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A Term Paper on Compensation Management of

Transparency International Bangladesh (TIB)

A term paper submitted for the satisfaction of the requirements for the courseCompensation Management (HRM- 705)

Prepared for:

Prof. Dr. Md. Mohsin-Ul Islam

Institute of Business Administration

University of Rajshahi

Prepared By:

Grpup-1

MBA (Day) Program

4th Batch, 4th Semester

Ali Azim Muhammad Nasim - D090002

Jannatul Ferdous - D090003

Kala Chand Karmaker - D090004

Iftia Wahab - D090007

Institute of Business Administration

University of Rajshahi

February 06, 2012

1



INTRODUCTION

The rise in importance of global markets over the last two decades of the twenteth century andinto the twenty first century has placed greater stress on organizations regarding their ability to

compete and be profitable. The need to be competitive is critical to all organizations – profit and

nonprofit, privately aowned, or government operated. To successful, these organizations must provide high quality goods and services to their Clints in a cost effective manner. A major cost

for all organizations in providing needed goods and services is their labor costs. In organizations,

competitive pressures, both internationally and domestically, force managers to consider theaffordability of managers’ compensation decision. Compensation refers to all forms of financial

returns, tangible services and benefits employee receives as part of an employment relationship.

Different organizations have various forms of pay - total compensation (base, incentives, and benefits) and relational or psychological returns (learning opportunities, status, challenging

work, cost of living adjustment and so on) with the objectives of achieving and sustaining

competitive advantage through efficiency, fairness and compliance by means of internal and

external equity in pay determination, employee contribution and management decision. In this

knowledge based world compensation management the most important HRM concern became a pivotal issue for the organizations to cope with the competitive environment in the arena of

business world.

Origin

This term paper has been made as the course requirement of MBA program. The term paper has

been assigned to our group consists of four members by the course instructor Prof. Dr. Md.Mohsin-Ul Islam, IBA, University of Rajshahi. This term paper contains the Compensation

Management of Transparency International Bangladesh (TIB).

Objective

The objective of the term paper is to acquire knowledge practically about compensationmanagement practiced in an organization. Besides, obtaining knowledge and experience we tried

to give an idea to the readers about the pay structure of Transparency International Bangladesh.

Scope

We confined our discussion to the pay structure of Transparency International Bangladesh. We

will not compare the compensation policy of TIB with others.

2



Methodology

Types and sources of Information

It explains sources of data to prepare the term paper; the following sources of data where

used:

Primary source of Data:

A very primary source of data has been used while preparing this term paper. Primary data,information is collected as follows;

Communication

Interviews

Surveys/ questionnaires

Secondary sources of data:

Publications

Internet

Website

3



AN OVERVIEW OF TRANSPARENCY INTERNATIONAL BANGLADESH

Transparency International Bangladesh (TIB) is an independent, non-government, non-partisan

and non-profit organization with a vision of Bangladesh in which government, politics, business,

civil society and the daily lives of the people shall be free from corruption. In the context of theinternational movement against corruption, TIB is the national chapter in Bangladesh of the

Berlin-based Transparency International (TI), and accordingly, TIB partners and cooperates with

TI and its chapters worldwide. However, TIB is not a subordinate body of TI. TIB is committedto values of democracy, justice, rule of law, transparency, accountability, integrity and

impartiality. TIB’s mission is to catalyze and strengthen a participatory social movement to promote and develop institutions, laws and practices for combating corruption in Bangladesh and

establishing an efficient and transparent system of governance, politics and business. (Source:Governance Manual and Code of Ethics, TIB, 2005) The present Human Resource Manual is

based on the above vision, values and mission of TIB. It provides the framework of guiding

principles and practices aimed at ensuring the highest standards of efficiency, integrity,accountability and transparency in managing TIB. The HR Manual is a living document, subject

to amendment with the approval of the Board. Its practical value and importance lies in the

availability of resources and commitment of TIB in applying these standards in its work. Wherethe provisions of this HR Manual are inconsistent with the laws of the land or the Trust Deed of

