benefits and much more:

No Cash Withdrawal Fee:

For withdrawals of cash from MBL ATM by MBL cardholders no cash advance fee is necessary and from any other Q-cash ATM the fee is Tk.10 only. MBL is the only bank offering such unique facility. Moreover, our VISA Cardholders can also withdraw cash from any Visa logo ATM locally and internationally.

Acceptability:
International/Dual card is accepted all over the world at millions of outlets and ATMs. A Dual card is also accepted in most of the big cities like Dhaka, Chittagong, Khulna, Rajshahi, Sylhet at more than 10,000 outlets including 4500 POS. It covers various kinds of merchants like hospital, hotel, restaurant, department store and the card has accessibility to any outlet having VISA logo.

Credit Facility:
Mercantile Bank Ltd. Visa Credit card offers maximum 45 days credit facilities free of interest and minimum payment is 5% of outstanding billing payment for easy repayment and convenience of the customers.

Supplementary Card:
A Principal cardholder (local) may apply for more than one supplementary card where one supplementary card is free. Expenses made by supplementary card will be charged to the principal card.

Advance against Credit card:

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MBL cardholder can take advance as term loan up to 50% of the card limit to be repaid on the monthly installment basis. Any POS transaction over TK. 20000 but not exceeding 50% of the credit limit is convertible to Personal loan/CCS and to be repaid on monthly installment basis. Repayment period of such loan may be from 6 months to 36 months.

Overdraft Facilities:
Overdraft facilities up to 80% of the credit card limit may also be allowed for payment of the installment of scheme deposit with our Bank.

Payment of Utility Bill:

Payment of utility bills like telephone bills, gas bills, electric bills, water bills, may be settled by card.

1.1.2 Online Banking:

Online Banking has so far been activated with 42 Branches of the Bank from January 01, 2006. Online service is now available for all customers Both Cash deposit and withdrawals, Cheque Deposits and Transfer in CD, SB, STD, Loan accounts (Cheque Bearing within limit) and Monthly Savings Scheme (MSS) .

Online Banking Times:

Sunday to Thursday, Hours - 9:00 am to 3:00 pm Saturday, Hours - 9:00 am to 12:00 noon (only in open branches on Saturday) Service charge: For Monthly Savings Scheme (MSS) TK. 10 (Ten only) including 15% VAT per transaction. Yearly service charge is not applicable.

Account wise Online Banking Limit (cash withdrawal, deposit and transfer):

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Maximum Deposit Limit: No Limit for Online Cash Deposit Transaction per day per Client. Maximum Withdrawal Limit: Tk. 300,000.00 per transaction. Cumulative withdrawal shall not be more than TK.600,000.00 per day

Charges for Online Banking:

Intra City*

Inter City**
Up to BDT 1,00000 - TK. 50.00 Up to BDT 2,00000 - TK. 100.00

Mode of realization

Free

Up to BDT 3,00000 - TK. 150.00 Up to BDT 4,00000 - TK. 200.00 Up to BDT 5,00000 - TK. 250.00

Up front Cash

*Intra City Transaction: Branches under Same City Corporation Areas. **Inter City Transaction: Branches outside City Corporation Areas.

1.1.3 Remittance Services:

Mercantile Bank Limited maintains a strong network with the Overseas Exchange Companies & Banks in different parts of the world ensuring better remittance services for its customers. The following are the list of Overseas Exchange companies/Banks having arrangement with mercantile Bank Limited:

Name of the Exchange Company

Rumana Money Services Wall Street Exchange Centre Al-Ahalia Money Exchange Bureau Naaz Exchange Limited Xpress Money Services

Presence
UK UAE UAE Canada Global 24

Euro-Bangla Money Transfer Ltd National Exchange Company S.R.L Al Moosa Exchange Company AN Express Ltd SN Money Exchange Limited Trust Exchange UK limited Economic Exchange Company Maniflo Money Exchange Inc Bangladeshi Money Exchange Ltd Global Exchange Italia Srl, Italy Rupali Exchange (Europe) Ltd Al-Zaman Exchange W.L.L ICICI Bank

UK Italy Kuwait UK UK UK UAE USA Canada Italy UK Qatar Canada

1.1.4 Mercantile SMS Banking Service:

Your Bank at your Fingertip expresses the modern compatibility of Mercantile Bank
Limited. As the time goes by, life style changes. To keep up, MBL welcomes you to SMS Banking Service, one of the most modern banking services. MBL SMS banking Service is convenient, safe, low-cost, fast and available round the clock. MBL SMS Banking Service offers: Access to account balance Last 3 transaction inquiry Cheque status inquiry and many more.

1.1.5 Import Export Business:

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Import and export is a core business area of the Bank. Bank's performance in this area during 2009 was satisfactory. During the period under review, total import and export business transacted were BDT 60.59 billion and BDT 46.30 billion respectively. The growth of import and export business was 7.19% and 7.40% in 2009 and 2008 respectively. The growth of export gave the Bank an edge in managing required foreign currency to meet L/C commitments

1.1.6 Inward Foreign Remittance:

Hard-earned remittance of the Bangladeshi expatriate working abroad plays significant role in the overall development of the economy. Amid the world economic turmoil, countless Bangladeshi expatriates had to return to the country, losing their job in the foreign lands. In spite of this adverse economic situation, growth of inward foreign remittance of the Bank was consistent. In 2009, the Bank handled BDT 5.06 billion of remittance business compared to that of BDT 4.72 billion in 2008. MBL continues to assist the overseas Bangladeshis to remit their hard-earned money to their beneficiaries swiftly and safely. The Bank has opened several Branches in the rural areas with urban areas as well, aiming to aid the remitters to remit their money to their beneficiaries living in those rural areas. MBL maintains a strong network with the Overseas Exchange Companies & Banks to ensure quicker and safer remittance services. The Bank has signed agreements with different overseas exchange companies including USA, Canada, UK, Italy, Japan etc. so that the remitters can easily send their money to their beneficiaries. As well, negotiation with more Overseas Exchange Companies is in progress. MBL has signed International Representation Agreement with globally reputed Money Transfer Company "Western Union Services". This arrangement helps us to provide better service to the expatriates sending their money to their dependents, relative, friends & family members residing in Bangladesh. An agreement with Bangladesh Post Office (BPO) has been signed for the distribution of inward foreign remittance. BPO provides services through its 450 designated outlets under this arrangement across the country. As a result, a new horizon has been opened for the Bank to extend its remittance services to the doorstep of beneficiaries easily, quickly and safely. Very soon, MBL intends to launch an Exchange House in U.K, namely-"Mercantile Bank Exchange House" to make the remittance service convenient for the expatriates living in U.K.

