GROUP REPORT On

First Security ISLAMI BANK LTD

SUBMITTED TO:TANYA AHMED

LecturerDEPARTMENT OF MANAGEMENT

SCHOOL OF BUSINESS AND ECONOMICS

SUBMITTED BY:Name ID

MD: KABIR HOSSAIN 1421196030

KAZI SAKERUL ALAM 1420014030

MEHEDI HASAN RIMON 1410702030

Tamanna Zerin Chowdhury 1420637030

Israt Jahan Tama 1411519030

Date of Submission: JULY 31, 2016LETTER OF TESTIMONIAL

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31-07-2016

Tanya Ahmed

Lecturer, North South University

Subject: Submission of the Project Report

Dear Ma’am,

We are pleased to submit the report on First Security Islami Bank Limited (FSIBL) for our MGT

321 course. In preparing this report, we have tried our level best to include all the relevant

information and explanations to make the report informative and comprehensive.

It was a very enriching experience for us to prepare this report. We will be available for any

clarification, if required. Thank you for giving us this wonderful opportunity to work on this

project.

Sincerely Yours,

Md.Kabir Hossain

Kazi Sakerul Alam

Mehedi Hasan Rimon

Tamanna Zerin Chowdhury

Israt Jahan Tama

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TABLE OF CONTENT

Content Page NumberEXECUTIVE SUMMARY 4

BACKGROUD OF THE COMPANY 5MISSION 5VISSION 5

PRODUCT AND SERVICES 5-6MANAGER’S PROFESSIONAL BACKGROUND 6

MANAGERS PERSONALITY MODEL 6-9TEAM WORK AND GROUP BEHAVIOUR IN ORGANIZATION 9-10

POWER AND POLITICS 10COMMUNICATION 10-11

NEGOCIATION AND CONFLICT MANAGEMENT 11-12ORGANIZATIONAL CULTURE 13

ORGANIZATIONAL STRUCTURE 13-14MANAGERS SWOT 15-16

ORGANIZATIONS SWOT 17-18CONCLUTION AND RECOMMENDATION 19

EXECUTIVE SUMMARY

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First of all we have gathered the information’s on company background then we put down

information’s about companies vision. First security islami bank(FSIBL) is basically a service

providing company . Then talked about the mission. We also researched for the products and

services of the company. For details information we took an interview of Mr.Aminul Islam who

is the branch manager of First Security Islami Bank bashundhara branch and he is the assistant

vice president of that organization. Then we got information about his background. Furthermore

we described about his personality model, his decision making process. Described using big five

model and McGregor’s x and y theory. Secondly, we gathered information from him on

organizations team work and group behavior of the company. We described about the power and

politics and then we explained about the communication system of the company. We also

explained about the negotiation and conflict management. Furthermore we discussed about their

organizational culture. Also explained about the company structure. Then we described about the

managers strength, weakness, opportunity and threat. After that we described about the

organizations strength, weakness, opportunity and threat. Finally we ended the report with

conclusion and recommendation.

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BACKGROUND OF FIRST SECURITY ISLAMI BANK:

First Security Islami Bank Limited (FSIB) was incorporated in Bangladesh on 29 August 1999 as a banking company under Companies Act 1994 to carry on banking business. It obtained permission from Bangladesh Bank on 22 September 1999 to commence its business. The Bank carries banking activities through its 67 branches in the country. The commercial banking activities of the bank encompass a wide range of services including accepting deposits, making loans, discounting bills, conducting money transfer and foreign exchange transactions, and performing other related services such as safe keeping, collections and issuing guarantees, acceptances and letter of credit. From January 01, 2009 bank has converted into islami shariah based banking system instead of conventional banking system. The bank has constituted a sariah council consisting prominent ulama, bankers, lawyer and Economists to advice and guide on the implementation of islami sariah in business activates.

