PROJECT REPORT

ON
An Overview of
Human Resource Management Practices of Emerging Credit Rating Ltd.
(ECRL)

Submitted to:
Controller of Examinations
National University
Gazipur – 1704

Supervised by:
Professor Dr. Mostafa Kamal
Advisor
Daffodil Institute of IT (DIIT)

Submitted By:
Marjan Chowdhury
Roll: 1920462
Registration:18601000614
Session:2018-2019
Major in Human Resource Management
MBA Program
Daffodil Institute of IT (DIIT)

National University, Bangladesh

Date of Submission: April 05, 2023

 Letter of Transmittal
April 05, 2023

Controller of Examinations
National University
Gazipur – 1704

Subject: Submission of Project Report.

Dear Sir,

With due respect, I would like to submit my project report on " An Overview of Human
Resource Management Practices of Emerging Credit Rating Ltd. (ECRL)" for your kind
evaluation. Working at Emerging Credit Rating Ltd (ECRL) was a great experience for me. I
believe this will help me to build my career. The working experience allowed me to enrich my
theoretical knowledge through practical exposure to financial activities as well as the HRM of
some businesses.

I, therefore, hope that this report will provide the necessary information about An Overview of
Human Resource Management Practices of Emerging Credit Rating Ltd. (ECRL). I will be
glad if you kindly accept this report. I will be available at any time convenient for further
clarification on the report.

Thanking you.

Sincerely Yours,

Marjan Chowdhury
Roll: 1920462
Registration:18601000614
Session:2018-2019
Major in Human Resource Management
MBA Program
Daffodil Institute of IT (DIIT)

i
 Student’s Declaration
I, Marjan Chowdhury, (NU Roll: 1920462), hereby announce that the presented report of the
project titled “An Overview of Human Resource Management Practices of Emerging Credit
Rating Ltd. (ECRL)” prepared by me after the completion of nine months of work at that
organization. I also mention that the report is prepared only for my academic requirement
purpose.

I declare that the report is not allowed to be used for any purpose without permission.

________________________

Marjan Chowdhury
Roll: 1920462
Registration:18601000614
Session:2018-2019
Major in Human Resource Management
MBA Program
Daffodil Institute of IT (DIIT)

ii
 Certificate of Supervisor
This is certified that Marjan Chowdhury, National University Roll: 1920462, Registration
No: 18601000614, Academic session: 2018-2019, Major in Human Resource Management, is
a regular student in the final semester of the MBA program, Department of Business
Administration, Daffodil Institute of IT, under the National University of Bangladesh. He has
completed a project report “An Overview of Human Resource Management Practices of
Emerging Credit Rating Ltd. (ECRL)” Under my supervision which is a fulfillment of the
partial requirement of obtaining MBA degree.

I wish him success in all his future endeavors.

Prof. Dr. Mostofa Kamal

Advisor
Daffodil Institute of IT

iii
 Acknowledgement
First of all, I express my heartiest gratitude to the almighty Allah who created me. I additionally
profoundly express gratitude toward him for making an open door for me to effectively finish
my project with an all-around sorted-out organization.

I express my sincere heartiest gratitude to all the Departments of ECRL Head Office, who
helped directly and indirectly in different capacities to conduct and complete the report. I want
to include that without their co-operation it would maybe, have not been workable for me to
finish the report.

I would like to express my deep respect to my honorable teacher, who is my supervisor

Professor Dr. Mostafa Kamal (Advisor, DIIT) to lead me through this project with his precious
time.

In preparing the report, I got active co-operations from the Manager (HR & Admin), Chief
Rating Officer, Deputy Chief Rating Officer, Senior Financial Analyst, Senior Officers, and
staff of ECRL. I sincerely state my heartfelt gratefulness for their assistance, which helped me
to conduct and complete this report.

I am very respectful to the entire executive who discussed with me and share their views and
opinions with me on various issues. Lastly, I am very pleased and grateful as I got the
opportunity to do my project with such a successful organization.