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1.1.7 Corporate Social Responsibility of MBL:

Corporate Social Responsibility (CSR) has been described as corporate citizenship, moral and transparent business values, ecological sustainability or corporate charity. It is a business practice to deliver sustainable and ethical values to the equity holders, employees, customers, environment, society, government and other stakeholders at large. Mercantile Bank Limited (MBL) is fully committed to conduct its business activities in an economically, environmentally and socially sustainable manner. The Bank always fosters the motive in mind to build an ever-lasting warm relationship with the customers, employees, capital providers, community people, regulatory bodies and other stakeholders. Keeping this motive in mind, MBL always cares all of its stakeholders and the community people since its inception.

For Community:
As we all know that banks act as a 'Trustee' for the society. Therefore, MBL behaves in a responsible and ethical manner with the community people. The Bank always contributes towards changing the quality of life of the people as the Bank wishes to see them leading their life in a standard way. The Bank serves by adhering closely the national policies and thereby contributing towards the progress of the nation. In maintaining its responsibilities to the society where it operates its business activities, MBL focuses in the areas of employment, education, professional development and contribution to the underprivileged people. Employment: MBL plays an important role in creating job opportunities for the people. Each year, the Bank creates employment opportunities for fresh graduates as well as experienced officials. In 2008, a total of 169 fresh graduates have joined with MBL family. The new recruits have joined as Probationary Officers (82) and Assistant Officer (87). Besides, experienced bankers are also being appointed in the Bank as and when required. At the end of 2008, the Bank has 1,115 officials

27

in its payroll. Moreover, Bank's financing to the SME sector will indeed promote employment generation. CSR Activities of the Bank in 2008 and one year back: (Amount in BDT)AA 2007 40,00,000 100,000 25,000 10,400,000 90,000
14615000

Sector Wise Spending Donation to Mercantile Bank Foundation Education Health Disaster/Relief Others Total Education:

2008 100,00,000 390,000 200,000 1,530,000 50,000

12170000

MBL desires for an educated nation. The Bank through its Foundation, patronizes the education sector of the country. The Bank provides scholarship to the needy and brilliant students of different educational institutions. Best two MBM graduates of BIBM get financial awards from the Bank. In the year under review, the Bank has provided scholarship worth BDT 1 lakh in this regard. The children of the employees of the Bank also get scholarship for brilliant results. MBL has also donated BDT 1.00 million to Bangla Academy for research in Bengali Literature with a view to aid academic research, which would eventually uphold Bangladeshi culture across the Globe. Professional Development: Professional education has been encouraged in MBL. The Bank believes that to be more professional one should gather professional knowledge. The Bank is continuing its supports to the professional bodies as it continued earlier. The Bank encourages it employees to complete Banking Diploma by rewarding BDT 5,000 for completion of part-I and BDT 7,000 for completion of part-II. Support to Destitute:

28

MBL always shares the well and woe of the distressed people. Mercantile Bank Foundation has been set up to give financial support to the underprivileged communities. Through this Foundation, the Bank concentrates on addressing the needs of physically disable people such as blind, acid victims etc. The people of our country are used to be the victims of natural calamities every now and then. The Bank strives to assist the victims of natural disaster by providing financial help in rehabilitation and rescue purpose. In the year 2008, the Bank donated BDT15.30 lakh for helping the disaster victims.

For Customers:

MBL provides the most efficient and need-based services in every aspect of its business by being more innovative and professional. The needs and expectations of the customers drive us to the development of new banking products and services. MBL uses trained personnel and state-of-art technology for delivering prompt services to the customers. The Bank has high reputation for delivering better customer service and is also committed to uphold its image in coming days. Customer Service Excellence is an integral part of its strategy to stay ahead in an extremely competitive banking industry. To attain a continuous improvement in customer service, all branches of our Bank have established 'Customer Complain and Suggestion Box'. At branch level, officials are deployed to assist and interact with customers on banking queries and provide prompt solutions of the queries. A number of banking products has been launched for the people who have traditionally been excluded from the banking services. 'Women Entrepreneurs Development Scheme' has been introduced in the Bank for the women who are experienced but dearth of capital is hindering their initiatives to start business. An agreement with Women Entrepreneurs' Association, Bangladesh (WEA) has been signed to encourage women entrepreneurs to come forward in the business. They have also introduced SME services for the marginal people of our country. 29

 For Employees:
MBL, which has 1,115 employees provides due importance for promoting the well being of its employees by offering attractive remuneration and other fringe benefits. Employees' remuneration and benefits packages are monitored and regularly reviewed to ensure a competitive package in the industry. Incentive bonus from yearly profit is also rewarded to the employees on performance basis. Employees are awarded all sorts of supports to pursue professional educations. The Bank provides its employees personal loan facilities such as car loan, furniture loan and other loan to make their life easier and comfortable. Growth and progression opportunities for employees are available in the Bank. With competitive remuneration packages and employees' well being is looked after through attractive benefits such as medical coverage, loans at lower rate of interest for housing and car as well as other forms of financial assistance. MBL seeks to provide a standard quality of life to its employees. The Bank ensures a hygienic and convenient work environment for its employees. Performance and merit are the basis of promotion for the employees. The Bank respects the worth and dignity of individual employees. Importance has been given for building skill and efficiency of the employees to do their assigned day-to-day jobs with due confidence by bringing them in the 'Training Net'. For this purpose, Training Institute of the Bank has been refurbished in a large and well-equipped premise located in Swadesh Tower, 41/6 Purana Paltan, Dhaka, which has a well-resourced library. The trainees are being provided residential amenities in the Training Institution.

For Equity Holders:

Maximization of wealth of the equity holders gets top listed priority in the Bank. MBL is committed to its capital providers to deliver fair returns on their investment. Equity holders are always concerned to see their institution progressive. The Bank runs its business activities keeping in mind as its shareholders wish to see it. MBL is consistently delivering a superior return to its shareholders and investors. In 2008, Dividend Payout Ratio was 58.41%.The Bank has achieved BDT 34.24 as EPS and declared Stock Dividend at 20% in the year 2008. 30

 For Environment:
MBL is concerned with conservation and preservation of the environment. There is a rising level of awareness and demand to address the issue of sustainability of the environment because the whole world is increasingly experiencing the devastating effects of environmental changes for Green House affects due to Global Warming. The Bank is mindful of its responsibilities to the future generations by playing its part in promoting environmental awareness and in the conservation of the environment. The Bank takes environmental issue very cautiously while financing new projects. It finances only in those projects, which are environment-friendly. Early detection of environmental risks is an integral part of credit appraisal system of the Bank. Ecological damage will sooner or later harm not only the society but also the Bank in the form of loan losses or image problems. In this regard, the Bank sent two officials to the Hague, Netherlands for training on 'Environment and Social Management Course for Financial Institutions' conducted by FMO, Netherlands. The Bank creates awareness among people of the community about the effects of environmental pollution and its consequences.

