Master_REPORT_On_Compensation_and_Benefi

Master REPORT
On
Compensation & Benefit Systems
Of Dushtha Shasthya Kendra (DSK)
Submitted to:
Professor Dr. A. K. M. Moniruzzaman,
Department of Management Studies, Jagannath University
Submitted by:
Susmit Roy Jhalak
ID: M17120202719
A report submitted in partial fulfillment
Of the requirements of the degree of
Master OF BUSINESS ADMINISTRATION
(Human Resource Management)
Submission Date

Letter of Transmittal
August 31, 2019
Professor Dr. A. K. M. Moniruzzaman
Department of Management Studies,
Jagannath University
Subject: Submission of Internship report.
Dear Sir,
It is my pleasure to get an opportunity to work on the topic of “Compensation & Benefit
Systems of Dushtha Shasthya Kendra (DSK), Bangladesh”. I expect this report to be
informative as well as comprehensive. It was prepared as partial fulfillment of the MBA
program of Jagannath University.
It has also to be mentioned that without your expert advice and cooperation it would
not have been possible to complete this report. I shall be pleased to answer any sort of
query you may have regarding the report.
--------------------------
Susmit Roy Jhalak
ID: M17120202719

Declaration
This is Susmit Roy Jhalak the student of Master of Business Administration (MBA),
at Jagannath University and declaring that, this internship report on the topic
“Compensation and Benefit Systems of Dushtha Shasthya Kendra” has not been
previously submitted to any other University/College/Organization for any academic
qualification/Certificate/Diploma or any other degree. The internship report contains
no material previously published or written by anyone except where due reference is
made in the text of study. It has been prepared for the fulfillment of my MBA
program.
_________________
Susmit Roy Jhalak
ID: M17120202719
Department of Management Studies

ACKNOWLEDGEMENT
I have made a Master report on Compensation & Benefit systems of Dushtha Shasthya
Kendra (DSK). DSK is a Non-Governmental organization, which is active in implementing
poverty alleviation programs in Bangladesh.
My cordial thanks to Mr. Akhil Chandra Das; Joint Director of Dushtha Shasthya Kendra, Shankar
Chandra Adhikary; Community Development Officer, Dushtha Shasthya Kendra for providing me
with all the necessary supports during my investigation.
I also wish to express my gratitude to Professor Dr. A. K. M. Moniruzzaman, Jagannath
University, for providing me all type of logistic support and advice to make the Internship
report.

Executive Summary
This Thesis report is a vital requirement for obtaining Master of Business Administration
(MBA) program. I worked on “Compensation & Benefit systems of DSK”.
Dustha Shasthya Kendra (DSK) is one of the few organizations, which has separated Human
Resources division from the beginning. Now it has stability, flexibility, objectivity,
simplicity, balance & growth. So, in my opinion for the study on Human Resources
Management practices, DSK plays an important role for the development of Bangladesh.
In first part: I will discuss about topic. Here I will try to analyze the title of the study,
objective of the study, methodology, and scope of the study, Rationale, Methodology &
Sources of data which contains with primary data, secondary data.
In part Two: I will discuss about Dushtha Shasthya Kendra (DSK).
In part Three: This part focuses all the activities of DSK.
In part Four: I will discuss about “Compensation & Benefits System’’. To evaluate the
importance and efficiency of Compensation and Benefits system in DSK.
In part Five, I will discuss about Analysis and findings.
In Part Six, I will recommend some strategies and conclude my report.

Table of Content
Title Page
Letter of Transmittal
Declaration
Acknowledgement
Executive Summary
Table of Content
Part:- I
Introductory Part
Part:- II
Chapter-01
Introduction
Page no.
ii
iii
iv
v
vi
vii-ix
1.1 Background 1
1.2 Objective of the study 2
1. 3 Scope of the study 2
1.4 Methodology 3
1.4.1 Data Collection: 3
1.4.2 Data Analysis 3
1.5 Problem Statement 4
2.1
Chapter -02
Organization Profile
About Dushtha Shasthya Kendra (In Brief)
2.2 Vision and Mission 6
2.3 Objectives of DSK 7
2.4 Organogram 8
Chapter -03
Activities of DSK
5
6
9

3.1 Health Care Project 10
3.2 DSK Hospital & Maternity 10
3.3 Micro Credit Program 11
3.4 WASH Projects 11
3.5 Non Formal Education 12
3.6 Extreme Poverty Project 12
3.7 Relief & Rehabilitation Project 13
Chapter -04
Compensation and Benefit Systems of
DSK
4.1 Compensation and Benefit Systems 15
4.1.1 Promotion 15
4.1.2 Retirement 15
4.2 Salary Structure of DSK 16-17
4.3 Components of Salary 18
4.4 Payments of Salary 18
4.5 Performance Appraisals System at DSK 19
4.5.1 For the Organization 19
14
4.5.2 For Managers 19
4.5.3 For Employees 19
4.6 Developmental Performance Appraisal Purposes 19
4.7 Employee Relation 20
4.8 Promotion Policies of DSK 20
4.9 Pay Policies of DSK 20
4.10 Provident Fund 21
4.11 Medical Facilities 21
4.12 Festival Bonus 21
4.13 Travelling Allowance 21
4.14 Staff Security and Benefits 22
4.15 Housing Allowance & Project Housing Assistance 23
4.16 Gratuity 24

