Compensation Structure of Lanka Bangla Securities Limited

Compensation Structure Of

Lanka Bangla Securities Limited

COMPENSATION STRUCTURE Of LANKA BANGLA SECURITIES LIMITED

SUBMITTED TO F arhana Ras Rashid Assistant Professor School of Business United International University

SUBMITTED BY Syeda Shotorupa Zafar I D: 11110119 111101192 2

COMPENSATION MANAGEMENT (HRM 4152) Section: B

Date of Submission: 10 January 2014

Synopsis For making this report I have chosen Lanka Bangla Securities Limited, a foremost company in Bangladesh. Here I converse lots of information concerning Lanka Bangla Securities Limited in Bangladesh. It’s a sister concern of Lanka Bankla Limited in Bangladesh In the first chapter of this report mostly discuss about my profile. Where, I am discussed numerous information about myself. The following chapter, speak about the summary of this organization. It is included: 1) History of the Organization 2) Vision 3) Mission 4) Values 5) Milestones 6) Services 7) Total return for Employee 8) Compensation structure of the employee 9) Others The next chapter is consisted of analysis and interpretation of the study. Mainly a survey is shown in this chapter. The assessment was doing on 10 employees of the institute. They largely answer six Question regarding their basic salary, benefits, short term incentives, long term incentives, allowances and moreover about the relational returns. And the survey result or outcome is finally come optimistic. Employee of Lanka Bangla Securities is greatly pleased with their allowances, payment structure, relational returns, training, provident fund, facilities, promotion and the overall environment of the organization. As a result, the findings of the company are in the end encouraging and excellent. Employees of this company are awfully satisfied. They work very glowing with a great motivation. The number of employee of this organization is simply 203. But staffs are very loyal for their organization for all over facilities, environment, reward and promotion, after retirement facilities and so on. As employee is considered as an important part of the organization, so as employee

are satisfied, they work very sound. So, now Lanka Bangla Securities Limited is a very well known company in Bangladesh. It also carries a status factor for the employee. However from beginning to end the analysis and over all discussions, it also finds out that, there is some shortage of facilities also. Like, the organization does not supply their employees, any tricky activities. Besides, they do not offer any mobile allowance, transportation facilities or insurance facilities. But, as their payment amount is high, employee do not give any hostility regarding this matter. So according to these matters, I give some suggestion to the organization. As this report is prepared for the course of compensation management, I try my best to include here, what I study theoretically from the course and what information I got from the organization. Especially I give high focus on the sector of Compensation of Lanka Bangla Securities Limited.

1. Table of Contents CHAPTER 1: Student Profile 1.0 STUDENT PROFILE ..................................................................................................................................... 6

CHAPTER 2: ORGANIZATIONAL OVERVIEW 2.0 ORGANIZATIONAL PROFILE ..................................................................................................................... 10

CHAPTER 4: ANALYSIS & FINDINGS 4.1 ANALYSIS................................................................................................................................................. 21 4.2 FINDINGS ................................................................................................................................................ 27

CHAPTER 5: RECOMMENDATIONS 5.0 RECOMMENDATIONS .............................................................................................................................. 28

CHAPTER 6: CONCLUSION & REFERENCES 6.0 CONCLUSION & REFERENCES................................................................................................................... 30

CHAPTER 1 STUDENT PROFILE

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Syeda Shotorupa Zafar H ouse# 16, Plot# 7 Bl ock C, Section: 6

Mirpur, Dhaka-1216 Contact no: 01670163552 E-mail: [email protected]

Career Objective To get a job that will let me gather enormous experience by enriching my knowledge base through observation & analysis and therefore enabling me to make a competitive edge in whatever I do.

Awards and Achievements:  Getting 100% and 50% Educational Scholarship from United International University.  Runner up of UIU Intra Marketing Samurai Competition 2013  Doing Learning and Earning Workshop on Outsourcing  Attending Motivational Workshop of Creating 2000 Entrepreneur b y Sabirul Islam

Work Experience: 

Performer and Executive of Planning and Development in UIU Theatre (From 2011 to 2012)



Head of Human Resource Management in UIU Business Club (From June 2013 to Present)

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Academic Profile BBA in ‘United International University’, Dhaka 

Major: Human Resource Management



Minor: Marketing

 CGPA: 3.58 out of 4.00

HSC in ‘Business Studies’ from ‘Viqarunnisa Noon College’, Dhaka  Passing Year 2009 and GPA is 4.80 out of 5.00

SSC in ‘Business Studies’ from ‘Viqarunnisa Noon School’, Dhaka 

Passing Year 2007 and GPA is 4.88 out of 5.00

Intermediate 3 in ‘General English’ from “British Council”, Dhaka  Passing Year 2012

