The Effectiveness of the Communication Process of Prime Bank Limited, Bangladesh

CHAPTER 1: I TRODUCTIO 1 The Effectiveness of the Communication Process of Prime Bank Limited 1. 1 ORIGI OF THE REPORT This report on “The Effectiveness of the Communication Process of Prime Bank Limited” has been assigned to us by our respective course teacher Mr. SM Arifuzzaman. He assigned this report on December 05, 2008. He also mentioned the process of preparing this report at that time. The submission date had been mentioned as January 11, 2009. 1. 2 OBJECTIVE OF THE REPORT Objectives are considered as the first step of achieving any target. Without objective any work does not get importance.

Main objective: Study and analyze the different communication medium of Prime Bank Limited Secondary objective: To understand business and the management pattern of the organization. To have practical knowledge about the application of communication process. To use the correct process of communication in our practical life. 2 The Effectiveness of the Communication Process of Prime Bank Limited 1. 3 SCOPE OF THE REPORT Scope means the area of action. The scope was clearly specified. Our target was to find out the Communication process of Prime Bank Ltd.

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So to make a good report we surveyed Khulna & Jessore branches of the respective bank. By doing this we tried to find out the following information:- Forms of communication process Communication medium Use of technologies Specialized communication tools or software 1. 4 LIMITATIO Though we are lucky enough to get a chance to prepare a report, but to make the report we have faced a lot of limitations. These limitations are stated below:- Limitations related with the companies: The employees of the banks were too busy of there work. For this, they did not sufficient time to fulfill my queries.

We had wait for a long time to talk to the head of the bank due to the complexity of his time shortage. Unwillingness of the officials to give information. In some cases many employees do not know the right information regarding their bank. Limitations related to us: Lack of experience of preparing report Limitation of supporting tools for my survey Shortage of time. 3 The Effectiveness of the Communication Process of Prime Bank Limited 1. 5 METHODOLOGY To prepare a report a proper methodology is always necessary. In this manner We have systematically followed the following steps:- IDE TIFICATIO OF THE PROBLEM

Developing a standard questionnaire for survey Survey the bank using the questionnaire Collecting data ASSEMBLI G OF DATA A ALYSIS OF DATA GE ERALIZATIO S A D I TERPRETATIO PREPARATIO A D SUBMISSIO OF THE REPORT 4 The Effectiveness of the Communication Process of Prime Bank Limited CHAPTER 2: REPORT BODY 5 The Effectiveness of the Communication Process of Prime Bank Limited 2. 1 BACKGROU D OF PRIME BA K LIMITED In the backdrop of economic liberalization and financial sector reforms, a group of highly successful local entrepreneurs conceived an idea of floating a commercial bank with different outlook.

For them, it was competence, excellence and consistent delivery of reliable service with superior value products. Accordingly, Prime Bank Ltd. was incorporated in Bangladesh under the COMPA ACT 1994. IES The bank started its operations on 17 April 1995 with an authorized capital of Tk 1,000 million divided into 10 million ordinary shares of Tk 100 each. Initially, the paid up capital of the bank was Tk 100 million fully subscribed by its 22 sponsors. The sponsors are reputed personalities in the field of trade and commerce and their stake ranges from shipping to textile and finance to energy etc.

As a fully licensed commercial bank, Prime Bank Ltd. is being managed by a highly professional and dedicated team with long experience in banking. Prime Bank Ltd. has already made significant progress within a very short period of its existence. The bank has been graded as a top class bank in the country through internationally accepted CAMEL rating. The bank has already occupied an enviable position among its competitors after achieving success in all areas of business operation. The bank has consistently turned over good returns on Assets and Capital.

During the year 2007, the bank has posted an operating profit of Tk. 3257 million and its capital funds stood at Tk 6382 million. Out of this, Tk. 2275 million consists of paid up capital by shareholders and Tk. 2659. 21 million represents reserves and retained earnings. The bank’s current capital adequacy ratio of 11. 50% is in the market. In spite of complex business environment and default culture, quantum of classified loan in the bank is very insignificant and stood at less than 1. 35%. 6 The Effectiveness of the Communication Process of Prime Bank Limited 2. MISSIO OF PRIME BA K LIMITED Continuous improvement in banking business policies and procedures. And cost reduction through integration of technology at all level. 2. 3 VISIO OF PRIME BA K LIMITED To be the most efficient bank in terms of customer service, profitability and technology application. 7 The Effectiveness of the Communication Process of Prime Bank Limited 2. 4 ORGA OGRAM OF PRIME BA K LIMITED Board of Director Executive committee of the board Policy committee Of the board Managing Director Board Secretariat/Company Affairs & Shares Board Audit Cell