4.17 Other Benefits 24
Chapter: 05
25
Analysis & Findings
5.1 Analysis 26-34
5.2 Some other Compensation & Benefit issues of DSK 35
5.3 Findings 35
Chapter: 06
36
Recommendation & Conclusion
6.1 Recommendation 37
6.2 Conclusion 38
Part: III
39
Appendix
7.1 Reference 40-41

1
Chapter One
Introduction

1.1 Background:
This is a great initiative for students to do the master report and the hands-on activities make
huge impact while a graduate put his or her footsteps into the professional arena. Internship
combines academic knowledge with the practical business operations. I had opportunity to
get the chance to understand the professional world closely and involve themselves with
internal and external aspects of business.
As I have an interest on private sector, I was forwarded to Dushtha Shasthya Kendra (DSK) ,
a renowned NGO in Bangladesh. I started the internship there from June, 2019 under the
faculty-supervision of Professor Dr. A. K. M. Moniruzzaman, Department of Management
Studies, Jagannath University.
As per my Supervisor’s direction the topic of the report has been chosen as “Compensation
and Benefit Systems of Dushtha Shasthya Kendra (DSK).”
I did my internship in Dushtha Shasthya Kendra, which work for increasing livelihood of
low income community people. Though I am an employee of Dushtha Shasthya Kendra, but
this internship gave me the opportunity to know the organization from different aspects.
Currently I involved with “LIC Project under the framework of Saidabad Phase-III” which is
funded by European Union, AFD and DWASA. Apart from regular activities I had some
specific job duties and responsibilities due to my Internship. I performed those job duties and
responsibilities perfectly and enrich my professional knowledge regarding compensation and
benefit systems in NGOs.
1

1.2 Objective of the study:
The report combines two objectives. These are broad objective and specific objective. These
two types of objectives are as follows:
The report was organized to accomplish some specific objectives. From my perspective,
these issues are very important to find out the deficiencies between expectation and
perception of the employees to eliminate dissatisfaction. Through this study, I tried to attain
the following specific objectives:
The specific objectives of internship program are given below:
To accomplish the educational requirement.
To have practical knowledge regarding organization.
To know about DSK’s overall human resource related operations.
To know about employee benefits of DSK
To know about compensation benefits of DSK
To know about satisfaction level of DSK’s employee.
To know about specific areas of dissatisfaction of the staffs.
To know about the reasons of dissatisfaction.
1.3 Scope of the Study:
An insight into the history and operations of NGOs in Bangladesh is given in the
report. Then the compensation and benefit system of one renowned NGO in
Bangladesh named DSK is discussed. Some relevant recommendations are also placed
at the end.
2

1.4 Methodology:
The data I have presented in this internship report are collected from various sources.
The sources are mentioned below:
Primary Data Source
Primary data are those data which is originated by the author for the specific purpose
of describing or analyzing something. I had collected information by doing face to
face conversation with the employees of DSK. Besides, I developed a set of
questionnaire which was filled up by employees of DSK.
Secondary Data Source
DSK issues monitoring and reporting statements on a regular basis. Consultants used a
number of these statements for the evaluation; Previous DSK evaluative studies carried out by
other independent researchers/agencies were also used as secondary data.
1.4.2 Data Collection:
Data were collected in the following manner:
Face-to-face conversation with the respective officers and staffs of DSK
Practical Deskwork
DSK website and other related websites.
Annual report of DSK.
1.4.2 Data Analysis:
‣ During the analysis of the collected data -the annual report, the internal audit report
and the verbal information were compiled.
‣ I analyzed the data with the objective of preparing the overview, not comparing with
any set of standards.
‣ When analyzed, I also have considered the NGO’s nature, requirement etc.
‣ Collected data were categorized according to the relevance for better understanding
and conceptualization & organization.
3

1.5 Problem Statement
Like any other study the limitations of this study is not out of questions, but the following
factors seem to me the main points of weakness of this study.
The problems I faced include:
Lack of available formal means to collect data.
I had to rely only on some very restrictive verbal information.
Many procedural matters were conducted directly in the operations by the top
management level, which may also gave some sort of restrictions.
4