OUR MISSION: To contribute to the socio-economic development of the country. To attain the highest level of satisfaction through the extension of services by

dedicated and motivated professionals. To maintain continuous growth of market share by ensuring quality. To ensure ethics and transparency in all levels. To ensure sustainable growth and establish full value of the honorable

shareholders and above all, to contribute effectively to the national economy.OUR VISION:To be the premier financial institution in the country by providing high quality products and services backed by latest technology and a team of highly motivated personnel to deliver excellence in Banking.PRODUCTS AND SERVICES:

Deposit schemesFirst security islami bank provides many deposit schemes such as

Al-Wadiah Current Deposit Mudarabah Savings Deposit Mudarabah special notice deposit account Mudarabah Term Deposit account Mudarabah students savings A/C (school banking) Projonmo – Mudaraba New Generation Savings A/C Uddipon- Mudaraba New Generation Deposit Scheme Alo – Mudaraba Education Deposit Scheme Shuvessa Mudaraba Gift Cheque Mudaraba Deposit Double Scheme Mudaraba Deposit Triple Scheme (Triple Benefit)

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Prapti – Mudaraba Salary Savings Account Prapti – Mudaraba Salary Savings Account Mudaraba Hajj Savings Account Bondhon – Mudaraba Marriage Deposit Scheme Niramoy – Mudaraba Health Care Deposit Scheme Aboshor – Mudaraba Pension Deposit Scheme Shadesh – Mudaraba Emigrant Deposit Scheme

Brochures Investment Schemes Foreign Remittance Utility Bill Payment Locker Service Investment Schemes Foreign Remittance Utility Bill Payment Locker Service Schedule of Charges Online Banking Mobile Banking SMS Banking ATM Banking

Manager’s professional background: Md. Aminul Islam was born in Chandpur district and he completed ssc, hsc, from Chandpur government school and college. He was a student of science background. Later on, he did major in Social Science from the University of Dhaka. At first, he joined at Rupali Bank in 1990 as a senior officer. Then he joined at First Security Islami Bank in Bashundhara Branch in 1999 as a Assistant Vice President & Manager. Still now he is at FSIBL in Bashundhara Branch.

PERSONALITY: The sum total of ways in which an individual reacts to and interacts with others. We measured the personality of manager through self-report surveys and we also measured observer-ratings surveys which provide an independent assessment of personality. Though the results of self-report surveys and observer-ratings surveys are strongly correlated, research suggests observer-ratings surveys are better predictor of success on the job.The Big Five Personality Model: During conversation hours we were able to understand by his reacting and interacting behaviour that the Big Five Personality Model has been inherent in his personality. The Big Five Factors are:

1. Extraversion: MD. AMINUL ISLAM (assistant. vice president & manager ) of the First Security Islami Bank in Basundhara Branch is very gregarious, assertive, and sociable with his subordinates and clients. Example: We noticed that the door of the

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manager’s room is opened during office hours and for any problem employees come or he goes to solve the problem in front of their desk.

There were no symptoms like to be reserved, timid, and quiet. So he is not introvert person. 2. Agreeableness: He is highly agreeable person and more cooperative, warm, and trusting.

He has no any antagonistic, disagreeableness mind. He is always ready to help his subordinates and colleagues. Example: He takes any kinds of decisions after discussing with his colleague and subordinates and he is now in successful stage by fulfilling yearly committed goal by creating warm and trusting mind.

3. Conscientiousness: The conscientiousness dimension is measure of reliability. It was found out that he is very responsible, organized, dependable, and persistent person. On the other hand, he doesn’t distract, disorganize, and isn’t unreliable person. Example: A t first he gives the highest priority to the discipline and the honesty. No employee can go or not to be allowed to absent without taking permission.

4. Emotional stability: The manager withstands any stress with positive emotional stability like to be calm, self- confident, and secure. He has no high negative scores tend to be nervous, anxious, depressed, and insecure personality. Example: The stresses will be many types such as absenteeism for long working days and political impacts and unacceptable terrorist attack, confliction between employees etc. The manager solves these internal and external stresses with high positive emotion stability.

