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International Journal of Computer and Business

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International Research Journal of Computer and Business Vol. 1 Issue 8 www.irjcb.org

Chief Editor Professor Dr. Samsul Islam Chowdhury Department of Business and Economics University of West Virgina Tech, USA.

Executive Editor Dr. Mir Mohammad Azad, USA

Editorial Board Peer selected based on expertise and submitted papers

Published by International Research Journal of Business and Computer

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Copyright @2001 by irjcb

International Research Journal of Computer and Business Vol. 1 Issue 8 www.irjcb.org

Message from the editor Welcome to International Research Journal of Computer and Business. It is our pleasure to introduce the new journal. In modern world computer and business are so integrated like real industry even in academic field, therefore we decided to combine both field including academician, researchers, industrial expert to share and update the field. Boards of reviewer are selected based on submitted papers and journal is going to publish monthly.

Chief Editor IRJCB

International Research Journal of Computer and Business Vol. 1 Issue 8 www.irjcb.org


Performance of Stock Market of in Developing Country: a case study on Chittagong Stock Exchange (CSE)


Enterprise Resource Planning for Business Improvement


Women Entrepreneurship Education in Economic Development


Management of Government Banking in The Third World country: a case study on Agricultural Bank-Problems and Remedies


Assessment of Gap of Consumers’ right in Real Life: An Empirical study


Comparative study on Compensation Management Practices of Selected Securities firms in Chittagong Stock Exchange Ltd


International Research Journal of Computer and Business Vol. 1 Issue 8 www.irjcb.org

Performance of Stock Market of In Developing Country: an empirical study on Chittagong Stock Exchange (CSE)

Authors: Mr. Mir Md. Tariqul Alam. Mr. Abu HanifaNoman Bin Alam Mr. A.M. Shahabuddin Chowdhury

Abstract: A strong and well-structured secondary market is the focal point of capital market, which bears paramount magnitude in the economic development of a country. It is not a mere coincidence that almost all the developed nations exhibit a strong secondary market. It is perceived to act as the medium of transactions between interested parties. This paper focuses on the growth of Bangladesh stock market over time. The market trends in terms of market capitalization, market liquidity, market concentration, number of listings, market turnover were considered. The study finds that key indicators are significantly correlated. The findings of the study suggest that growth of stock market of Bangladesh till not stable. We conclude that Bangladesh stock market is still at an early stage of its growth and stock market size is small. [Key words: Stock market, growth, turnover, capitalization.] Gross Domestic Product (GDP) of our country. Neighboring countries such as India has market capitalization of more than 75% of their GDP. In contrast Bangladesh capital market is comparatively lower than India with 54.61% of the GDP. To make the secondary market effective we should address two important aspects which act as determinants of stock market effectiveness. Volatility and market efficiency are two important features which will ultimately determine the effectiveness of the stock market in economic development (Hassan M K et al., 2000).

Introduction: Stock market can perform well to meet the continuous financial needs of business enterprises, if there exist a congenial environment for boosting confidence of bothstock market operators and investors (Ahmed et al, 1996). The growth and development ofstock market in a market economy largely depends upon the creation of enabling environment for boosting up investor’s confidence. By providing liquidity of shares and diversified instruments the secondary market contributes in increasing market capitalization. Investors become more confident and exert a positive impact on the

International Research Journal of Computer and Business Vol. 1 Issue 8 www.irjcb.org
Literature review: Capital market is recognized as a vehicle for rapid economic development through investment. A well-functioning stock market is expected to lead to a lower cost of equity capital for firms and allow individuals to more effectively price and hedge risk (Bepari M.K &Mollik A, 2006). The market capitalization of emerging market countries has more than doubled over the past decade growing from less than $2 trillion in 1995 to about $5 trillion in 2005 (Yartey, 2008). As a percentage of world market capitalization, emerging markets are now more than 12 percent and steadily growing (Standard and Poor, 2005).

mobilization of available resources in a country (Ahmed has S, 2005). picked Though pace in


Bangladesh almost three decades back, capital market has failed to attract the entrepreneurs as the key source of capital, which has usually been occupied by the banking system since beginning (Islam et al., 2010). That is why Bangladesh capital market has comparatively lower market capital as percentage of GDP in the region but now it is increasing. The capital market in Bangladesh received significant boost in last year. All share price indexes, turn over as well as market capitalization,

Measuring efficiency and performance level of stock market needs some indicators and this study used some yardstick to understand market efficiency and performance.

improved substantially. However, the market lacks reflection of company fundamentals and the possibility of price manipulation in the market through insider trading cannot be ruled out (Simu T.H, 2009). Investors in Bangladesh became increasingly interested in equity markets because many entrepreneurs look for requirements from the equity markets for many reasons and DSE & CSE play an integral role in the pace of industrialization of the country (Akhter S et al, 2005). DemirgucKunt and Levine (1996), Singh (1997) and Levine and Zervos (1998) find that stock market growth plays an important role in predicating future economic growth in

Objectives of the Study: The main objective of the study is to identify the performance and efficiency of stock market in Bangladesh and the specific objectives are: • To investigate the pattern of

Bangladesh stock market growth • To identify various indicators of Bangladesh stock market growth. • To recommend some guidelines to ensure stable market growth

considering the current performance of the stock market of Bangladesh.

situations where the stock markets are active. The proponents of stock markets emphasize the importance of having a "developed" stock market in enhancing the efficiency of

Data and Methodology: Research methodology of the study was focused both on qualitative and quantitative study. Primary and Secondary both types data

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were used in this study. Secondary data were collected for the period 2001 to 2010. Data are collected from various issues of annual report of Securities and Exchange Commission (SEC) of Bangladesh, Quarterly Review of SEC, Monthly Review of Dhaka Stock Exchange Exchange (DSE) (CSE), and Chittagong Stock economic institution in response to the internal requirements of a fledgling modern economy, which has emerged as a result of economic development and industrialization efforts. Bangladesh agricultural is still a predominantly However, the


industrialization process over the last three decades since independence has diversified the economic base of the country at least to some degree. The second stock exchange of the country, the Chittagong Stock Exchange(CSE) was established in April 1995.In order to control operation of the stock exchanges and trading of stocks of listed companies, the government of Bangladesh established the Securities and Exchange Commission of Bangladesh on 8th June, 1993 under the Securities and Exchange Commission Act, 1993 .The mission of the SEC is to protect the interests of securities investors, develop and maintain fair, transparent and efficient



Review, Statistical Year Book of Bangladesh, Website of DSE, CSE, and SEC Bangladesh. Interview techniques were used to collect primary data through Few semi structured of CSE,



Investor, and executives of brokerage house of CSE were interviewed based on convenience sample method to understand real scenario of the stock market of Bangladesh. Descriptive statistics, correlation matrix, and trend equation of key indicators are used for the analysis of the collected data.

securities markets, ensure proper issuance of History of Stock market in Bangladesh: The stock exchange in Bangladesh was incorporated in April 1954 as the East Pakistan Stock Exchange Ltd. However, formal trading in the Exchange did not commence until 1956. The Exchange remained suspended from 1971 to 1975 due to the liberation war. After liberation, the Exchange opened up in 1976 with only 9 listed companies. As of June 1999, the Exchange has 210 listed companies with 230 listed securities and a market securities and compliance with securities laws. The country's capital market showed a mixed performance in 2009. Stock prices showed significant upturn during the first half while the second half witnessed downward

movement. Different monthly average price indexes at Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) lost

grounds although the daily average turnover improved showing some fluctuations in 2008. Compared with last month of previous year , the monthly average of all share price index (DSI), DSEG, and DSE20 declined by 14.1 percent, 12.1 percent, and 8.3 percent

capitalization of 1,046 million US dollars. As in most other developing countries, the capital market in Bangladesh has a relatively recent beginning. It is gradually evolving as an

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respectively in December 2008. These indexes declined rather sharply during July-December 2008. The liquidity situation of the capital market improved in 2008 compared with the previous year. The daily average turnover with a daily average of Tk. 4.2 billion and the lowest was observed in January 2008 with a daily average of Tk. 1.5 billion. Secondary Market Scenario:

The highlights of Bangladesh secondary market is given below. The share price index in Dhaka Stock Exchange (DSE) shows a 1.4 billion in 2007. The monthly average increasing trend with a downfall in the year turnover reached to its peak in October 2008 2005. Table-01: Trading Operation in Dhaka Stock Exchange(Amount in million Tk) stood at Tk. 2.8 billion in 2008 which was Tk. No. of listed Securities IPO Issued Capital 11 08 14 02 22 12 14 12 18 06 33,454.3 35,203.0 46,055.0 49,532.0 70,313.0 118,437.0 214,470.0 372,156.0 522,099.0 566,584.0 Market Capital 65,222.8 71,262.0 97,587.0 224,923.0 233,075.0 323,368.0 753,950.0 1059,530.0 1887,177.0 2275,558.0 39,868.3 34,984.9 19,152.1 53,181.1 64,834.8 65,069.3 322,820.1 667,964.7 1475,300.8 687,967.5 Turnover Price Index 817.79 822.34 967.88 1,971.31 1,275.05 1,321.39 2,535.96 2,309.35 3747.53 5582.33


2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 (March)

249 260 267 256 286 310 350 412 415 437

Source: Bangladesh Economic Review, 2010 The number of securities (including mutual fund and debentures) listed with the DSE increased to 437 by March 2010 from 350 of June 2007. By the march 2010, the issued capital of listed securities stood at Tk. 566,584.0 million, which is 52.24 percent higher than that of 2008. Up to March 2010, market capitalization of securities stood at Tk. 2275,558.0 million. General share price index of the DSE stood at 5582.33 in March 2010, which was 2,309.35 in 2008. The number of securities listed with the CSE reached 226 as in march 2010 from 217 as in 2009. By the march 2010, the issued capital of listed securities stood at Tk. 177,603.9 million which is 46.05 percent

International Research Journal of Computer and Business Vol. 1 Issue 8 www.irjcb.org
higher compared to that at the end of 2008. As of march 2010, market Capitalization of securities reached Tk. 1862,988.5 million. General share price index of the CSE reached 16,193.99 as on March 2010, which

was8,692.75 at end of 2008.

Table -02: Trading Operation in Chittagong Stock Exchange Year No. of listed securities 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 (March) 177 185 196 198 210 213 227 238 217 226 09 09 10 03 16 06 13 12 18 06 IPO Issued Cap. (In ml taka) 29,652.7 31,079.9 41,967.6 46,978.7 55,519.3 69,378.4 89,173.9 121,603.2 155,124.9 177,603.9 Market Cap. (In ml taka) 56,363.5 60,467.7 85,312.3 215,010.8 219,942.8 270,510.7 612,580.0 807,684.0 1470,807.0 1862,988.5 Turnover (In ml taka) 1,479.62 13,586.1 6,688.6 17,551.3 14,042.7 15,893.1 52,590.3 99,803.7 162,562.6 60,737.3 Price Index 1,836.87 1,841.14 1,642.78 3,597.70 3,378.68 3,724.39 7,657.06 8,692.75 13,181.37 16,193.99

Source: Bangladesh Economic Review, 2010 The billboard below shows the condition of the secondary market during last two quarters of the year 2008.

Table -03: Secondary market Billboard Dhaka Stock Exchange As on 30th June 2009 Total number of listed securities Total issued capital of all listed companies (in million) Total Market capitalization 443 457,94 0 As on 31st Dec. 2009 415 522,099 245 142,470 217 155,124.9 Chittagong Stock Exchange As on 30th June 2009 As on 31st Dec. 2009





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(in million) All Share Price Index 2520.20 3747.53 10477.67 13,181.37

Source: (SEC Quarterly report and CSE Portfolio; July-Sep 2009, and Jan -March 2010) The market billboard shows that the number of listed securities reached to 415 in DSE and 217 in CSE. Issued Capital at DSE and CSE amounted 155,124.9 tk. 522,099 million and tk. Indicators of Market Growth and Trend of Market Performance of CSE:Literatures provide no unique measure of indicators of stock market development. Broadly used indicators of stock market growth are market size in terms of market capitalization,




Capitalization reached at tk. 1887,177 million and tk. 1470,807.0 million at the end of year in DSE and CSE whereas the price index was 3747.53 and 13,181.37

liquidity of the market, degree of listing, volatility in the market. In this study we examine all these above mentioned indicators to evaluate the growth pattern of Bangladesh stock market mainly of CSE.

Stock market size:

Table - 04: Stock market size Year Total Market Capitalization (in million taka) 2002 2003 2004 2005 2006 2007 2008 2009 131,730 182,899 439,934 453,018 593,879 1,366,530 1,708,765 3,357,984 2,732,010 3,005,800 3,329,730 3,707,070 4,157,280 4,724,770 5,458,220 6,147,950 GDP (million tk) Market Capitalization to GDP (%) 4.82 6.08 13.21 12.22 14.28 28.92 31.53 54.61

Descriptive Statistics of Market capitalization to GDP Mean Standard deviation 20.71 16.78

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Skew ness Minimum Maximum 1.30 4.82 54.61

Market capitalization ratio equals the value of listed shares divided by GDP. In terms of economic significance, the assumption behind market capitalization is that market size is positively correlated with the ability to Above table shows the size of Bangladesh stock market. Market Capitalization ratio has increased from 14.28% in 2006 to 54.61% in 2009. Then the stock market experienced a

mobilize capital and diversify risk on an economy wide basis (Agarwal 2001). La Porter et al. (1997, 1998) used the market capitalization to GDP ratio as an indicator of market development. sudden growth in market capitalization in the next two years, 28.92% in 2007 and nearly 31.53% in 2008.

Table -05 : Market Capitalization of CSE as a % of GDP Market Capitalization Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 Mean SD Coefficient Skew ness of 1.76 (million tk) 60,468 85,312 215,011 220,353 267,501 612,479 807,875 1,470,807 2,983,929 12.99 13.24 GDP (million tk) 2,732,010 3,005,800 3,329,730 3,707,070 4,157,280 4,724,770 5,458,220 6,147,950 6,905,710p Market Capitalization to GDP (%) 2.15 2.8 6.07 5.61 6.44 12.00 14.80 23.92 43.20

Source: Authors’ calculation from various issues of Bangladesh Economic Review, Statistical Year Book of Bangladesh, DSE and CSE (main board) and Securities and Exchange Commission (Annual report and quarterly review).

The CSE market capitalization showed a huge growth in 2008. The share of CSE market capital in the total is also increasing. It has

reached almost half of the total market capital in the year 2008.

Table -06: Market capitalization in CSE, its growth and as a % of total (2002-2008) Year Market Capitalization (in million taka) 2002 2003 2004 2005 2006 2007 2008 2009 2010 Mean SD Skew ness Source: (CSE Profile, portfolio) From the table it has been observed that market capitalization has a tendency to grow up over the passage of time. The highest growth in market capitalization was 152.03% Chart -01: Market capitalization in CSE in the year 2004. In the year 2008, the secondary market experienced a steady rate of growth. 60,468 85,312 215,011 220,353 267,501 613,175 807,875 1470,807 1862,989 Growth of Market CSE MC as % of total Capitalization (%) capitalization 7.28 41.09 152.03 2.48 21.40 129.22 31.75 82.05 102.88 63.35 55.02 .51 9.14 8.68 48.87 48.60 45.27 44.87 49.76 43.80 -

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2000000 1800000 1600000 1400000 1200000 1000000 800000 600000 400000 200000 0

(in million)

Mkt. Capitalization

Number of listed companies: The second indicator of market size is the number of companies listed. The rationale of including this measure is that as the number of
Table -07: Number of listed companies in DSE and CSE Year Number of Companies listed Dhaka Stock Exchange 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 (March) 249 260 267 256 286 310 350 412 415 437

Source: Bangladesh Economic Review, Chittagong Stock Exchange, Dhaka Stock Exchange and Securities and Exchange Commission (Annual Report and quarterly review), various issues.