2
Chapter Two
Organizational Profile
5

2.1 About Dushtha Shasthya Kendra:
Dushtha Shasthya Kendra (DSK) is a non-government development organization (NGO)
working for poverty reduction of the target poor Bangladeshi population in selected hard to
reach remote areas of Bangladesh. In mid-eighties under the banner of “Niramoy Free Friday
Clinic” a group of likeminded professionals, doctors, social activists, and volunteers begun to
facilitate Primary Health Care (PHC) activities at Tejgaon slums in Dhaka. This was the
informal beginning of DSK. In 1988 a devastating flood engulf two thirds of Bangladesh
including its capital Dhaka, in this situation the DSK was formally started with a Medical
Team to provide immediate relief and health care to flood effected people in Dhaka city. The
main aim of setting up the organization was to continue and consolidate above mentioned
efforts and engage to facilitate and develop a health delivery approach targeting the
marginalized that would be self-sustainable in the long run.
In 1989, DSK was registered with Department of Social Service (Dha-02273)and in 1991
with NGO Affair’s Bureau (No 577) in Bangladesh. Depending on the geographic locations
DSK’s activities have been generally classified as urban and rural development. In the
bygone period the urban program was based in Dhaka, Chittagong and Khulna cities, and the
rural development program based in Barguna, Bagerhat, Gazipur, Jessore, Khulna,
Kishoreganj, Narshingdi, Netrakona, Narayanganj, Sunamganj, and Satkhira districts. Slum
dwellers and low-income communities are target project participants from urban and rural
areas. DSK targets to cover hard to reach areas and extreme poor households. In this
connection, DSK is active in Haor region, Coastal belt and urban slums which are recognized
as extreme poverty pockets in Bangladesh.
2.2 Vision:
DSK seeks a country of social justice, where poverty has been overcome, and people live in
dignity and security. DSK aims to be a partner of choice within a worldwide movement
dedicated to ending poverty.
Mission:
DSK aims at building strong community-based organizations (CBOs) which will eventually
be able to plan, prioritize and implement their own development programs through
mobilization of the following combination of resources:
• Family and community
• Government
• Donor agencies
• Concerned civil society
6

2.3 Objectives:
DSK is committed to the following objectives to achieve its vision and mission:
Providing health care (primary, secondary and tertiary care) and family welfare
services to the rural and urban poor in general, and, in particular, to women and
children.
Implementing illiteracy eradication program among the children and adults.
Exploiting all potential options prevailing at the local level to generate gainful
employment for the rural and urban poor, with special emphasis on expanding
women’s participation in income-generating ventures.
Sensitizing and strengthening the corporate sector, local government, local private
service provider and the community in general about their role in the development
process, facilitating and encouraging collaborative arrangements.
7

2.4 Organogram:
8

3
Chapter Three
Activities of DSK
9

3.1 Health Care Project
Dushtha Shasthya Kendra (DSK) was initially organized to address healthcare needs of the
slum- dwellers in Dhaka. Over the reporting year, in order to be more responsive and
effective to the needs of urban and rural poor, it has diversified its program interventions and
did increase its geographical coverage in both rural and urban areas. DSK is committed to
address various social and economic problems of the economically depressed and vulnerable
groups in general, of which women constitute a specific category. Objectives of Health Care
Program are:
‣ To reduce the extreme poverty by ensuring the availability, accessibility & affordability
of the essential health services, in a preventive manner; addressing the global health
indicators to improve the community health status.
‣ To ensure the health sustainability by involving the stakeholders in all levels of
planning, implementation & monitoring through organizing and strengthening the
community based institutions.
3.2 DSK Hospital & Maternity
DSK is maintaining a well-equipped hospital at Mohammadpur area in Dhaka city. The
hospital was started having a grant support from Swiss Red Cross (SRC) in 1999. Now it is
running on the basis of the income of the hospital and subsidy from DSK HQ. It is a low cost
Hospital and targets patients from slum and low income areas; intends to cover patients from
following income categories: extreme poor, poor and low income people in Dhaka and
outside. The facilities of the hospital are outpatient, inpatient, emergency, operation,
ambulance, diagnostics services and specialist consultations.
10

3.3 Micro-Credit Program
DSK has a vision that came out of social and economic mission of bringing financial service
to the poor and the poorest so that they can come out of poverty. As micro credit service
provider DSK at present is providing microcredit to 225,321 families through its 116
branches in 31 Upazilas of ten different districts both in urban and rural areas. The Urban
areas are in Dhaka, Khulna and Chittagong cities. The rural areas are Gazipur, Netrokona,
Kishoreganj, Narayanganj, Narshingdi, Sunamgonj and Mymensing districts. DSK has
started micro credit through replication of Grameen model in the year 1992 in one of the
Dhaka city slums, since then it has served 2,25,321 families and had disbursed Tk.
28,359,405,000 as loan till February 28,2017 . Present outstanding loans stands at Tk
3,855,695,841 and total savings deposit of Tk 1,295,196,538. DSK has successfully created
loan loss provision required for the classified loans as per standard requirements. A
successful Microfinance program starts with clear objectives to set up permanent institutions
with systems designed to provide standard financial service on a long-term sustainable basis.
This objective implies following key things: good quality financial products and services,
delivery by an appropriate institution on a profitable basis to satisfy clients who continue to
value and use those services. Quality of financial services means, which would meet the
needs of the poor community and not only the needs of financial institution.
3.4 WASH Projects
Over the years WASH program has established an approach, in urban WASH sector of
Bangladesh which is now recognized as “DSK model” facilitating supply of water to urban
slum dwellers. DSK has been highly regarded for its contribution in urban WASH sector, for
facilitating provision of legal water supply to urban slums. DSK is a pioneer in this direction.
Over the decades, DSK has given focus on WASH support to most disadvantaged
communities like physically challenged, sweeper, transgender, cobblers, snake charmers,
pavement dwellers, ethnic communities etc. DSK’s WASH program is a community led
integrated WASH service that has become popular to slum dwellers, as well as among other
WASH stakeholders. DSK facilitates to establish sustainable community managed system to
continue WASH activities even beyond the project period. DSK focuses on community
empowerment and demand responsive approaches.
Under the WASH Project, I had surveyed slum dwellers as monitoring assistant to know
about how the slum dwellers cope up with the changing culture regarding using safe water,
hygienic toilet, knowing the proper waste management and implement it properly. To ensure
the overall development, several meeting were arranged with different partner organization
and alternative initiative “Result based Reward Hygiene Promotion” was taken. To monitor
the impact of these new initiative 5 slums 17 % of the total PEHUP slum (Hindu para,
Sobhan road-1, Abuler basti, Kalapani and Nagra Mollah) were selected from the 30 slums.
50 families those got hygiene pack in the last two quarters were interviewed and monitored.
11