Add Deputy Managing Director Credit Committee Deputy Managing Director Sr. Executive Vice President Executive Vice President Credit Division Corporat e Affairs Division SVP Research & Developmen t Cell SVP/VP Human Resource s Division EVP/VP Audit and Inspectio n Division Training Institute SVP/VP SVP/VP Public Relations Division SAVP/ AVPP RMG Divisio n VP Internation al Division EVP/SVP Card Divisio n VP/ SAVP Treasury Division VP/ SAVP General Services Division SVP Compute r Division SVP/VP MB & Investment Division EVP/SVP

Marketin g Division SAVP/ AVP Financial Administration Division EVP/SVP Figure 01: Organ gram of PBL 8 The Effectiveness of the Communication Process of Prime Bank Limited 2. 5 BOARD OD DIRECTORS Board of Directors of Prime Bank Limited consists of thirteen members who are the shareholders or the nominees of the Institutional Shareholders. Here the Board appoints the Chairman from among the Directors. ame Chairman Vice Chairperson Vice Chairperson Directors Azam J. Chowdhury Shahnaz Quashem Hasina Khan Mohammed Aminul Hoque Quazi Sirazul Islam Capt.

Imam Anwar Hossain Qazi Saleemul Huq Razia Rahman Ferdousi Islam Nafis Sikder Saheda Pervin Trisha Mohammad Delwar Hossain Maksudur Rahman Sarkar Company Secretary Manash Kumar Ghosh Table 01: Board of Directors 9 The Effectiveness of the Communication Process of Prime Bank Limited 2. 6 SERVICES I PRIME BA K LIMITED Prime Bank Ltd. offers all kinds of Commercial Corporate and Personal Banking services including Corporate Banking, Retail Banking and Consumer Banking right etc. Basically Prime Bank ltd provides three types of services. They are- 1. Deposit Scheme 2. Loan Scheme 3. Islamic Banking

Deposit Scheme Contributory Savings Scheme Education Savings Scheme Short Term Deposit Double Benefit Deposit Scheme Resident Foreign Currency Deposit Account House Building Deposit Scheme Monthly Benefit Deposit Scheme Fixed Deposit Scheme Lakhopati Deposit Scheme Foreign Currency Account Non-resident Foreign Currency Deposit Account Loan Scheme Consumer Credit Scheme General Loan Scheme Lease Finance House Building / Apartment Loan Scheme Small and Medium Enterprise (SME) Hire Purchase Advance against Share 10 The Effectiveness of the Communication Process of Prime Bank Limited Islamic Banking

Deposit Investment Foreign Trade Remittance and Fund Transfer 11 The Effectiveness of the Communication Process of Prime Bank Limited 2. 7 EXISTIO BRA CHES Prime Bank ltd has 71 existing branches and some other proposed branch all over Bangladesh. Division Number of Branches Dhaka Khulna Chittagong Rajshah Sylhet Barisal 38 2 14 6 10 1 Table 02: Number of Branches in every division 12 The Effectiveness of the Communication Process of Prime Bank Limited 2. 8 COMMU ICATIO I PRIME BA K LIMITED Communication is one of the basic functions of management in any organization and its importance can hardly be overemphasized.

Actually it is the process of transmitting meaningful information, ideas, thoughts, opinions, orders and plans between various parts of an organization or between various individuals. Basically communication process is very essential for any company or bank like Prime Bank Limited, as good communication skills define the success of both the bank and employees. 2. 9 FORMS OF COMMU ICATIO From an overall point of view, there are three broad types of communication in Prime Bank Limited. They are- 1. Internal-Operational Communication 2. External-Operational Communication 3. Personal Communication 13

The Effectiveness of the Communication Process of Prime Bank Limited 2. 9. 1 I TER AL COMMU ICATIO OF PBL Internal communication is such that occurs to conduct operational activities within the business. Actually this communication is carried out among the bank workers. The importance of internal communication in a bank is followings:Necessary for building manager and employee relations Necessary for making interaction between various departments Needed for the accomplishment of any banking work Needed for conveying any order or message Necessary for understanding and initiating any new policy or service