iv
 Abstract
Credit rating as well as the credit rating industry is a recent concept in the financial sector of
Bangladesh. Credit ratings are widely used by investors, issuers, investment agencies, broker-
dealers, large companies, individuals, small and medium enterprises, and every sector of
Bangladesh nowadays. In the financial service industry of Bangladesh, credit rating agencies
are mainly operating under the “Credit Rating Industry”. There is a total of eight existing credit
rating agencies in Bangladesh currently including CRISL, ECRL, NCR, CRAB, AGRUS,
WASO, ALPHA, and BDRAL. In Bangladesh, the position of an employer has invested
heavily due to financial management and economic growth. We can see that, at present, our
business ventures have shifted to the big vision of completion, thanks to the entry into many
new agencies, including improved quality, increased technology upgrades, reasonable credit
management, a strong level of performance, with satisfied customers. This Declaration is
entitled "According to the Human Resources Regulations in the Business Period in
Bangladesh" which is the most important and important role for the organization and industry.
Therefore, as a result, the importance of human resources management in the credit rating
industry has increased rapidly worldwide. Human capital is the only way to improve the value
of capital, on the ground, of processes to add the necessary benefits to the economy. In today's
competitive world, we face challenges at every stage of our lives, in addition to new
opportunities. Now, the whole organization hires manage, and retain the best employees instead
of thinking about making money. The potential of human beings is only beyond the reach of
the wealthy market view.

Emerging Credit Rating Limited’s team is oriented towards the continuous improvement of
processes, striving for an important role in the leadership of the business world. Every
individual in ECRL is committed to providing the top most ingenious Credit Rating Services
and Comprehensive Research Services in Bangladesh. ECRL’s ratings services and solutions
reflect independence, professionalism, transparency, and impartial opinions, which assist
businesses to enhance the quality of their decisions and help issuers access a broader investor
base and even smaller known companies approach the money and capital markets.

v
 Table of Content

S. N Content Page

Letter of Transmittal (i)

Student’s Declaration (ii)
Certificate of Supervisor (iii)
Acknowledgement (iv)
Abstract (v)
Chapter: 01 Introduction
1.1 Introduction 2
1.2 Literature Review 2
1.3 Significance of the Study 3
1.4 Scope of the Report 3
1.5 Objectives of the Study 3
1.6 Methodology of the Study 4
1.7 Data Analysis Techniques 4
1.8 Limitations of the Study 5
Chapter: 02 Overview of Emerging Credit Rating Limited (ECRL)
2.1 Background of ECRL 7
2.2 Vision 8
2.3 Mission and Goal 8
2.4 Company Values 8
2.5 Trend and Growth 9
2.6 Trend of Rating in ECRL 9
2.7 Corporate Rating 9
2.8 SME (Small & Medium Enterprise) Rating 9
2.9 Product/Service Mix 10
2.10 Rating Process 11
Chapter: 03 Credit Rating Industry in Bangladesh With
HRM System
3.1 Industry Size and Growth Trends 13
3.2 Maturity of the Industry 14
3.3 Regulatory, Political, and Legal Concerns 16

vi
3.4 The Importance of Credit Rating 17
3.5 Human Resource Management (HRM) 18
3.6 Human Resource Purpose and Role 18
3.7 Key Functions 18
3.8 Components of Compensation 19
3.9 Approaches of Compensation Management 21
3.10 Functional Overview and Strategy for HRM 21
3.11 Major Activities of the HR Department 22
Chapter: 04 HRM Practices of Emerging Credit Rating Ltd.
4.1 Units in the HR division 24
4.2 HR Staffing 25
4.3 HR Operations 27
4.4 Training & Development 28
4.5 Setting training objective 30
4.6 Techniques of the training program 30
Chapter: 05 Analysis
5.1 Nature of Professional Categories of an Organization’s HR 33
5.2 Recruitment and Selection of Employees in the Credit Rating Sector 33
5.3 Porter’s Five-Factor Analysis 34
5.4 PESTLE Analysis 35
5.5 SWOT Analysis 36
5.6 Strategies to Meet the Challenges and Opportunities 37

Chapter: 06 Findings, Recommendations & Conclusion

6.1 Findings 40
6.2 Recommendations 41
6.3 Conclusion 42
6.4 Reference 43

vii
Chapter: 1
Introduction

1
1.1 Introduction

The project is a partial requirement of postgraduation. It offers a great opportunity for any
student to get some tremendous and brilliant ideas about the practical field. It is also a
challenging experience to prepare project reports which increases my intellectual abilities as
an efficient postgraduate. The financial market sectored has emerged as the most important
player in our economy and they also offer a passionate environment for career development.
So, it was my premier objective since the very beginning of the MBA program to accomplish
the project in this type of institution Emerging Credit Rating Limited is a well know credit
rating company in Bangladesh. I am very glad for getting the opportunity to accomplish my
practical training at this institution. My project report is based on An Overview of Human
Resource Management Practices of Emerging Credit Rating Ltd. (ECRL).