In 2017 DWASA, AFD and European Union jointly funded in a project named, “LIC Project
under the Framework of Saidabad Phase-III”. DSK along with three partner organizations
implement the project.
3.5 Non Formal Education
A total of twenty four (24) Non-formal Education Centers were functional in implementing
non-formal education through the support and cooperation of Brac at Durgapur and
Kalmakanda Upa-zila in Netrokona district. Total numbers of students were seven hundred
and twenty (720), out of which one hundred sixty eight (168) were boys and five hundred
fifty two (552) were girls. During this reporting period number of drop out students were four
(04). Two hundred ninety six (296) students were promoted from class three to class four.
3.6 Extreme Poverty Project (shiree)
DSK implemented extreme poverty eradication project in comparison to others, bears three
distinct features: First, most social protection programs suffer from tokenism marked by
modest transfer of resources that possibly restructure extreme poverty but not likely to lift
them out of extreme poverty. DSK- shiree project has budgeted Taka 28000 (originally
equivalent to USD 400) per beneficiary to be spent over a period of two years of intervention.
This comes to roughly Taka 1167 per month, which is a sizable improvement over Taka 400-
500 allocated for most government-run social protection programs. Second, researches show
that the problem of income erosion due to ill-health and health shocks is as important as the
problem of income generation (Begum and Sen 2005; Sen 2003). However, most social
protection programs do not explicitly address the income erosion concerns due to ill-health
and health shocks: beneficiaries of income generating activities (IGA) do not get automatic
entitlement to health services. In this respect the blending of livelihood activities with health
services via health insurance that DSK pursues is worthy of analytical attention. Third, most
government-run social protection programs operate in the rural areas. Not only the urban poor
and the poorest are excluded, they are often deliberately kept out of the social protection
programs to discourage either rural-urban migration or encourage the return of urban
migrants back to rural areas.
12

3.7 Relief and Rehabilitation Projects
Main target was to respond to the basic relief and rehabilitation needs of target population
who were affected by flood in June-July 2012. This was a short term project that was started
in November 2012 and closed in April, 2013. Project was implemented in Anowara
(Burumchara and Raipur Unions) and Banshkhali (Sadhanpur and Gondamara Unions) sub
district of Chittagong district. Target HHs were 4200 and they were equally divided between
two upazilas. There were following activity components: cash for work 2300 ( Banskhali :
1200. Anwara : 1100), Cash for Training (CFT)1600 ( Banskhali : 900, Anwara : 700) and
Unconditional Grant :300 ( Banskhali : 150 Anwara ; 150) Total budget wads BDT 3,97,
67,964.0.Direct delivery to beneficiaries was BDT 3, 36,00,000 (84.5%). Implementation
time was really challenging because of acute vandalism and political unrest in project areas.
However DSK was successful in closing the project reaching all targets on time.
13

4
Chapter Four
Compensation and Benefit
Systems of DSK
14

4.1 Compensation and Benefits system
4.1.1 Promotion
A set of rules and guidelines set forth by a company or organization that outlines how
promotion procedures will be handled.
In addition it is policy to promote from within the organization when a vacancy occurs,
proving there are qualified candidates available. Promotions are only given for staff who will
undertake significantly increased responsibilities and additional tasks.
4.1.2 Retirement
Retirement means the end of an employee’s servicing line. In Bangladesh the retirement age
for government employee’s 57 years and for university teachers 65 years. But an employee
can go in retirement at the age of 55 years if he wishes. In another word, retirement means
draw to an end of servicing life by an employee’s of his service. But this does not mean that
after this age people suddenly become useless and unfit for work. At the time of retirement,
the organization should provide provident fund, gratuity and other facilities to the employees
until they alive.
In case of DSK if the authority seems the need of services of that employee it can extend
his/her servicing life for more 5 years though the retirement age of DSK employee is
generally 60 years. But in this case the employee has to go yearly contract service. But in the
case of project service after completing or finishing the project the service of the employees
generally comes to an end but if the organization extends the project’s period then their
servicing life also extend for that project period.
15