20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10

listed company increases, available securities and trading volume also increases. The table below shows the number of listed companies in both exchanges.

Chittagong Stock Exchange 177 185 196 198 210 213 227 238 217 226

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Chart -02: Forecasted listed co. under CSE
Forecasted Co. of CSE



Listed Co.


Co. Actual Co. Forecasted



0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Year

Liquidity: The ability of the market to buy or sell securities is termed as liquidity. According to (Agarwal, R, N, 2000) two measures are generally used to measure liquidity. They are turnover (total value traded) in the stock market as a ratio of: (i) (ii) GDP; and Stock market capitalization.

national output .The total value traded/GDP ratio complements the market capitalization ratio. Together, market capitalization and total value traded/GDP inform us about market size and liquidity. Table shows the liquidity situation of Bangladesh stock market in terms of total value traded to GDP ratio. The ratio has increased form an insignificant number (0.49) in 2002 to 2.64 % in 2009. Mean value of 0.94 with a standard deviation of 0.88 for the ratio imply that the increase is not even smooth; there is a marked fluctuation in the value traded to GDP ratio over the years.

The second measure is also called turnover ratio. High turnover ratio is associated with low transaction cost. It also denotes the degree of activity on a stock market. The turnover ratio gives the total value of shares traded in relation to the size of the market. Turnover to GDP equals total value of shares traded on the stock market divided by GDP. The total value traded ratio measures the organized trading of equities as a share of

Table -08: Turnover and GDP
Year Turnover (in million taka) 2002 2003 2004 2005 2006 2007 2008 2009 2010 (March) Descriptive Statistics Mean SD Coefficient of Skewness Minimum Maximum 56.18 86.35 .78 -50.53 216.56 0.94 0.88 1.35 0.22 2.64 13,586 6,689 17,551 14,043 15,893 52,590 99,804 162,563 60,737 Annual Growth (%) -9.17 -50.53 120.39 -5.90 18.64 216.56 92.53 66.88 0.49 0.22 0.44 0.37 0.39 1.11 1.86 2.64 As a % of GDP

Source: CSE Portfolio Turnover to Market capitalization of the CSE is 22.46 in the year 2002 and decreasing turnover results is declining ratio up to 2006 and afterwards 2007 turnover to market capitalization is increasing but rate of

capitalization is higher than rate over turnover increasing till 2009.

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Table - 09: Market capitalization and Turnover
Year Market Capitalization(in million taka) 60,468 85,312 215,011 220,353 267,501 613,175 807,875 1470,807 10.22 5.43 1.97 Turnover (in million taka) Ratio of Turnover to Market Capitalization 2002 2003 2004 2005 2006 2007 2008 2009 Mean SD Coefficient of Skewness 13,581 6,719 14,808 13,933 16,530 52,328 100,747 162,563 22.46 7.88 6.89 6.32 6.18 8.53 12.47 11.05

Source: CSE Portfolio

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Table -10: Comparative Market Performance of CSE 2004-2010 S.N . 1 2. 3. 4. Category No. of Listed 2004 2005 210 263 191 2006 213 231 202 2007 227 237 217 2008 238 238 177 2009 217 244 2010 225 244 -

Securities 198 271

No. of trading days No. of traded

securities 185

Market Capitalization In million taka









Total Value

Turnover 14,808 13,933 308,901 16,530 330,662 52,328 652,254 100,747 972,811 162019 133878 340929 2129129

In million taka 6. 7. Turnover Volume 332,534 (shares ‘000) Average Turnover In million taka 8. No. of companies 135 declared cash dividend Indices CSE All Share Price Index (CASPI) CSE 30 Index CSCX 10. 11. 12. 13. Market Cap. GDP (%) Market P/E ratio Turnover ratio (%) Dividend Yield (%) 161 113 116 92 28 72 Daily 54.64 52.98 71.56 221 423.3 664.01 1397.25


3,598 3,466 -----

3,379 3,159 2,348 5.61 15.67 6.37 4.35

3,724 3,342 2,432 6.44 14.31 6.19 4.25

7,657 6,935 4,921 12.00 22.83 8.53 2.00

8,692 7,566 5,680 14.91 19.00 12.47 2.61

13181 10306 8560

23449 20988 15156

To 6.07 18.65 6.87 3.23

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#All Share Price Index is calculated on weighted average method. Source: Chittagong Stock Exchange Profile & Portfolio Oct- Dec 2010 Market concentration: It can be measured by looking at the share of market capitalization accounted for by the large stocks or large sectors. These large stocks are seen as the leading 3 to 5 firms in the market (Maunder et al. 1991). In many economies only a few companies dominate the stock market (Bundoo 1999). High concentration is not desirable as it can adversely affect liquidity, and it is common to find a negative correlation between concentration and liquidity. To measure the degree of market concentration, we compute the share of market capitalization by largest 5 (Banking, Energy, Textiles & Clothing, Leasing, and Eng. & Electrical) sectors, turnover by the largest 4 sectors and by the largest banking sector. Table-11: Share of Market Capitalization (%) Banking 2006 2007 2008 2010 52.7 56.94 43.14 33.14 Other 4 largest sectors 32.53 29.68 38.15 28.95 Total 85.23 86.62 81.29 62.09

Source: Portfolio, Chittagong Stock Exchange Turnover by the largest 5 sectors decreased from 83.59 % in 2006 to 67.18 % in 2010 whereas, the turnover by the banking sector decreased form 46.88 % in 2006 to 19.84% in 2008 and again increased at 33.56% in 2010. Overall, the Bangladesh stock market remains highly

concentrated to the banking sector in terms of market capitalization and turnover but it is decreasing and spread in different sectors which is positive for stock market.

Table -12: Market Concentration: turnover by largest 4 sectors and largest sector in the CSE. Concentration measures Turn over by the largest 5 sectors (%) Turnover by the largest sector (% ) 2006 83.59 46.88 2007 78.78 50.41 2008 72.02 19.84 2010 67.18 33.56

Source: Portfolio, Chittagong Stock Exchange

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Stock index is a parameter for judging stock market performance. It reflects the changes in prices of securities as well as value of securities. CSE determines three stocks indices-CSE All Index in Stock market performance: Share Price Index, CSE-30 Index, CSCX Index.

Table -13: The quarterly changes in CSE All Share Price Index: 2010 Index CSE All Share Price Index Growth rate (%) Mean SD Range Coefficient of Variation Maximum Minimum 19622.20 3156.59 2719.20 16.09 % 23448.99 16193.99 Quarter 1 16193.99 Quarter 2 18116.05 0.11869 Quarter 3 20729.79 0.14428 Quarter 4 23448.99 0.13117354

Source: Portfolio, Chittagong Stock Exchange Table - 14: The changes in CSE-30: 2010 Index CSE-30 Growth Rate (%) Mean SD Range Coefficient of Variation Maximum Minimum 15895.47 4131.34 4395.29 25.99 % 20998.17 11017.18 Quarter 1 11017.18 Quarter 2 14963.63 0.35821 Quarter 3 16602.88 0.10955 Quarter 4 20998.17 0.26473058

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Source: Portfolio, Chittagong Stock Exchange

Table -15: The changes in CSCX: 2010 Index CSCX Growth Rate (%) Mean SD Range Coefficient of Variation Maximum Minimum 12696.9075 1987.923051 1820.42 15.65674989 15156.37 10600.93 Quarter 1 10600.93 Quarter 2 11694.38 0.10315 Quarter 3 13335.95 0.14037 Quarter 4 15156.37 0.13650471

Source: Portfolio, Chittagong Stock Exchange From the above table, it has been found that stock index has changed quarterly at varying degrees, including ups and downs in share prices and securities over the periods. The changes in stock index over the period have increased consistently. Analysis and Discussion: The study on performance of stock market in Bangladesh conducted on the basis market Table -16: Descriptive Statistics Mean Listed Co. Turnover Market Capitalization 210.5 47839.8 467562.75 Std. Deviation 17.30 55845.58 481111.20 N 8 8 8 capitalization, concentration, market number liquidity, of listings, market market

turnover and market index for the last 8 years from 2002 to 2009. On the basis of performance factors we have found descriptive statistics of individual factors which are discussed in earlier. On the other hand we have found combined effects of different variable on descriptive and bi-variant correlation

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Turnover Capitalization Turnover to GDP to 10.22 .94 5.43 .88 8 8

Table 16&17 reports descriptive statistics and correlation matrix among key development indicators of Bangladesh stock market. Market capitalization ratio is significantly correlated to turnover, and turnover to GDP. Turnover also

significantly correlated to number of listed companies, market capitalization, and turnover to GDP, while turnover to capitalization is negatively correlated to listed co. and market capitalization.

Table -17: Correlation matrix among key indicators of stock market development Listed Co. Listed Co. Pearson Correlation Sig. (2-tailed) Turnover Pearson Correlation Sig. (2-tailed) Market Capitalization Pearson Correlation Sig. (2-tailed) Turnover to Pearson Capitalization Correlation Sig. (2-tailed) Turnover GDP to Pearson Correlation Sig. (2-tailed) .858(*) .013 .952(**) .001 -.326 .476 .826(*) .022 .955(**) .001 .120 .798 .995(**) .000 -.109 .816 .945(**) .001 .188 .686 1 Turnover .858(*) .013 1 Market Turnover to Turnover Capitalization Capitalization to GDP .952(**) .001 .955(**) .001 1 -.326 .476 .120 .798 -.109 .816 1 .826(*) .022 .995(**) .000 .945(**) .001 .188 .686 1

* Correlation is significant at the 0.05 level (2-tailed). ** Correlation is significant at the 0.01 level (2-tailed).

Conclusion & Recommendation:

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From the study of evaluating the growth and performance of Bangladeshstock market over the last seven years in terms of some commonly Our stock market will grow overtime but the stability is the important issues to the govt., investor, and different groups who have stake on the stock market. So the people those are involved in policy making level have to consider used indicators of stock market development. Our analysis reveals that the Bangladesh’s stock market is growing in terms of market different factors that may influence to the performance of the CSE as well as total stock market of the Bangladesh. Investors have to have rational decision about investment,

capitalization to GDP, turn over ratio, turnover to GDP and turnover to capitalization showed market is not still stable enough. But there is a chance to develop our stock market stable and contribute to economic development of the country. Our stock market is not stable enough because of the following reasons:

regulation will not frequently changes, govt. should have proper initiative to control and ensure stable market growth.

References: Frequent changes in regulation of stock exchange by SEC Unusual behavior of the money market; Lack of investment opportunity in the industrial sectors; Limited number of stock of Govt. owned company; Demand of the share is higher than the available supply; Lack of awareness about stock market behavior of small investors; Profit making motives of institutional investors. Lack of govt. initiative to control unusual transaction in DSE and CSE
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Akhter S, Misir A, and Ahmed S (2005), Capital markets development in Bangladesh the status of DSE, Pakistan journal of social science, 3(8):1002-1006. Bepari, M K &Mollik, A. (2008), Bangladesh stock market growing? online publication. Bundoo, S. K. (1999), The Mauritius Stock Exchange: An Assessment,Social Sciences & Humanities and Law & Management Research Journal, University of Mauritius, Muritius, 5(1): 12-15 Demirguc-Kunt, A. & Levine, R. (1996), Stock Market Growth and Financial Intermediaries: stylized Facts,” The World Bank Economic Review, 10 (2):291- 232. Ripon K A I (2007), Stock market of Bangladesh, The financial express, (June 18):7. Hassan M K, Islam A M, Basher S A Security exchange commission Annual reports, various (2000), Market efficiency, time varying volatility and equity returns in Bangladesh stock market. Islam, M.A. Ali, R. and Ahmad, Z. (2010), Security exchange commission Quarterly reports, various issues (2008-2009) DSE portfolio, various issues (2002-2010) CSE Bazaar Paricroma, various issues (2002-2010) CSE portfolio, various issues (2002-2010) CSE profile, various issues (2002-2010) issues (2008-2009) Standard and poor (2005), Global Stock Market Fact book 2005, New York: Standard and Poor. Yartey, C. A. (2008), The Determinants of Stock Market Development in Emerging Economies: Is South Africa Different?,IMF working paper, WP 08/32. Reports review: Bangladesh Economic Review, various issues (2006, 2007, 2008, 2009, 2010) Key indicators based assessment, Simu T H (2009), Reasons behind fluctuations of Stock market in Bangladesh: A study on CSE, Unpublished Master thesis, Department of Business Administration, Shahjalal University Science and Technology, Sylhet3114.Singh A. (1997). Financial Liberalization, Stock Markets and Economic Development, Economic


Underpricing of IPOs: The Case of Bangladesh, Global Economy and Finance Journal Vol. 3 No. 1 March2010, Pp. 44-61. Levine R. and Zervos S. (1998), Stock markets, bank, and economic growth, AmericanEconomic Review, (June):537-558. Maunder, P., Myers, D., Wall, N. & Miller, R. (1991), Economics HarperCollins. Porter, L., Lopez-de-Silanes, R., Shlieifer, F. A. &Vishny, R.W. (1997), Legal Determinants of External Finance ", Journal of Finance, 54(1): 471 – 517. Explained, 2nd edition, London:

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Enterprise Resource Planning for Competitive Business World

Author: Asadul Alam

Abstract: Today large companies use different kind of ERP package to support their business needs. Some of these packages can be used out of box or customized. The types of ERP packages available in the market include Oracle, SAP, and People Soft etc. These are implemented at different part of organization such as Finance, Human Resource, Material Management and different type industry such as oil, gas, defense, financial etc. By studying different literatures and case studies we tried to figure out the pros and cons of the enterprise resource planning Software. . Introduction: There are many literature review and case study on different journal. We chose one from each category to figure out the ERP impact on the business. Software is expected to reduce cost and increase firm performance. This is observed (3, 4) through the data of COMPUSTAT

implementation of ERP system. (8-11) ERP offers two type of benefits-tangible and (4) Literature Review and Case Study: intangible benefit according to the study. Tangible enefits include significant inventory and personal reduction, production and order management improvement, financial close cycle, technology and procure management reduction. Intangible benefits according to the study are

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visibility, new or improved process, customer responsiveness, cost reduction, integration, and standardization. But some firm (5-7) states (5-7) high cost of implementation, best practice inabilities to suite all companies needs, ERP poses technical command and control work flow dependency and data

interdependency. It also creates process oriented job expansion, extended access to information, enhanced user flexibility and reduced validation check. In conclusion it is mention that to be adjustable to the organization it has to appropriate and formally translated up to the organization.

perspective inappropriate to some situation.

ERP particularly on economic part reduce agency cost by bonding and monitoring cost, decision information cost by information



certain standard






implement ERP system according to this case study. First of all according to the study, we have to create business case, and then create a budget. Sequentially we have to create

opportunities cost due to communication. It also reduces external communication and operational cost. Firm data collected and analyzed using

requirement documents and short list of solution or product available in the market.

COMPUSTAT indicate result before and after (3, 4) ERP implementation by ratio of cost to revenue there is no significant change except employee reduction and it automate the process.

Finally we have to see the demonstration from different vendor and call for request of proposal. The main factors we have to look in ROP are shortest return of investment, partner vendor and

Another case study shows ERP brings panoptic control of management over the organization but on the other hand it empower employee which management resisted. Both qualititative and quantities research methodology used in the research including a case study on hospital worker of Singapore. These groups finds using qualititative



references. Considering the above we have to negotiate the contract. These are the standard ways to select and plan the ERP system for the organization.

