1.

Introduction

1.1 Historical background:

NCC Bank Limited is a new generation bank. It is a scheduled bank under private sector
established under ambit of Bank Company Act, 1991 and incorporated as Public Limited
company act, 1994 on 17th May 1993.Prior to conversion into a scheduled commercial
bank; National Credit Limited (NCL) was incorporated as public limited investment
company in Bangladesh on 18th November 1985. Over the years, NCC bank has built
itself as one of the pillars of Bangladesh’s financial sector and is playing a pivotal role in
the extending the role of the private sector of the economy. NCC Bank has positioned
itself as an established correspondent bank.

For any financial and non-financial organization, Management is the most valuable and
important resources of any kind of organization. And, a well-organize management
provides the organization to reach its ultimate goal. Management means planning,
organizing, staffing, directing and controlling of all financial and non-financial resources
of an organization. Different aspects of management practice in NCC BANK planning,
organizing, staffing, directing & controlling, human resources practices and recruitment
finally. The executives and the officers of NCC BANK are very experienced. Maximum
executives are ex-government bank officers.

1.2 Vision:

To become one of the most adorable commercial Banks in serving the nation as a
progressive and socially responsible financial institution by bringing credit & commerce
together for increased Shareholders’ value and sustainable growth.

1.3 Mission:

Delivering excellent financial services to our communities based on strong customer

relationship. The bank is providing long lasting solution combining our cutting edge
technology, experience and financial strength to our clients and stakeholders. Creating a
cohesive and friendly environment where customers and our people can excel.

1.4 Goal of the Bank:

To share a significant portion of the banking sector’s by utilizing available manpower

and also state of the art technology for maximizing the shareholders wealth.

1|Page
  Long Term Goal
 To maximize the wealth of the shareholders
 Short Term Goal
 To earn satisfactory rate of return on investment by providing
wide range of banking service.

1.5 Features of NCCBL

Bank is an intermediary institute. Like other commercial bank NCCBL also has some
special features. They are as follows:

i. Legal Entity: It is compulsory matter for a bank to achieve legal entity. The
stronger legal entity leads to effective banking program. NCCBL has a strong
legal entity.
ii. Organizational Structure: NCCBL has a well-set organizational structure.
Organizational structure is a precondition of effective banking activities.
iii. Financial Solvency: Though NCCBL is a new bank, its ratio of liquidity is well
and strong. So, the clients get greater confidence in the bank.
iv. Location of The Bank: Location is very useful for bank. The Head Office and
the branches of NCCBL are located in the central point of the capital and the
other district towns.
v. Relation with the Central Bank: As the NCCBL is the government-registered
bank, so it maintains a friendly behavior with the Bangladesh Bank.
vi. Management of the Bank: The executives and the officers of NCCBL are very
experienced. Maximum executives are ex-government bank officers.
vii. Foreign Exchange: NCCBL operates foreign exchange business promptly. There
13 branch deals with foreign exchange.

1.6 Performance of the Bank:

The bank may sustain its strong image in the mind of the customers and shareholders as a
leading financial institution despite serious competition from both local and foreign
banks operating in the country. Sill they are increasing their profit. Its opening profit was
Tk. 624.94 million in 2003, which were Tk. 4,922.6 million in 2018.

2 .Theoretical foundations
2.1 PLANNING: The first component of managing is planning. A manager must
determine what the organizations goals are and how to achieve those goals. Much of this
information will come directly from the vision and mission statement for the company.

2|Page
Setting objectives for the goal and following up on the execution of the plan are two
critical components of the planning function. Planning means what to do, when to do &
how to do. It bridges the gap from where we are & where we want to be”. A plan is a
future course of actions. It is an exercise in problem solving & decision making. Planning
is determination of courses of action to achieve desired goals.

2.2 ORGANIZING: Managers are responsible for organization of the company and this
includes organizing people and resources. Knowing how many employees are needed for
particular shifts can be critical to the success of a company. If those employees do not
have the necessary resources to complete their jobs, organization has not occurred.
Without an organized workplace, employees will see a manager as unprepared and may
lose respect for that particular manager’s supervisory techniques.