TIB, the provisions of law or Trust Deed, as applicable, shall, prevail over provisions contained

herein. The present manual presents the standard Human Resource Policies and Procedures of TIB. These procedures and rules shall apply to all employees of TIB subject to availability of

resources. The provisions of this manual shall be applicable to project(s) provided financial

implications are covered within the project(s) funds available from project and other approved

sources. The Board of Trustees of TIB shall have the right to bring required and relevantchanges in any of the provisions if necessary.

4



SOME RELEVANT DEFINITIONS

1. TIB/Organization means Transparency International Bangladesh Chapter.

2. Board of Trustees means the body that established TIB under a Trust deed. It is the decisions

making body of the Trust, but delegates day to day management decisions to ED of TIB.

3. Chairperson means Chairperson of the Board of Trustee.

4. Executive Director means the Executive Director of TIB either engaged or appointed by theBoard of Trustees.

5. Appointing Authority means the BOT; the Executive Director of the TIB appoints in thename of the board as per delegation. The appointments to the posts of Director and ED remains

with the Board.

6. Competent Authority means BOT/Executive Director/Directors or any other officer designated by the BOT/OMC to exercise the powers under these rules.

7. Operation Management Committee (OMC) includes the Executive Director, and Directors or any other staff members co-opted by ED with the approval of BOT mainly in the absence of

Directors.

8. Post means a sanctioned post in the organization including its project.

9. Employee means a staff or officer of the TIB whether probationary or confirmed.

10. Basic Salary means the scale pay, excluding benefits and allowances, which have been

sanctioned by the appointed authority for a post held by an employee.

11. Allowances mean additional payments made to employee in excess of their basic salary.

12. Salary means the amount, inclusive of the benefits and allowances, drawn monthly by anemployee as the pay and allowance that has been sanctioned for the post held by her/employee.

13. Duty means service of an employee including leave authorized by competent authority.

14. Holiday means a day closed to by an order of TIB including national holidays.

15. Advisor/Consultant means such individuals(s), either Bangladeshi or foreign, appointed onspecific terms & conditions as determined by the council on a special contract for rendering

consultancy or some advisory or technical function.

5



CLASSIFICATION OF EMPLOYEES

TIB Staff are classified into the following groups:

Core Staff

A Core staffs are those who are so designated by the Board.

Project Staff

An employee who has been engaged for work in a TIB project shall be considered as project

staff.

Contracted Staff

An employee who has been engaged for work which is essentially of temporary nature or for a

contractual service which is likely to be finished within a specific limited period of time.Benefits and other entitlements of such staff shall be regulated as per their contract with TIB. A

part time employee hired for work for less than 40 hours per week shall be treated as contracted

staff.

Probationer

An employee who has been employed to fill a staff vacancy but who has not yet completedher/his probationary period.

Casual Staff

A casual staff is a daily wage employee on a no-work no pay basis.

6



STAFF SALARY AND BENEFITS

Salary and Benefits: Principles

TIB tries to offer employees competitive salary to attract and retain them within the organization.The organization looks at both internal and external equity for salary determination. The

compensation philosophy rests on the assumption that a sound compensation strategy within the

available resources can make a difference in achieving desired goals and objectives of the

organization. TIB generally follows the principle of equity in salary determination.

Salary increment/Salary rise

Salary increments are tied with performance. Annual performance appraisal of an employee shall

be the basis for annual salary increments.

a) An employee is entitled to have at least an annual increment at a rate determined by the

Board of his/her current basic salary after his/her annual appraisal subject to satisfactory performance and fulfilling the criteria stated in relevant sections of Performance

b) Appraisal. The Board resolved that members of the staff whose performance was found

to be below expectation should be subjected to disciplinary action, while those who

performed with exemplary commitment and excellence should be rewarded.

c) The salary structure shall be renewed from time to time by the Board.