CONCLUSION: Though there is controversy about SAP

methodology and quantatives methodology that it creates more system tracking capability, Management visibility, Peer visibility through

implementation benefit 70% of fortune 1000 companies already installed within the year

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2000.This project first try to stress about both financial and organization benefits in term of cost. Finally it on the process of most used ERP software functional implementation with
Davenport, T. H. Mission Critical—Realizing the Promise of Enterprise Systems, Boston: Harvard Business School Press, 2000.Fryer, B. “The ROI Challenge,” CFO, September 1999, pp. 85-90. Knorr, E. “ERP’s Rough Waters,” Upside, December 1999, pp. 209-213. Arnold, V., Hunton, J., and Sutton, S. “On the Death and Dying of Originality in the Workplace: A Critical View of Enterprise Resource Planning Systems’ Impact on Workers and the Work Environment,” Working Paper, University of South Florida, 2000. Harris, S. E., and Katz, J. L. “Organizational Performance and Information Technology Intensity in the Insurance Industry,” Organization Science (2:3), 1991, pp. 263-295.

planning phase where detail blue print and implementation will be done on the phase. Sample deliverable also provided with the documentation to have sound understanding of the project.

Poston, R., Grab ski, S.,”In impact of Enterprise Resource System Planning on firm performance” International Conference on Information Systems, 2000 Sia, S,K., Tang,M.,Soh,C., Boh,W,F.,Enterprise

Simon, H. A. “A Behavioral Model of Rational Choice,” Quarterly Journal of Economics (69), February 1955, pp. 99-118. Zmud, R. W., and Apple, L. E. “Measuring Technology Incorporation/Infusion,” The Journal Of Product Innovation Management (9:2), 1992, pp. 148-156. Cash, J. I., and Konsynski, B. “IS Redraws Competitive Boundaries,” Harvard Business Review

Resource Planning (ERP) as a technology of power or panoptic control, SIGMIS Database, 2002 Gurbaxani, V., and Whang, S. “The Impact of Information Systems on Organizations and Markets,” Communications of the ACM (34:1), 1991, pp. 5973. Malone, T., Yates, F., and Benjamin, R. “Electronic Markets and Electronic Hierarchies,”

(64:2), 1985, pp. 134-142. Coase, R. H. “The Nature of the Firm,” Economica(4), 1937, pp. 386-405.

Communications of the ACM (6), 1987, pp. 485-497.

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Women Entrepreneurship Education in Economic Development


Abstract Women Entrepreneurship is an emerging issue that has gained much momentum in recent years. Even in developing South Asian countries like Bangladesh, women entrepreneurs are playing an important role in the economic development of their respective nations. However, there has been little research conducted on women entrepreneurs, and thus there is a lack of accurate data from most perspectives on this issue. It is generally assumed that education is an important factor behind developing entrepreneurship. However, to what extent this statement is true, is subject to thorough investigation. Added to this, arises the question of the necessity of any special education need for potential entrepreneurs. These are the major problems that acted as the background of this study. Thus, this report also focuses on the major issues related with entrepreneurship, education and tries to create a bridge between the two.Asian University for Women (AUW) is a unique university targeted to produce next generation women leaders. Located in Chittagong, it has a blend of students

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from diverse backgrounds from all over South Asia. • To find out the importance and

prospects of entrepreneurship education in this region • To introduce the readers with AUW and provide suggestions on how AUW can integrate entrepreneurship education as part of its curriculum

Methodology: The data for conducting the study has been collected from primary sources as well as Introduction: Women are comparatively less involve business Entrepreneurship. We tried to figure out how this can improve with the help of formal and entrepreneurship education in developing. secondary sources. During the three-month internship period, it was possible to meet various successful women entrepreneur who visited AUW on various occasions. The students also were surveyed for information related to entrepreneurship. Primary data was collected by administering written questionnaire, as well as conducting Objectives of the study: This research was mainly based on the following objectives: • To present a picture of the overall situation of women entrepreneurship in South Asian regions. • To evaluate the significance of This study reports the results of study conducted among various women entrepreneurs, mainly based in Chittagong, on their opinion about education and its significance in developing entrepreneurial capabilities. This report also tries Scope of the study: oral interview. Secondary

information has been collected from various articles, mostly from online sources. Different statistical methods were used to organize the data collected, such as charts, graphs etc.

education as a factor behind developing entrepreneurial capabilities

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to reveal the importance of entrepreneurship education and its scope as a distinct subject in the tertiary level of education, focusing mainly on Asian University for Women. • Limitations of the study: Though the staff and employees, as well as the respondents from Asian University for Women were most helpful and provided me with any and every data I needed, it is still necessary to inform that there remains many limitations of the study: • It must be mentioned that conducting such research with proper emphasis in all necessary fields requires much more time than the three-month period of internship duration. Time constraint was a major limitation. • The organization is still at its developing stage; so, much of the information regarding the organization is yet to be Table 1: Employment status – percentage of women and men who are employers Country Male Female 0.1 0.4 0.3 0.8 1.1 Women Entrepreneurship in South Asia Region: The following figure show women employers in developing countries: • Data collection was not that easy as previously thought. There is very little information available regarding women entrepreneurs, and moreover, these are not availed to all. Besides, it was not possible to get women entrepreneurs at one place and collect information. Thus most of the information was collected from scattered sources. available. Moreover, the internship

experience in this organization covered many other diverse areas, providing less time and scope for thorough research. The students were available after midApril, and thus there was very little time to collect info from the students.

Bangladesh (1995-96) 0.4 Nepal (1991) Pakistan (2001-02) Sri Lanka (1998) Maldives (2000) 0.7 0.9 2.5 4.5

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Sources: Bangladesh Bureau of Statistics, 1996; Central Bureau of Statistics, Population Census of Nepal, 1991; Federal Bureau of Statistics, Pakistan, 2001-02; Government of Sri Lanka, 1998; and Population and Housing Census, Maldives, 2000.

From the above, it can be noted that although statistics are lacking, the number of women entrepreneurs either in absolute or relative terms have not reached the critical mass necessary to make an impact on the system. The subtle manifestation of the gender

management, which can be seen from the profile of women entrepreneurs described in the next section. enterprise A is typical very woman small, entrepreneur’s in traditional

manufacturing activities, with low turnovers, a low number of employees and no professional assistancei.

phenomenon is often reflected in the size of the business, product line, growth, composition and

Chittagong. Thus they shared their ideas, which helped us create the link. Significance of Education: However, not much has been done to link education, particularly General Education, with Entrepreneurship. Whatever data available, is only based on the ENTREPRENEURSHIP EDUCATION, which is a distinct field of education, focusing on educating potential entrepreneurs only. However, we have tried to gather some primary data through interviewing students, prospective and established women entrepreneurs. Thus we tried to create the link, focusing solely on women entrepreneurship, and general academic education. Different questionnaires (provided at the Appendix) were developed and distributed among entrepreneurs of different level and students of AUW and other universities of

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We conducted our research on different categories of people: Category Sample Size Response (Percentage)

Students of Graduate studies Entrepreneurs

30 25

100% 98%






undergraduate students, we found that: • 53% of the students at tertiary level of education wish to become entrepreneurs, while the remaining 47% prefer job to entrepreneurship. • 67% of the students absolutely agreed with the statement “education is required to become an entrepreneur”, while 33% fairly agreed with this statement. However, no one disagreed, Of these, 62% are confident about starting their enterprise with the level of education they have so far received. or even showed their neutral position about agreement on this statement.

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o • 77% students think that they would require training before becoming 1. From our research conducted on Neutral – 10%


Disagree/Highly disagree – 0%

entrepreneur, while the other 23% think they would not. • Those with less education face more problems in entrepreneurship than those with higher of education”students level with of this entrepreneurs, we found that: • 83% of the interviewed think that women lack of



education is a significant barrier behind developing entrepreneurship. The

statement, and corresponding percentage is as following: o o Absolutely – 43% Fairly Agree – 47%

remaining 17% think otherwise, stating that other skills can still compensate for education.

o • Considering academic background of Entrepreneurs: o 44% of the entrepreneurs had completed up to Higher

22% of the entrepreneurs were graduate

Secondary or below

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o 33% of the entrepreneurs were • Of the women entrepreneurs


interviewed, 43% received training to some degree, while the remaining 57% did not.

57% of the entrepreneurs interviewed think that education is required for

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entrepreneurship development. 14% with higher education”level of

think it is not, while the remaining 29% think that education but a is not a for

agreement of entrepreneurs with this statement, and corresponding percentage is as following: o o o Absolutely – 42% Fairly Agree – 33% Neutral – 25% Disagree/Highly Disagree – 0%



entrepreneurship development

“Those with less education face more problems in entrepreneurship than those


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Analysis: Before conducting this study, we assumed that those with higher academic degrees are more UNLIKELY to become entrepreneurs, as it may not pay them back as much as they could earn from their jobs. People in this region are generally known to be risk-averse, and so they would go for more certain ways of earning. However, our findings showed somewhat


Expression of creativity: Some entrepreneurs/students added that they wished/wish to express their creativity entrepreneurship. through





Some students are concerned that with the rising number of

educational institutes, and thereby graduates, most of the job sectors are becoming competitive. Thus, a suitable job placement might not be available for them, leaving entrepreneurship alternative. o Community service: Students as the best different results: • People with tertiary education are equally likely to become entrepreneurs, although they do have good alternative job opportunities. • The reasons behind this include: o Control over time: Most job positions require a huge amount of time to be spent at the office. However, enterprise owning their own the

from different parts of the world expressed their intention to serve their community, especially

women. Becoming a successful women entrepreneur and


entrepreneurs the opportunity to have control over their own time, and thus allowing them to o

providing job opportunities for capable women would enable them to do so. Control over environment: Some students expressed their concern that a possible job opportunity might not provide them with a congenial women environment. was a reason Being they

manage their time efficiently between family responsibilities, as well as economic activities o Self-dependence: The main

purpose of education is liberation. Most educated people are liberal minded and thus they do not will to be dependent on others for their earnings.

showed, while another reason was the religion they practice. Thus, in their eyes, is being a an better

entrepreneur alternative.


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• Students from different majors, even other than those related with Business Studies (e.g. Environmental Studies, English potential entrepreneurs should be always kept abreast with the changing global environment. From the above study, we have tried to create a link between education and entrepreneurship, keeping women as the main focus. Our study even those with shows that though experience does count, education is still an important factor behind entrepreneurship. Entrepreneurs with high

Language and Literature, IT, Education, etc), are equally willing to become entrepreneurs. • Most students,

background of studying Business to some degree, think they require additional training and/or education, to gain more insight into entrepreneurship. • Most people agreed that higher education opens up more avenues towards success in entrepreneurship. That is another reason educated people are still willing to become entrepreneurs. • Suggested subjects that would-be

academic background tend to come up with more innovative ideas and thus enjoy a higher rate of success. What was interesting to find is the fact that job is not the main priority for most educated women. Women these days are equally (in some cases, more) interested in developing

entrepreneurship, than ever before. So far, our discussion has been based on general education. Although the is concept yet to of be

entrepreneurs should be taught include: o o o o Basic Accounting Principles of Marketing Entrepreneurship Development Business law and government policies o Social studies and Community Studies o o o o o o o o o Supply Chain Management Consumer Behavior/Psychology Human Resource Management Organizational Behavior Strategic Management Business Communication International Relations Communicative English Computer and Internet Literacy



introduced in this region, we believe, in the changing socio-economic scenario it has good prospects. Our intention is to show how Entrepreneurship Education can be an important field of education. The following chapter is thus dedicated to this topic.

Benefit of E. Education: Education as an aiding factor for developing entrepreneurship: Entrepreneurship education provides the

knowledge and skills in areas such as marketing, organizational behavior, etc. that enable the entrepreneurs to be more successful. Though

Besides these, most entrepreneurs emphasized that entrepreneurs and


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experience is an important tool, education cannot be denied as a wholeii: The study found that after controlling for personal and environmental factors,

“entrepreneurship education increased the probability of …being involved in a new • Education may show you how to avoid pitfalls Although there is no need to claim that a major in entrepreneurship will definitely turn into a successful entrepreneur, learning how to write a realistic business plan, seeing how venture capitalists actually operate and just observing successful entrepreneurs in action may at least show the students of • Three times more likely to be selfemployed It also found the students of entrepreneurial education were three times more likely to be self-employed, more likely to be employed full time, and less likely to work for government or non-profit entities, and to have annual incomes 27 per cent higher and own 62 per cent more assets. • Entrepreneurial education does seem to have a definite cash return But in any case, entrepreneurial education does seem to have definite cash return on investment. Academics from the University of Arizona carried out a survey for the Kauffman Foundation tracking the career progression of graduates of entrepreneurial programs. • Income of the graduates higher for personal education characteristics, increases the business venture by 25 per cent…”

entrepreneurial education some of the pitfalls and how to avoid them.



income of graduates by $12,654,” the study’s authors deduced. Controlling for individual characteristics, entrepreneurship graduates

Admittedly, this covered the period 19851999, an epoch marked, especially towards the end, by some irrational entrepreneurial and VC behavior. Even so, they found that compared to other alumni students of

working for large firms earned about $23,500 more than their counterparts. So, even though entrepreneurship education will not

necessarily make a graduate another ‘Bill Gates’, maybe that entrepreneurial course may be useful in the long term. With entrepreneurship education, they know more, others (like bankers, investors, corporate customers, etc.) know what these student entrepreneurs are likely to know, and the entrepreneurs', their firms, and national

entrepreneurship courses tended to make more money and their firms to grow more rapidly. They were also more likely to work for hightech companies and to be instrumental in newproduct development.


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economy are better off for their taking the time to learn how to do it right. would benefit the students. So far, topics such as “Empowerment Entrepreneurship of Women Development” through and

“Leadership: The four pillars of leadership” This study indicates that entrepreneurial education is important in many ways to create successful entrepreneurs and also to keep them running on profit. • have already been discussed by nationally and internationally acclaimed speakers. Workshops: already been Access Academy has



where students had the chance to interact Recommendations for Asian University for Women Activities already undertaken by AUW: The Student Affairs Department of Access Academy of Asian University for Women have already conducted various programs for • with renowned presenters. Such a

workshop was conducted on “Career Counseling” where students got a chance to create awareness about choosing their right career. Networking: AUW has strong network with other organizations. Chittagong

incorporating leadership skills and entrepreneurial capabilities among its students:Guest Speakers: Renowned guest speakers from all over the world have been invited to speak on various topics that • were invited to visit and have direct interaction with established entrepreneurs. • Extra Curricular Clubs: Student Affairs Division has already formed different clubs where it is mandatory for students to participate (at least 1 and at best 2). There are clubs of diverse interest groups, including business club where students can interact about their ideas on forming a new venture. • Student Government: Students of

Women Chamber of Commerce and Industries is such an organization, where students systematic channel for respectful, honest, and open communication between the student body and the Access Academy’s administration. It is also expected that student government will give students a direct role in educational and social opportunities, incorporating leadership qualities among them.

Conclusion: Entrepreneurship is a trend in the recent days for women all over the world. Women of the developing countries of South Asia are also keeping in pace with this trend. The general impression that educated women are not potential

Access Academy of Asian University for Women Government also formed direct Students election


among students. The purpose of this election is to create a structured and


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entrepreneurs, is changing. More educated women are being involved in entrepreneurship in the recent days. Education cannot be denied as a significant factor behind entrepreneurship. Entrepreneurship Education is a growing trend worldwide as a distinct field of education. Yet to be introduced with an equal emphasis in South Asia, it can be a highly potential field of study. AUW, being a unique university can be the pioneer in introducing and promoting

General education provides the confidence and the innovativeness for becoming an entrepreneur. However, entrepreneurs would be more efficient and succeed at a higher rate, if provided with education focused on entrepreneurship.

Entrepreneurship Education.