2.3 STAFFING: Staffing is a managerial function which involves obtaining, utilizing

and retaining, qualified and competent personnel to fill all positions of an organization,
from top to operative echelon. In finer terms, staffing is placing the right person at the
right job.

2.4 LEADING: Management function that involves motivating subordinates, influencing

individuals or teams as they work, selecting the most effective communication channels,
or dealing in any way with employ behavior issues.

2.5 CONTROLING: It is an important function because it helps to check the errors and
to take the corrective action so that deviations from standards are minimized and stated
goals of the organization are achieved in desired manner. According to modern concepts,
control is a foreseeing action whereas earlier concept of control was used only when
errors were detected. Control in management means setting standards, measuring actual
performance and taking corrective action.

3. PLANNING

Types of planning:

3.1 Strategic planning:

3|Page
  Customized services: NCC bank is a progressive commercial bank in privet
sector in Bangladesh. It creates a new opportunities for its clients. It gives
customized service and harmonious banker-client relationship.

 Market Expansion: NCC Bank’s strategy plan is to expand its market by

opening branches in different place which is suitable for people. The bank has a
strong branch network nationwide with 32 branches.

 Contribution: It contributes towards formation of national capital, growth of

saving and investment in trade, commerce and industrial sectors.

 Security: the NCCBL is totally a secured bank. The clients of the bank get a
heavy security on their deposit.

3.2 Operational Planning:

 Provide high quality financial services in export and import trade.

 Provide excellent quality Customer service.
 Maintain Corporate and business ethics
 Make its stock superior and rewarding to the customers/share holders.
 Display team spirit and professionalism.
 Have a Sound Capital Base.

3.3 Steps in goal setting:

 Review the organization’s mission: To set up their goal, at first they review the
mission of the bank. According to their mission and vision, they set the goal of
the bank.

 Evaluate available resources: For goal setting, NCC BANK needs some
important resources. If these resources are not available then it is not possible to
set the goal according to their vision. So they evaluate all the available resources
to set a well designed goal.

 Determine the goal individually: They give the target individually to achieve
some specific goal, such as-
- In loan section they require to provide a certain amount of money.

4|Page
 - In deposit section they require to earn a specific amount of money.
- Sometimes the government also gives a requirement to provide loan in
some specific section. Such as - agriculture section, industrial section.

4. ORGANIZING

4.1 ORGANIZING DECISIONS:

When it’s time for organizing, managers must make decisions about the work
specialization, departmentalization, chain of command, span of control, centralization,
and formalization. Collectively, these decisions are often called organizational design .the
organizing process of NCC Bank is given below:

4.2 Work specialization: every man is not perfect for every work so NCC Bank divides
the work activities into separate job tasks. It finds the best employee for every job to get
the best outputs.

4.3 Departmentalization: After the work to be completed is organized into identifiable

jobs through a process of dividing labor, jobs are then combined into logical sections or
departments. NCC Bank want to get the best output to achieve the goal easily. It grouped
the job sectors into different department.

These are given below:

Functional Departmentalization: NCC Bank organized work units according business

functions. Functional departments of NCC Bank are:-
 Marketing & branches division
 Financial administration division
 Human resource division
 Information technology division
Geographical Department: The organization structure of BRAC Bank has reflected its
operation in two geographic areas –The Bangladeshi sector and the International sector.
These are given below:

4.4Bangladeshi sectors of NCC Bank:

 Dhaka.
 Chittagong.
 Sylhet.
 Barisal.

5|Page
 Khulna.
 Rajshahi.
 Rangpur
4.5 International sectors of NCC Bank:
 Exchange house in UK
4.5 Chain of Command: A chain of command is necessary to keep order and control. If
there was no chain of command, workers would do as they wanted, with no one
responsible for what went on. The chain of command is a line of authority extending
from the top to the bottom of the organizational structure. Also called line of command.
Principle of organizing related to the chain of command is called the unity of command.
NCC Bank maintains the chain of command strongly. The process of chain of command
of NCC Bank is given below:

MD→AMD→DMD→SEVP→EVP→EMPLOYEES

4.6 Span of control The span of management, often called the span of control, is the
number of individuals who are directly responsible to a particular manager. There are two
types of span of control one is wider span of control & another is narrower span of
control. NCC Bank follows these two types of span of control. It depends on situation.
But most of the time it follows the wider span of control.