4.2 Salary structure of DSK
DSK is committed about maintaining salaries and benefits that are fair to all employees and
competitive in the local market place. The management monitors changes in the economy and
salary market to ensure that the overall compensation package is sufficient to attract, recruit
and retain high quality staff within the financial capabilities of DSK.
Level Designation Pay Scale
Starting
Monthly
gross
salary
1 Executive Director
2 Director
3 Joint Director
4 Depury Director
5 Assistant Director
44000-46290-48695-51225-53890-56695-59640-
62740-66005-69440-73050-76845-80840-85045-
89470-94120-99015-104165
41000-43130-45375-47735-50215-52830-55575-
58465-61505-64705-68070-71605-75330-79250-
83370-87705-92265-97065
27000-28430-29940-31525-33195-34955-36805-
38760-40810-42975-45255-47650-50175-52835-
55635-58585-61690-64960
23000-24220-25505-26855-28280-29775-31355-
33015-34765-36610-38550-40590-42745-45010-
47395-49905-52550-55335
19000-20025-21105-22245-23450-24715-26050-
27455-28940-30500-32150-33885-35715-37645-
39675-41820-44075-46455
83500
77950
58850
50050
42210
6
Sr Officer/Area Manager
(G-1) /Engineer/Medical
Doctor/Agriculturist
16000-16895-17840-18840-19895-21010-22185-
23430-24740-26125-27590-29135-30765-32490-
34310-36230-38260-40405
36100
7
Area Manager/Sr. Manager (G-
2)
15000-15840-16725-17665-18655-19695-20800-
21965-23195-24495-25865-27315-28845-30460-
32165-33965-35870-37880
34250
8
Area Manager/Sr. Manager (G-
3)
14100-14890-15725-16605-17535-18515-19555-
20645-21805-23025-24315-25675-27115-28630-
30235-31930-33715-35605
32585
9
Officer/Branch Manager/Project
Manager (G-1)
13000-13740-14525-15350-16225-17150-18130-
19165-20255-21410-22630-23920-25285-26725-
28250-29860-31560-33360-
29750
10 Branch Manager/Project 11700-12365-13070-13815-14605-15435-16315-
27495
16

Manager (G-2) 17245-18230-19270-20365-21530-22755-24055-
25425-26875-28405-30025
11
Branch Manager/Project
Manager (G-3)
10500-11100-11730-12400-13105-13855-14645-
15480-16360-17295-18280-19320-20420-21585-
22815-24115-25490-26945
25275
12
13
Asst. Branch Manager (G-1)
/Asst. Accounts Officer/ Asst.
Engineer/ Supervisor/Computer
operator/Receptionist
Asst. Branch Manager (G-
1)/Asst. Accounts Officer (G-2)
9500-10050-10635-11250-11905-12595-13325-
14095-14915-15780-16695-17665-18690-19770-
20920-22130-23415-24775
8300-8780-9290-9830-10400-11005-11640-
12315-13030-13785-14585-15430-16325-17275-
18275-19335-20455-21645
22060
20055
14
Field Officer (G-1)/ Health
Worker/ Community Mobilizer
7500-7950-8425-8935-9470-10035-10640-11275-
11955-12670-13430-14235-15090-15995-16955-
17975-19055-20195
18320
15
Field Officer (G-2)/ Health
Worker/ Community Mobilizer
6000-6370-6765-7185-7630-8105-8610-9140-
9710-10310-10950-11630-12350-13115-13930-
14790-15710-16690-
15545
16
Field Officer (G-3)/ Health
Worker/ Community Mobilizer
5600-5960-6340-6745-7175-7635-8125-8645-
9200-9785-10415-11080-11790-12545-13350-
14200-15110-16080
14805
17 Driver
18 Office Assistant
19 Peon/Cook/Guard/Cleaner
5500-5850-6225-6625-7050-7500-7980-8490-
9035-9615-10230-10880-11580-12320-13110-
13945-14840-15795
5000-5330-5680-6055-6455-6885-7340-7820-
8335-8890-9475-10100-10765-11475-12235-
13040-13900-14820
4700-5010-5340-5695-6070-6470-6895-7350-
7835-8355-8905-9495-10120-10790-11500-
12260-13070-13930
14055
13030
12475
Table: Salary structure of DSK
17

4.3 Components of Salary
The components of compensation package are:
Monthly:
‣ Basic Salary, House Rent, Medical Allowance, Conveyance Allowance, Mobile
Phone Allowance, Health Insurance Allowance.
Yearly:
‣ Yearly Festival Bonus-2
‣ Bengali New Year Allowance
‣ Yearly Leave Fare Assistance
‣ Medical Treatment Benefits
Long Term:
‣ Provident Fund
‣ Gratuity
4.4 Payment of Salary
Every employee should have a salary account in Commercial bank. The salary will be
transferred to the respective salary accounts from the Finance Department of DSK by 26 th of
the month.
18

4.5 Performance Appraisal Systems at DSK
Today every organization is interested – in doing better performance appraisals-
4.5.1 for the organization
Performance Appraisals provide the mechanism to cascade organizational strategies, goals
and core values down to each employee. This ensures that their efforts are coordinated and
their combined effort moves the organization in the right direction.
4.5.2 for Managers
The Performance Appraisal can be a practical and versatile management tool that helps them
focus their employees’ activities, monitor their progress, and encourage their development
4.5.3 for Employees
Effective Performance Appraisals can have a positive effect on morale. Employees who
know what is expected of them and how they will be evaluated will approach their work with
a better attitude and better sense of responsibility.
4.6 Reasons for an Appraisal
Reasons for introducing performance appraisal in DSK
To identify individual strengths and weaknesses of employees
To make personal / organization objectives clear
To increase employee motivation
To improve employee performance
To update job descriptions of an individual
To identify any training that, may be needed for the betterment of employee
performance
To identify employees that are potential for promotion
To review salaries or payment methods
19