For Cultural Activities:

MBL fosters the culture of various communities. The Bank is relentlessly supporting traditional games and sports by taking some non-profit initiatives. As a recognized benefactor of culture, the Bank provides funding for the publication of art books that familiarize the Bank. A variety of cultural institutions have been benefited by the initiatives of the Bank. The Bank also supports the writers, musicians and other performers in their inventive activities. The Bank patronizes different cultural activities. The Bank has sponsored a number of cultural programs encouraging different communities. The Bank has sponsored National Chess Championship, Tennis competition and Swimming competition in different times. In 2008, the Bank was the Official Sponsor of '23rd National Swimming Championship Competition' arranged by Bangladesh Swimming Federation. BDT 1 (one) million has been donated to celebrate this ceremony.

31

 Mercantile Bank Foundation:

Mercantile Bank Foundation has been established to act as a helping hand to the community people and Bank's commitment towards CSR. The Foundation always plays its role by extending charitable and beneficial social services. The Foundation has been promoting a dialogue between the Bank and its community for over nine years. Through its programs, the Foundation strives to preserve and promote cultural heritage and support artistic expression. It also provides funding for state-of-art research, as well as for innovative projects in the areas of education, social insertion and disability. Objectives of Mercantile Bank Foundation: Mercantile Bank Foundation has been formed with the aim of achieving some objectives, which has been stated below: 1. To take possible initiatives in increasing social well being and alleviating poverty from the country. 2. To support the education by establishing new educational institutions, providing stipends/ scholarship to the poor and brilliant students. 3. To provide awards to the Scholars in eight significant arenas for their outstanding contribution. These arenas are: Bengali Language and Literature Education and Culture Research on Liberation War Economy and Economic Research. Commerce and Industry Medicine, Science and Technology Journalism and Sports

4. To assist research activities on Bengali Literature through Bangla Academy. 5. To support the writers and publishers through purchasing their books and distributing these to different educational institutions on the occasion of national and historical days. 32

6. To assist the unemployed young to make them self-sufficient. 7. To assist the rootless and distressed orphans through taking appropriate steps for their mental perfection and self-support. 8. To support in establishing hospitals, clinics, etc. for the improvement of the health sector, to donate one time financial endowment to the poor artiste, literature-patron and fatal disease-affected poor patients, to support the poor father for arranging his daughter's marriage, to help poor but bright students. Financing of the Foundation: The Bank contributes 1% of Operating Profit or BDT 4.00 million, which is the maximum. The Sponsors of the Bank donates to the Foundation a lump sum amount at a time or amount on yearly- basis from their own funds or their own business source. Also different grants and donations from persons or, organizations of home and overseas are being used to financing the foundation.

33

1.1.8 Human Resource Development:

MBL invests extensively in its human resource development to build up its employees' capabilities. The goal is to empower staff and create a culture that encourages and rewards staff for their commitment, creativity and teamwork in order to respond rapidly to the ever changing customer needs and the market place. Their employees have shown remarkable agility in dealing with the challenges of new ideas. The successful implementation of various strategic initiatives, have demonstrated their resilience, determination and commitment to embrace change. They are always aligned with the strategic direction of the Bank. A smart officer wins the heart of a customer by delivering services to the customers' expectation. Taking that into consideration, MBL has formulated its Human Resource Policy incorporating ample benefits to be provided and returns to be expected from the employees. Employees are the valuable assets and the Bank intends to make its employees more valuable, nurturing their knowledge and skills. They put utmost care for the welfare of their employees. They always ensure congenial working atmosphere for their employees. They provide attractive compensation package to all level of executives, officers and staffs and considering the continuous change in the price level and living cost, they revise the compensation package at a regular time interval. Alongside the festival bonus, the deserving employees are rewarded as per their performance with accelerated promotion and other incentives. Their objective is to create a genuine partnership with their employees by providing appropriate incentives and rewards for performance.

34

1.1.9 Customer Service Program:

Strong and warm relationship with the customers drives the Bank to reach today's height of success. Customers' needs vary with the change of time and technology; hence, MBL provides them technology driven services to attract the potential customers while retaining the existing customers. MBL each year has been expanding its branch network to reach the banking services to the mass population. MBL has also been serving the people through its SME Service Centers and ATM Booths located in commercially significant places. The Bank started its capital marker operation to serve the customers from different angels. Number of correspondent relationships is augmented and agreements with foreign exchange companies are being made every year. The employees are encouraged to provide excellent service to the customers, as they know that today's excellent customer service will be tomorrow's value addition for the Bank. Undivided attention has been paid to their customers to provide them prompt service. Mercantile Bank Training Institute has been formed, which trains the desk officers on customer service. They want to maintain their present position and in future to uphold the position in the industry providing quality customer services. With the era of time and blessing of technology, MBL provides most modern and customized service to the customers. For many services the customers may avoid visiting the branch physically. Alternative banking channels such as Mobile Banking, Online Banking, and SMS Banking are used with greater flexibility enabling the customers to sort their finances at their own convenience and in their own time. Bangladesh Bank has already given approval to Mercantile Bank Ltd. to introduce Mobile Money Electronic Remittance system with mobile payment facilities. MBL has signed an agreement with a

35

leading telecommunication company to deliver banking services through using its mobile network. This initiative will provide access to affordable financial services to the customers including local money transfer, business payments like Utility Bill, Insurance Premium, and Loan Installments etc.

1.2.0 SWOT Analysis of Mercantile Bank Limited:

STRENGTH 1. Quantities approaches to reduce the risk classification. 2. Assign adequate power to the top management to monitor credit operation. 3. Clearly specifies the documentation process to reduce the risk of classification. 4. Provide guideline to furnish loans only to small-scale industries for short time, which minimizes huge loss. 5. Clearly define measure in dealing with foreign exchange transaction. 6. Strong procedure in selection of new borrowers. OPPRTUNITIES THREATS 5. Harder rules and regulations for loans and advances. WEAKNESS 1. The techniques specified for credit appraisal is not sufficient. 2. More dependency rests on Government sources for deposit mobilization. 3. Service offered is not adequate. 4. High price of loan applicant form.

36

1. Suitable for small-scale business, which growing day by day. 2. Government and other International agencies positive attitude toward low classification rate.