1.2 Literature Review

The modern view of human resources gained importance in 1981 with its introduction to the
prestigious MBA course at Havard Business School (Price, 2004). Sarkul (2003) defines work
as the power available or provided by human physical and intellectual efforts. Effective human
resource practices have been found to lead to positive organizational outcomes (Becker and
Gerhart, 1996), such as turnover (Huselid, 1995) and productivity (Katz et al., 1987). HR
practices are generally classified into employment and selection practices, incentives and
rewards, safety training, communication and feedback, employee participation, leadership
engagement, and performance evaluation.

The implementation of human resource management policies in an organization requires that

human resources professionals or professionals take an active part in various organizational
activities (Islam 2011). Human resource management policies and practices involve developing
how specific human resource initiatives should also be managed (Schuler, 2002). HRM policies
and practices cover planning, staffing, evaluation and compensation, training and development,
and employment. HR planning confirms that the organization has the right people in the right
number for the right position at the right time. Employees are one of the main management
resources that the organization uses to facilitate cooperation and manage its global operations
(Schuler et al., 2002). Recruitment, selection, and placement are activities associated with the
transfer of qualified people to fill positions in the organization. (Molander, 1996). Performance
appraisal is the systematic monitoring of the performance of all employees in an organization

2
to achieve success (Morley, 2004). Payment should not be a trivial matter. This can be
associated with a person's job prospects, for example in a way to grow in a company or
participate in an international exchange that allows them to participate in advocacy. Eight floors
(Harzing and Van Ruysseveld, 1995). HRM applies to legal or illegal activities for more or
fewer parts of the business community, regardless of their size (Moyeen and Hug, 2001). There
is no general knowledge about HRM practices in the Bangladesh sector.

1.3 Significance of the Study

Economic history shows that development has started everywhere with the financial market
and its contribution towards the financial development of a country is highest in the initial
stage. As a mandatory requirement of the MBA program, I was assigned to do my project in
Emerging Credit Rating Ltd (ECRL). With practical knowledge, I will be able to know real-
life situations and start a career with some practical experience. This project report, "An
Overview of Human Resource Management Practices of Emerging Credit Rating Ltd. (ECRL)
", has been prepared to fulfill the partial requirement of the MBA program as a means of the
project program.

1.4 Scope of the Report

The report covers the topic titled "An Overview of Human Resource Management Practices of
Emerging Credit Rating Ltd. (ECRL) ". Therefore, the focus of this report is to analyze Human
Resource Management as well as an overview of ECRL. To conduct a study on this topic, the
following topics fall within the scope of the report.

➢ An overview of Emerging Credit Rating Ltd (ECRL).

➢ Human Resource Management of Emerging Credit Rating Ltd (ECRL).

1.5 Objectives of the Study

1.5.1 Broad Objective

➢ The main objective of the study is to gain overall knowledge about “Emerging Credit
Rating Ltd (ECRL)” and analyze the Human Recourse Management practices in ECRL.

1.5.2 Specific Objectives:

➢ To relate theoretical knowledge with practical experience.

3
 ➢ To know about the current situation of the credit rating agencies in Bangladesh.
➢ To find out how the human resource manager managed everything in ECRL.
➢ To identify the major strengths, weaknesses, opportunities, and threats of ECRL.
➢ To identify the human resources-related problem of ECRL along with some possible
recommendations.

1.6 Methodology of the Study

The methodology can be termed as fundamental standards and principles of starting that work
at the foundation of the study. It clears up the issue including the exploration in a requested and
deliberate way. For this study information and other data can be gathered by taking after ways:

1.6.1 Sources of Primary Data:

During 9 months of working days, I visited all the departments of ECRL. The head of
departments gave briefs about their departmental works, which were very much useful for me
and I noted some valuable information from their briefing. I collect all primary data by
observing directly, taking expert opinions, and also using Practical knowledge through desk
work.

1.6.2 Sources of Secondary Data:

As much of the information was strictly restricted to access for the non-employees, that's why
Secondary data had been collected from relevant articles of the ECRL. These are bellowed:

➢ Annual Report of ECRL

➢ Journal and books
➢ Daily newspapers
➢ Internet
➢ The reports prepared by the previous students who completed their internship in ECRL
which were provided by ECRL.

1.7 Data Analysis Techniques

The ratio analysis is used to analyze the performance of ECRL. Different types of computer
software such As-Microsoft Word, Microsoft Excel, etc. are used for analyzing and reporting
purposes of the study. The ratio analysis is conducted in form of a trend analysis.

4
1.7.1 Trend analysis:

Trend analysis is the analysis of a firm's performance over time using ratios. It is really
important to analyze trends in ratios as well as their absolute levels. This analysis informs us
whether a company's financial condition improving or deteriorating.