4.7 Developmental performance appraisal purposes
One of the most important aspects of performance appraisal is that of personal development.
The developmental approach to performance appraisal recognizes employees as individuals
with concerns and needs. The developmental approach uses performance appraisal as a
contributor to employee motivation, development, and human resources planning.
DSK following the additional purposes:
They provide a formal structure for communications between employees and
supervisors to help clarify local issues, needs and expectations
They provide employees with the formal opportunity to indicate their career direction,
level of ambition and how it could be attained.
They provide formal recognition and informal encouragement to the employee who
has been trying to perform well.
They formally shows organizational interest and support opportunities for personal
development.
In case of evaluation everybody has to follow individual format and rating method. Based on
performance evaluation DSK provides rewards to their employees. On other hand, we can say
that, DSK is providing rewards based on performance not based on seniority or loyalty.
4.8 Employee Relation
Employers and employees each have their own sets of needs and values, and successful
relationship between these two sides requires that some sort of balance be struck. This
balance often takes the form of a psychological contract, an understood agreement between
employer and employees that defines the work relationship. This contract with or without
support of a formal collective bargaining, agreement influence the outcome achieve by each
side.
4.9 Promotion Policies of DSK
The movement of personnel within an organization- their promotion, transfer, demotion, and
separation is a major aspect of human resource management. The actual decision about whom
to promote, and who to fire can also be among the most difficult, and important, a supervisor
has to make. For every organization promotion is extremely important, when the process
based on merits and skills of the employee. Usually money transfer or other benefits are
provided as rewards. On the other hand a major problem of promotion is discrimination and
favoritism.
20

4.10 Pay Policies of DSK
Once the job evaluation is complete, the data generated become the nuclease for the
development of the organization’s pay structure. This means pay rates or range will be
established that are compactable with the ranges, classifications, or point arrived at through
job evaluation.
4.11 Provident Fund
In DSK 10% of the basic salary goes to the provident fund and the employee pays the same
amount of their basic salary as per the Provident fund policy of the organization. The
provident fund policy of DSK is registered by the National Board of Revenue of Bangladesh.
4.12 Medical Facilities
An annual medical checkup facility has been established for all the staffs of DSK and it is
free of cost. Moreover, all the staffs enjoy medical allowances in each month.
4.13 Festival Bonus
All Employees are entitled to two festival bonuses annually during their main festival period.
Every festival bonus is equal to one month's Basic Salary. Festival bonus will be given by the
following ways:
First festival bonus will give on the occasion of Eid-Ul-Fitar.
Second festival bonus will give on the occasion of Eid-Ul-Azha for Muslim staff and
other staff will get on their main religious festival.
Generally festival bonus is given prior to 15 days of festival.
To get festival bonus the staff should complete minimum one-year service life.
The festival bonus will give during the Higher Educational leave period.
21

4.14 Travelling Allowance
The staffs will get travelling allowance in a rate. In this allowance transport fare,
lunch, ticket collection, determination etc. costs are included.
If the staffs are used transport of DSK they will not get travelling allowance.
4.15 Staff Security and Benefits
Service period Nature of accident Benefits of security fund
Below 2 year
2 year- below 5
year
5 year-below 10
year
10 year or above
10 year
Below 1 year
1 year- below 5
year
5 year-below 10
year
10 year or above
10 year
loss of both legs, loss of both
hands, loss of one leg, loss of one
hand, loss of both eyes, loss of one
hand and one eye, loss of one leg
and one eye.
Same as
Same as
Same as
Loss of one hand, loss of one leg,
loss of one eye.
Same as
Same as
Same as
is equal to 6 months Basic
Salary
is equal to 12months Basic
Salary
is equal to 24 months Basic
Salary
is equal to 48 months Basic
Salary
is equal to 3 months Basic
Salary
is equal to 6 months Basic
Salary
is equal to 12 months Basic
Salary
is equal to 18 months Basic
Salary
Table: Structure of Security and Benefits offered by DSK
22

4.16 Housing Allowance and project housing assistance
Housing allowance for field level:
Staffs getting permission to live with family they will get 60% project housing
assistance.
Staffs who are unmarried or live alone they will get 100% project housing assistance.
Where is no accommodation facility or limited there the staffs will arrange
accommodation with self-management near the field office and get 100% project
housing assistance.
Those staffs who live with family in Metropolitan City where housing facilities are
available there they will get 60% housing allowance and those staffs who are
unmarried or live alone they will get 100% housing allowance.
The 6 level or below staffs who live in field office they will get 100% project housing
assistance and who live in Metropolitan City they will get 100% housing allowance.
23

4.17 Gratuity
Gratuity will start from the date of appointment. When the staff remains program assistant
will get Gratuity equal to last basic salary. Any regular staff, project staff and service staff
who leave the service of DSK for retirement, redundancy, and resignation then he/she will get
Gratuity according to the following:
Regular staff
Duration of
service
Resignation/
termination
Retirement/
redundancy
Dismissal
Below 3 year Nothing Not get Not get
3year-below 10
year
1-month basic
salary for one
year service
2 month basic salary for
one year service
Not get
10 year-above 1-month basic
salary for one
year service.
Maximum 25
month.
2-month basic salary for
one year service.
Maximum 50 month.
Not get
Note: In case of death of staff during service period then his/her nominee will get Gratuity
equal to 2-month basic salary for one year service.
Project and service staff:
For resignation and retirement the project and service staff will get Gratuity equal to 1-month
basic salary for one-year service. He/she will not get Gratuity in case of dismissal.
4.18 Other Benefits
Telephone and Mobile phone for office and for residence,
Consultancy fees,
Food allowance,
Loan facility.
24