Ibid. Ibid

www.asian-university.org http://en.wikipedia.org/wiki/Entrepreneurship http://siteresources.worldbank.org/PGLP/Resources/En trepreneurship_Oct17.doc Understanding entrepreneurship: Developing indicators for international comparisons and assessments,

Ibid. Ibid. Ibid. http://www.123eng.com/forum/viewtopic.php?p=1830 4 State of World Population 2005: Journalists’ Press Kit [http://www.unfpa.org/swp/2005/presskit/factsheets/fac ts_gender.htm] http://en.wikipedia.org/wiki/Entrepreneurship_educatio n
Economist Intelligence Unit 2007. "Can business schools create entrepreneurs?" Which MBA, 17/04/2007

OECED, STD/CSTAT, 2006 The Global Entrepreneurship Monitor (GEM) 2006 Report on Women and Entrepreneurship, Babson College, and London Business School, 2007 OECD, Enhancing Women’s Market Access and Promoting Pro-poor Growth, Promoting Pro-Poor Growth, Private Sector Development, Chapter 5, 2006. DEVELOPING WOMEN ENTREPRENEURS IN SOUTH ASIA: ISSUES, INITIATIVES AND

[http://www.ictseminar.org/Netgrowth/ICTWorkshop/] Ibid. http://www.ediindia.org/ Ibid. http://www.emiindia.org/ http://www.safeer.info/index1.html

EXPERIENCES by ShaliniSinha Trade and Investment Division, UNESCAP, Bangkok, Thailand Copyright © UNESCAP 2005


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Management of Government Banking in The Third World country: a case study on Agricultural Bank-Problems and Remedies

Authors: Dr. Md. Nurul Alam Dr. Zahrurl Alam Mrs. Sharmeen Ahmed

Abstract Bangladesh Krishi Bank (BKB) consistently has pursued the policy of expansion and growth of branches. But it is advocated that its performance is not highly satisfactory. There might be many reasons behind it. Among them, the problems involved in management might be a major one which needs to be identified. This paper aims at identifying the problems involved in management at operative level of the BKB. The study reveals that BKB’s performances is plainly satisfactory but it is facing a lot of problems relating to management which are overdue loan, lack of investment opportunity, lengthy and cumbersome procedure in obtaining loan, competition with the non-government organizations (NGOs),lack of proper borrower selection, in- adequate legal authority in taking action against the defaulters, lack of co-operation from government officials, lack of supervision, economic crisis of the borrowers, loan remission culture, shortage of manpower, undue local political pressure and interference, lack of good communication, illegal interference by the superior officer and lack of cash holding capacity, etc. To improve the present performance of the BKB problems mentioned above should be removed and in this regard suggested recommendations may be accepted and implemented.

1.1 Introduction:


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Agriculture is the main stay of Bangladesh economy. About 20.80 percent of Gross Domestic Product (GDP) comes from agriculture and agro related industries (Bangladesh Bank Annual Report 2008-09, p. 195). More than 80percent of the total population of Bangladesh lives in the villages (Population Censes 1991) and a vast majority of them depend directly on agriculture and related activities for their livelihood. Besides, about 48.1 percent of the total labor forces of the country are engaged in agriculture (Bangladesh Economic Review, 2008, p. 83). These facts clearly emphasize the importance of agricultural sector in the economy of the country. But so far this important sector has been suffering from dearth of capacity both for development and for inputs. With the introduction of seed based technology in agriculture that requires more and more purchased inputs, the need for credit becomes more acute. But only about 25 percent of the requirement is being supplied by the institutional sources of credit (The Two Year Plan 1978-80, p.146). The vast majority of the farmers need credit to purchase agricultural inputs such as seeds, fertilizer, insecticides and irrigation and agricultural equipment. They need credit for payment of wages also. The transfer of traditional agriculture into modern high productive Bangladesh launched a special agricultural credit program in 1977 with a national target to disburse taka 100 crore. In addition to BKB, six Nationalized Commercial Banks (NCBs)

participated in the program. At present, the main sources of credit in agriculture are four State owned Commercial Banks (SCBs previous name NCBs) namely Sonali, Janata, Agrani and Rupali Bank, two specialized banks namely Bangladesh Krishi Bank and RajshahiKrishiUnnyan Bank (RKUB),

Bangladesh Samabaya Bank Ltd. (BSBL), and Bangladesh Rural Development Board (BRDB). BKB have the largest share in annual

disbursement of agricultural and rural credit. In FY 2009 BKB alone disbursed around 51.86% of the total disbursement ofagricultural credit

(Bangladesh Bank Annual Report 2009-10). Amongst the institutional sources mentioned above ,BKB’s overall importance in the financial sector can be understood by the fact that it covers about 60% of the total institutional loans extended to agriculture and related activities of the country ( GOB & The Would Bank 1983). Moreover, BKB plays an important role in mobilization of the country’s scattered savings and in creating employment opportunities for the unemployed people of the country. But it is advocated that the performance of the BKB is not highly satisfactory. The amount of its overdue loans is gradually increasing. There might be many causes contributing to this performance of the BKB. Among these, problems of management might be a major one. Many researches have been done on financial

agriculture increases the requirement of credit (The First Five Year Plan 173-78, p.169). The introduction of modern methods of agriculture has greatly increased the demand for credit.

Responding to the increasing demand for credit, in addition to the credit disbursed by the Bangladesh Krishi Bank (BKB) and the Bangladesh Samabaya Bank Ltd. (BSBL), the Government of

institutions covering performance, profitability


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and productivity. But there is a dearth of research attempting to interpret the problems of 1973, Bangladesh Bank (BB) annual reports of the BKB, Annual reports and annual consolidated statements of deposits, statement of loan

management. This gap of research stimulated the authors to undertake a study to know the problems of management of the BKB, more especially the problems of its operative level. It is expected that the findings of the study may help the concerned policy- makers to look into the aspect in its real perspective.

disbursement, statement of loan recovery and overdue loans prepared by BKB Chittagong Divisional Office. For the remaining objectives, data were collected from a carefully designed sample survey. For this purpose, first of all the BKB branches operating in Chittagong district were divided into three categories viz. higher,

1.2 Objectives of the Study The main objective of the present study is to identify the problems involved in management at operative level of the BKB. The specific objectives of the study are: i) To show the management pattern of the BKB; ii) To review the business scenario of the BKB; iii) To identify the problems involved in management at operation level of the BKB; and iv) To suggest some remedial actions to overcome the same.

medium and lower disbursement categories according to the amount of loan disbursement during the FY 2008-2009. Then it was planned to select a few BKB branches in the equal representation from all the categories having locational advantage for easy contact with the people. On the basis of these criteria, nineteen BKB branches comprising nearly 30% of the total branches located in Chittagong district was purposively selected. After selecting the branches, nineteen managers, nineteen second officers and nineteen field officers of the selected BKB branches were interviewed. All the managers, the second officers and the field officers of the selected nineteen branches were interviewed separately to know their independent views about their problems with the help of interview

1.3 Methodology of the Study The study is based upon the information collected from both primary and secondary sources. The data collected from secondary sources were required to fulfill the objectives of management pattern and business scenario of the BKB. The secondary data were collected by way of consulting various documents such as BKB Order

schedule. Every schedule contained both closed and open-end questions. During the interview, the authors themselves fill up the questionnaire. The data processing work included editing and manual tabulating of the surveyed data. Editing was done to ensure whether the interview schedules were fully and correctly completed and that the facts recorded were consistent with one another. The editing work was done by the authors themselves.


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Tabulation was done manually and simple statistical tools like mean, standard deviation, range and percentages were computed for analyzing the data making more meaningful to the readers. affairs and overall business operation and administration are vested with the Board of Directors. The Board of Directors consists of 11 members including chairman. BKB is authorized to perform normal banking functions such as accepting deposits, borrowing money, issuing and selling bonds/debentures etc. BKB is the second 2. BKB: An Overview 2.1 Legal Status & Nature of Business Bangladesh Krishi Bank (BKB) was established as a fully government owned bank under the Presidential Order No. 27 of 1973. It is infact, the successor of former Agricultural Development Bank of Pakistan (ADBP) that was established in 1961 by the merger of Agricultural Development Finance Corporation (ADFC) established in 1952 and Agricultural Bank of Pakistan (ABP) largest financial institution in Bangladesh which has 952 branches and 10078 employeesupto 31 March, 2010 throughout the country (Ibid). There are about 3188 thousand loanees throughout Bangladesh under different loan portfolios (BKB: Annual report 2008-09, p. 16). Available statistics indicate that loan provided by the BKB for different purposes increased from year to year and stood at Tk. 6955 core in 2010. BKB provides loans to individuals and corporate bodies related to production of crops, Purchase of irrigation machinery and agriculture equipment,

established in 1957. After liberation ADBP became Agricultural Development Bank of

development of horticulture, pisciculture and animal husbandry (Ibid, p. 37). In addition, BKB has launched a good number of special poverty alleviation and micro-credit programs, which

Bangladesh (ADBB) and subsequently renamed as the Bangladesh Krishi Bank in April, 1973. The vision of the BKB is to ensure real economic development of the country through providing necessary loan facilities to the farmers in developing and expanding agriculture and agrobased activities and to the entrepreneurs of agrobased and cottage and industries in order to of

include: credit program towards landless and marginal farmers, beef fattening program,

Shawnirvar credit program, development project for small farmers and landless labour, South Asian poverty alleviation program, UN capital

development program, employment generation project for village women, BKB-NGO microcredit program, poverty alleviation program through goat rearing, credit program for cow rearing of the women, special micro-credit program for the development of handicaps, microenterprise development for the monipuri credit program and special credit program for Rakhain



agricultural products and for strengthening rural economy. The authorized and paid up capital of the bank was Tk. 15,000 million and Tk. 9000 million respectively as on 31 March, 2010 (Activities of Bank and Financial Institutions 2009-10, p.213). The responsibility of the BKB


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community lived at Cox’s Bazar district (Ibid, p. 19). The principal activities of the BKB is to provide credit to landless persons and persons having lands who are engaged in agricultural and other income generating activities to help increase agricultural output and to remove poverty from the country by improving socio-economic iv)To assist farmers in adopting appropriate technologies under the bank’s supervision. v) To earn a normal profit for meeting the operational expenses. vi) To create employment opportunities for solving the problems of unemployment of the country.

conditions of the poor people and also accepting money on deposit, borrowing money for the purpose of the bank’s business from Bangladesh Bank (BB) and providing professional counsel to landless clients regarding investment in small trade and cottage industries.

2.3. Management Pattern of the BKB According to the BKB Order, 1973 (Presidential Order No. 27 of 1973), the responsibility of the BKB affairs and overall business operation and administration were vested with the Board of Directors. Initially the Board of Directors of the BKB consisted of 7 directors including the Managing Director as Chairman, four officials one each from the Ministry of Agriculture and Forest, the Ministry of Fisheries and livestock and the Bangladesh Bank and two non-officials nominated by the Ministry of Finance. In April, 1981 the government of Bangladesh decided to separate office of the Chairman and Managing Director to appoint a non official director as Chairman of the board whereas the managing director remained the chief executive of the bank. Accordingly the BKB Order, 1973 was amended. Now Board of Directors of the BKB consists of 11 members including the chairman.

2.2 Objectives of the BKB BKB was established to provide credit facilities to the farmers and persons engaged in cottage

industries with a view to increasing and improving both agricultural and industrial

production. In transacting its business, the bank acts on commercial consideration but gives preference to the credit needs of the small farmers. However, the main objectives of the BKB are:

i) To provide credit facilities and technical consultations to the persons who are engaged in agriculture and agro-based economic development by increasing national production. ii) To perform all the transactions including general transactions and raise saving to formulate capital of its own and to invest this capital for national progress. iii) To promote cottage and other allied industries in rural and urban areas.

BKB has adopted a three tier management for channeling credit at the rural area. The general outline of the system is: i) Top- level management- Head office


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ii) Mid level management-Divisional, chief regional and regional offices; and iii) Operative level management-Branch offices. The overall management of the top level is vested with the Board of Directors headed by the chairman. Board of Directors makes the policy and gives the guidelines in keeping pace with national policy set by the Ministry of Finance, government of Bangladesh and Bangladesh Bank. The Board delegates authority for the day to day management to the Managing Director of the bank. Managing Director is assisted by the Deputy Managing Director (DMD) and General Managers (GMs). For smooth operation of the activities in the Head Office, Secretariat and three divisions have been set-up, such as DMD Secretariat, Planning and Operation division, Administration division and Audit and Accounts division. Each division is headed by a G M. The mid level, i.e. Divisional offices, Chief regional offices and Regional offices which are headed by Divisional Manager (Rank of GM), Chief Regional Manager (Rank of DGM) and Regional Manager (Rank of AGM) respectively. They act as liaison officers between the Head Office and the branches. They co-ordinate and monitor the activities of the branches. 3.1 Deposit Performance of theBKB Deposit is the main source of fund for BKB. It keeps the pulse of the BKB on the track. In BKB such deposits are found to be of three typescurrent & other, savings and terms deposit. The deposit position of the branches of the BKB operating in Chittagong district from FY 2005-06 to FY 2009-10 is shown in Table # 1.
Table # 1: Deposit Collected by the Branches of the BKB during FY 2005-06 to FY 2009-10 FY Deposit (in croreTk) Increase(in core Tk) 2005-06 981 -Increase in % age ---

The management of the branches is the operative level management. A branch is headed by a

Branch Manager whose designation varies with the size of the branch. In fact, branches are categorized depending on size, importance, deposits, loans and advances. The branches are concerned with deposit collection, disbursement of loan, recovery of loan in line with the policies and decisions made by the top level management.

Analysis and Findings 3.0 Business Scenario of the BKB Deposit, loans and advances, recovery of loans and advances are the main segments of business of the BKB . Segment wise business of the BKB branches operating in Chittagong district from FY2005-06 to FY 2009-10 are examined here to evaluate the operational performance of the BKB.


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2006-07 2007-08 2008-09 2009-10 Total Mean Standard deviation Range 1095 1227 1354 1536 6193 1238.6 194.36 555 114 132 127 182 555 11.62 12.05 10.35 13.44

Source: Consolidated Deposit Statement Prepared by BKB Divisional Office, Ctg.

It is seen from the table 1 that the total deposit during the study period fluctuated between Tk. 981 crore to Tk. 1536 crore. The highest deposit of Tk. 1536 crore was in FY 2009-10 which was 13.44% higher than the previous FY 2008-09. Table 1 further reveals that during the mentioned period mean deposit of the branches was Tk.

194.36 crore and the range of deposit was estimated at Tk. 555 crore. In this connection, the authors may examine the actual deposit collection against the target deposit. Table 2 shows the picture: Table #2 Actual Deposit and Target Deposit of the Branches of the BKB during Fy 2005-06 to FY 2009-10.

1238.6 core with a standard deviation of Tk.




(in Targeted

deposit % achieved over target

crore Tk.) 2005-06 2006-07 2007-08 2008-09 2009-10 Total Average 981 1095 1227 1354 1536 6193 1238.6

(in crore Tk.) 1148 1282 1226 1203 1288 6147 1229.4 100.75 85.45 85.41 100.08 112.55 119.25

Source: BKB Divisional Office ,Ctg. From the table 2, it is evident that the deposit performance of the branches of the BKB operating in chittagong district is satisfactory. The percentage achieved over target deposit during the study period was 85.41% to 119.25% and the branches achieved their deposit target in the FY 2007-08, FY2008-09 and FY 2009-10 which was 100.08%, 112.55% and 119.25% respectively. The table also reveals that the average deposit rate over target was 100.75%.From this point of view,


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it can be said that the deposit performance of the BKB is satisfactory. BKB provides three types of loans short medium and long term loans. But the contribution of medium and long term loan is insignificant. The loan disbursement position of the branches of the 3.2 Loan Disbursement Performance of the BKB BKB operating in chittagong district from FY 2005-06 to FY 2009-10 is shown in table 3.