Career Development

Organizational structure will provide opportunity for career development within TIB, as and

where applicable.

Position, Level and Salary Structure

a) TIB has a prescribed salary structure/pay scale duly approved by the Board of TIB.

b) All regular and project staff positions in TIB are defined (subject to Board’s approval)

under level I to XI.

c) Structure of the staffing and salary is shown in the table # 3.4.1, (considering Basic

Salary of step-1of each level as an example) which is subject to change with COLA in

each year.

d) There will be a maximum of 20 steps in the salary structure of each position considering

the rate determined by the Board.

e) In the event an employee is already in the last step of a level, shall remain in the same

step unless or until any change of his/her level or the change of the organizations’ salarystructure is made, or otherwise determined by the board.

7



Salary Matrix for Regular Staff Members’

[3] In present salary matrix each level of position has 20 steps considering @ 3.5% increment on

total basic salary of previous step.

Salary

a) All staff of TIB shall be compensated on a monthly basis as per the approved salary

structure.

b) Staffs who are on temporary or short-term contract status shall receive salaries

inaccordance with their respective terms and conditions.

Basic Salary

The Basic Salary is consists of basic pay plus COLA to be determined in each year:

a) The standard working hours is 37.5 hours per working week.

b) The other allowances shall be calculated based on 30 days.

c) Monthly remuneration of cleaners or such part time staff employed on regular basis shall.

Tk.1, 500/= subject to maximum 25 hours weekly, they will get festival allowance.

8



Cost of Living Adjustment (COLA)

COLA of basic salary will be applicable to all confirmed staff with effect from January 01, every

year of a rate to be determined based on increased cost of living subject to board’s approval.

Review of Salary Structure

The Salary Structure may be reviewed periodically or in each project cycle whichever isappropriate, to address the change in the market and depending on the TIB’s fund position.

House Rent Allowance

a) All employees of TIB shall be granted house rent allowance at rates prescribed by the

Board from time to time. b) Existing rate and practice are as follows:

I. 50 percent of the basic salary for all employees, except those in grades I – IV for

whom this rate shall be 60%.

II. This rate may be changed with the decision of the Board depending on thecircumstances.

Conveyance Allowance

a) All regular employees of TIB shall be paid a monthly conveyance allowance at the rate

prescribed by the Board.

b) Executive Director is entitled to full time transport facility. Deputy Executive Director and

Directors are generally entitled to get vehicle support during office time including pickupand drop facility. However, conveyance allowance will not be applicable for the Directors

who will avail pickup and drops facilities.c) All employees of TIB shall be paid actual transportation costs for official trips; officials

are entitled to use TIB vehicles in Dhaka city subject to availability and approval and

reimbursement for personal usages as per transport manual.

Medical Allowance

All regular and project employees of TIB shall be paid a fixed monthly medical allowance as

prescribed by the Board.

Children’s Education Allowance

Children’s Educational Allowance shall be paid to confirmed employees falling in grade I - IV at

the rate of Tk. 200 per month per child up to two children (age limit from 5 to 18 yrs.).

Overtime

9



TIB normally discourages overtime work unless there is urgent need. Overtime benefits shall be

allowed only to TIB’s staff for falling in grade I – IV, who shall be entitled to get overtime

allowance for extra work beyond normal office hours (42.5 hours per week). However, totalovertime hours should not exceed more than 120 hours for Support Staff and 150 hours for

Drivers in a month. Hourly rate for overtime will be twice of their hourly basic salary.

Salary Deduction

TIB reserves the right to make deductions from an employee’s salary for the following:

a) Provident Fund contribution by the employee, as and when created and rules governingthe same are framed.

b) Unauthorized absence or leave without pay.

c) Recovery of over payment of salary, allowance, benefits or loan/advance.

d) Damage to, or loss of, materials expressly entrusted to the employee for custody, or loss of

money for which s/he is accountable, when such damage or loss is directly attributable tohis/her negligence or default.

e) Use of office facilities on payment, such as, NWD/ISD phone calls, ISD fax, transport etcfor personal reasons.