1. Upcoming Banks and their unique features. . 2. Reduced Government support in future.

Introduction of the Study

37

2.0

Literature review:

In my report I have tried to focus on the Performance Management System of Mercantile Bank Limited. There have been so many reports and articles done before by other people over this issue. In literature review I will try to draw attention over some of those articles. According to sumtotal.com, a renowned website of performance management solutions; Performance management is essential to building a productive and engaged workforce. Performance management solutions enable one to automate appraisals, close skill gaps, and manage career and succession plans. With these critical capabilities in play, one can quickly align ones talent pool with their overall business goals. On the other hand, another renowned HR website About.com reveals that, Managers cite performance appraisals or annual reviews as one of their most disliked tasks. Performance management eliminates the performance appraisal or annual review and evaluation as the focus and concentrates instead on the entire spectrum of performance management and improvement strategies. These include employee performance improvement, performance development and training, cross training, challenging assignments, 360-degree feedback and regular performance feedback. But setting up of an effective performance management system is not that easy. That is why D & B creditability corp. encloses the way of building an effective performance management system. They are saying that: setting up a good performance management system doesn't happen overnight or by accident. One need to consider its design and carefully plan how it will work before managers begins using it to evaluate employees. 38

A performance management system should provide employees with these four basic benefits: A clear understanding of job expectations Regular feedback about performance Advice and steps for improving performance Rewards for good performance

The goal of a performance management system is to help boost employee performance and, ultimately, the productivity of the business. For it to be effective, a performance management system should incorporate the following critical elements:

Updated Job Descriptions: Job descriptions should clearly describe the employee's current duties and performance expectations. Position descriptions should be specific, clearly defining the job function, required skills, deadlines and goals, and should delineate expectations for the employee's relations with peers and customers. Keep job descriptions current, especially during times of organizational change. Rapid growth and downsizing inevitably add new responsibilities and shift employees' workloads. Performance Measures and Standards: Once you have job descriptions in place, you need to establish performance standards that describe what constitutes below average, average, and aboveaverage performance. Start by thinking about the best- and worst-case scenarios until you reach realistic standards for measuring performance. Next, determine how you're going to measure the expectations outlined in the job description. This requires both objective and subjective methods of assessment. In some situations it's easy to gauge performance by looking at the numbers: for example, how many new accounts an employee brought in or how many products an employee assembled. Quantifying an employee's coping skills, customer service skills or attitude is much more difficult. Some managers also have biases or poor evaluation skills. Establish clear guidelines and measures that eliminate potential bias and 39

prevent evaluators from subjectively determining what constitutes excellent and unacceptable behavior. Evaluator Training: Research shows that managers with poor communication or interpersonal skills are often the downfall of a company's otherwise sound performance management program. All managers need training on how to communicate and how to conduct fair, nonjudgmental and consistent appraisals. An effective performance management system will administer training to managers before they conduct their first reviews. Guidelines for Improvement: Institute basic policies to cope with employee weaknesses and poor performance. Decide if you'll provide training or mentoring for employees exhibiting sub par performance. Set guidelines that outline how long it should it take an employee to improve and what steps will be taken if the employee fails to show improvement. Employee Input: Solicit and evaluate staff suggestions for your performance management program. Incorporate employee input into your program or system as needed. Compensation and Rewards: When employees perform well they should be compensated. Rewards keep morale high, generate loyalty and foster additional improvement. But closely linking pay hikes and promotions to performance appraisals is a contested issue. Critics say that too close a tie between performance evaluation and compensation may be punishing or unfair to employees who don't overachieve. Regardless of how and when one chooses to compensate his/her employees, an above-average appraisal deserves acknowledgment. It has to be making sure that employees are being consistently rewarded for their hard work. One of the research papers, from University of California Berkeley states that: An effective performance management process sets the foundation for rewarding excellence. It becomes more useful: 40

By linking individual employee work efforts with the organizations mission and objectives, the employee and the organization understand how that job contributes to the organization.

By focusing attention on setting clear performance expectations (results + actions & behaviors), it helps the employee know what needs to be done to be successful on the job.

Through the use of objectives, standards, performance dimensions, and other measures it focuses effort. This helps the department get done what needs to be done and provides a solid rationale for eliminating work that is no longer useful.

By defining job-mastery and career development goals as part of the process, it makes it very clear how the current position supports employee growth and the additional opportunities the employee needs to explore.

Through regular check-in discussions, which include status updates, coaching, and feedback, it promotes flexibility, allowing you and the employee to identify problems early and change the course of a project or work assignment.

By emphasizing that an annual appraisal should simply be a summary of the conversations held between you and the employee during the entire cycle, it shifts the focus away from performance as an annual event to performance as an ongoing process.

An effective performance management process, while requiring time to plan and implement, can save you and the employee time and energy. Most importantly, it can be a very effective motivator; since it can help you and the employee achieve the best possible performance. Martin Fisher described the several forms of performance management system in his book Performance Appraisals. According to him the purpose of performance appraisal is to improve the organizations performance through the enhanced performance of individuals. In his book he showed the assumption of people regarding performance appraisal. Many people refer to a number of more specific positive purposes of performance appraisal. Such as To review past performance. To assess training needs. To help develop individuals.

41

To audit the skills within an organization To set targets for future performance. To identify potential for promotion.

But there are some negative perceptions about performance management as well. More negatively people may believe that performance appraisal is simply used by the organization to apportion blame and to provide a basis for disciplinary action. Some people see it as a stick that management has introduced with which to beat people. And if this is there attitude- with or without cause- performance appraisal is doomed to failure. Even if the more positive objectives are built into the scheme, problems may arise because: They may not all be achievable. They can cause conflict.

For example, an appraisee is less likely to be open about any shortcomings in past performance during a process that affects pay or promotion prospects, or which might be perceived as leading to disciplinary action. It is therefore important that performance appraisal should have specific objectives. Not only should the objective be clear but also they should form part of the organizations whole strategy. In this way the key objectives can be incorporated into the appraisals, highlighting areas for improvement, new directions and opportunities. Alan Fowler gave a good definition of the objective of performance appraisal in PM plus, June 1991. He suggested that: Staff work best when they know what they have to do, how well, they have to do it and how well they are thought to have done, so they need to talk to their managers at least once a year about this, and their managers need to take their staffs views into account when setting work goals and deciding who needs what training. The following are some examples of the definitions used by various organizations: Cambridge shire County Council, for example, is quite clear that the objectives Look back on what has been accomplished. Look forward to what needs to be accomplished. Identify how individuals can be helped to improve their contribution in their present jobs of performance review meetings are to:

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Clarify the jobholders career prospects, aspirations and intentions.