Table # 3 Disbursement of Loan by the BKB Branches during FY 2005-06 to FY 2009-10 FY Loan Disbursement (in Increase crore Tk.) 2005-06 2006-07 2007-08 2008-09 2009-10 Total Mean Standard deviation Range 471 472 521 634 879 2977 595.4 113.38 408 Source: Consolidated Loan Disbursement Statement prepared by BKB Divisional Office, Ctg. It is seen from the table 3 that loan disbursement by the branches of the BKB expresses that the standard deviation and range of loan disbursement during the study period was Tk. 113.38 crore and Tk. 408 crore respectively. In this connection, the authors wish to examine whether the branches of the BKB could achieve their loan disbursement target following croreTk) -01 49 113 245 (in Increase in % age --0.21 10.38 21.69 38.64

operating in chittagong district during the study period fluctuated between Tk. 471 crore to Tk. 879 crore. The highest disbursement of Tk. 879 crore was in FY 2009-10 which was 38.64 higher than the FY 2008-09. Data of table 3 also indicates that the rate of increase of loan disbursement during the period fluctuated

between 0.21% to 38.64% over the previous year and the average of loan disbursement was Tk. 595.4 crore. Moreover, the same table further


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Table 4 shows the picture: Table # 4 Actual Loan Disbursement and Target Loan Disbursement of the Branches of the BKB during FY 2005-06 to FY 2009-10.



Loan Targeted

Loan % achieved (in

disbursement (in disbursement crore Tk.) 2005-06 2006-07 2007-08 2008-09 2009-10 Total Average 471 472 521 634 879 2977 595.4 Crore Tk.) 428 498 515 556 683 2680 536

110.05 94.78 101.17 114.03 128.70


Source: BKB Divisional Office, Ctg. From the table 4, it is evident that the loan disbursement performance of the branches of the BKB operating in chittagong district is disbursement during the study period was between 94.78% to 128.70% and the branches achieved their disbursement target in each study period excluding FY 2006-07. The table also reveals that performance of loan disbursement in FY 2008-09 and FY 2009-10 is highly satisfactory.

satisfactory. The average rate of disbursement to target from FY 2005-06 to FY 2009-10 was 111.08%. The percentage achieved over target


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3.3 Loan Recovery Performance of the BKB Recovery of bank’s loan is the main source of reinvestable fund and business development of the bank. Loan discipline calls for recycling of loanable fund through timely recovery of loans extended earlier. Poor recovery performance affects adversely the liquidity position of the banks and increases their dependence on refinance facilities. Loan recovery position of the branches of the BKB operating in chittagong district during the FY 2005-06 to FY 2009-10 is shown in Table 5.

Table # 5 loan Recovery Position of the Branches of the BKB during FY 2005-06 to 2009-10. FY Loan recovery (in crore Increase Tk.) 2005-06 2006-07 2007-08 2008-09 2009-10 Total Average Standard deviation Range 405 481 481 639 935 2941 588.2 189.42 530 croreTk) -76 -158 296 (in Increase in % age -18.77 -32.85 46.32

Source: Consolidated Loan Recovery Statement Prepared by the BKB Divisional Office, Ctg.

It is seen from the table 5 that the loan recovery performance of the branches of the BKB

46.32% in FY 2009-10 compared respectively to FY 2007-08 and Fy 2008-09. Data of Table 5 also indicates that the average recovery was Tk. 588.2 core with a standard deviation of Tk.189.42 crore and the range of recovery was calculated at Tk.

operating in chittagong district during FY 2008-09 and FY 2009-10 is satisfactory. The increase rate of recovery was 32.85% in FY 2008-09 and


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530 crore. But the recovery performance of FY 2007-08 is not satisfactory. In this connection, the fulfillment of the recovery target of the branches of the BKB. Table 6 presents the same. authors may now examine the

Table# 6 Actual Recovery of Loans and Targeted Recovery of Loans of the Branches of the BKB During FY 2005-06 to FY 2009-10 FY Actual Loan Targeted (in Loan % age achieved crore over target

recovery (in crore recovery Tk.) 2005-06 2006-07 2007-08 2008-09 2009-10 Total Average 405 481 481 639 935 2941 588.20 Tk.) 264 324 388 389 584 1949 389.8

153.41 148.46 123.97 164.27 160.10


Source : BKB Divisional Office, Ctg. It is evident from the table 6 that the branches of the BKB operating in Chittagong district could achieve their recovery target under the study period. The percentage achieved over target was between 123.97% to 160.10% and the average recovery rate over target was 150.90%. From this point of view, it can be said that the recovery performance of the branches of the BKB is highly satisfactory if the information provided by the BKB divisional office are correct. Here the authors may now examine the position of overdue loans of the branches of the BKB from FY 200506 to FY 2009-10. Table 7 presents the picture


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Table #7 Overdue Loans of the Branches of the BKB. During FY 2005-06 to FY 2009-10 FY Overdue Loans (in Increase (in crore Increase in % age crore Tk.) 2005-06 2006-07 2007-08 2008-09 2009-10 840 864 958 1093 1209 Tk.) -24 94 135 116 -2.86 10.88 14.09 10.61

Source: Consolidate Recovery and Overdue Loans Statement Prepared by BKB Divisional Office, Ctg.

Table 7 reveals that the overdue loan of the branches of the BKB operating in Chittagong district increased from FY 2005-06 to FY 200809. During that time, the percentage increase of overdue loans fluctuated between 2.80% to 14.09%. But in FY 2009-10, the rate of increase of overdue loans declined which was 10.61%. From this picture it is clear that BKB is not able to 3.4 Net Profit Performance of the BKB Net profit refers to the excess of revenue over expenditure. It acts as the index of sustainability. Although BKB emphasizes on agricultural and rural development, profit is required to keep the financial viability and sustainability. Following Table 8 shows the net profit position of the branches of the BKB operating in Chittagong district during FY 2005-06 to FY 2009-10.

perform its loan recovery function efficiently though it achieved the recovery target. Increase of overdue loans will be the main problem on the way of achieving loan disbursement target and this will make loss of the BKB. This is not a good sign.

Table # 8 Net Profit Performance of the Branches of the BKB during FY 2005-06 to FY 2009-10. FY Net Profit earned (in Increase (in Increase in %


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crore Tk.) 2005-06 2006-07 2007-08 2008-09 2009-10 Total Average Standard deviation Range 63 82 110 131 148 534 106.8 31.07 85 Source: BKB Divisional Office, Ctg. Table 8 shows the year wise net profit of the branches of the BKB operating in Chittagong district from FY 2005-06 to FY 2009-10. It is evident from the table that during the period of 2005-06 to 2009-10 trend of net profit of the BKB increased. Net profit stood at Tk. 148 crore in FY 2009-10. While in FY 2005-06, it was Tk. 63 crore and average increase of net profit was 15.92%. Table 8 also indicates that the average net profit figure was Tk. 106.8 crore with a standard deviation of Tk. 31.07 crore and the range of net profit was calculated at Tk. 85 crore. This picture indicates the good profit performance of the branches of the BKB operating in Chittagong district. Lack of investment opportunity is another problem in loan disbursement of the BKB. Term loans provided by the bank are security based. Any borrower intending to obtain term loan must produce evidence of land ownership in the form of mutation receipt, partition deed and up to date rent receipt. But collection of such documents is cumbersome and costly. As such no new entrepreneur comes forward for term loans and as a result, loan disbursement target is not achieved. 4.0. Problems of Management of the BKB 4.1. Problems Associated with Loan This is reported by 53 percent of the respondents (Vide Table 1 of appendix). disbursement. Because defaulters are not eligible for fresh loan. Besides, the recovery rate of overdue loan is not satisfactory and as such the bank refrains from sanctioning loan. This is considered as a serious problem by 100 percent of the respondents. (Vide Table 1 of appendix) croreTk) -19 28 21 17 85 17 15.92 age -30.16 34.15 19.09 12.98

Disbursement  Overdue loan is the number one problem associated with loan disbursement of the BKB. Due to overdue loan, it is very difficult for the bank to fulfill the target of loan disbursement. Overdue loan reduces the scope for further  Lengthy and cumbersome procedure in obtaining term loan isanother problem in loan disbursement. A borrower intending to take loans, especially term loan, has to offer collateral


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security in the form of clear title of land or building which is readily marketable. But very often it is very difficult to produce such collateral timely. In a system of joint families land is often held jointly. Loan agreement requires that each of the joint owners signs the agreement or else a partition deed with mutation of the record of rights is produced. This is by itself a lengthy and cumbersome procedure requiring repeated visits to the office of the assistant commissioner (AC) land. In addition, a rent receipt showing up to date payment of land revenue is required and for this the borrower has to go to land revenue office. As such, the borrower takes much time to get loan and subsequently the bank can not fulfill its loan disbursement target, (This is another cause identified by 100 percent of the respondents (Vide Table 1 of appendix).  Competition with the non-government organizations (NGOs) is another problem in loan disbursement. NGOs lending procedure is easier than the BKB. According to the BKBs managerial people, majority of the landless and marginal farmers being illiterate, ignorant and little informed do not take trouble to come to bank to follow certain formalities. They are so much shy that they do not want to talk face to face with the officials and the staff of the bank. Due to shortage of manpower, the bank can not communicate with tem from time to time. But the NGOs have got sufficient skilled and trained manpower who always keep communication with the poor marginal and landless farmers and also with the women. As a result, the BKBs landless and marginal farmers credit program, and also swanirvar (self-reliant) credit program do not become significantly effective. And this is also a hindrance to achieve the target of loan

disbursement. This is another problem identified by 21 percent of the respondents (Vide Table 1 of appendix). 4.2Problems Associated with Loan Recovery Proper borrower selection is also a problem in loan recovery of the BKB. Selection of borrower is a very important factor. During the time of borrower selection, lending institutions need to examine the credit worthiness of the borrower in details. In many cases, due to shortage of field staff or due to shortage of time, the BKB cannot study the credit worthiness of the borrowers. As a result, the loan provided by the BKB goes to the false people of the rural area. The false people are known as ‘tout’ and they never repay the loan. Touts are reportedly in the shelter of the local political leaders of the different political parties of the country. This is why, the BKB is not able to recover loan from them. 26 percent of the respondents expressed this view (Vide Table 2of appendix)  Lack of power in taking drastic or appropriate legal actions against the defaulters is one of the major problems in loan recovery. Allocation of resources in rural area is essentially a political function. It assumes greater significance in the context of Bangladesh which forces successive Government to keep the rural voters happy. Each Government of Bangladesh has used the BKB as a political instrument. But they do not co-operate strongly to recover of loan. Besides, due to social stigma as well as because of the unduly long


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process and long time legal actions hardly produce any concrete result. All these have tended to increase the cost of loan of the BKB. Furthermore disposal of certificate cases (cases filed under public Demand Recovery Act, 1913) takes a long time because of inadequate man power in the courts. Cases legend the due date of repayment of loan. As a result, the branch managers of the BKB are discouraged to take strong legal action against the defaulters due to want of full co-operation from the Government. 63 percent of the respondents expressed this view (Vide Table 2 of appendix)  Lack of co-operation from Government officials is also a problem in loan recovery. Cooperation from the Government officials is helpful to have a good recovery of loan. But the Government officials have no directives from the Government to help BKB if required. Most of the Government officials do not extend help to BKB. 47 percent respondents stated this opinion (Vide Table 2of appendix).  Lack of supervision is a general problem on the way of loan recovery. Monitoring, supervision and control of loan in every stage of loan management is an important and very essential factor to ensure the proper utilization of loan. If the utilization is not supervised, the loans tend to use the loan for immediate consumption purposes. When the loan is not invested in incomegenerating activities, the borrowers cannot repay it and become defaulters. 39 percent respondents expressed this view (Vide Table 2 of appendix). Loan remission culture is also a bar in recovery of loan. Each Government of Economic crisis of the borrowers appears to be a crucial problem. Almost every year flood, cyclone and tidal-bore breaks out in the country. This natural calamities damage crops of the fields and floats away the cattle and various agricultural implements of the peasants. As a result, the loanee peasants suffer from economic crisis and can not repay the loan in due time. Not only this, in many time, loanee peasants do not get reasonable price of the goods produced by them. Sometimes, the sale proceeds of the goods is less than that of the cost spent behind them. As such, they are compelled to consume the sale proceeds and can not pay off their debts of the BKB. 32 percent respondents stated this opinion (Vide Table 2 of appendix).

Bangladesh wanted to keep the rural voters happy. They did it to adopt a liberal policy for agricultural credit and to declare write off and remission of loan including interest. So, in many times the Government of Bangladesh declared that loan up to a certain level need not be paid due to flood. In the year 2007 the Government has also directed the BKB for stopping loan recovery activities in flood affected area. This type of declaration and direction by the Government breaks the loan recovery discipline. Loanees think that loan would not be repaid. They also think that it is a grant from the Government. 38 percent respondents stated this opinion (Vide Table 2 of appendix).


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branch. 32 percent of the respondents stated this 4.3Other Problems The Branch Managers of the BKB encounter some other problems and difficulties in running their affairs smoothly and efficiently. These have direct impact on the overall efficiency of the operative level management of the BKB. Some relevant information regarding this respect are:  Shortage of manpower is the main problem in managing the affairs of the branch. Volume of work to be done is more than the capacity of the existing manpower. (100 percent of the Illegal interference by the superior officer causes difficulty in running the day to day affairs of the branch. Some superior officers of the BKB are dishonest. They always try to earn in addition to their monthly salary through exercise their power on the subordinate officers. As a result, they generally come forward for recommending loans to the influential political leaders. Not only this, they press the bank staff not to recovery loan from them. As such, the Branch Manager falls in difficulties in running the affairs of the branch. 5 percent of the respondents stated this view (Vide Table-3 of appendix).  Lack of cash holding capacity exceeding Tk. one lakh and want of cash save volt are also problem for a Branch Manager. It has become very difficult to arrange deposit from the solvent parties due to inability of honoring cheque on demand. It is important to note that this problem was stated by the Managers of the BKB branches which are located in coastal area and these were the union level branches. 32 percent of the respondents stated this view (Vide Table-3 of appendix). view (Vide Table-3 of appendix).

respondents expressed this problem Table#3). Local political pressure and interference is agreat problem. The nature of interferences are as follows:(a) creating barrier in selection of loanees; (b) creating hindrance in recovery of loan from the influential defaulters; and (c) compelling the Branch Manager for providing loans to those who are not eligible. In addition, local power structure is to be satisfied; otherwise, it is really very difficult to work smoothly. 37 percent of the respondents stated this view (Vide Table 3 of appendix) Lack of good communication is another crucial problem in managing the affairs of the branch, especially in the island area. Due to lack of good communication facilities the Branch Managers and the staff of the BKB can not keep communication with their loanees regularly. They are to go to the field on foot or by rickshaw. This is also expensive and troublesome. This problem hampers the recovery performance which has direct impact on the overall efficiency of the

5. Suggested Recommendations On the basis of previous discussions the following recommendations are suggested for solving the revealed problems and improvement of BKB management in Bangladesh. Due to shortage of manpower, the work of supervision is not being properly done. It