Staff Income Tax

All employees for TIB, if applicable, are liable to pay income tax as per rules of the Government

of Bangladesh. TIB shall deduct the amount of tax payable on salary at source before paymentand deposit the same to the Treasury on monthly basis. Such deductions shall be intimates to the

concerned employee.

Gratuity or End of Contract Benefit

Gratuity

All confirmed employees shall be entitled to gratuity as and when provisions are created and rulesare framed.

End of Contract Benefit

Until such time as Gratuity has been introduced, Staff members who will work till the end of a

project will get end of contract benefit equivalent to at the rate of twice of their last drawnmonthly total basic salary multiplied by the number of years served. However, Staff who have

completed at least 30 months of service with TIB and leave TIB before the end of a project will be

entitled to receive such benefit at the rate of their last drawn monthly total basic salary multiplied

by the number of years served. For outgoing staff those who are appointed for less than 30months, decision regarding EOC benefit shall be made by the Board on the basis of

recommendation by the ED.

10



Festival Allowance

All confirmed employees, who will observe their major festivals during their employment withTIB, shall be entitled to have festival allowance in proportioned to their prevailing basic salary(Basic pay plus COLA) at the rate stated bellow.

For Muslim Staff : 1.5 month’s basic salary for level I, and 01 month’s basic salary for Level II to

XI in each Eid.

For non Muslim staff : Three month’s basic salary for level I, and Two month’s basic salary for

Level II to XI in one installment during a major festival (like Durga Puja/ Christmas/ BoishakhiPurnima etc) as declared by the staff.

The festival bonus shall be given at least ten days before the festival. Festival Allowance isdirectly associated with the observance of festivals during the employee’s association with TIB;

hence it will not be payable for the staff who will be separated before the Festival.

Voluntary Contribution to TIB

All TIB staff is expected to voluntarily and unconditionally contribute one percent of their gross

salary for the sustainability of TIB. The rate of this contribution may be higher if any staff

member voluntarily so decides. However, it is not mandatory for any employee to make thiscontribution. A separate concept paper shall be prepared for effective management and utilization

of the fund created by this contribution.

Telephone Allowance

TIB will provide a mobile Phone SIM (in line with the corporate agreement of TIB with service provider) to all staff member (except support staff) of TIB after his/her joining. Tk.2,000/- or 50%

of the price of a mobile phone set, whichever is less, will be reimbursed to an employee, subject

to submission of original invoice of the same. If any employee purchases a mobile set of costing

less than Tk.4, 000/- fifty percent of purchase cost will be reimbursed in such case.

If any employee leaves TIB before one year service from the purchase date of telephone set s/he

has to take the used set and refund full TIB contribution. Staff who will use telephone set for

more than one year can take phone set without refunding any money.

Mobile phone set shall remain in the custody of the designated employee, who in the event of anydamage or loss of the phone will either replace the same on personal account or accept deduction

from his/her salary to recover the purchase cost of the damaged/lost/stolen phone. Exception to

the above can be made under special circumstances subject to the approval of the ExecutiveDirector.

11



Staff members shall be entitled to get telephone allowances to cover the monthly mobile

telephone bills within the ceiling specified in the following table.

Allocation of Telophone allowance:

Any amount exceeding the ceiling shall be borne by the concern employee or shall be deducted

from salary. Any exception will require approval of Divisional Head. For officers maintainingintensive contact with field offices and during special events exceptions for extra payments can be

authorized by the ED.

Travel Allowance

Domestic Travel

Employees and consultants may be required to undertake travel on the TIB work related business.

Authorized travel within Bangladesh is considered domestic travel. It commences from a

specified location or residence to one or more specified destinations and return to the assigned

departure point.