5
Chapter Five
Analysis & Findings
25

5.1 Analysis Of The Survey Result:
5.1.1 Total Respondents:
Most of the respondent interviewed under this survey was female (60%) On the other hand
percentage of male respondent was 40%.
Gender
100.0
60.0
40.0
Valid Female
Valid Male
Valid Total
5.1.2 Age of the Respondents:
The age range of the respondents is from 24 to 58 and the mean age of the respondents is
41.83. Standard Deviation is 9.03664.
9.03664
41.8333
58.00
30
Age
24.00
N
Minimum
Maximum
Mean
Std. Deviation
Age distribution of the Respondents
Total no. n=? Mean Age Minimum Age Maximum Age
30 41.83 24 58
26

5.1.3 Are you satisfied with your current salaries?
Are you satisfied with your current salaries?
30
6
20
4
Valid Yes
Valid No
Valid Neutral
Valid Total
Particular Respondents Percentage
Yes 20 66.7
No 4 13.3
Neutral 6 20.0
Total 30 100.0
From the chart as well as from the graph- this can be understood, 66.7 percent respondents are satisfied
with their salaries and 13.3% respondents are not satisfied. On the other hand 20 percent respondents
were not interested to share their opinion.
Assessment:
Though the number is showing a satisfactory level of employee regarding salaries but regular
monitoring will help the organization in the long run.
27

5.1.4 Are you happy with your portion of base pay?
Are you happy with your portion of base pay?
30
7
18
5
Valid Yes
Valid No
Valid Neutral
Valid Total
Particular Respondents Percentage
Yes 18 60.0
No 5 16.7
Neutral 7 23.3
Total 30 100.0
In this part, portion of base pay is graphically represented. From the above graph and chart we can
observe that, 60% of respondents are happy with their base pay. 16.7% of respondents are not happy with
their base pay.
28

5.1.5 Are you satisfied with the compensation benefits and plans provided to you?
140
120
100
80
60
40
20
0
18
30
2
10
Yes No Neutral Total
Valid
Are you satisfied with the
compensation benefits
and plans provided to
you? Percent
Are you satisfied with the
compensation benefits
and plans provided to
you? Frequency
Particular Respondents Percentage
Yes 18 60.0
No 2 6.7
Neutral 10 33.3
Total 30 100.0
From the chart of satisfaction rate of compensation and benefit policy, 60% of respondents
are satisfied with compensation and benefit plan. 33.3% were neutral about compensation
benefits and plan.
29

5.1.6 Do you feel competitors pay mix is more attractive?
Do you feel competitor pay mix is more attractive?
30
12
18
Valid Yes
Valid Neutral
Valid Total
Particular Respondents Percentage
Yes 18 60.0
No - -
Neutral 12 40.0
Total 30 100.0
The above chart and graph have presented 60% of respondents think that competitor’s base
pay is attractive than DSK. 40% of the respondents were neutral about this question.
30

5.1.7 Does the company adjust the whole compensation time to time?
Does the company adjust the whole compensation time
to time?
30
15
13
2
Valid Yes
Valid No
Valid Neutral
Valid Total
Particular Respondents Percentage
Yes 15 50.0
No 2 6.7
Neutral 13 43.3
Total 30 100.0
It has been found that most of the respondents (50%) are agreed that, DSK adjust the whole
compensation time to time. 43.3% of the respondents are not interested to share their opinion.
31

Excellent
Very Good
Good
Average
Poor
Total
5.1.8 How do you rate your work environment?
140
120
100
80
60
40
20
0
How do you rate your
work environment?
Percent
How do you rate your
work environment?
Frequency
Valid
Particular Respondents Percentage
Excellent 6 20.0
Very Good 9 30.0
Good 9 30.0
Average 5 16.7
Poor 1 3.3
Total 30 100.0
In this part the work environment is evaluated through questionnaire to respondents. Of them
around 60% (Very Good & Good) respondents think that work environment is good enough.
20% of respondents think that work environment is excellent.
32

5.1.9 Does your organization provide medical facilities?
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Neither
agree or
disagree
5 21 4 30
Agree
Valid
Strongly
Agree
Total
Does your organization
provide medical facilities?
Percent
Does your organization
provide medical facilities?
Frequency
Particular Respondents Percentage
Agree 21 70.0
Neither agree
5 16.7
nor disagree
Strongly Agree 4 13.3
Total 30 100.0
The above chart shown, most of the respondents (70%) are agreed that DSK provide medical
facilities.
33