The internal communication process of Prime Bank ltd is given in the below— 2. 9. 1. 1 GE ERAL CO SIDERATIO To ensure an effective internal communication process in the bank, the following things always keep an impact- Number of departments Number of levels of employees Number of branches Use of technologies Organizational environment 14 The Effectiveness of the Communication Process of Prime Bank Limited 2. 9. 1. 2 THE COMMU ICATIO WAY The bank activities are based on three communication ways. They are:i. ii. iii. Oral Written Using technology 46% 35% Percentage of technology uses = 46% *Percentage of written communication =35% *Percentage of oral communication =19% Oral communication 19% Use of technologies Written communication Figure 02: Percentage of various Communication ways From the chart it is clear that Prime Bank ltd is using different technologies for most of its internal communication. Besides, this bank always prefers to perform its banking activities in written manner. For any kinds of operation, the bank always tries to convey the message in a written document. Here employees of the bank also perform many oral communications. 5 The Effectiveness of the Communication Process of Prime Bank Limited 2. 9. 1. 3 USE OF COMMU ICATIO MEDIUMS Employees of Prime Bank ltd usually communicate through the following communication medium:Report Face to face Interoffice memo Conference Company newsletter and magazine 16 The Effectiveness of the Communication Process of Prime Bank Limited 2. 9. 1. 4 USE OF TECH OLOGIES The mostly used technical tools used by the employees of Prime Bank ltd are given in the below:Telephone Fax Internet (using own server) Email Mobile phone Frequency of Usage rate of technologies 5% 30% 25% 20% 15% 10% 5% 0% Telephone Fax Mobile phone Email Internet Figure 03: Frequency user rate of technologies 17 The Effectiveness of the Communication Process of Prime Bank Limited 2. 9. 1. 5 COMMU ICATIO WITHI DEPARTME TS A chart showing the percentage of communication within various department is given in the below:- Other 22% PR/Public affairs 6% Office of the CEO 6% Marketing 9% HR 19% Corporate communication 38% 0% 5% 10% 15% 20% Series1 25% 30% 35% 40% Figure 4: Communication within department 18 The Effectiveness of the Communication Process of Prime Bank Limited 2. . 2 EXTER AL COMMU ICATIO OF PBL External communication is the work related communication with people outside the bank. Importance of this communicationNecessary for increasing the sale of service Needed to increase the interaction with customers 2. 9. 2. 1 GE ERAL CO SIDERATIO To ensure an effective internal communication process in the bank, the following things always keep an impact- Available services Location of the branch Number of customers Promotional activities 19 The Effectiveness of the Communication Process of Prime Bank Limited 2. 9. 2. 2 USE OF COMMU ICATIO MEDIUMS

From the survey we found the following communication mediums used in the bank for external communication:Promotional activities Human publicity Credit department SWIFT 2. 9. 2. 3 PROMOTIO AL ACTIVITIES To communicate with the customers, Prime bank undertakes various types of promotional activities. Such as- Television Advertising Message in newspaper & Magazine Bill Board Sponsoring games or events Lift let 2. 9. 2. 4 CREDIT DEPARTMA T Credit department of Prime Bank plays a vital role in doing banking business for the bank. Because this department always contracts with business people whoever need loan.

Besides, it also supervises the credit giving and recovering process of the bank. Thus credit department performs a great deal of external communication in the bank. 20 The Effectiveness of the Communication Process of Prime Bank Limited 2. 9. 2. 5 S WI F T SWIFT stands for Society for Worldwide Inter-bank Finance Telecommunication. It is members owned co-operative, which provides a fast and accurate communication network for financial transactions such as Letters of Credit, Fund transfer etc. Prime Bank Limited is one of the first few Bangladeshi Banks who has become the member of SWIFT in 1999.

By becoming a member of SWIFT, the bank has opened up possibilities for uninterrupted connectivity with over 5,700 user institutions in 150 countries around the world. 2. 9. 2. 6 CORPORATE SOCIAL RESPO SIBILITIES At present CSR (Corporate social responsibility) is of great value in business world. Besides, it is also a part of External communication. So as a part of external communication process, Prime Bank has to perform various community service programs. For example:Relief work in natural disaster (like Sidor) Help the poor from Prime Bank Foundation Literacy program Raise social awareness 1 The Effectiveness of the Communication Process of Prime Bank Limited CHAPTER 3: CO CLUSIO 22 The Effectiveness of the Communication Process of Prime Bank Limited 3. 1 CO CLUSIO Today communication is a vital element for an organization. No doubt that the success of a bank highly depends on its communication skill both internal & external. In the above, we have showed the overall view of the communication process of the bank through chart and table. As a famous commercial bank, the bank needs to develop itself everyday.