Authorization

Normally travel plans shall be prepared and approval obtained on monthly basis. When the

employee or consultants is required to travel, he or she must submit Travel Request Form (TRF)

to Finance Department through his or her supervisor at least 3 days before the travel commence.

Travel Advance

The estimated cost of the trip may be paid to the traveler as travel advance. The traveler shall

12



indicate the amount of money on the TRF if an advance is required. The respective Divisional

Head shall approve the advance request for travel.

Mode of Transport

The mode of transportation shall be followed as suggested in the following table for domestictravel Office vehicle may be used by senior officials for Dhaka city travel subject to availability

and approval. Otherwise local transport shall be used by all employees of TIB. For using TIB

vehicle requisition must be submitted to the Administration before the traveler submits TRF. If

official vehicle is not available subject to approval of DAF, vehicle from rent-a-car may be usedfor domestic travel considering situation and cost implication.

Travel Cost

Traveler will be reimbursed for the actual cost of transportation and lodging as suggested in the

next table Used plane, train, bus and steamer tickets and lodging/hotel bills shall be attached tothe Travel Expense Report (TER) when it is submitted for reimbursement. If the used ticket is

required to be surrendered, the traveler shall make a photocopy of the ticket and submit it with the

TER.

13



Travel Allowance: Mode of Transport, Lodging and perdiem

___________________________________________________________________________

14



In addition to the transportation costs and lodging, the traveler shall be paid per diem to cover all

meals, drinks and incidental cost, as suggested in the above table TIB staff will receive per diemallowance for domestic travel as under:

Per Diem will be computed at the basis of total travel hour as follows:

a) Half day per diem will be entitled for minimum of 5-8 hours travel;

b) Full day per diem will be entitled for 8-24 hours travel.

Staff members are also entitled to claim Per Diems for meals and incidental at the following rate

while participating in events/training/workshops etc. outside their place of posting for which costsare covered by TIB.

i) If one major meal (Launch or Dinner) is provided by TIB: 75% of applicable Per Diems

entitlement on meals and incidental.

ii) If both Lunch and Dinner are provided by TIB: 50% of applicable Per Diems entitlement onmeals and incidental.

iii) If all meals are provided by TIB: 40% of applicable Per Diems entitlement on meals andincidental.

Incase of traveling of consecutive five days or more, respective staff is entitled to get Tk. 100(One hundred) subsistence allowance per day.

Meal Allowance

In situations when employees are required to work for extended hours under due authorization

they will be entitled to the following payments/reimbursements, which will be made on actual

basis subject to approval of divisional heads supported by bills/receipts.

Snacks: Upto Tk.30 for 2.5 hours of extended work after 5.00 pm on a regular working day.

Lunch: Upto 25% of applicable per diem entitlement for official work outside office during the

period from 12.00 pm to 3.00 pm.

Dinner: Upto 25% of per diem entitlement for official work till 9.00 pm or beyond.

15



In case of short term employees, the rates for lunch and dinner will be Tk.100.

Other Reimbursable Expenses

In addition to reimbursement of travel expenses at actual and per diem payment, the followingexpenses are also reimbursable when itemized and incurred during an authorized project relatedtrip and satisfactory documentation is available with TER:

i) Local conveyance for going to the bus terminal, railway station or steamer

ii) Work related telephone, telegraph, telex or fax bill

iii) Charges for photocopying materials relating to the trip.

Travel Expense Report

1. Travel Expenses have to be submitted in Travel Expense Report (TER) on completion of an

authorized project related trip.

2. Travel Expenses Report for all travels shall be submitted to the respective supervisor within 5

(five) working days after completion of the travel. The Supervisor shall forward it to the Finance

Department immediately. Finance Department shall check the accuracy and get the approval for the settlement.

3. All documents relevant to travel expenses shall be attached with TER. All expenses regardless

of amount shall be itemized. Receipts, paid bills or similar evidence for each item, shall be

attached to the TER to support the claim.