5. Openness to experience: The manager has openness to experience dimension addresses range of interests and fascination with novelty. He is very creative, curious, and artistically sensitive .Example: For the managerial creativity, curiosity, bank has converted into islami shariah based banking system instead of conventional banking system in January 01, 2009

Decision Making:How did the manager of the FSIBL solve one-day’s complaining from the clients against the employees? He called the employee in his personal room and convinced his or her with very soft word. He also removed these problems by motivating them. He tried to satisfy their on the easy way by collecting limited data and alternatives. So it is ensured us that he follows bounded rationality and intuition decision making Bounded Rationality: In accordance with his speech, he always tries to find out satisfactory and sufficient solutions from limited data and alternatives so that he can easily make decision criteria. Only he follows some essential features from the problem without capturing his complexity. In case he uses six steps rational decision making model such as

1. Define the problem.2. Identify the decision criteria3. Allocates weights to the criteria.4. Develop the alternatives.5. Evaluate the alternatives.6. Select the best alternative.

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Intuition: The manager is very concern and intuitive for justice, peace, and genuine respect for solving any major problem. He usually takes any decision on the basis of experience, feelings, and accumulated judgment against the employees.

LEADERSHIP STYLE:The manager of the First Security Islami Bank in Bashundhara Branch follows the transformational leadership style. The manager inspires followers to transcend their self- interests for the good of the Bank and can have extra ordinary effect on his subordinates. Besides, he inspires people to look beyond their own interests and focus on the interests and needs of the team. He provides stimulating work and takes the time to recognize good work and good people. In this leadership style, he establishes a vision and changes his subordinates’ awareness of goal achievement by the following characteristics such asIdealized Influence: He provides vision and sense of mission, instills pride, gains respect and trust.Inspirational Motivation: He communicates high expectations, uses symbols to focus efforts, express important purposes in simple ways.Intellectual Stimulation: He promotes intelligence, rationality, and careful problem solving.Individualized Consideration: He gives personal attention, treats each employee individually, coaches, advices. This leadership style is very useful because the manager has essential leadership traits which are matched with Big Five Personality Framework. These are

Extroversion Conscientiousness Openness Emotional intelligence Agreeableness

McGregor’s Theory X and theory YVisiting first security islami bank in 19th june 2016, we were able to find out which motivation theory is followed by the branch manager MD. AMINUL ISLAM (assistant vice president & manager) of the First Security Islami Bank in Basundhara Branch. In accordance with his speech the employees are happy to work, are self-motivated and creative, and enjoy working with greater responsibility.On the other hand, sometimes a few of the employees try to loaf the task but they can’t do that because manager investigates directly. If it is got something like dishonesty, loafing, and corruption, he / she must account for the bad characteristics to the manager. If it is urgent to know the higher authority or his (manager) immediate boss, without delaying he must inform his boss or higher authority.So we can say that the manager motivates the employees by applying McGregor’s Theory YAnd Theory x.

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Team work and Group Behavior in the Organization: FSIBL mainly focuses on the team based working system rather than the group based working system because the work team of FSIBL creates positive synergy through coordinated effort and it has individual and mutual accountability and complementary skills which are not included in the group based working system. For the banking profitability, the manager always tries to follow the team based working system and this system is very popular to him because of it having following activities such as

The team based working system is the best way to use the employees’ talents. It is more flexible and responsive to changes in the environment. It can quickly assemble, deploy, refocus, and disband It facilitates employee involvement and increases employee participation in

decision making.

Problem -solving team: FSIBL has a problem solving team which is composed by 5 to 12 employees in the department of the customer service points. The manager identified that the customer of the FSIBL in Bashundhara Branch are not satisfied. Then he called the problem solving team to figure out the reason of dissatisfaction and how to reduce this for the greatest interest of FSIBL. Then meeting all the group members for a few hours each week they invented the clue that The FSIBL has to increase the customer service points and also has to train the employees of customer service departments.

Virtual Team: Finally, MD. AMINUL ISLAM follows the virtual team because everything in the banking system has been digitalized with the highest support of information technology in this modern era. Besides, manager always tries to modify the environment and select team oriented individuals to increase the chance of developing effective team.