So to say how effective the communication process of Prime Bank ltd is, we can not identify the bank as the best one. Actually the overall communication process and resources of this bank are up to the mark. But still the bank is not using all the latest technologies like high speed network, video conference, web advertisement etc. So if management of Prime Bank ltd can ensure the effective use of their communication resources and initiate modern technologies and methods, we hope to see it like……“a bank with a difference” 23 The Effectiveness of the Communication Process of Prime Bank Limited 3. 2

RECOMME DATIO After analyzing all the information, we recommend the following things to upgrade the communication process of Prime Bank ltd:Frequently usage rate of letter/memo and bulletin board/report are lower in PBL. It should focus on this problem The bank should have any specialized communication software or tool. For disseminating information such as statistics, facts, figures, etc. the Bank should use bulletin board/report channel. The Bank should arrange some training program for upgrading communication skills of its employees. The bank should conduct any audit on communication regularly.

As many of the employees do not have proper knowledge about the upcoming communication technologies, they should be more aware of the recent happening. Most of the superior should be trained about the latest technologies. 24 The Effectiveness of the Communication Process of Prime Bank Limited APPE DIX 25 The Effectiveness of the Communication Process of Prime Bank Limited QUESTIO AIRE Khulna University Business Administration Discipline Business Communication (Questionnaire) The questions written in the below are made to collect information for preparing a repot on “The effectiveness of the communication process of Prime Bank Ltd”.

You are earnestly requested to answer these questions frankly & sincerely. ame : Designation : Department : ? ? ? ? ? ? ? Credit Foreign exchange Accounts Deposit Advance Bills & Remittances Accounts opening Education level : ? Graduate ? Post Graduate Questions: 1. (Sir) Are you satisfied with the environment of your organization? ? Yes ? No ? Moderately satisfied 2. What kinds of tools are you using to communicate? 26 The Effectiveness of the Communication Process of Prime Bank Limited 3. Do you think those communication tools are sufficient? ? Yes ? No 4. If not, what more modern communication facilities you can use? suggestion) 5. Does your organization arrange any training program for upgrading communication skills? ? Yes ? No ? Occasionally 6. Does the organization conduct any audit on communication regularly? ? Yes ? No ? Proposed to arrange 7. Your relation with your superior…… ? Friendly ? Rules & regulations base 8. Your relation with your subordinate….. ? Friendly ? Rules & regulations base 9. How do you instruct your subordinates? (for superior) ? Oral ? Written ? Both(Depending on situation) 27 The Effectiveness of the Communication Process of Prime Bank Limited 10.

How subordinates are obliged to your command? They are obliged by…….. (for superior) ? Authority ? Personal interaction 11. How eagerly your subordinates follow your personal instruction? (for superior) ? Spontaneously ? Just a job to be done 12. If there is any new policy or project taken by Head office, how you are informed… ? Oral ? Written ? Both 13. How do you manage the situation when an employee interrupts the communication system? (for superior) ? Take Steps strictly by law ? Warn seriously ? Show faults& suggest 14. How do your supervisors communicate any topic to you? for subordinate) ? Friendly ? Commanding mood 15. Is there any “Red Tape” situation in your organization? ? Yes ? No 16. How do your customers come to know about your existing and new services? (Promotional activities) 28 The Effectiveness of the Communication Process of Prime Bank Limited 17. How effectively does your credit department communicate with Business person whoever need a loan? 18. How frequently does your organization survey about the satisfaction level of customers regarding to your service? 19. How does your organization evaluate any complain against your service from customers? 0. Does your organization perform any community service program? ? Yes, very often ? Sometimes if needed ? No 21. Do the employees frequently interact with the customer personally (human publicity)? ? Yes ? No *****THANK YOU***** 29 The Effectiveness of the Communication Process of Prime Bank Limited BIBLIOGRAPHY Book Basic Business Communication, 10th Edition Raymond V. Lesikar, Ph. D. Marie E. Flatley, Ph. D. Internal control and compliance manual Prime Bank Limited Web site: www. prime-bank. com 30 The Effectiveness of the Communication Process of Prime Bank Limited

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