These objectives are all positive. There is no reference to identifying weaknesses; no implication that the process is about attaching blame. The national Australia Group Ltd states that their scheme is: Based on the simple idea that when people know and understand what is expected of them, and have been able to take part in forming these expectations, they can and will perform to meet them. The group gave the following reasons for introducing the scheme: We need to be offered encouragement and support to perform well. When our performance is assessed it needs to be as objective as possible. We should all be part of the same process of performance assessment. We need to believe and have confidence that the system is fair to everyone. We need everybody to be trained so that the approach is fully understood and can be applied consistently. We all need to be involved in the process with advance information, time for preparation and an opportunity to assess ourselves. Aims: To increase mutual understanding of performance requirements. To note and recognize achievements. To note and analyze any problems in meeting requirements. To provide the opportunity to discuss aspirations and concerns about career prospects and the present job. To define or, redefine future objectives To agree action plan. To agree self- development and training needs. Principles: Concentrates on developing strengths as well as addressing performance problems. Based on open and constructive discussion. At MENCAP the aims and principles of their performance management and development system were defined as follows:

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An everyday and natural management process, not just a once- a year event and not just a form filling exercise. BP exploration defined the objectives of their performance management system

as follows: Our stated objective is to achieve a best in class world position. We are dependent on the contribution of each and every one of our people to get there. We need to focus on performance- how to do everything we do better- and this means how we manage our people, just as much as it means discovering new oil-fields, improving our profitability, managing our costs or, upgrading our public image. We need to focus on how, on a day-by-day basis, we deliver performance improvementseven if what we are already doing is of a very high standard. To achieve this we need to change the way we work together and the way performance is discussed. Managers and others responsible for reviewing performance will be assessed on how well they do this. HP information plc have defined the objectives of their performance appraisal systems which are being stated as follows: To improve performance management in HP Information plc. To review past and present work performance. To improve future performance. To set performance objectives. To identify training and development needs. To provide a rational basis for salary recommendations. To develop communication and working relationship. One of the objectives of this scheme is to provide data for pay proposals. Although, as noted above, this can cause problems, many organizations do include a rating system in their schemes which influences performance related pay awards. Their reason for doing this is quite clear: if you are going to reward people according to their performance, your decision must be based on a proper review and assessment of their performance. As per McGregor, Performance appraisal is necessary because it:

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Provides systematic judgment needed to back up salary increases, transfers, demotions, and terminations. It is the means of telling how the subordinate is doing, suggestions needed to change the behavior, attitude, job knowledge, skills of the employee. The superior uses it for the coaching and counseling of the individual.

And as per Levinson, performance appraisal is important because it: Gives Feedback for performance Basis for changing and improving of behavior Provides data for future assignments and compensation.

Michael Armstrong in his book Armstrongs Handbook of Performance Management has clearly defined Performance Management. In his words: Performance management is a systematic process for improving organizational performance by developing the performance of individuals and teams. It is a means of getting better results by understanding and managing performance within an agreed framework of planned goals, standards and competency requirements. Processes exist for establishing shared understanding about what is to be achieved, and for managing and developing people in a way that increases the probability that it will be achieved in the short and longer term. It is owned and driven by line management. He also stated the problem of performance management in his book: Performance management is often referred to as the Achilles heel of HRM. All modern organizations face the challenge of how best to manage performance. That is, they must determine the best ways to set goals, evaluate work and distribute rewards in such a way that performance can be improved over time. While all firms face similar challenges, the way a firm responds to these challenges will depend on where the firm is located and the context within which it is operating. Differences in culture, technology or simply tradition make it difficult to directly apply techniques that have worked in one setting to a different setting.

2.1 Rationale of the study:

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4.1 I am proposing this study to know about the performance management system of Mercantile Bank Limited. 4.2 Gathering knowledge which will help me in future to establish a better performance management system. 4.3 From the study the University gets information of performance management activities and strategies of the Mercantile Bank limited which may help them to modify their system

2.2 Statement of the problem:

I chose the topic to learn how Performance Management System works in an organization and to relate the theoretical learning with the practical experience. This topic will help me to know the reason for Evaluation, person who should benefit from the evaluation, what type of evaluation should be used and what problems might be encountered. How PMS is helping in managing the overall performance of the employees, to identify that.

2.3 Scope of the Study:

The scope of the report was to get a real life exposure. I have got the opportunity to observe what is actually happening in a company, how they are planning their performance management system and how they are using the methods of the PMS and also influence them can have over the development of the employee performance in the organization. As I worked in the Human Resource division, head office of the Mercantile Bank Limited, I got the opportunity to learn different part of Human Resource activities. To conduct a study on PMS concept I have gathered valuable information from our university library & Mercantile Bank Limited. I have also got some information from web site.

2.4 Objectives of the study:

The main objective of the practical orientation of the bank is to have an overall picture of how the bank runs their Performance Management System and HR functions.

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(a) Broad objective: To analyzing the performance management system of Mercantile Bank Limited. (b) Specific objectives: development To know the type of evaluation process they are using. To know the problems they are facing. To know whether their performance management system has any relationship with the downsizing. To know their process of performance appraisal documentation. To identify how their performance management system does help them with employee

2.5 Methodology:
This report has been prepared on the basis of experience gathered during the period of internship. For preparing this report, I also got information from annual report and website of the Mercantile Bank Ltd. Actually, this study is descriptive in nature. Maximum data were collected from the primary sources. The details of the work plan are furnished below: Data collection method: Relevant data for this report has been collected primarily by direct investigation of different records, papers, Documents, operational process and different personnel. Structured questionnaire has been used & Information regarding office activities of the bank has been collected through consulting and discussion with bank personnel. Data sources: Both primary and secondary source of data are used to complete this study. These two sources are explained below: 1. Primary sources: o Face to face interview with the bank officers and staffs. o Through consulting with officials of the branch. o Notes taken from day to day working 2. Secondary sources: o Different manuals, circulars, files and documents of the MBL. o Different websites including the website of MBL. o Different text books of Human Resource Management.

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o Journals and newspapers.

2.6 Limitation of the study:

There were some constraints in preparing this report. But at the same time I tried to make an adjustment with those problems. The officer of the Human Resource Department was reluctant to provide information about the company policies and the HRM strategy they were following. It was very difficult to collect the information from various personnel for the job constrain. Bank policy was not disclosing some data and information for various reasons. The department people always remain busy due to lack of supporting employees so they could not dedicate their full efforts. Because of the limitation of information some assumption was made. So there may be some personal mistake in this report. The time 3 months are not sufficient to know all activities of the HRD to prepare the report.