Effective Team: The team of FSIBL has some common characteristics such as

Adequate resources Effective leadership A climate of trust Appropriate reward and evaluation systems

Do work that provides freedom, autonomy, and the chance to contributePower and Politics: Power and Politics: As an organization in FSIBL there are two types of power practices. They are:

Formal Power Personal Power

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Formal Power: According to formal power it is practiced by the positioned person of an organization. In FSIBL they use formal power according to the rank of an individual. For secondary level employees in FSIBL they use reward power. Which motivates them to work more and achieve goals. Another form of formal power is used by FSIBL is the legitimate power. Which makes the managers to practice their power properly and using the power neutrally. Under the legitimate power it is watched by the legitimate person to look after the transperancy, safety and security of the organization. Safety of woman in organization is the paramount precaution. Furthermore, any kinds of cheating and misbehaved personalities are get treatments by the legitimately powerful person of an organization.

Personal Power: For IT personnel and for every virtual team, problem solving team the personal power is used in the FSIBL. Expert power is used in for perfection in every team work. Again the IT personnel, research and development they use personal power to accomplish their goal. Another part is referent power. It is another important section where FSIBL choose peoples to be in an important position of an organization to take decisions. For example all management trainee work under senior principal officer of the FSIBL.

In practice of politics there are two types of factor in FSIBL.

Individual Factors Organizational Factors

Individual Factors: It has positive and negative uses both. When in terms of individual he/she can take extra benefit for political influence. Dictatorship in an organizations comes from it. So, in FSIBL they always take necessary steps to watch over it.

Organizational Factors: In an organization like FSIBL it has great consequences because united employees can terminate an individual with their complain it can be good or bad both.

Communication System: The communication systems are three types like as Downward Communication, Upward Communication, and Lateral Communication. But the FSIBL follows Upward Communication because the subordinates always have to account for their activities of bad incidents in the organization. To engage in effective upward communication the manager meets with his employees in a conference room to reduce distractions. As interpersonal communication in FSIBL the manager essentially relies onOral Communication: MD. AMINUL ISLAM always speaks with his subordinates about their problem and their prosperity during office hours orally. But it has some

advantages : speed and feedback disadvantage: distortion of the message

Written Communication: He also communicates by sending official’s memos, letters, fax transmissions, e-mail, instant message etc. But it has also some

Advantages : Tangible and verifiable

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Disadvantages: Time consuming and lacks feedbackNonverbal Communication: Sometimes, manager can’t communicate with his subordinates via oral or written communication. For the greatest interest manager has to keep enough privacy by nonverbal communication like as eye contact, body movement, intonation and voice emphasis, physical expression, and physical distance between sender and receiver. But it has also some

Advantages: Supports other communications and provides observable expressions of emotions and feelings.

Disadvantages: Misperception of body language or gestures can influence receiver’s interpretation of message.

FSIB follows upward communication system which is a proper communication system, every employees reports to the manager for their daily work.

Negotiation and conflict management:

Negotiation is a process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them. In the world of finance and banking negotiable refers to a legal document which is used to make a promise of payment, generally cash flows, at some point in the future. In context, the word negotiable implies a cash value and comes with specific instructions about the timing of cash flows to be paid. Besides, the financial part of negotiation there is few more negotiation issue to address. Negotiation between employee and superior: At the work place, an employee has to negotiate with his superiors so that he is assigned the responsibilities as per his interests and specialization.If a superior burdens an employee with task he/she is not comfortable doing then the employee can negotiate with him. Negotiation between colleagues: Negotiation is essential among team members to reduce the chances of disputes and conflicts. Any particular team member should not be overburdened while the other member is relaxing. One should negotiate with his fellow workers and accept only those responsibilities he feels that he is the best capable of doing. The responsibility of achieving the targets should not rest on only one shoulder, but equally divided among all. And it is a manager’s responsibility to see these negotiations which are healthy and no negative emotions take place in between these negotiations that can hamper the work and employees to achieve target.The use of resolution and stimulation techniques to achieve the desired level of conflict is called conflict management. The manager of FSIB usually use the problem solving technique where he arrange face to face meeting of the conflicting parties and try to resolve the problem through open discussion. Employees are trained for human relations with other various training which is arrange by bank so manager also can use altering the human variable techniques for avoiding dysfunctional and relationship conflict.