Additional Information Skills :

Proficiency in English & Bengali in both oral & written form Good presentation skill in both oral & visual form Great conversation skills Analytical skill in any situation

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Computer L iteracy:

MS-Office applications-Word, Excel & Power Point Photo-scape Internet Browsing

Co-Cur ri cular Activities:

Facebook Chatting Watching Advertisement on Television and Internet

I nterests:

Human Resource Management Sector Drawing & Posturing Social Activities Photography Meeting Unknown People and Studying People’s Behavior

Personal Information Father’s Name

: Syed Abu Zafar

Mother’s Name

: Sajal Islam

Date of Birth

: December 29, 1992

Permanent Address

: House# 16, Plot# 7, Block C, Section: 6,Mirpur, Dhaka-1216

Present Address

: House# 16, Plot# 7, Block C, Section: 6,Mirpur, Dhaka-1216

Nationality

: Bangladeshi

Religion

: Islam

Blood Group

: AB+

Marital Status

: Single

Gender

: Female

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CHAPTER 2 ORGANIZATIONAL OVERVIEW

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Organizational Profile:

2.1. Introduction: Lanka Bangla began as Vanik Bangladesh Securities Limited in 1997 with its activities confined only within the Chittagong Stock Exchange (CSE) Ltd. A year after Lanka Bangla Securities made a step ahead and introduced as Dhaka Stock Exchange (DSE). After that, it rebranded as Lanka Bangla Securities Ltd in 2005 following a restructuring of the company. Lanka Bangla Securities Limited mainly specialized in developing the country’s most efficient stock brokerage workforce with unmatched skills and consummate perfectionism. Besides, it has 10 brunches spread in the leading cities and towns countrywide. Lanka Bangla Securities Limited mainly leader in terms of customer transactions. That’s why this company is crowned as the largest brokerage house in terms of transaction value for the 6 th constructive time in DSE and 7th constructive time in CSE in 2011 Quality, convenience and reliability these certain things that the company is provided at the highest level that a client can expect. From their broker and that is the key to such a strong network of key clients all over the world. Its ability is to meet the demands considering every client’s time horizon, goals and risk tolerance. The company has 90.91% owned subsidiary of Lanka Bangla Finance Limited (LBFL) which is one of the leading listed non banking financial institutions in Bangladesh engaged in Leasing, Credit Card Services, Merchant Banking< Corporate Financing and Financial Consultancy. LBFL is owned by a group of highly successful local business entrepreneurs of Bangladesh, the Sampath Bank Limited of Sri Lanka, the One Bank Limited of Bangladesh and the general public. Source: Annual Report: 2012 of Lanka Bangla Securities Limited

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2.2. Vision: Growing Together with our stakeholders by implementing the most comprehensive, efficient and state of the art brokerage platform to maintain the excellence and maximize the wealth of stakeholders. Source: Annual Report: 2012 of Lanka Bangla Securities Limited

2.3. Mission: 1. Providi ng Qu ali ty Product and Servi ces

2. En sur in g the use of State and the Art of Techn ology

3. Being the heart of I ntern ational I nvestment

4. Representati ve wide-r angin g reli abil ity wi th mar ket

5. M aintain in g Commercial Contr ol

6. Promoti ng Research and An alysis

7. I nvolvin g in Conti nu ous Process I mprovement

Source: Annual Report: 2012 of Lanka Bangla Securities Limited

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2.4. Values: 1. Accountabil ity: E nsur in g r esponsibi li ty and conf ormi ty

2. Diversity: As inclusive as our services.

3. I ntegri ty: Being r eal wi th task and work for ce with hi ghest ethi cal standards and f air ness in ever y event

4. L eader shi p: Th e cour age to shape a better futu r e

5. Quali ty: E nsur in g the ser vice with commi tment

6. Respect: We honor the r ights and beliefs of our fellow associates, our investors, key stakeholders and our commun ity

7. Teamwor k: We promote and support a diverse, yet u ni f ied, team. We wor k together to meet our common goals .


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2.5. Lanka Banla Securities Limited’s Milestones:

1997: LSBL formally known as Vanik Bangladesh Securities

2009: Tagged with BD Jobs

1998: Connected trading on the Dhaka Stock Exchange

2009: Converted Private Ltd to public

2009: Achieved best IT Users Award

2011: Top Broker in CSE and DSE from 6

2011: Increased Paid up Capital

and 7 years.

2012: Introducing a full-fledged financial Web Portal and Order Management System


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2009: Sponsor shareholding of Financial Excellence Ltd.