4.7 Centralization: Another organizing decision is the degree of centralization in the

organizational structure. If decision-making authority in an organization is highly
centralized, then most major decisions are made at the upper levels of the structure. The
main center of NCC Bank is situated at Mtijil. It is called Data Center (DC).one can get
any kind of information about NCC Bank from this data center. It has an Additional Data
Center (ADC) at Uttra. If there is any problem in the main center it use the additional
data center to continue its work.

4.8 Formalization: The degree of formalization in an enterprise refers to the degree to

which there are standardized rules and procedures governing the activities of employees.
NCC Bank the high degree of formalization. In NCC Bank, employees have to maintain
some rules & responsibility provided by the MD (Managing Director) of the bank.

4.9 Factors Affecting Organizing Decisions:

There is no standard formula in NCC Bank for the best way to organize an enterprise.
Several factors have been shown to influence organizing decisions. Among the most
important of these factors are strategy, size, environmental conditions, and technology.

6|Page
5. STAFFING:

5.1 Employee Recruitment and Selection:

 Core Recruitment: In every year NCC Bank recruits a group of employee as a

Management Training Officers. After one year training they post them into
different departments.
 General Recruitment: They recruit some employees for some specific position.
In this process candidate has to give a written test and two oral tests.

5.2 Performance Evaluation: NCC Bank evaluate performance of their employees by

appraising performance which is comparing actually result with one desired outcome.
Annually they judge the employee’s performance by 5 words through ACR sheet.

a) Excellent
b) Very good
c) Good
d) Fair
e) Poor

5.3 Employee Compensations:

I. Performance Bonus: After evaluating the performance, they give compensation

to the employees based on their performance.
II. Medical Allowance: They give medical allowance to their employees. It is
included to employee’s salary.
III. Housing Allowance: They give a specific amount of house allowance to the
employees with their salary.
IV. Profit Sharing: In every year they give a certain amount to the employees from
the bank’s earning profit. The bank’s directors select this amount in a meeting and
then announce it.
V. Festival Bonus: The bank gives bonuses to employees in Eid-Ul-Fitre and Eid-
Ul-Azha.
VI. Loan Facilities: They provide loans to their employees which is 2 times less than
the market interest.

6. LEADING

6.1 Leadership:

7|Page
Leadership is the process of inspiring, influencing and guiding others to participate in a
common effort. Leader of NCC Bank delegates a great deal of authority while retaining
ultimate responsibility.

6.2 Goals of organizational Behavior:

The goals of OB are to explain to predict and influence behavior. Managers need to be
able to do these.

6.3 Employee productivity:

A performance measure both efficiency and effectiveness. NCC bank provides a training
facility to the employees. They divide the employees into different section. Like-

-A Grade

- B Grade

- C Grade

- D Grade

6.4 Turn over:

NCC bank's employees are voluntary and involuntary permanent withdrawal from an
organization. They make 5 years hands off contract to the new employees. So the
employees can’t switch to another company.

6.5 Job satisfaction:

They recruit the right employee for the right position. They also create a friendly
environment for the employees. The give different benefits to the employees to satisfied
them.

7. CONTROLLING

7.1 Controlling Process:

There are the three steps in the control process, measuring actual performance, comparing
measured performance against established standards, and taking managerial action.

7.2 Measuring actual performance:

8|Page
The first major step in controlling of NCC Bank is to measure the performance. Finding
out deviations becomes easy through measuring the actual performance. Performance
levels are sometimes easy to measure and sometimes difficult. Measurement of tangible
standards is easy as it can be expressed in units, cost, money terms, etc. Quantitative
measurement becomes difficult when performance of manager has to be measured.
Performance of a manager cannot be measured in quantities. It can be measured only by-

a. Attitude of the workers,

b. Their morale to work,

c. The development in the attitudes regarding the physical environment, and

d. Their communication with the superiors.