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49

Interpretation & Conclusion

3.0

Performance Management System of Mercantile Bank Limited (MBL):

One of the agenda of the Human Resource Department is continuous development of the employees so that they can cope with the rapidly changing business environment. Innovation is a major priority that we want to promote. Accordingly, through performance management system employees are being developed and enhanced performances and related competencies. In MBL, performance evaluation programs are being undertaken annually for the employees to seek opportunities for skill improvement and to help them to guide for career management system. The evaluators of MBL are basically persons who are holding any managerial post, such assenior executive vice president, Vice president, assistant vice president. They are experts and highly qualitative officers from inside the organization. These performance evaluation programs were found highly effective in developing MBLs peoples knowledge, skill & abilities to perform their assigned jobs in a better way. MBLs performance management systems involve numerous activities, far more than simply reviewing what an employee has done. These systems fulfill several purposes. One of the purposes of MBLs performance management system is to improve the organizations performance through the enhanced performance of individuals. Though they are often constrained by difficulties in how they operate. Performance management is closely related to rewards. Organizations basically 50

allocate rewards based on either performance or membership criteria, but this is not always the case, few organizations actually reward employees based on their performance. In MBL, they reward their employees both based on performance and membership criteria. As performance based rewards they have: merit pay and incentive pays (such as- bonuses, increment and profit sharing option). In MBL promotions are being made over three years performance.

The performance management process of MBL:

1. Establish performance standards.

2. Set measurable goals.

3. Measure actual performance.

4. Compare actual performance with standards

5. Review the appraisal

6. If necessary initiate corrective action. 51

Each employee of MBL receives a yearly increment based on his or her performance. According to performance appraisal the amount of increment varies. That means if an employee performs well she/he will get an improved increment. On the other hand if an employees performance is unsatisfactory then she/he will get decreased amount of increment or, no increment at all. In MBL they follow a set of questions to evaluate the performances of their employees. This set of questions is known as Annual Confidential Report (ACR), which consists of 15 questions. The rating scale is 0 to 3 for each question. That means the evaluator can rate an individual question from 0 to 3 based on the employees performance, where 0 refers Below Average and thus 1 = Average; 2 = Good and 3 = Excellent. The managers of each division and branches perform this evaluation. For example, in main branch and branches inside Dhaka the evaluation process is done from SEVP (Senior Executive Vice President) up to AVP (Assistant Vice President). And in branches outside Dhaka generally AVPs (Assistant Vice President) are responsible for evaluation. In MBL scope for self- evaluation is low. They compare their employees to some given standards. Their measurable performance ratings are given below: 1. Reliability, commitment, sense of belonging and responsibility: In MBL an individuals reliability, commitment, sense of belonging and responsibility is being evaluated to understand how reliable and committed employees are toward the organization. And whether they have any sense of belonging and responsibility. As these criteria is very crucial for an organization to understand their employees better and to hold them in the organization for a longer period of time. 2. Knowledge of banking, skill and awareness to rules and policies and its implementation: In banking sector it is necessary that an employee should have knowledge about banking system and she/he should also have sufficient skills and

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awareness to organizational rules and policies and implement these properly. Employees should be well aware of the banks rules and policies and should know how to implement those. 3. Competence, ability to do and get things done (leadership to train, guide, supervise and utilize manpower): Competence refers to the behavioral requirements of a role to carry out the work satisfactorily. It is what people bring to work in the form of different types and levels of behavior. In MBL competencies are being measured by following criteria: Achieves high level of performance from team. Defines objectives, plans and exceptions clearly. Continually monitor performance and provide good feedback. Maintains effective relationships with individuals and the team as a whole. Develops a sense of common purpose in the team. Builds team morale and effectively motivates individual members of the team by recognizing their contribution while taking appropriate action to deal with poor performers. 4. Initiative, drive and enthusiasm: The employees of MBL are being also evaluated on the basis of their initiative ness and enthusiasm. They are being observed whether they have the sustained energy and determination in the face of obstacles to set and meet challenging targets, in compliance with quality, time and diversity standards and delivering the required business results. Following points are being marked while evaluating this section: Agrees on achievable goals at the start of each project. Strives toward targets. Refuses to settle for second best. Monitors tasks for accomplishment, quality and timeliness. Asks for feedback. Employees have been leaded, encouraged, inspired and

5. Quality and quantity of work: Quality and Quantity of work is also being observed and given high priority. supported to develop confidence and capability to help them realize their full potential

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to develop quality of work. Quantity of work can also be developed through similar activities. And then they are being measured on some criteria. 6. Marketing ability: Marketing ability refers to an employees willingness and ability to give priority to customers, delivering high quality services that meet their needs. Through this standard an employee is being evaluated whether she/ he cares for customers, concerned for people, has competitiveness, enterprise, excellence, sees growth as major objective, market and customer oriented and productive. An employee should possess following qualities in order to get excellent rating on this section: Respond to customer requests promptly. Treat all customers with respect. Do not make assumption about customer needs, but asks lots of questions to clarify them. Take the initiative in developing policies to meet customer needs. Try to see things from customers points of view- finds out about the pressure of their world so as to relate to their concerns. Request feedback from customers to ensure satisfaction and shares the results. Know when and how politely to decline an inappropriate customer request.

7. Learning ability and analytical thinking: Analytical thinking is about bringing disciplined analysis to data and situations, to see cause and effect and to use this to make effective decisions. This is important in enabling to prioritize and take important decisions based on an assessment of the impact and implication of the likely outcomes. The ability of learning and analytical thinking can be developed by an individual her/himself. MBL remarks analytical ability on following criteria: When faced with a problem, gather as much information as necessary about it before identifying root causes and possible solutions. Bounce ideas off others to understand how they might tackle a problem. Break down large pieces of work into smaller, simplified and more manageable parts. Does not over whelm by a problem; breaks the problem down into manageable parts.

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Assess the positive and negative aspects of a proposed course of action before going ahead. Does not say yes to an activity without assessing whether it is the highest priority at that time.

8. Presentation and outer personality: Employees should possess an excellent outer personality and a developed presentation skill. They should also have confidence in their knowledge and ability. 9. Power of judgment, decision-making, intelligence & mental alertness: Employees power of judgment, decision-making ability, intelligence and mental alertness are also required to evaluate their performance. These are important in getting the results they need to achieve for strategic objectives. It shows the necessary determination and tenacity to complete high quality work as well as raising performance levels over the short, medium and long term. It also involves overcoming obstacles caused by conflicting priorities, lack of resources or difficult or demanding situations in the internal or, external environment. 10. Interpersonal behavior, team spirit & cooperation and flexibility: An individuals interpersonal behavior is being measured through how she/ he act toward other person. Team spirit and cooperation are being measured through how cooperatively they are working across cultures and organizational boundaries to achieve shared goals. Flexibility is measured through their quality of adjustment and adaptability to and work with a variety of situations, individuals and groups. And also not being disconcerted or stopped by the unexpected. 11. Honesty and integrity, financial discipline: Employees honesty, integrity and financial discipline are also being measured through feedback from co-workers and subordinates. 12. Attendance, time consciousness, punctuality and discipline: Employees attendance punctuality and discipline are being checked regularly and these also count as an important part of performance evaluation. 13. Managing capabilities including crisis management: Employees should possess the capability of crisis management and other problems. They are being judged over how well they could manage any crisis or handle any unexpected situation.