2010: Subscribe as 1st ever local company in Bangladesh

2010: First Broker submit IPO for public Listing

2010: Set the Landmark of BDT 1530.59 mn net profit after tax

2008: Installed included Back office Software System

2005: Renamed as Lanka Bangla Securities Limited

2.6. Services of Lanka Bangla Securities Limited:

Services 1.

2.

Br okerage Services M I TA and I nternet Tr adin g Ser vices

In DSE and CSE Trading of Portfolio Accounts, Custodial Services, Credit Facilities, Assisting Foreign Investors. Hassel free Trading Facility for Non-Residents

3.

F oreign T radi ng Ser vices

Email/Fax

4.

CDB L Ser vices

Account Opening and Maintenance

5.

Research Ser vices

Macro Market Review, Weekly Market Review

6.

Cutting Edge I T Infrastructure

Virtualization, Introduction to cloud Concept


2.7. Lanka Bangla Total Return For Employee:

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The total compensation part are always counts the cash collection of employees. This part is divided by two factors one is cash compensation and the other one is benefits which is also cash benefits

Base Pay

Merit Pay Cash Compensation

Short term incentive Long term incentive

Total Compensation

Income Protection

Benifits

Work/Life Balance

Allowances

Total Compensation of L anka B angla Securi ties L i mit ed Base Pay M eri t Pay

Depends on your Posit ion/ Design ation in the organi zation 20% of Base Pay (Regardi ng th e per formance of th e employee)

Shor t Term I ncenti ves L ong Term I ncenti ves I ncome protecti on Allowances:

2 Bon uses in a Year 5% Prof it shari ng with employee regardin g the yearl y profi t of the organi zation I nsuran ce Al lowance 10% of Base Pay H ouse Al lowance: 50% of B ase Pay, Tr ansportati on and M edical A ll owance 10% of B ase Pay.

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n r u t e R l a n o i t a l e R

Recognition & Status Employment Security Challenging Work Learning Opporturnity

Relational Return of L anka Bangl a Securi ties L i mited Recogni tion and Status

H igh . Because the company is ver y popul ar f or Stock or Shar e Business

L earn in g Oppor tun it y

Company Provide Tr ain in g to their employee when they need to impr ove

Mainly employees of Lanka Bangla Securities Limited are greatly satisfied by their compensation and other benefits. Besides, the company also provides their employee provident fund facility where 10% of Base pay is offered by the organization and 10% are deducted from the employee base pay.

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2.8. Organizational Hierarchies of Lanka Bangla Securities Limited:

Chairman CEO COO CTO GM

HR Manager

Marketing Manager

Broker

Accountants

Trade Executives

Portal Officer

Reserchers

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Loan Manager

2.8. Salary Structure of Employees: (Estimated)

Position of Employee

Basic

Net Salary

CEO

90000-150000

150000-200000

COO

70000-80000

90000-120000

CTO

70000-80000

90000-120000

GM

65000-70000

80000-90000

40000-60000

60000-80000

40000-60000

60000-80000

45000-55000

60000-70000

35000-40000

42000-48000

35000-40000

42000-45000

Researcher

35000-40000

42000-45000

Accounts

30000-320000

40000-420000

28000-30000

35000-40000

22000-25000

32000-35000

20000-22000

30000-32000

18000-20000

28000-30000

HR Manager Marketing Manager Broker Trade Executive Portal Officer

Loan Manager Senior Executives Junior Executives Probationer Executives

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CHAPTER 4 ANALYSIS & FINDINGS

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4.1. Analysis: I did a survey on 10 Employees of Lanka Bangla Securities Limited. I was asking them five Questions, regarding their organization and its compensation and other benefits. The analysis is given below:

1. The surroundings of your office is pleasant and safe:

Employee Satisfaction

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

Percentage of Employees

0%

10%

10%

60%

20%

Percentage of Employees 70% 60% 50% 40% Percentage of Employees

30% 20% 10% 0% Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

I find that, 60% employees agree that their office environment in nice, 20% employees are strongly agree, 10% employees are neutral, 10% employees are disagree & 0% employees are strongly disagree. That means, employees of Lanka Bangla Securities Limited are highly satisfy with the environment of the office. 21

2. Are you satisfied with the compensation that is provided to you?


No

Yes


0%

100%

Percentage of Employees 120% 100% 80% Percentage of Employees

60% 40% 20% 0% No

Yes

I find that, 100% employees say yes, that they happy with their compensation structure, 0% employees reply no. That means, employees of Lanka Bangla Securities Limited are highly satisfy with the environment of the office.