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As a last stage of conflict management if the conflict cannot solve by any means manager inform the authoritative command for solution but he personally oppose this technique and try to solve the conflict as soon as possible without involving higher authority or any third party.

Job satisfaction:Job satisfaction refers to how well a job provides fulfilment of a need or want, or how well it serves as a source or means of enjoyment. Job satisfaction is the degree to which individuals feel positively or negatively about their jobs.Mr. Aminul Islam the manager of FSIBL claim that the job satisfaction of his employees is 100% positive because of these following reason-

The work environment is very helpful and friendly employees can easily communicate with manager without hesitation.

The promotion rate of this particular branch is 100% which motivate the employees for work hard.

The system of job rotation make the employees to learn every aspect of banking also their job stay interesting and challenging.

Zero absenteeism and low rate of employee turnover is another indicator of job satisfaction of the FSIBL.

Organizational culture:

First security Islamic bank ltd is a third generation progressive Islamic sharia based private commercial bank with excellent working environment. The office environment of the FSIB is quite religious banks and employees pray their prayers together in a Jamat and they share very interpersonal good relationships which make the office environment more like a family. All of the employees are responsible and initiative. They mould their manners and etiquette, character individually to suit the purpose of the bank and needs of the customers who are importance to the bank.

All of the technique’s, processes, basically focuses by management. Bank's people are work together rather than individuals.

Organization Structure of First Security Islami Bank Ltd:

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MANAGERS SWOT ANALASYS

Strengths1.High positive effects on attitude2.Positive core self-evaluation3.Knowledge on money management4.Higher employee evaluation5.Instant decision taking skills

Opportunities1.Opportunity for future promotion2.Refuse to Criticize3.High level self esteem4.Proper implementation

Weakness1.Biased on performing employees2.Brings employees to inertia

Threats1. Remaining traditional2. Political catastrophe

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3.Lacks ability to manage emotions4.Resistance of new ideas

Strength:

High positive effects on attitude: First of all, there is high positive effect on his attitude because he looks content and relax. For that reason he always makes sure each of the employees can feel self-assurance.

Positive core self-evaluation: He is gregarious and social person which makes him easy to interact with everyone. He has positive core self-evaluation which makes him more and confident.

Knowledge on money management: He is a very knowledgeable person. He has proper knowledge on money management and dealing with the banking process.

Higher employee evaluation: He always gives high employee evaluation which inspires employees to work hard.

Instant decision taking skills: He can take the perfect decision which is best for the organization with his 26 years of working’ experience.

WEAKNESS

Biased on performing employees: According to the manager he is biased with his well performing employee which is a great weakness in some extent. Sometimes this biasness can discourage others to perform well.

Brings employees to inertia: Since he gives high evaluation to the employees, it can create bad impact over pro activeness of the employees because they are getting higher evaluation easily which can bring the employees to inertia.

Lacks ability to manage emotions: He lacks the ability to manage emotions. Sometimes the employees can take leave easily.

Resistance of new ideas: He does not like the use of new ideas. He prefers to work in traditional basis.

OPPURTUNITIES:

Opportunity for future promotion: Discussing on his opportunities, the first opportunity that should be mentioned is the opportunity of his future promotions. As he is an experienced and

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loyal employee of FSIBL who has been working here for 18 years, he has got bright chances of becoming the Executive Vice President or getting higher positions in the organogram.

Refuse to Criticize: He has an excellent tendency of refusing to criticize. When employees make mistakes, he focuses on the solution and on what can be done rather than who did it and who is to blame. This can make him more successful.

High level self-esteem: His level of self-esteem actually declines him to complain about anything to someone else. He tries to solve problem within the inner people which is really a good sign for staying away of rumours.

Proper implementation: He can implement his planning so day by day the succession of planning will increase.