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14. Creativity and innovative ideas: Creativity and innovation is a mandatory thing. Employees should be creative to find different ways of performing a task to avoid monotonousness. 15. Communication ability (written and verbal): Employees should have excellent communication ability in both written and verbal. This includes writing official letters, minutes, communicating with co-workers, sub-ordinates and managers, interacting with customers and so on. All these 15 points stated above are being rated (3, 2, 1 & 0) and then all are being added together, which delivers an employees total performance. The process of measuring overall performance is being discussed below: Excellent (35-45): Reveals superior actions and results that consistently deliver very high quality performance, far exceeding expectation. Good (25-34): Reveals high quality performance where actions and results frequently exceed expectation. Average (15-24): Reveals average satisfactory performance that effectively meets expectation. Below average (0-14): Reveals actions and results that sometimes fall short of expectation and does not always meet requirement of job. In MBL only those employees are ready for performance evaluation that has served in MBL for a minimum period of six months. During the time of evaluation appraisers are recommended to be practical as far as possible, be reasonably prudent in the judgment, and be sincere, impartial and unbiased in making comments. They are being advised to avoid overstatement and under statement. The comparison should be concerned with an employees colleagues of the same rank, and personal likings should not influence the ratings. Appraisers should also keep in mind that the impartial rating will reward the right person and facilitate management to take measures for improvement of the skill of the deficient employees. After completion of performance evaluation the ACR form is being sent to Human Resource Division along with performance report.

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3.1 Findings and interpretation:

Performance Management is one of the key processes that, when effectively carried out, helps employees know that their contributions are recognized and acknowledged. Performance management is an ongoing process of communication between a supervisor and an employee that occurs throughout the year, in support of accomplishing the strategic objectives of the organization. The communication process includes clarifying expectations, setting objectives, identifying goals, providing feedback, and evaluating results. Performance management system of MBL is being described above and the findings from their process have been interpreted below: 1. PMS method: In MBL each employee is being compared to some given standards- that means employees are appraised against some absolute standards.

PMS Method
100 90 80 70 60 50 40 30 20 10 0 Given standards Against other individuals MBO

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Source: HRD of Mercantile Bank Ltd. From the above graph we can see that mostly (about 90%) they compare employees against some given standards. It is very rare that they appraise employees by comparing them against other individuals and Management by objective (MBO). 2. Appraisal Process: MBLs performance evaluation form includes a list of traits and a range of performance for each that indicates they are using Adjective rating scale appraisal process.

Appraisal process

10%

5% Adjective rating scale Checklist appraisal Critical incident appraisal 85%

Source: HRD of Mercantile Bank Ltd.

3. Problems of PMS: As managers themselves performs the evaluation so there is no scope for employees to participate in the evaluation process. For this reason usually they do not face much problem during evaluation. Mostly the problem they face is delay of performance report. Sometimes

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HR does not get the ACRs and performance reports on time. Their might be a problem of biasness as the manager is solely responsible for the evaluation process.

4. Managing underperformers: When an employees performance is low, MBL first look for the lacking and reason for bad performance of that employee. Firstly they check on the skills, whether that employee has the ability to perform her/his job. Secondly they check on the motivation level of the employee, whether she/he is motivated enough. Thirdly they check on alignment of job, whether the employee is aware of the importance of her/his job, or aware of the fact that how does her/his job helps the organization to achieve its goals. Finally they check on work structure, whether employees can easily perform their job. Low performed employees have been sent for training.

Managing under performers

5% 20% Skills 50% Motivation Alignment Structure 25%

Source: HRD of Mercantile Bank Ltd.

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5. Documentation: In MBL performance appraisal process outcomes are being recorded through files, which are known as ACR files. Each employee has an individual ACR file.

6. Performance rewards: For an excellent performance MBLs employees is being rewarded with increments and promotions. Performance based promotions are being made in every three years whereas increments have been made in every year.

Performance rewards
90 80 70 60 50 40 30 20 10 0 Increment Promotion 20 80

Source: HRD of Mercantile Bank Ltd. Form the above graph we can see that number of increments is more than that of promotions. Increments have been made frequently but there is a possibility that an employee might not be promoted after three years, if her/his performance is below average. 7. Employee development:

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The performance management system that MBL use plays an important role in their employee development. Through the appraisal they can identify which employees require what type of training and they provide required training to those employees. Different guidelines are also given to employees to perform better. They also follow the counseling process which includes: recognition and understanding of the problem, empowering employees to recognize the problem by themselves and managing the problem.

Functions of employee development

10%

20%

Training Guidelines Counselling 70%

Source: HRD of Mercantile Bank Ltd. From the above pie- chart it has been made clear that most of their employee development (70%) is done through training. And rest 20% through various guidelines and 10% through counseling. 8. Purpose of the Appraisal: There are certain purposes behind MBLs performance management system, such as: To understand the future training needs of the employees. To assist in their employee development. To determine the increment amount for individual. 61

To identify potential for promotion. To guide the employees for a better performance. To increase productivity through better performed employees.

9. The Appraisers: In MBL, the appraisers are upper level managers, known as senior executive vice president (SEVP), Executive vice president (EVP), and head of HR etc. They are very professional and trained. Each of them is responsible for the evaluation of their subordinates.

The appraisers
70 60 50 40 30 20 10 0 SEVP EVP Head of HR 30 60

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Source: HRD of Mercantile Bank Ltd. From the above graph it is visible that 60% of the evaluation is done by the SEVP, 30% is done by the EVP and very less amount, 10% is done by the HR head.

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3.2 Recommendation:
I had the practical exposure in Mercantile Bank Ltd. for just three months, with my little experience in the bank in comparison with vast and complex banking system; it is not so easy to recommend some suggestion to enhance the performance level of the organization. I have observed some shortcomings regarding operational and other aspects of their banking. On the basis of my observation I would like to present the following recommendationsThey should create a supportive environment to put employees at ease. They should aware employees about the purpose of the appraisal. They should involve the employee in the appraisal discussion, including a self- evaluation. They should focus discussion only on work- behavior. They should support the evaluation with specific examples. In managing the underperformers they should at first check up on the structure of the work. Then alignment, skill and at last motivation. They should practice 360 degree appraisal method properly.