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3. The quantity of Allowances and Facilities are excellent of your organization:


Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree


0%

0%

20%

50%

30%

Percentage of Employees 60% 50% 40% 30%


20% 10% 0% Strongly Disagree Neutral Disagree

Agree

Strongly Agree

I find that, 50% employees agree that their office environment in nice, 30% employees are strongly agree, 20% employees are neutral, 0% employees are disagree & 0% employees are strongly disagree. That means, employees of Lanka Bangla Securities Limited are extremely pleased with the allowances and facilities, the company offer to the m.

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4. Relational Return (Status, Training Facilities, Challenging Work, Employment Security) of your company are standard : Employee Satisfaction

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree


0%

10%

40%

30%

20%


20% 10% 0% Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

I find that, 30% employees agree that their office environment in nice, 20% employees are strongly agree, 40% employees are neutral, 10% employees are disagree & 0% employees are strongly disagree. That means, employees of Lanka Bangla Securities Limited are delighted but not so highly. Besides 10% are said disagree. That means we say the most of the employee are neither agree or nor disagree.

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5. Indirect rewards (Bonus, Short Term Incentives and Long Term Incentives, Merit pay) are well maintained:


Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree


0%

10%

40%

40%

10%


20% 10% 0% Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

I find that, 40% employees agree that their office environment in nice, 10% employees are strongly agree, 40% employees are neutral, 10% employees are disagree & 0% employees are strongly disagree. That means, employees of Lanka Bangla Securities Limited are happy about their indirect rewards..

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6. The Compensation System of your organization is well structured: Employee Satisfaction

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree


0%

0%

10%

70%

20%

Percentage of Employees 80% 70% 60% 50% 40%


30% 20% 10% 0% Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

I find that, 70% employees agree that their office environment in nice, 20% employees are strongly agree, 10% employees are neutral, 0% employees are disagree & 0% employees are strongly disagree. That means, employees of Lanka Bangla Securities Limited are cheerful about their indirect rewards..

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4.2. Findings: After the analysis I find an overall idea about the Compensation System of Lanka Bangla Securities Limited.  Employee is extremely pleased with the environment of the organization. They

feel it is a pleasant and safe place for them. So they inspire and effectively perform the job in their organization.

 Employee is cheerful with their compensation which is provided to them. That’s

why 100% employee is whispered; they are satisfied with their Base Pay and get pleasure to do the work.  Mainly Lanka Bangla Securities Limited is provided medical allowance, house

rent allowances and transportation allowances to their employees. Almost half of employee is replied they are satisfied with their allowances and 30% employee replied they are strongly agree with the statement. That means in that part, Lanka Bangla Securities Limited also take superior place.  In case of relational return the uppermost fraction goes for the neutral option. May

be there is some deficiency of returns. At a standstill, the organization does not supply their member of staff any employment safety and challenging work opportunity. But maximum employee is satisfied and happy with the compensation structure.

So, following the findings we can confidently say that, Lanka Bangla Securities Limited is a winning company. Because,, this company is successfully provided compensation to their employees, which construct them happy. Happiness is the power to perform glowing work. So, Employees do their work dedicatedly; present a tremendous result of their work. And in this way, Lanka Bangla Securities Limited now a day measured as an Idol Company in Bangladesh.

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CHAPTER 5 RECOMENDATIONS

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Recommendations

1. Employees of Lanka Bangla Securities Limited are not satisfied with the relational returns. Most of them are replied neutral satisfaction level. So Lanka Bangla Securities Limited will try to provide their employee challenging works like: Job Rotation and Job Sharing.

2. Organization can offer their employees Mobile, Holiday Allowances to motivate them more

3. Organization will offer medical and life insurance which will feel them secu re.

4. Lanka Bangla can use professional counseling hour to share the problems of the employee. Through this employee will feel, he is a n important person of the organization.

5. They can organize some entertainment facility for the employee behind the work. So that, employee never feel boring while doing their work 6. Increase the facility of transportation and promotion. So that people feel secure and give his or her best effort.

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CHAPTER 6 CONCLUSION & REFERENCE

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Conclusions Lanka Bangla Securities Limited is measured as one of the leading company in Bangladesh. It is a sister concern of Lanka Bangla Limited. And from the very beginning, it is run effectively in our state. As this report is based on the compensation structure of Lanka Bangla Securities Limited, So I thrash out briefly the compensation structure of this company. From first to last this report, I discover the overall information about Lanka Bangla Securities Limited. Mainly I focus about the compensation structure of this company. I formulate a inspection where I find out that, employee of this organization extremely satisfy with their over all compensation structure. Moreover, there are also some lacking of this corporation. So, I recommend them the solution.

But after the overall discussion it is strongly identified that Lanka Bangla is a Star Security company of Bangladesh.

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Lanka Bangla Securities Limited

Compensation Structure of Lanka Bangla Securities Limited

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