It is also sometimes done through various reports like weekly, monthly, quarterly, yearly
reports.

7.3 Comparing actual performance against standard:

Comparison of actual performance with the planned targets is very important. Deviation
defines as the gap between actual performance and the planned targets. The manager
finds out two things here- extent of deviation and cause of deviation. He finds out those
deviations which are critical and important for business. Minor deviations have to be
ignored. Once the deviation is identified, a manager thinks about various causes which
led to deviation. The causes can be-

a. Erroneous planning,

b. Co-ordination loosens,

c. Implementation of plans is defective, and

d. Supervision and communication is ineffective, etc.

7.4Taking managerial action:

Once the causes and extent of deviations are known, the manager detects those errors
and takes remedial measures for it. There are two alternatives here-

a. Taking corrective measures for deviations which have occurred; and

9|Page
 b. After taking the corrective measures, if the actual performance is not in
conformity with plans, the manager revises the targets. It is here the controlling process
comes to an end. Follow up is an important step because it is only through taking
corrective measures, the manager exercises controlling.

7.5 Types of Control:

 Feed-forward control: Feed-forward is a management and communication term,

which refers to give a pre-feedback to a person or an organization from which
employee are expecting a feedback. The manager of NCC bank gives a feed
forward control to his employees.
 Con-current control: Con-current control takes place in NCC Bank while an
activity is in progress. It involves the regulation of ongoing activities that are part
of transformation process to ensure that they conform to organizational standards.

 Feed-back control: Feed-back control is a control system which monitors its

effect on the system it is controlling and modifies its output accordingly. For
example, a thermostat has two inputs: the desired temperature and the current
temperature (the latter is the feedback). The output of the thermostat changes so
as to try to equalize the two inputs. The manager of NCC bank gives a feedback
after completing the work to his employees.

8. SWOT Analysis

SWOT analysis is the detailed study of an organization’s exposure and potential in

perspective of its strength, weakness, opportunity and threat. This facilitates the
organization to make their existing line of performance and also foresee the future to
improve their performance in comparison to their competitors. As though this tool, an
organization can also study its current position, it can also be considered as an important
tool for making changes in the strategic management of the organization.

 Strengths:
— NCC BANK Limited has already established a favorable reputation in the banking
industry of the country. It is one of the leading private sector commercial banks in
Bangladesh. The bank has already shown a tremendous growth in the profits and deposits
sector.

— NCC BANK has provided its banking service with a top leadership and management
position.

10 | P a g e
— NCC BANK Limited has already achieved a high growth rate accompanied by an
impressive profit growth rate in 2001. The number of deposits and the loans and
advances are also increasing rapidly.

— NCC BANK has an interactive corporate culture. The working environment is very
friendly, interactive and informal. And, there are no hidden barriers or boundaries while
communicate between the superior and the employees. This corporate culture provides as
a great motivation factor among the employees.

— NCC BANK has the reputation of being the provider of good quality services too its,
potential customers.

 Weaknesses:
— The main important thing is that the bank has no clear mission statement and strategic
plan. The bank doesn’t have any long-term strategies of whether it wants to focus on
retail banking or become a corporate bank. The path of the future should be determined
now with a strong feasible strategic plan.

— The bank failed to provide a strong quality-recruitment policy in the lower and some
mid level position. As a result the services of the bank seem to be Deus in the present
days.

__ The poor service quality has become a major problem for the bank. The quality of the
service at NCC BANK is higher than the Dhaka Bank, NCC BANK or Dutch Bangla
Bank etc. But the bank has to compete with the Multinational Bank located here.

— Some of the job in NCC BANK has no growth or advancement path. So lack of
motivation exists in persons filling those positions. This is a weakness of NCC BANK
that it is having a group of unsatisfied employees.