Valid
5.1.10 Basis of Distribution of Rewards
Total
30
Skills Held
1
Seniority
Effort
2
14
Basis of distribution of
rewards Frequency
Basis of distribution of
rewards Percent
Performance
13
0% 20% 40% 60% 80% 100%
Particular Respondents Percentage
Effort 14 46.7
Performance 13 43.3
Seniority 2 6.7
Skills Held 1 3.3
Total 30 100.0
In this portion, distribution of rewards is graphically represented. Here the opinion of respondents is DSK
generally follow performance, effort and seniority based rewards.
34

5.2 Some other Compensation and Benefit issues of DSK:
A Employment & Personnel Phase:
Appointment letter is given to the employee
Promotion and increment is given to the employee.
To create awareness of the basis of promotion and appointment
Provide training and skill development
Service rule
B Compensation and work hours
Work for 6 days in a week and 8 hours in a day
Over-time is voluntary
Salary and over-time wages is paid at once by the date of 26 th of the
month
DSK
Yes
Yes
Yes
Yes
partial
Yes
No
No
5.3 Findings:
Most of the employees of DSK are strongly satisfied with current salary structure
Employees of DSK are happy with their basic pay.
Employees of DSK are satisfied with compensation benefits and plans.
Most of the employees thinking that other competitors of DSK pay mix are attractive.
Most of the employees said their compensation is adjusted time to time.
Most of the employees said DSK’s work environment is good.
Most of the employees are strongly agree that they are enjoying medical facility.
DSK employees’ believe that their reward system is mostly based on effort and
performance.
DSK does not provide any life insurance policy.
DSK only focuses to the increment of the salary.
DSK doesn’t review their HR policy.
35

6
Chapter Six
Recommendation & Conclusion
36

6.1 Recommendation
Compensation and benefits which are provided to the employees are good but it
should be reviewed regularly because employees of certain levels are satisfied but not
all. So, DSK should increase other benefits according to their promotion and efforts.
DSK should try to increase compensation and benefits according to market standard
analysis.
DSK does not provide any life insurance policy. The absence of life insurance may
discourage the employees to settle there. Therefore, I think they can introduce life
insurance policy to their employees since other organization of similar field have their
life insurance policy.
In terms of promotion, DSK only focuses to the increment of the salary. It would be
better and satisfactory for the employee if they get other incentives and benefits along
with the salary when they are promoted. It is discourage the senior most employees to
continue their work at DSK due to the policy of not giving compensation benefits 60
ages above employees.
They should review this policy considering for the job satisfaction of senior level
employees.
37

6.2 Conclusion
As NGO, DSK is a modern organization where structured HR Division has been developed.
Though their HR policy is praiseworthy but in order to cope up with current market scenario
DSK need to adapt with the modern HRM policy and procedures. Job satisfaction of the staffs,
personnel and official demand of the staffs, work environment in the office and field are
satisfactory.
As most of the activities of the NGOs are donor financed the requirements and instructions
imposed by the donors are given first preference by the NGOs. The NGOs are not listed
companies. So they are not bound to disclose the information, the accounts to the public and
sometimes this matter is misused by the NGOs. The beneficiaries need and well-being are
ignored in most of the cases. In Bangladesh ensuring the accountability of NGO needed to
establish to protect the members interest. NGOs need to be transparent to their clients, donors
and the state both functionally.
This paper is prepared for the purpose of academic under Evening MBA program of Jagannath
University. As information of this study will be used only for academic purposes and secrecy will
be maintained properly. This paper shows that a sound and employee friendly Compensation and
Benefit policy & procedures are beneficial for the NGOs if it is practiced fairly and consistently.
The major HRM activities, such as compensation & benefit, Performance appraisal system
should be practiced in such a manner that help in improving employee morale and motivation
resulting the achievement of organizational goals and objectives in the NGO sector. I have learnt
many information and system related HR management from this program that may be used for
the development of other organization.
38

7
Part: III
Appended Part
39

References:
DSK Internal Audit System, Activity Report-2018
Readings in Human Resource Management By Prof. M .A. Akkas
Website: //www.dskbangladesh.org/activity-report/
HR Policy (Service Rules) of Dushtha Shasthya Kendra (DSK)
Dessler, G. (2012). Human Resource Management (14th ed.) Pearson.
Appendix: (Questionnaire)
Survey Question
Survey on Compensation & Benefit System of DSK
Instructions
Answer questions as they relate to you. For most answers, check the box (es) most applicable
to you or fill in the blanks.
1. Your Age
(Select only one.)
17 or less
18-25
26-35
36-45
46-55
56-65
66-75
76 or more
2. Your Gender
(Select only one.)
Female
Male
Other
40

Questionnaires
Are you satisfied with your current salaries?
1. Yes 2.No 3.Neutral
Are you happy with your portion of base pay?
1. Yes 2.No 3.Neutral
Are you satisfied with the compensation benefits and plans provided to you?
1. Yes 2.No 3.Neutral
Do you feel competitors pay mix is more attractive?
1. Yes 2.No 3.Neutral
Does the company adjust the whole compensation time to time?
1. Yes 2.No 3.Neutral
How do you rate your work environment?
1. Excellent 2.Very Good 3.Good 4.Average 5.Poor
Does your organization provide the medical facilities?
1. Strongly Disagree 2.Disagree 3.Neither agree nor disagree 4.Agree 5.Strongly agree
Basis of Distribution of Rewards
1. Performance 2.Effort 3.Seniority 4.Skills held
*** The End ***
41