4. Accounts department shall adjust the advance, if any, after approval of TER.

5. If a traveler who was paid an advance fails to submit TER within the time specified above, the

advance paid to him or her may be deducted from his or her salary.

International Travel

All international travel shall be approved by Executive Director and should meet the requirements

of funding agency. International travel shall be by the most direct route and by the economy class.

Following general rules shall be maintained for international travel:

a) Costs for travel to other countries to attend professional meetings or for official TIB business,

shall be reimbursed on the basis of submitted records at the rates decided by the Executive

Director, not to exceed those prescribed by the relevant donor, as amended.

b) Out-of-pocket expenses incurred during travel shall be covered with approval of the supervisor.

16



c) When travel is by an indirect route for the employees’ personal convenience, allowance costs

of such travel shall be compensated on the basis of the cost of economy class air fair via the direct

route usually traveled.

Foreign Travel Allowance

Staff traveling at the sponsorship of other organizations shall not be entitled to any allowance if

they cover through his/her cost. Staff traveling at the initiative of TIB shall be entitled to have

following allowances:

i) International Travel fare

ii) International Travel tax

iii) Embarkation Tax

iv) Airport Tax

v) Visa Fees

vi) Passport costs

vii) TIB sponsored international traveler shall get a fixed allowance for meeting relevant expenses

while staying abroad.

Transfer Allowance

Staff on transfer will get allowance for conveyance and luggage on joining her/his new working

area. The following shall be applicable:

a) Staff Level VII to XI

I. Within the same region (duty station) shall get one month’s basic salaryII. Outside the region (duty station) shall get 1.5 months basic salary

b) Staff Level I –VI

I. Within the same region (duty station) shall 1.5 times monthly total salaryII. Outside the region (duty station) shall get two times monthly total salary

c) Staff will not be entitled to get transfer allowance as per Clause # 3.23.1 & 3.23.2, as thetransfer granted on his/her personal request and convenience

d) If transferred field staff need to stay outside his/her duty station (may be head office or

any other places) for official purposes, shall get the daily allowances for those days as per

procedure. Transferred staff is also entitled to claim field allowance for 3-7 days during

17



his/her joining at the new place of posting subject to approval of the line manager.

Staff Insurance Coverage

TIB shall maintain group insurance coverage at the expense of the organization for its entire

confirmed and regular staff. This shall be guided by the group insurance coverage proceduredeveloped jointly by TIB and the concerned insurance authority.

Child Care Facility

Female staff having babies up to the age of two years shall be entitled to carry their babies along

with their attendants, if any, in the working places.

Bi-cycle for Support Staff

Support staff, who work in the CCC areas, will be provided a bi-cycle from TIB’s funds as soon

as he appointed. The purchase cost of the bi-cycle will be recovered in installments @ Tk. 500from his/her salary each month.

The ownership of the bi-cycle will be enjoyed by the Support Staff. He will keep it in his owncustody and will use for official and personal use.

Maintenance, repair and safe custody of the bi-cycle is the responsibility of the Support Staff. In

case of damage or loss he/she will either replace the same on personal account or accept

deduction from his/her salary to recover the purchase cost of the damaged/lost/stolen bi-cycle.Exception to the above can be made under special circumstances subject to the approval of the

Executive Director.

Expenses of Trustees

All expenses incurred in connection with TIB related travel and work shall be borne by TIB onactual basis.

Training, Staff Development and Internship

All training should have prior budget provisions and it should be cost effective. Training plan

should consider available financial resources for employee development. Funded training

programmes can be availed of provided these are consistent with above.

Interns are not entitled to salaries and benefits. However, upto Tk. 5,000.00 will be paid as gross

monthly allowance to cover conveyance and incidental expenses. In connection with the given

assignment field visits are required; the cost of travel, accommodation will be covered on actual

basis.