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3.3 Conclusion:
Banking Industry in Bangladesh is now in right track. The bankers are contributing much than the previous years for the growth and development of the country. Banking is becoming more and more vital for economic development of Bangladesh in mobilizing capital and other resources. Mercantile Bank, being a third generation bank, is also extending such contributions as to the advancement of the socioeconomic condition of the country. It is not possible to get 100% from anywhere especially for those organizations which deals with mass people. MBL is committed to provide quality services, maintain corporate governance & support international business as a continuation of excellent performance since its incorporation. MBL is fully committed to conduct its business activities in economically, environmentally & socially sustainable manner. MBL has an effective performance management system for their employees which are very crucial to their employee development. They provide attractive allowances to their employees as per their performance to encourage them to exert their maximum efficiency. MBL offered attractive fringe benefit packages for their respecting employees & this packages are being monitored & reviewed regularly to ensure a competitive package in the industry. The bank ensure hygienic & convenient work environment for its employees. MBL respect the worth & dignity of each employees. They provide effective leave benefit for their employees. Though they have effective performance management system still they some lacking too. If they overcome those lacking they should able to take the position of market leadership in the private banking industry which help them to create more profit & long term good relationship with their customers, employees, shareholders of the banks. I am a student of BBA Program (HRM), I have completed my internship from Mercantile Bank Limited. During internship program at Head office of Mercantile bank Limited almost all kind of HR activities I have been observed and I have found theory deviations more or less. However, I have enjoyed my three months internship at MBL.

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3.4 References:
Books: Decenzo, David A., & Robbins, Stephen P. (2005). Establishing the performance management system. Fundamentals of Human Resource Management, 10, 245- 271. Decenzo, David A., & Robbins, Stephen P. (2005). Establishing rewards and pay plans. Fundamentals of Human Resource Management, 11, 275-276. . Fisher, Martin (1995). The essence of performance appraisal. Performance Appraisals,1, 9-11. Fisher, Martin (1995). Conducting formal appraisal discussions. Performance Appraisals,3, 69-136. Websites: Carpenter et al. The Nature of Goals and Objectives.Principles of Management, 6.1,Retrieved November 13,2010 from http://www.web-books.com/eLibrary/NC/B0/B58/037MB58.html Dreyfus, Stuart E., & Dreyfus, Hubert L. (1980). A Five-Stage Model of the Mental Activities Involved in Directed Skill Acquisition,Retrieved November 13,2010 from http://www.dtic.mil/cgi-bin/GetTRDoc?AD=ADA084551&Location=U2&doc=GetTRDoc.pdf Fletcher, Shirley (1997). Competence-based assessment techniques. Retrieved November 14,2010 from http://www.trainersnetwork.ie/strat2.html Hackman & Oldham (2009). Guide to Managing Human Resources,7, Retrieved November 13,2010 from http://hrweb.berkeley.edu/hrhome.htm Organization profile, Retrieved November 13,2010 from http://mercantilebanklimited.php.htm Person: Mr. Asif Ahmed HR officer Mercantile Bank Limited

3.5 Appendices:
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AMERICAN INTERNATIONAL UNIVERSITY-BANGLADESH Questionnaire on the topic of Performance Management system of

Mercantile Bank Limited

1. How do you evaluate performance of your employees? 2. Which one from the following method is being followed? Each employee is compared to some given standards. Each individual is being compared against other individual. If yes, then which one is followed: Group order ranking, Individual ranking or, Paired comparison. Employees are evaluated based on MBO (Management by objective). 3. What kind of problems do you face during evaluation? 4. How do you solve those problems? 5. What do you do to develop your employees? 6. Who performs the evaluation? 7. Are they trained appraisers? 8. Do you set the goals mutually (along with your employees)? 9. Do you discuss the appraisal with the employees? Is there any self-evaluation process? 10. How do you manage the underperformers? What kind of corrective measures are being taken for low- performed employees? 11. Do you think that the PMS (performance Management System) that you are using in your bank has any relationship with downsizing? 12. How do you keep the track of performances / how are the past performances being documented? 13. How does your PMS helps in your employee development? 14. Do you provide a supportive environment for your employees? 15. What are the purposes of your appraisal? 16. Are your employees aware of the purposes? 17. While evaluating the performances, do you only focus on work- behavior of an employee?

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18. What do you do if any individual disagree with your evaluation? 19. Do you support your evaluation with specific examples? 20. How do you deal with the high risk person? 21. Are there any selective competences based on which you evaluate your employees? E.g.: analytical thinking; customer service orientation; professional confidence etc. 22. Can you give an example of which competence is preferred for which position? 23. Do you have any kind of career management system based on performance? 24. How often do you review the performance of your employees? Quarterly Bi- Annually Annually.

25. What kind of performance based reward do you provide? 26. What is the scale of your measurement? How do you distribute the points? 27. Sample appraisal form. 28. Do you guide your employees for a better performance? 29. Do you prefer 360 degree feedback?

Different branches of MBL:

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Saima Jabeen Akhanda

A-15, Arambag, Section-7 Pallabi, Mirpur
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Dhaka-1216, Bangladesh Cell: 01672037952 Email: [email protected] Career Objective:

Recent university graduate seeking an entry-level position in performance management system utilizing my strong analytical and communication skills combined with a Bachelor of Business Administration in Human Resource Management

Educational Qualifications: Bachelor in Business Administration

Dhaka 2011 Major: Human Resource Management American International University Bangladesh (AIUB) C.G.P.A: 3.71(Out of 4)

Higher Secondary Certificate

Board of Intermediate Secondary Education (B.I.S.E) - 2006 Ideal College C.G.P.A: 3.60 (Out of 5) Science

Secondary School Certificate

Board of Intermediate Secondary Education (B.I.S.E) - 2004 Mirpur Girls Ideal Laboratory Institute C.G.P.A: 4.25 (Out of 5) Science

Internship (3rd October 2010- 31st December 2010)

Mercantile Bank Limited, Head office 61, Dilkusha, Dhaka- 1200 Worked under: - HR division - Foreign exchange - Accounts

Project Works:
Human Resource Information System on HRIS Course Recruitment & selection and Training & development process on Strategic HRM Course

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 Employee motivation on Administrative behavior Course Performance appraisal process on HR fundamental Course Worker & management relation in CNG conversion center on Industrial Relations management course

Skills:

Computer skills: Microsoft office and Internet Prepared more than 10 research work in different courses while completing B.B.A. Interviewed top level employees in different organizations for research purpose.

Interests: Traveling, reading books, swimming & painting. Personal Details:

Date of birth: February 8, 1989 Nationality: Bangladeshi Sex: Female Marital Status: Unmarried Blood Group: B+ve (positive)

References:
DR. Zahed Husain Sikder Professor Faculty of business American International University- Bangladesh Caontact no.: 01720488488 Email: [email protected] Tahmida Sharmin Assistant principal officer Pubali Bank Limited Mohakhali Branch Contact no. : 01715500518 Res: 8715210

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