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is recommended that more manpower should be recruited and posted so that the investigation of each fresh loan case can be done timely and rightly. In addition, end-use of the old loan cases can be ensured by them. In short, the writers propose that the whole credit system of the BKB be made a system of supervised credit which will help check the diversion of use. Supervised credit is a must in financing the rural poor. Without close supervision, the rural poor may not be able to return the money to the bank. Supervision and follow-up ensures of collateral and make loan-giving

procedure more flexible. A large number of rural populations have no collateral security to offer for taking loan. This group comprising landless and land-poor (marginal farmers) has been kept mostly outside the reach of the bank on the mercy of moneylenders. But uniform socio-economic development of the country cannot be expected unless these groups are taken care of by the institutional sources of credit. It is recommended that these landless and land-poor classes should be given loan by the BKB without taking any collateral security. Policy of loan remission by the

adequate and timely credit for specific purposes and the use of funds for the purposes for which they are granted. Effective supervision prevents miss-use of funds and keeps the borrowers aware of their obligations. Procedural complexities of lending are slowing the flow of term loan to the rural people. Bureaucratic and complicated lending procedures are eliminated so that they are more attractive and accessible to the rural people. BKB does not provide term loan without collateral. But

Government of Bangladesh should be stopped. Remission of loan adversely affects the repaying habit of the

borrowers. It breaks down the discipline of loan recovery. Borrowers think that loan received from the BKB will not be repaid. It is a grant or relief from the Government. All types of trade union activities should be banned from the BKB. Trade union is not good for an organization. It disturbs the management and creates problems. Notices should be served in time. To remind the borrowers in time, demand notices should be issued at least one month ahead of the loans becoming due from them. Personal contract should always continue to ensure recovery of the

collection of collateral is very difficult. This difficulty drives many formal

borrowers to the moneylenders and compels them to contract loans at a high cost. As a result, amount of term loan disbursed by the BKB has been reduced. For increasing the amount of term loan disbursement, it is suggested that the BKB should minimize the requirements


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loans. Besides, legal notices, special notices etc. are to be issued in due course. Defaulter list should be prepared within July each year and kept up to date to facilitate making personal contact, proper monitoring and follow-up. This list should be sent to the UpazilaNirbahi Officer (UNO) requesting his help and cooperation for recovery of loans from the defaulting borrowers. It is recommended that the BKB officials should maintain constant liaison with the UNO and convince him of the importance of timely recovery of loans and recycling of the fund for carrying out lending activities by the bank. Co-operation of local Government Target of sector-wise loan disbursement be fixed giving appropriate weight to the opinion of the Branch Manager concerned for achieving sector-wise loan

disbursement target. The traveling allowance rate be increased for encouraging the BKB officers and staff to go to tour frequently which will help improve loan disbursement and recovery position. Monitoring, supervision and follow-up are essential to ensure proper use and better recovery of loan. It is suggested that close supervision and follow-up should be made compulsory by the BKB to ensure proper use and better recovery of loan. Field staff should be given promotion within reasonable time to make them sincere and serious in performing their duties.

officials is required to recover loan in time. This involves some costs. But the Branch Manager cannot entertain them even with a cup of tea officially as there is no provision for “Entertainment

Concluding Remarks: BKB is a significant financial institution in agricultural and rural credit of Bangladesh. It is making positive contribution towards agricultural development of the country. Through mobilizing resources from the population of different socioeconomic strata, BKB meeting the growing needs in agricultural and rural credit. The study revealed that collection of deposit, loan disbursement and loan recovery of the organization increased from year to year. But it cannot exercise its due part in this regard because of several managerial

Allowance”. It is recommended that Entertainment allowance of the Branch Manager be introduced which will help getting co-operation from the government officials. Repayment position of the loanees are not so good. For better repayment, it is recommended that loanees should be rewarded through paying further more interest rate rebate and offering access to larger further loans for timely repayment and penalized through foreclosure and denial of future access to loans for defaulting.

problems as focused in this study. In the light of the focused problems some concrete

recommendations have been suggested. It is


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expected that if these recommendations are implemented, the managerial problems will be resolved and the effectiveness and efficiency of the BKB will be significantly improved in near future.
Prepared by BKB Divisional Office, ctg(2005-06 to 2009-10) Ahmed, J.U. &Hossain, M.K “Achievement Dynamics of the BKB: An Analysis of Basic Variables And their Projections” , Finance and Banking , Volume 1, number 1, 1991 Ali A.M.M Shawkat, Agricultural Credit in

Government of the People’s Republic of Bangladesh, Bangladesh Population Census (1991), Dhaka: BBS, December 1972 Government of the People’s Republic of Bangladesh, Bangladesh EconomicReview (2008), Dhaka : Ministry of Finance, March 2009 Government of the People’s Republic of Bangladesh, The First Five Year Plan, (1973-1978) Dhaka: Planning Commission,1973 Government of the People’s Republic of Bangladesh, Activities of bank and financial institutions (20082009), Dhaka: Ministry of finance, 2009 Government of the People’s Republic of Bangladesh, The Two Year Plan (1978-80),Dhaka: Planning Commission,1978 Alam, Md. Nurul,(2003), “Practical Management Scenario of Rural Finance: A Study of the Bangladesh Krishi Bank in Greater Chittagong unpublished Ph. D. Thesis, District”, An University of

Bangladesh, PIB Press, 3 Circuit House Road, Dhaka, April 1990 Roy, Mihir Kumar and others, “Role of Banks and rural Developments A Study of Some Rural Branches in Comilla”, BARD,KotbariComilla, June 1998 Rahaman, A.H.M.Habibur,” Performance of Small Industry Credit Programmes in Bangladesh” Finance and Banking , Journal of Fianace and Banking Department , University of Dhaka, Vol, 2 No, 2, Dec. 1992

ChittagongBangladesh Bank Annual Reports (different issues) Bangladesh Krishi Bank Annual Reports (different issues) BKB Order, 1973 Annual Consolidated Statements of Deposits ,Loan Disbursement, Loan Recovery and Overdue Loans


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Appendix Table 1 Problems Associated with Loan Disbursement Problems 1.Overdue loans 2.Lack of investment opportunity 3.Lengthy & cumbersome procedure 4.Competition with the non-government organizations Source: Field Survey Frequency 38 20 38 08 Percentage 100 53 100 21

Table 2 Problems

Problems Associated with Loan Recovery Frequency 10 Percentage 26 63

1.Lack of proper borrower selection

2.Lack of strong legal action taking power against the 24 defaulters 3.Lack of co-operation from Government officials 4.Lack of supervision 5.Economic crisis of the borrowers 6.Loan remission culture Source: Field Survey 18 15 12 38

47 39 32 100


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Table 3 Other Problems Associated with Operative Level Management Problems 1.Shortage of manpower 2.Local political pressure and interference 3.Lack of good communication 4.Illegal interference by the superior officer 5.Lack of cash holding capacity Source: Field Survey Frequency 19 07 06 01 06 Percentage 100 37 32 05 32


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Assessment of Gap of Consumers’ right in Real Life: An Empirical study

Author: Kosir Alam

Abstract: The right to information is a fundamental consumer value. Followingthe advent of health warnings, the tobacco industry has repeatedlyasserted that smokers are fully informed of the risks they take,while evidence demonstrates widespread superficial levels ofawareness and understanding. There remains much that tobaccocompanies could do to fulfill their responsibilities to informsmokers. We explore issues involved in the meaning of "adequatelyinformed" smoking and discuss some of the key policy and

regulatoryimplications. We use the idea of a smoker-licensing scheme—underwhich it would be illegal to sell to smokers who had not demonstratedan adequate level of awareness—as a device to exploresome of these issues. We also explore some of the difficultiesthat addiction poses for the notion that smokers might evervoluntarily assume the risks of smoking.

Introduction The right to information is a core platform of consumer rights.Obligations to provide

by products fall mainly upon manufacturers, and thefailure to provide information is a common basis of legal liability.This failure may take the form of positively misleading or

information to consumers about the riskscreated

deceptiveconduct or misleading or deceiving


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through a combination ofpositive acts and silence, such as where a manufacturer failsto disclose information where a consumer would have a "reasonableexpectation" that, if the manufacturer knew some informationlikely to be seen as important to a consumer, the to two thirds of long term users oftobacco will die from a tobacco caused disease.Tobacco thusconstitutes a prima facie example of a consumer good for whichit is imperative that questions about the communication of

riskinformation be considered. As we will argue, there is a huge disparity between what isknown from epidemiological research about the range, extent,and probability of tobacco’s harm to users, and both

manufacturerwould disclose it (see, for example, Demagogue Pty Ltd v Ramensky). No person can be reasonably expected to have a full appreciationof all the risks they face in every behavior or in every circumstancein which they may find themselves. For similarly obvious reasons,the law never requires a manufacturer to disclose every conceivablerisk that a product might ever create in any circumstance.

thecommunication of these harms to consumers and smokers’understandings of these harmful characteristics. The propositionthat most

smokers are fully or even adequately informed aboutthe risks they take is false. Governments regularly impose restrictions and conditions ofuse on goods and services when unrestricted use or provisionmay cause

Generallythough, the obligation is to provide "adequate" informationor warnings. As often occurs in law, "adequacy" is an

impreciseconcept that has to be determined in the context of all relevantcircumstances.

unacceptable levels of harm to either users or thoseexposed to the use of the product or provision of the service.This is more often the case when the harms rather caused than are

Relevant questions include whether warnings bringclearly and emphatically to the mind of a consumer the risksassociated with use; whether they refer to specific risks; andwhether they are sufficiently clear or explicit. As a matterof general legal principle, the greater the magnitude of a risk(that is, the more likely that the adverse outcome will occur),and the more severe the consequences if the risk materializes,the more important is the obligation to disclose. Globally each year, tobacco products, when used as intendedby their manufacturers, cause the death of (currently) somefive million people. Up



("unhealthy"), the lattertypically requiring many years to be expressed as illness.

Restrictionsimplemented through registration and licensing are imposed onmanufacturers of consumer theirusers, products, firearms, motor vehicles and and the


performance of dangerouswork. Governments restrict access to or performance of

certainoccupations (for example, certification of competence to performelectrical work, building,


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plumbing, medical and dental procedures)and require formal assessment of medical need for access toproducts (access to addictive drugs such as morphine derivatives).For a product that causes such immense death and disease, thesale of, and access to, tobacco remains minimally regulated. In this paper we first examine the notion of what a "fully oradequately informed" smoker might mean. We then consider theobligations of tobacco manufacturers to inform consumers aboutthe risks of tobacco use and compare these with current practice.We then examine the idea of a system of smoker licensing basedon smokers being able to demonstrate that they are in fact "adequatelyinformed" about the risks of smoking. We are not necessarilyproposing such a system, but we find it a useful device throughwhich to explore some of the major policy questions that arisein debates about whether smokers are informed. We then exploresome of the difficulties that addiction, initiation education in childhood,and for the inequalities notion in that legislationto do so, the cloud had a big silver lining, allowing the globalindustry to adopt the position that all smokers were henceforth"fully informed". For example, the Tobacco Institute of Australiatold the Australian Senate in 1995: "The tobacco industry believesthat people who smoke do so fully informed of the reported healthrisks of smoking. ...If the public is adequately informed thenthe necessity or logic of further government intervention mustbe questioned." However, the core assumption of the industry’sposition has not been sufficiently interrogated: just what isa "fully or adequately informed smoker"? Moreover, if the conceptof the fully informed smoker is seen as critical to policy aboutthe obligations of manufacturers and the responsibilities ofgovernment, it follows that we should also ask whether it is,or should be, legal to sell tobacco to an "inadequately informedsmoker". To our knowledge, the assumption about being able to bettermake an informed choice when attaining adulthood has never beenmade explicit in sales to minors laws. However, legal proscriptionson children voting, being


smokers,understanding the risks of smoking, voluntarily assume them.We draw our examples mainly from Australia.

conscripted into military service,gambling, and entering legal contracts and on selling tobaccoto children are in part based on the premise that children aretoo intellectually immature to be

The tobacco industry has long acted to avoid, dilute, and delaythe introduction of health warnings on packs, particularly whenthese concern specific diseases. When it was forced by

able to make informed decisionsabout matters where they might be exploited or suffer harm.Adulthood, and its legal rights and responsibilities, carriesassumptions about


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individuals being able to reasonably otherwidely circulated information about

comprehendrisks and make informed choices. But such an assumption deservesscrutiny against what is known about smokers’ understandingsof the risks they face. There are at least four important consequences for both thetobacco industry and public health policy if the "smokers arefully or adequately informed" argument is accepted

smoking and health, andtherefore smokers should bear all responsibility for decidingto take these risks. Evidence that the community is "saturated"with information about illnesses said to be caused by smokingand the addictive nature of nicotine (see below) is criticalto such a defence, although remaining vulnerable to evidenceabout conduct the industry’s to dissembling

uncritically.First, it allows the tobacco industry to resist future reformof pack warnings. As Philip Morris’ international CEOwrote to an Australian political leader in 1992



confidence in the warnings, the reassuring messagesit has sent, and continues to send, to smokers and potentialsmokers through its advertising including alluring packs

"Australiansare aware of the warnings against smoking – one wouldhave to be asleep in a cave for twenty years not to be aware– and a change in the existing pack warnings is thus

designs,deliberate product manipulation, and the significance of addiction. The fourth area of relevance is concerned with arguments aboutthe costs and benefits of tobacco use to national economies.Industry commissioned economic reports often assume Viscusi’s"rational addiction" precepts about significant awarenessof health risks as a basis for arguing that the money outlaidby all smokers should be considered as an economic

unnecessary". Second, it allows the tobacco industry to resist other regulatoryreforms, such as those dealing with advertising and promotion,product

availability (where products can be sold), packagingdesign, or taxation. The Tobacco Institute of Australia’sline that "if the public is adequately informed then the necessityor logic of further government intervention must be questioned"can be expected to be deployed in each of these contexts. Third, the cornerstone of the industry’s defence to litigationin most cases brought by dying smokers has been that smokersare aware of the risks they take, via pack warnings and

benefit,thereby allowing the "benefits" side of national cost/benefitledgers to be boosted


Rationale of the study: Since it is difficult for the consumer to know the quality of the products and services in the market, the gap exists all the time. Hence,


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through some literature review consumers Literature Review:

right and the gap in between is identified in order to find out some way to overcome it. Buyers all over the world irrespective of whether they belong to the developed or developing regions have now become more value conscious and respond only to those marketing stimuli which hold out credible assurance pertaining to the optimal satisfaction of their wants. Attempts have been made by the western consumers to establish their rights by launching a movement called ‘consumerism’.

WHAT IS A "FULLY OR ADEQUATELY INFORMED" SMOKER? Four levels of being "informed" about the risks of smoking canbe distinguished: Level 1: having heard that smoking increases health risks At the most elementary level, one can ask whether an individualhas ever heard that smoking is a threat to "health" in its widestsense.

Objectives of this Study: • • To identify Consumer right Finding out the Gap of consumer right

Such people might be said to be "aware" that smokingis said to be harmful. Today, this level of awareness is veryhigh in nearly all nations and sub-populations, and it is tothat which the tobacco industry invariably refers when it talksabout almost saturation levels of awareness.

Methodology: The methodology of this study is based on experience gained during the period of the Study and from Internet. Secondary data were used from: Books, Internet, Journals, Class lectures.