To the extent possible, TIB will try to provide logistic support such as workstation, telephone and

internet use, supply of stationery and other facilities that may be required for proper discharge of

18



assigned tasks by the Intern.

Incentives

TIB provides only 3% incentives to the employees in every June.

ADMINISTRATIVE STRUCTURE OF COMPENSATION DEPARTMENT

19



Salary matrix for regular staff members

Level

Position Basic pay(Step -1 of 2007)

[1]

COLA[2]

BasicSalary[3]

House RenAllow-ance

[4]

MedicalAllow-ance

[5]

Convey-anceAllow-ance[6]

ChildrenAllow-ance[7]

Gross Salar& Allow-ances

[8]

I SupportStaff- I 1,498

As deter-mined bythe boardin each

year

Total(1+2)

60 Percentof Total

BasicSalary

1100 Tk. 1250

for staff

posted at

Dhaka City

&

Tk. 1000

for staff

posted

outsideDhaka City

Tk 200 per

child up to

maximum 2

children (5-18 years)

Grand

Total (1 to

7)II Support

Staff -II 2,284

iii Driver- I4,494

iv Diver-II(proposed

New

position)5000

v Assistant /ProgramOrganizer

5,99250 Percent

of TotalBasicSalary

Tk. 1500

for staff

posted atDhaka City

&

Tk. 1250

for staff

posted

outside

Dhaka City

Not applicable

vi Assistant

Manager/AssistantOfficer/Executive

Assistant

9,737

vii Manager/Off

icer 17,227

viii Senior Manager/

Officer

24,717

ix Research

Fellow/GeneralManager/Coordinator/

Specialist

(Proposednew

position)

31600

x Director 56,175

20



xi ExecutiveDirector

To be fixed by the Board



PAY MIX DIAGRAM

21



Salary matrix 2011 for regular staff members

Level

Position Basic pay

(Step -1 of 2007)

[1]

COLA

[2]

Basic

Salary[3]

House

RenAllow-

ance[4]

Medical

Allow-ance

[5]

Convey-ance

Allow-ance[6]

Children

Allow-ance[7]

Gross

Salary& Allow-

ances[8]

I SupportStaff- I 1,498 149.8 1647.8 988.68

1100 Tk. 1250

for staff posted at

Dhaka City

&

Tk. 1000

for staff posted

outside

Dhaka City

Tk 200 per

child up to

maximum 2children (5-

18 years)

6834.28 or

6584.28

II Support

Staff -II 2,284 228.4 2512.4 1507.449082.24 or

8832.24

iii Driver- I

4,494 449.4 4943.4 2966.04

15402.84

or

15152.84

iv Diver-II (proposed New

position)

5000

500 5500 3300 16850 or 16600

v Assistant /

ProgramOrganizer

5,992 599.2 6591.2 3954.72

Tk. 1500

for staff

posted at

Dhaka City

&

Tk. 1250

for staff

posted

outside

Dhaka City

Not

applicable19737.12

or

19487.12

vi AssistantManager/AssistantOfficer/

ExecutiveAssistant

9,737 973.7 10710.7 6426.4230447.82

or

30197.82

vii Manager/Of

ficer 17,227 1722.7 18949.7 11369.82

51868.62

or

51618.62

viii Senior Manager/Officer

24,717 2471.7 27188.7 16313.22

95536.62

or

95286.62

ix ResearchFellow/

GeneralManager/

Coordinator

(Proposednew

position)31600

3160 34760 20856

100543

22



/Specialist

x Director 56,175 5617.5 61792 37075.5 163260.5

xi Executive

Director To be fixed by the Board

[3] In present salary matrix each level of position has 20 steps considering @ 3.5% increment ontotal basic salary of previous step.