THREATS:

Remaining Traditional: His nice behavior with employees can make some employees to consider this as his weakness. As he is not ok with new ideas this attitude can bring him behind.

Political catastrophe: In our country the influence of political parties is really high. As a result, management often gets pressurized to appoint recommended people instead of the ones who really deserve the positions. Since higher and more respectable positions tend to face this situation more often, his position of Senior Assistant Vice President is more likely to be influenced with the change of political environment.

Organizations’ SWOT ANALASYSStrength1.Higher product options2.Proper advertisements3.New technology in banking4.Classified data base5.Islamic banking facility

Opportunities1.Succession planning2.Internal control system3. Analysis of risk with stress testing

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Weakness1.Provoding federal fund2.Fault tolerance plan

Threats1.Influence of political parties2.Terrorism3.National Instability

Strength:

Higher product options: First Security Islami Bank (FSIBL) has various kinds of products with them they can reach the customers easily.

Proper advertisements: They have proper advertisements on electronic media. Their ads come in the prime time.

New technology in banking: They have introduced a smart banking opportunity which is a great exposure for them.

Classified data base: FSIBL has a classified database for controlling their valuable information of employees. So this information is secured and kept confidential. It must give adequate but relevant employee information. Information is always updated.

Islamic banking facility: FSIBL emphasis on Islamic Banking. Large number of people now has chosen them as trusted bank.

WEAKNESS:

Providing federal fund: First Security Islami Bank (FSIBL) provides federal funds to other banks; if they fail to take back their money they will be facing serious consequences.

Fault tolerance plan: The Bank has developed fault tolerance plan of human resources with

detail job description for each IT personnel which is good but not helpful in the long run.

OPPURTUNITIES:

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Succession planning: FSIBL follows the succession planning for filling the key or leading position of the organization. This creates a great opportunity for future success.

Internal control system: Their primary objectives of internal control system are to help the bank

to perform in a better height through the use of its resources & under the guidance of Internal

Control system which has made them for more focused on problem solving and this quality will

make them to do better in future.

Analysis of risk with stress testing: FSIBL supplements their analysis of risk with stress

testing. They perform stress tests because value-at-risk calculations are based on relatively recent

historical data and only purport to estimate Risk up to a defined confidence level. Therefore, they

only reflect possible losses which can be turned into profits as they can take necessary steps.

THREATS:

Influence of political parties: In our country the influence of political parties is really high. As

a result, management and even sometimes the internal situation of an organization gets

pressurized to take necessary steps instead of the policies introduced by the new government.

Terrorism: Terrorism is one of the biggest threat for any organizations in Bangladesh.

National Instability: National instability is the major which can lead the organization in a great

threat. Which is dangerous for any institute in Bangladesh.

Conclusion & Recommendation:

So, interviewing Md. Aminul Islam was a great experience for us. Md.Aminul Islam is a highly experienced person in his field of his work. There are a lot of things young managers can learn from him. He is a successful manager and at the same times a good family person. He is punctual and hardworking. Most important thing is that he knows what he is doing. From the quick analysis we have reached that his performance during the past years has proved his strong

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aspiration and power. He also adopted advanced technology to provide best services to the clients and compete in the competitive environment. His efficient work power & logistic support makes Mutual Trust Bank successful in the banking arena. Overall we can conclude that he is a very successful manager.

First Security Islami Bank (FSIBL) is now one of the leading bank of the country. According to their financial reports they are doing well day by day. They need to appoint less contractual basis employees. FSIBL should ensure developed retirement compensation plan which will increase the work force of the employees. FSIBL should ensure transparency in financial reporting. In view of organizational structure and cultural perspective they are doing tremendous job.

As they are getting success they need to take more necessary steps for the online security. Whatever the factor they always need to appoint the worthy candidate. They must continue following the governments legislators taken decisions.

REFFERENCES1. http://www.fsiblbd.com/2. http://www.investopedia.com/terms/n/negotiable.asp 3. http://www.slideshare.net/ 4. ORGANIZATIONAL BEHAVIOUR TEXT BOOK

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5. INSTRACTION BY THE COURSE INSTRUCTOR.