Evaluation of recentAustralian quit campaigns, which highlight the harms of smoking,suggests over 88% awareness of the campaigns. Level 2: being aware that specific diseases are caused Level 1 by awareness often smoking involves little

understanding of whichparticular diseases are caused by smoking, while level 2

awarenessinvolves knowing that smoking can cause particular diseaseslike lung cancer and emphysema. Level 2 awareness in populationsis generally much lower than that for level 1. For example,in one Australian study, only 54% of smokers mentioned lungcancer, unprompted, as


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a smoking related illness, though thespecific warning had already appeared on packs for several years.While cigarette smoking has been found to increase the riskof developing many different illnesses, most smokers in Level 3: accurately appreciating the meaning, severity, and probabilities of developing tobacco related diseases Being aware of claims that smoking causes particular diseasesmay not involve an individual having even rudimentary awarenessor early. Here, information may make the

differencebetween survival and death.

developedcountries with histories of tobacco control can name only afew illnesses when given the opportunity in surveys to nameas many diseases caused by smoking as they can, suggesting thatmany of the health risks are either unknown or not particularlysalient. Here important questions arise as to how many, and which, diseasesa person should be aware of before being said to be adequately"aware" of the full range of risks engendered by smoking. InAustralia, there are six different health consequences namedon current pack warnings and awareness of these among smokersremains high, yet a 2002 US Surgeon General review and InternationalAgency for Research in Cancer (IARC) declarations about smoking’srelation to disease found 26 other diseases not covered by thesix warnings. Informed decision making and self regardingbehaviour seem impossible

understanding of what these diseases mean. For example, fewsmokers are likely to actually know what emphysema is, how itperforates lung tissue, and what the quality of the day-to-daylife of someone living with emphysema is like. Similarly, fewwould have seen a person (or even a photograph of a person)suffering from gangrene caused by advanced peripheral

vasculardisease caused by smoking, and so would have a poorly developedsense of the hideous nature of gangrene. Similarly important is an understanding of the severity of smokingcaused disease, the

likelihood of surviving five years afterdiagnosis, the probabilities of contracting various

without knowledge of many conditionsthat have not been the subject of health warnings. For example,conditions caused or exacerbated by smoking such as blindness,reduced fertility, deafness, and and impotence life substantially Other

diseases,or the relative risk of contracting a smoking caused diseasewhen compared to other risks of life that people would rankas important. For example, when shown a list of possible causesof death which included car accidents, alcohol, asbestos, andpoor diet and asked to indicate the one they were most likelyto die from, only one third of smokers in an Australian studyidentified smoking, despite it being by far the greatest healthhazard they faced on the list.



conditions, such as bladdercancer and colorectal cancer,17 could potentially be treatedif detected


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A considerable proportion ofsmokers (28%) thought they were most likely to die from a caraccident and 6% thought they would die from "toxic chemicals".Borland has shown that a majority of Australian smokers underestimatethe risks of smoking. Weinstein, Marcus, and Moser stated:"Smokers underestimate their risk of lung cancer both relativeto other smokers and to nonsmokers and demonstrate other own health. Weinstein’sreview of international evidence on smokers’ recognitionof

vulnerability to harm concludes: "smokers do acknowledgesome risk; nevertheless they

minimize the size of that riskand show a clear tendency to believe that the risk applies moreto other smokers than themselves... People may be quite awareof well-publicised risks and may even overestimate their numericalprobability, but they still resist the idea that risks are personallyrelevant." In principle, an adequately informed smoker would be one whowas able to demonstrate specified levels of awareness and

misunderstandingsof smoking risks. Smoking cannot be interpreted as a choicemade in the presence of full information about the

potentialharm." A comprehensive list of such studies can be found inthe Canadian Cancer Society publication (commencing at page231). Such studies indicate that many smokers have a poor understandingof the risks smoking poses to their health. Additionally, giventhat most harms from smoking occur later in a smoker’slifetime, becoming manifest after often decades of use, specialchallenges arise in communicating the lifetime probability ofacquiring such diseases. Level 4: personally accepting that the risks inherent in levels 1–3 apply to one’s own risk of contracting as such diseases but may Individuals may have appreciable levels of awareness describedabove,

understandingof levels 2 and 3 information, and who believed that their ownsmoking was likely to pose significant risks to their health(level 4). However, operationalising what these agreed levelsof understanding should be and how we would agree that adequatelevels of

understanding had been demonstrated present largechallenges. Nevertheless, the difficulties presented by operationalisingthese challenges should not preclude them being subjected toserious consideration, drawing on the

considerable body of evidenceassembled by experts in the visual communication of risk andparticularly work undertaken in Canadaand Australia inthe development of more salient health warnings. Level 2 awareness would require agreement on which diseasessmokers should reasonably be expected to know were increasedin risk by

nonetheless mediate these through various selfexempting beliefs (for example, "everything causes cancer thesedays") that effectively allow for the rationalisation of continuedsmoking. Level 4 awareness involves smokers agreeing thattheir smoking poses significant risk to their


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smoking. The conclusions of regular reviews by agenciessuch as the Centers for Disease Control, the US Surgeon General,and the IARC could provide a starting point here. Just as driversin most nations must pass a detailed knowledge test about rulesand road signs, and licensed firearm owners in Australia mustpass a knowledge test about firearm safety, it might be possibleto construct a test to establish an agreed acceptable levelof awareness. Driving tests do not test probabilities of harmfrom vehicle travel, but such a difference need not precludethe testing of such understanding in a possible "smoker’stest". Establishing levels 3 and 4 awareness via such a smoker’stest would pose many more difficulties. Debates about whethersmokers are adequately informed of the risks, and what the legaland regulatory consequences of the answers to these questionsmight be, need to be informed by evidence of actual, and nothypothesised, human behaviour. Cognitive psychology researchtells us much about how people process information, form preferences,and make judgments and decisions. People use heuristics, orrules of thumb, to negotiate complexity. They "suffer from variousbiases and aversions that can lead to inaccurate perceptions".Legal and regulatory scholars have begun to engage with "law and economics" thinking,as exploring "the implications of actual (not hypothesized)human behavior for the law. How do "real people" differ fromhomo economicus?" The ideas that we are exploring here recognise that what peopleunderstand and what

information is thought, at a general level,to be "out there", can be very different things. It acknowledgesalso that the presentation of information is highly consequentialfor risk perception and judgments of risk saliency and thatthere is no "neutral" way of simply presenting information aboutthe risks of

smoking or (say) those of road deaths. Informationcan be presented in bland ways that will be unlikely to cutthrough the myriad other messages that compete for attentionin the "marketplace" of ideas. Or it can be presented in powerfuland salient ways, intentionally designed and pre-tested withtarget audiences to increase message saliency. As Tversky reminds us "Alternative descriptions of the samechoice problems lead to

systematically different preferences;strategically equivalent elicitation procedures give rise todifferent choices; and the preference between x and y oftendepends on the choice set within which they are embedded."Could a test examine what individual smokers actually

thesefindings and understand their significance in their own fields.For example, Jollset al describe the task of "behavioural lawand economics", a newer school of thought that challenges manyof the assumptions of traditional

understand?Such considerations as those above suggest that the ambitionto develop standardised tests of level 3 and 4 awareness wouldgenerally be very difficult, necessitating a major period


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ofresearch designed to explore the dynamics of smokers’risk heuristics. Nonetheless, we believe the sheer, enduring scale of the globaltobacco epidemic should inspire governments to invest researchand development effort into exploring possibilities here. Theregulation of consumer information, including through pack warnings,should be based on such research, rather than on insufficientlytested assertions about consumer awareness. TOBACCO INDUSTRY’S CURRENT health warnings in Australia, the industry could voluntarilyadd new warnings to packs whenever scientific consensus wasdeclared via major agency reports like those of the IARC. Itcould run public awareness campaigns citing these new findings(authorised and vetted by health authorities) and place websiteaddresses on packs linking to the reports rather than trustsmokers to discover these for themselves. It is not throughlack of its own awareness that the industry fails to warn smokersabout emerging new risks. Industry documents on the Master SettlementAgreement websites contain many thousands of examples of publicdomain


scientific papers on health effects that have been inthe industry’s possession often for decades. In The tobacco industry’s past and current practice in communicatingwith its customers about health risks can be characterised asdoing as little as possible, as slowly as possible, in as lowa key as possible. As revealed in industry documents, the industryfully appreciates that packs are the premier site for communicatingwith any case,even if it did not monitor developing information, lack of awarenessought to be no defence. The manufacturer that buries its headin the sand is hardly less culpable than the manufacturer thatdeliberately withholds

information—the law recognisesthis through its notion of "willful blindness". The industryhas a continuing responsibility to inform itself, and to act. In Australia, tobacco companies voluntarily publish additiveand emissions data on websites, although the ubiquitous useof the non-specific catch all term "processing aids" allowsthem to conceal information about any ingredient they

smokers.Yet the industry in Australia has never initiatedany form of communication with

smokers about health risks viapacks. Instead, it defers to government requirements on

healthwarnings, waits for government reforming initiatives, and thenseeks to delay and dilute the proposed changes. There is much more that the industry could do to inform smokersboth via packs and through other means. Rather than wait outthe 10 year cycles that have characterised three new generationsof

wish notto reveal to consumers. However, as they are not publicisedby the industry or listed on cigarette packs, very few smokerswould be


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aware of these sites, nor capable of of This would record all purchases and not permitsales unless recorded against a licence. Purchasing limits inthe smart card (say two packets per day maximum) could preventlarge scale purchasing of cigarettes by licensed smokers forselling on to unlicensed smokers (particularly youth). Further,governments could experiment with financial incentives to




product inhalation. Again, theindustry could declare all the ingredients such it as uses in



chemistry and any nicotine analogues,explain why it uses them and how they affect addiction, andinform consumers that no information is available about thehealth effects on humans of inhaling the combusted ingredientsit adds to tobacco. LICENSING SMOKERS The tobacco industry commonly asserts that it wishes to sellits products only to informed adults. We have cited examplesof research demonstrating that large proportions of adult smokersare poorly informed about the risks they are taking and thatthe tobacco industry currently does little to try and rectifythis. However, the industry accepts, at least as a matter ofpublic rhetoric that it is not legitimate to sell to the uninformed.Further, it is inconceivable that it would try to make a virtueout of selling to the ill informed, so opposing the principleof the adequately informed smoker would present it with considerabledifficulties. What if we took the industry at its word and introduced a systemof smoker licensing that required all smokers to pass a knowledgetest of the sort we have outlined? Licensed smokers might begiven a photo ID smart card which would be used on each occasionof purchase.

encouragelicensed smokers to surrender their cards. This would placea major obstacle in the way of relapse because without a smartcard, former smokers would find it much more difficult to obtaincigarettes without re-obtaining a licence. Objections about restrictions on civil liberties arising frompurchasing limits could be

countered by analogies with otherrestricted products such as prescription drugs, where usersare only permitted to purchase defined quantities because ofconcerns about potential abuse and harm. Where harm is sufferednot only by individuals but also by the community through passedon social costs, the justification is not only one but of protectingpeople of protecting from the



communityagainst the incurring of preventable costs. Concerns about theprivacy of one’s smoking status being potentially abusedcould be countered by pointing out that life insurance companiesalready require clients to declare their smoking status, andthat (in Australia) it is illegal for health insurance companiesto discriminate on the basis of smoking status.


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As for how a licensing scheme could be funded, this could beeither by smokers themselves, just as driving tests and licenserenewal are paid for by drivers, or perhaps more appropriatelyby industry. Given the uniqueness of tobacco in terms of harmand addictiveness, why should the industry, which profits fromits use, not be responsible for the costs of ensuring that useis limited to those deemed sufficiently informed? This seemsa very small price to pay to be allowed to profit from the saleof this anomalous product. ADEQUATE INFORMATION AND The study is not free from some practical limitations. Following limitations have faced during the study and the time of working & data collection: • The consideration of the rationale for a smoker licensing schemethrows much light on the regulatory challenges still posed bytobacco, and assists in focusing attention on what still needsto be achieved. At the very least, we should be looking towardsregulation in which, that as creates far as • Lack of materials in this field. • Time is the main limitation for my study. Due to unavailability of sufficient time, it is not possible to collect primary data in all the area. Work load during the internship TOBACCO REGULATION Limitation of the Study: confectionary,an implied message is sent to consumers that tobacco is a veryordinary, unexceptional product undeserving of the sort of regulatoryregimes provided for prescription drugs (which save lives),firearms, explosives, and many chemicals.

program at the work place was also a barrier to prepare this report.


possible,smokers are adequately informed. This would entail ensuringthat adequate information is actively communicated by manufacturers,the regulation of other communication likely to affect smokers’understanding of the risks such as industry marketing and attractivepackaging, and constructing environments in ways that do notdilute understanding of the products’ risks, such as regulatingwhere products can be sold. By allowing tobacco products tobe sold in convenience stores alongside food and Findings: Two further matters of cardinal importance need to be addressedin any consideration of any potential test of smokers beingadequately

informed: addiction and equity. All that we havesaid so far is greatly complicated by the combined facts of(often rapid) nicotine

addiction, and that most smokers beginsmoking


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in childhood when they are legally incapable of makinginformed decisions on important matters. The importance of adequateinformation informed" isnot a static "once in a lifetime" state. New information emerging10 years after a person commences smoking today comes

presupposes that people are able to make free, selfregarding decisions based on relevant facts. But as the tobaccoindustry knows "the entire matter of addiction is the most potentweapon a prosecuting attorney can have in a lung cancer/cigarettecase. We can’t defend continued smoking as ‘freechoice’ if the person was ‘addicted’." Much has been written about the notion of voluntarily assumingthe risks of addiction—that is, assuming the risksof becoming addicted before one is addicted. The notion of

afterthey are already addicted (and their capacity for voluntaryactivity has been impaired). But how can one voluntarily assumethe risks to which the new information relates once one is alreadyaddicted? Anglo-Australian common law contains a deep rooted doctrineof "voluntary assumption of risk" (volenti non fit injuria).Under this doctrine, defendants have a complete defence to

negligenceactions if they can show that a plaintiff voluntarily assumedthe risk that later materialised into injury. The test of voluntary assumption of risk is not an easy oneto meet. The person who tries to use it has to show that theplaintiff: perceived the existence of the danger; fully appreciatedit; and voluntarily accepted it.The strictness of the test,and the rationale for the strictness, were well encapsulatedby Lord Justice Scott, in 1944, when he wrote: That general maxim has to be applied with specially

voluntarilyassuming the risks of having one’s capacity for futurevoluntary activity impaired is highly problematic. For example,Loewenstein describes addiction as "one, albeit extreme, exampleof a wide range of behaviors that are influenced or controlledby visceral factors". "Unlike currently experienced visceralfactors, which have a disproportionate impact on behavior, delayedvisceral factors tend to be ignored or to be severely underweightedin decision making." Further, because relevant informationon the risks of smoking is forever evolving, much relevant informationcan only be learned once one is already addicted. If agreementcould be reached on what constituted being adequately informedabout smoking’s

carefulregard to the varying facts of human affairs and human naturein any particular case just because it is concerned with theintangible factors of mind and will. For the purpose of therule, if it be a rule, a man

risks, it could only be a level applicableat a particular point in time. Being "adequately


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cannot be said to be truly "willing"unless he is in a What this assignment adds The right to information is a

position to choose freely, and freedom ofchoice predicates,

fundamentalconsumer right. Smokers have been repeatedly shown to be poorlyinformed about the risks of smoking. The tobacco industry claimstoday’s smokers are fully informed, but refers to onlysuperficial levels of awareness. It also fails in many waysto communicate

not only full knowledge of the circumstanceson exercise of which choice the is

conditioned, so that he maybe able to choose wisely, but the absence from his mind of anyfeeling of constraint so that nothing shall interfere with thefreedom of his will. By this test, we doubt that an addicted smoker who passed asmokers’ license knowledge test could be said to be "freely"choosing to smoke, despite their tested awareness of the

comprehensive risks to its customers. Using theoriginal notion of a "smoker’s licence" this paper exploreshow smokers might be required to pass a test that demonstratedmore adequate levels of understanding of the risks they face.Difficulties in developing and

implementing such a test equitablyare discussed. Equity Finally, important issues of equity are relevant. Smoking isincreasingly an activity of lower socioeconomic groups, withmany such smokers being illiterate, poorly educated, and

risksinvolved. Adding to the difficulty, most would have become addictedas children, when by legal definition, they could not be saidto be capable of making an informed choice. Currently, some 80% of smokers commence before age 18. Theyare able to easily obtain their supplies from shops notwithstandingthat sale to them is illegal. Requiring a personalised smartcard that would be extremely difficult to forge and which wouldallow an agreed daily limit of supply to each licensed smokerwould almost certainly reduce opportunities for nonlicensedchildren to gain open access to

intellectuallydisabled. While smoking is less common among than people in the with general


population there are stillmany such people who smoke. In designing any policy or

regulatoryresponses to the problems of being adequately informed, it wouldbe important to pay proper regard to the different levels ofeducation that exist within the populations targeted, appropriate. and totailor Passing responses a test where of

cigarettes, so the concept maybe worth exploring for that additional advantage.

adequatecomprehension of the risks of smoking would present greaterdifficulties to less educated


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people and those with disabilities,yet tailoring such a test to a level which made passing requireonly rudimentary knowledge would who, knowing all the risks, freelychoose to smoke.

defeat the purpose of tryingto ensure truly adequate understanding among smokers. This issueis likely to be the most problematic associated with establishingany common
Consumers International.Rights and responsibilitieshttp://www.consumersinternational.or g/about_CI/#rights. Demagogue Pty Ltd v Ramensky, Full Federal Court


standard of being "adequately informed".