Salary matrix 2010: for regular staff members

Level

Position Basic pay

(Step -1 of 2007)

[1]

COLA

[2]

Basic

Salary[3]

House

RenAllow-

ance[4]

Medical

Allow-ance

[5]

Convey-ance

Allow-ance[6]

Children

Allow-ance[7]

Gross

Salary& Allow-

ances[8]

I SupportStaff- I 1,498 104.86 1602.86 963.52

1100 Tk. 1250

for staff

posted at

Dhaka City

&

Tk. 1000for staff

posted

outside

Dhaka City

Tk 200 per

child up to

maximum 2

children (5-

18 years)

6719.24 or

6469.24

II Support

Staff -II 2,284 159.88 2443.88 1466.338904.03 or

8654.09

iii Driver- I

4,494 314.58 4808.58 2885.15

15052.31

or

14802.31

iv Diver-II (proposed

New position)

5000

350 5350 3210 16460 or

16210

v Assistant /ProgramOrganizer

5,992 299.6 6291.85 5209.3

Tk. 1500

for staff posted at

Dhaka City

&

Tk. 1250for staff

postedoutside

Dhaka City

Notapplicable

18628.60

or 18378.6

vi AssistantManager/AssistantOfficer/

ExecutiveAssistant

9,737 681.5910418.5

95209.3

28646.48

or

28396.48

vii Manager/Of ficer 17,227 1205.89

18432.89

9216.45

48682.23

or

48432.23

viii Senior

Manager/Officer

24,717 1730.19 26447.19

13223.95

68718.33

or 68468.33

ix ResearchFellow/

GeneralManager/

Coordinator /

Specialist

(Proposednew

position)31600

2212 33812 1690687130

x Director 56,175 2808.75 58983.7 30053.62 152868.12

23



5

xi ExecutiveDirector

To be fixed by the Board



TREND ANALYSIS

Salary matrix 2011: Total compensation paid in 2011 is Tk. 6026916

Salary matrix 2010: Total compensation paid in 2010 is Tk. 5421684

Trend Analysis = {Current Year (2011) – Base Year (2010) / Base Year} * 100

= {(Tk. 6026916 - Tk. 5421684) / Tk. 5421684}* 100

= 11 %

EMPLOYEE ATTITUDE TOWARDS COMPENSATION POLICY

We conducted the survey among 10 representatives from different level and select therepresentatives randomly. The survey results are given below in a compile form.

• 6 out of 10 are satisfied with the current compensation practice.

• 3 people want to make amendment in benefits policy.

24



• 1 wants to introduce pay for performance provision.

• Maximum employees think that there is a long pay distance among the levels

.

• Most of them want to improve life insurance policy and like to contribute financially.

QUESTIONNAIRE FOR PAY SURVEY

Designation of the Incumbent:

1. Are you satisfied with the current compensation policy of your organization? Yes

No

2. If the answer is no then, in which category you think amendment.

Basic pay

Benefits

Incentives

3. Would you want to introduce or improve any benefits and incentives plan? Yes

No

4. If yes, please mention it.

Introduce:

Improvement:

5. Would you be willing to contribute a portion of your earnings for new or improved

benefits beyond the level already provided by the organization?

Yes

No

25



6. If yes, please indicate below in which area?

COLA

House Rent Allowance

Medical Allowance

Conveyance Allowance

Children Allowance

_____________________________________________________________________________

_

26



FINDINGS

• Maintaining Cost of living adjustment (COLA).

• Less emphasize on pay for performance.

• Huge Differences in pay between assistance program organizer & assistance program

manager.

• Same medical allowances for all level of age.

• TIB provides double festivals allowances for the non Muslim.

• The HR does not conduct any formal survey for salary fixation in terms of other non

profit organization.

RECOMMENDATION

• Scope of pay for performance should be increased.

• Huge pay differences should be minimized among the positions.

• Medical allowances should be provided on the basis of age differences.

CONCLUSION

TIB is an equal employment opportunity organization. It is working for curving corruption inBangladesh. They have a structured compensation policy that will be more effective if they

concern about their internal and external alignment of their pay policy.

______________________

a term paper on compensation management of tib.doc

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