__ In terms of promotional sector, NCC BANK has to more emphasize on that. They
have to follow aggressive marketing campaign.

__ The default risks of all term loans have to be minimized in order to sustain in the
financial market. Because of default risk the organization may become bankrupt. NCC
BANK has to remain vigilant about this problem so that proactive strategies are taken to
minimize this problem if not eliminate.

 Opportunities:
_ In order to reduce the business risk, NCC BANK has to expand their business portfolio.
The management can consider options of starting merchant banking or diversify into
leasing and insurance sector.

11 | P a g e
— The activity in the secondary financial market has direct impact on the primary
financial market. Banks operate in the primary financial market. Investment in the
secondary market governs the national economic activity. Activity in the national
economy controls the business of the bank.

— Opportunity in retail banking lies in the fact that the country’s increased population is
gradually learning to adopt consumer finance. The bulk of our population is middle class.
Different types of retail lending products have great appeal to this class. So a wide variety
of retail lending products has a very large and easily pregnable market.

— A large number of private banks coming into the market in the recent time. In this
competitive environment NCC BANK must expand its product line to enhance its
sustainable competitive advantage. In that product line, they can introduce the ATM to
compete with the local and the foreign bank. They can introduce credit card and debit
card system for their potential customer.

— In addition of those things, NCC BANK can introduce special corporate scheme for
the corporate customer or officer who have an income level higher from the service
holder. At the same time, they can introduce scheme or loan for various service holders.
And the scheme should be separate according to the professions, such as engineers,
lawyers, doctors.

 Threats:
— All sustaining multinational banks and upcoming foreign and private banks pose
significant threats to NCC BANK Limited. If that happens the intensity of competition
will rise further and banks will have to develop strategies to compete againstthese local
and foreign banks.

— Other commercial banks are offering higher salary that may create problem for
NCCBL to retain their experienced managers and executives.

9Conclusion:
By surging the NCC Bank we can say that, it is a perfect illustration of managerial
process of NCC Bank. To build up a management function one must observe the
innovative idea tact, honesty, discipline, unity of NCC Bank.

Success in the banking business largely depends on effective management process. Less
the amount of loan losses, the more the income will be from Credit operations. The more

12 | P a g e
the income from Credit operations the more will be the profit of the NCC BANK Limited
and here lays the success of Credit Financing.

Though there are some drawbacks in implementing Credit facilities in NCC BANK
Limited as per manual, it can be further developed in light of the recommendations being
discussed above. Finally it can be argued that though the results achieved so far are not
satisfactory, Credit Financing is a modern scientific technique for enhancing NCC
BANK’s strength and there lies the opportunities to make it more effective in the future
for our own benefit.

10. Recommendation
NCC BANK can use the following recommendation for improving their service quality at
the same time to increase their profitability.

 Nearly every bank follow traditional system in general banking activities but bank
should introduce computerized system it will reduce time, labor and cost also.
 Cash payment section and cash received sectioned should be separated by using
data based software.
 New service policy was about a drawback but NCCBL now introduced 12 new
services for the client so that it may make a difference.
 They should use Data Base Networking in Information Technology (DBNITD)
Department so that they transfer data from one branch to another and branch to
head office.
 The problem with account introducer may concern regarding to business purpose
only but not for general clients those who maintain only accounts with that
branch.
 Employees have to be very careful when they accepts are pays money they have
to be very fast and responsible for goods customer base service and always have
money checker machine with them.
 At present NCCBL has the 16 different sachems are available but clients are not
concerned about that, have to create the awareness among the client, perfectly
advertised about the advantages of the schemes only then clients will came to
know.
 The bank kills enough time of their clients in providing services as it lacks in
expert computer operators. To remove this lacking, I think, bank should arrange
some sorts of training programs in this sector.

13 | P a g e
 Now a day, On-line banking system is very much popular in the world. So, the
bank should appoint some efficient people in this sector.
 Experienced consultant may need to discover new ideas, and students with
entrepreneurial spirit may also concern in this matter.

14 | P a g e