Conclusion: In conclusion, the rights of consumers to adequate informationabout the health

ofAustralia,1992, http://www.austlii.edu.au/au/cases/cth/federal_ct/unre p5858.html. World Health Organization. Why is tobacco a public health priority? http://www.who.int/tobacco/en/. Doll R, Peto R, Boreham J, et al. Mortality in relation to smoking: 50 years’ observations on male British doctors. BMJ 2004;3281519, Epub 2004 Jun 22. Chapman S, Carter SM. "Avoid health warnings on all tobacco products for just as long as we can": a history of Australian tobacco industry efforts to avoid, delay and dilute health warnings on cigarettes. Tobacco Control 2003;12 (suppl III) :iii13–22. Tobacco Institute of Australia.Submission to Senate Community Affairs Reference Committee Inquiry into Tobacco Industry and the Costs of TobaccoRelated Illness. Sydney, Australia. 7 November 1994:5. Murray WH. (Philip Morris) Letter to the Hon. N. Greiner, Premier of NSW.1992; 26 June.

consequences of tobacco products when usedas intended should be regarded as an inviolable principle withintobacco control policy debate. The tobacco industry can scarcelydefend the virtues of an ill informed consumer base. Nor shouldit be allowed—in order to evade this position—toassert, without empirical evidence, that smokers are adequatelyinformed. The money the tobacco industry makes from inadequately informedsmokers is illegitimately obtained. So, too, is much of themoney made from those addicted to tobacco who cannot be saidto be voluntarily assuming the risks of smoking. Regulation of tobacco and the tobacco industry should be informedby empirical evidence about what smokers actually know and understandand how they actually behave, rather than self serving, mythologicalideas of informed smokers


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Carter SM, Chapman S. Smoking, disease, and obdurate denial: the Australian tobacco industry in the 1980s. Tobacco Control 2003;12 (suppl III) :iii23–30. Wakefield M, Morley C, Horan JK, et al. The cigarette pack as image: new evidence from tobacco industry documents. Tobacco Control 2002;11 (suppl I) :i73–80. Webb WH (Philip Morris). Status of the Marlboro development programme. 7 Dec 1984. Wakefield M, Freeman J, Donovan R. Recall and response of smokers and recent quitters to the Australian National Tobacco Campaign. Tobacco Control 2003;12 (suppl II) :ii15–22. Viscusi K. Smoking: making the risky decision. New York: Oxford University Press, 1992.



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Comparative study on Compensation Management Practices of Selected Securities firms in Chittagong Stock Exchange Ltd

Author: A.M.Shahabuddin

Abstract: The increasing competitiveness of the labour market and turnover of employees had resulted in nightmare in compensation planning. The perfect compensation system provides platform for happy and satisfied workforce. This minimizes the labor turnover too. A satisfied employee is a productive employee and care should be taken that they are fairly paid for their worth in the organization. Most of the organization pay low salary and the output is slow from employee’s hand. However, employees from top graded securities pay high which in long run keep employees and service standards are also good which in long run increase profitability of the organization. If managers follow these guidelines, their pay-related communication with employees will result in clarity and respect. In addition, they will avoid the misunderstanding and resentment that results from avoiding this critical issue. [Key word: Compensation management, CSE] . Introduction: Compensation Management is an integral part of the management of an organization. Compensation is a systematic approach to providing monetary value to employees in exchange for work performed. It may achieve several purposes assisting in

recruitment, job performance, and job satisfaction. It is a tool used by management for a variety of purposes to further the existence and growth of the company. It may be attuned according to economic scenario, the business needs, goals, and


International Research Journal of Computer and Business Vol. 1 Issue 8 www.irjcb.org
available resources. To be effective, the managers must appreciate the value of competitive pay, their human resources, and have an investment view of payroll costs. Objective of the Study: The objectives are: • To know the components of

compensation management • Problem Statement: Today’s smart companies not only want to hire quality people but they want to keep them cost effectively and efficiently. For this it is necessary to build a high employee satisfaction, motivation, and commitment by providing them several facilities. And this can be done by a effective compensation management.But there are a lot of things that can go wrong when developing an effective and efficient compensation The significant feature of the report is the use of both primary and secondary sources of data. The primary data were collected through face-to-face conversation with the officials 1. Dynamism in labor market. 2. High employee expectation. 3. Poor or limited budget of the of selected Securities firms. Methodology of the Study: • To know the difference in

compensation management practice at selected Securities firms in

Chittagong stock exchange To recommend some suggestions to overcome such problems.


Questionnaire was used Data collected from 60 selected securities firm located at CSE. The major sources of secondary data that used in the report are Articles, Books, Manuscripts, CSE porikroma etc. compensation Literature survey: Byars and Rue --“Compensation refers to the extrinsic rewards that employees receive in exchange for their work. It is composed of the base wage or salary and incentives or bonuses and any benefits.” ‘Learning’ outcomes were also important for the

organization. Thus inappropriate

management can neither satisfy employees nor reduce the cost of the organization. Finding the differences between

compensation practices is considered to be an important element of profitable

relationship with employees


International Research Journal of Computer and Business Vol. 1 Issue 8 www.irjcb.org
teachers surveyed (Heneman and greater outcomes. the school-based evaluation

Milanowski, 1999), including seeing and being responsible for improvements in student performance and working

collaboratively with peers. This may be rhetoric, as the actual evidence supports the hypothesis that teachers are motivated by financial rewards. While teachers in the Kentucky school-based rewards system rated ‘school improvements’ as more

The business organization can think of expansion and growth if it has the support of skillful, talented and happy workforce. The sound compensation system is hallmark of organization’s success and prosperity. The success and stability of organization is measured with pay-package it provides to its employees. Compensation is a key factor in attracting and keeping the best employees and ensuring that the organization has the competitive competitive Management differentiate edge world. in an increasingly Compensation enables to

beneficial than extra salaries in the research conducted, when teachers allocated program rewards, 98% voted to use some or all of the rewards as a salary bonus (Kelley, 1999). There was some concern in relation to goal clarity in school-wide program, meaning there would be some concern about the motivational capacity of schools (Kelley, Heneman and Milanowski, 2002).


component between the


strategies and those of competitors while still allowing flexibility, control and cost

Employees were concerned that they would not be paid the bonus upon successful completion of school-wide criteria. “A striking finding in both the qualitative and quantitative data from both program sites was the low perceived probability that the bonus would actually be paid when school goals were met.” (Kelley, Heneman and Milanowski,2002).In conclusion, Kelley,

effectiveness. It provides a toolset for strategic remuneration planning that reflects the organization culture and pay strategies, and it empowers line managers within a framework of flexible budget control. Compensation Management allow to control bottom-line expenditures and offer

competitive and motivating remuneration, be it fixed pay, variable pay, stock options, merit increases, or promotion – in other words, total compensation.

Heneman and Milanowski (2002) argued, that in all models, the higher the average teacher expectancy of student results, the

Compensation includes topics in regard to wage and/or salary programs and structures, for example, salary ranges for job


International Research Journal of Computer and Business Vol. 1 Issue 8 www.irjcb.org
descriptions, merit-based programs, bonusbased programs, commission-based These benefits to give employees psychological even when


programs, etc.

financial benefit is not available. Such benefits are: (a) Recognition of merit through certificate, job growth working etc. (b) Offering (c) (d) (e)

challenging Components of compensation:Basic wages:-These refer to the cash component of the wage structure based on which other elements of compensation may be structured. It is normally a fixed amount which is subject to changes based on annual increments or subject to periodical pay hikes. Wages represent hourly rates of pay, and salary refers to the monthly rate of pay, irrespective of the number of hours put in by the employee. Dearness allowance: The payment of dearness allowance facilitates employees and workers to face the price increase or inflation of prices of goods and services consumed by him. Incentives: Incentives are paid in addition to wages and salaries and are also called ‘payments by results’. Incentives depend upon productivity, sales, profit, or cost reduction efforts. There are: (a) Individual incentive schemes, and (b) Group incentive programmes. Bonus: It can be fixed percentage on the basic wage paid annually or in proportion to the profitability. Non-monetary benefits:Promoting Comfortable

responsibilities, prospects, conditions,

Competent supervision, and (f) Job sharing and flexi-time. Commissions: Commission to Managers and employees may be based on the sales revenue or profits of the company. It is always a fixed percentage on the target achieved. For taxation purposes,

commission is again a taxable component of compensation. The payment of commission as a component of commission is practised heavily on target based sales. Depending upon the targets achieved, companies may pay a commission on a monthly or periodical basis. Fringe benefits:Fringe benefits may be defined as wide range of benefits and services that

employees receive as an integral part of their total compensation package. Profit Sharing: – Profit-sharing is an agreement by which employees receive a share, fixed in advance of the profits.


International Research Journal of Computer and Business Vol. 1 Issue 8 www.irjcb.org
Skills Gap Analysis -- Identifying businesscritical skills in the organization, locating potential gaps (today or in the future) in these areas, and putting in place plans to fill or avoid these gaps. Rather than taking a Non-financial rewards Employee benefits Market survey Business strategy Reward strategy Pay structure Pay level and relativities Total remuneration reactive approach, and filling your

organization’s existing workforce gaps, address the issue today by developing your talent before those gaps occur.

Improved performance

Job rotation Performance pay

Performance management

Employee development

Figure: Total Compensation Process Findings on objectives and questionnaire: No of years established organization.

Below 1 year 1-5 year 6-10 year Total

F 9 12 39 60

% 15 20 75 100

Description:- From the table it was found that below 1 year only 15% firms started and 6-10 years 75% firms started their operations.


International Research Journal of Computer and Business Vol. 1 Issue 8 www.irjcb.org

Comparative analysis on compensation management of selected firms of CSE.


Monthly salary

Maternity leaves 4 months


Job environment




Festivals -2, incentive -2 and performance bonus


Time to time if mgt desires




Festivals -2 and performance






Festivals -2 and performance





3 months

Festivals -2 and performance





Festivals -2 and performance





4 months

Festivals -2 and performance





3 months

Festivals -2 and performance










International Research Journal of Computer and Business Vol. 1 Issue 8 www.irjcb.org
SWIFT CAPITAL MANAGEMENT LTD 8000 Do Festivals -2 and performance UNITED FINANCIAL TRADING CO. LTD. 8000 Do Festivals -2 and performance SAR SECURITIES LTD 8000 Do Festivals -2 and performance SUBVALLEY SECURITIES LTD 8000 Do Festivals -2 and performance GLOBE SECURITIES LTD. 8000 4 months Festivals -2 and performance MUTUAL TRUST BANK SECURITIES LTD. 9000 Do Festivals -2 and performance SALTA CAPITAL LTD. 8000 Do Festivals -2 and performance TOTAL COMMUNICATION LTD A.A.Securities Ltd 8000 Do Festivals -2 and performance 8000 Do Festivals -2 and performance PFI Securities Ltd 8000 do Festivals -2 and performance T.K.Securities Ltd Mutual Trust Bank securities 9000 9000 Do Do Do Do good good Do Do good Do good Do good Do good Do good Do good Do good Do good Do good Do good Do


International Research Journal of Computer and Business Vol. 1 Issue 8 www.irjcb.org
• Lanka Bangla Securities ltd has paid incentive bonus other than two festival bonus and performance bonus. However, other respondent securities firms are providing only festival bonus. Summary of findings: • Most the organizations are paying tk 8000 as salary. Only Lanka bangle securities pay much Tk 16000 initially. • Gratuity has not paid in most of the companies except Lanka bangla securities. • No special facilities for salary in case of treatment of employees while doing work. • Maternity leaves most of the a) The firms should recognize the worth and value of employee’s knowledge, skills and experience and the n reward employees Recommendations: To develop and operate a compensation system that promotes fair treatment, an organization should consider compensation strategies, such as:

organization are paying 3 months and good organizations 4 are

contributions. b) The firms should promote employees continued acquisition and upgrading of knowledge and skills. c) The firms should design





compensation plans that successfully compete within established labor markets.

LTD,PHP SECURITIES LTD. • Job environment is better for

d) Aligning






employees with objectives and goals on the organization. e) The firms should provide a

LTD., MEENHAR SECURITIES LTD.,ROYAL CAPITAL LTD but other selected companies are good.

compensation package that enhance current lifestyles and long-team


International Research Journal of Computer and Business Vol. 1 Issue 8 www.irjcb.org
protection for employees and their dependents. f) For gratuity payment, a gratuity fund is to be created to deposit the relevant amount every year. g) Salary during treatment: During the period of treatment, employer should pay full salary for the period of their stay in hospital or half of their salary if they have undergone treatment at home. However, if the period of such treatment exceeds three months, the employer is not obliged to pay the salary. had almost resulted in a compensation war in certain industries Jobs are accepted or rejected based in part on starting salary and the opportunity for future increases in pay. Employees compare their pay to that of others in the same line of work.The role of different components of the compensation is very important as the role of the compensation components can differ. Also equitable financial

compensation is, of course, essential to building and nurturing an organization of outstanding people, unique vision, values, and goals of their organization. Also Welldesigned compensation programs are a

Conclusion: Compensation Management is an integral part of the management of the organization. Compensation is a systematic approach to providing monetary value to employees in exchange for work performed. It may achieve several purposes assisting in

valuable strategic asset in shaping a design firm’s future and aligning its members for success.

DeCenzo, D. A., & Robbins, S. P. (2008). Human Resource Management (Third Edition ed.).New Delhi: Prentice Hall of India.

recruitment, job performance, and job satisfaction. It is the remuneration received by an employee in return for his/her contribution to the organization. The

Agrawal, D. G. (2057).Dynamics of Human Resource Management in Nepal. Kathmandu: M.K. Publishers.

increasing competitiveness of the labor market and turnover of employees had resulted in nightmare in compensation planning. Apart from this, the growing demands of the employees and competitive salaries offered by multinational companies

[1] Compensation & Compensation Management http://www.geocities.com/wilfratzburgcompensa tion.html http://www.di.net/articles/archive/effective_com pensation_strategic_firm


International Research Journal of Computer and Business Vol. 1 Issue 8 www.irjcb.org
[2] Components of Compensation Sarah L. Fogleman, “Creative [4] Compensation and salary survey http://www.hr-guide.com Compensation [3] Chittagong Stock Exchange http://www.csebd.com Slides – Ace institute of

compensation”,Kansas State University. Management (Term III)


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International Research Journal of Computer and Business Vol. 1 Issue 8 www.irjcb.org


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