1.8 Limitations of the Study

Every matter has some limitations. Therefore, this is also not an expectation. The

limitations of this project report are stated below:

➢ Officials of ECRL maintain a very busy schedule. So, they were not always able to
provide enough time.
➢ Relevant papers and documents were not available sufficiently.
➢ Departments provide briefing sessions. It's important for theoretical knowledge but not
for practical. Special I was working as a research analyst in the rating department so I
got all theoretical knowledge about HRM but not practical.
➢ In the briefing session, they provide only information but did not take any feedback.

Despite all these limitations, I have tried to put in my best efforts as far as possible.

5
 Chapter: 2
Overview of Emerging Credit Rating Limited
(ECRL)

6
2.1 Background of ECRL

Name: Emerging Credit Rating Ltd (ECRL)

Date of Incorporation: 22 Jun 2010
Nature: Credit Rating
Chairman Dr. Jamaluddin Ahmed, FCA
Managing Director N.K.A. Mobin FCA, FCS, CFC
Number of Employees 100+
Shams Rangs, House 104, Park Road Level-A1, A2 & A5
Office Address
Baridhara Diplomatic Area, Dhaka-1212
Source: https://emergingrating.com
Table 1: Overview of ECRL

Emerging Credit Rating Limited (hereinafter referred to as ECRL) began its journey in the year
2009 with the motive to deliver credible superior & quality credit rating opinions in various
industry segments around Bangladesh. ECRL obtained a credit rating license from Bangladesh
Securities and Exchange Commission (BSEC) in June 2010 as per Credit Rating Companies
Rules 1996 and also received Bangladesh Agency Recognition as an External Credit
Assessment Institution (ECAI) in October 2010 to do the rating of Agencies, Financial
Institutions and their borrowers and also from Insurance Development & Regulatory Authority
(IDRA) in 2015 to do the rating of Insurance Companies & affiliated with Malaysian Rating
Corporation Berhad.
Emerging Credit Rating Limited's team is oriented towards the continuous improvement of
processes, striving for an important role in the leadership of the business world. Every
individual in ECRL is committed to providing the topmost ingenious Credit Rating Services
and Comprehensive Research Services in Bangladesh. ECRL's rating services and solutions
reflect independence, professionalism, transparency, and impartial opinions, which assist
businesses in enhancing the quality of their decisions and helping issuers access a broader
investor base and even smaller known companies approach the money and capital markets. The
Credit Rating process is an informed, well-researched, and intended opinion of rating agencies
on the creditworthiness of issuers or issues in terms of their/ its ability and willingness of
discharging their financial obligations on time. Issuers, lenders, fixed income investors use
these risk assessments to lend to or invest in a corporation (such as a financial institution, an

7
insurance company, a non-agency corporation, or a corporate entity) as well as evaluate the
risk of default of an organization's financial obligations in terms of loan or debt.

2.2 Vision
Our existence and foundation are built on the significance we place in investors and depositors,
their protectionism, and our assurance to provide clarity and reliability in our rating judgment,
through globally accepted rating methodologies and processes.

2.3 Mission and Goal

To reach the premier position of a credible and acceptable rating business entity in Bangladesh
via the process of making sure that Emerging Credit Rating Ltd is recognized by investors,
issuers, and agencies for its transparent and timely coverage and reliability, allowing financial
decision-makers to feel confident about their resolutions.

2.4 Company values

The clearness in Exposure and Rating Process
ECRL's credit evaluation technique is thorough, methodical, and subject to confirmation based
on previous experience. ECRL is constantly improving its systematic rating technique to ensure
the correct assessment.

2.4.1 Discretion of Information

Conferring to the materiality degree of data given by customers, ECRL preserves 100%
confidentiality of information.

2.4.2 Integrity
The whole rating process and activities of ECRL are protected by a thoroughly structured code
of conduct that follows the SEC and IOSCO code of ethics and conduct rules.

2.4.3 Teamwork in Assignment

In every assignment, excellent collaboration efforts were made. Expert Vitality: In each level
of the ECRL organ, a good balance of experience and qualifications has resulted in genuine
professional dynamism.

8
2.5 Trend and Growth
Emerging Credit Rating Ltd (ECRL) is committed to supplying the budgetary markets of
Bangladesh with solid, opportune, and imminent credit evaluations or images. ECRL is
recognized around the nation and over all the mechanical budgetary segments as an advertising
pioneer in credit evaluations.

2.6 Trend of Rating in ECRL

From a broader perspective, ECRL has the trend of 2 types of rating. They are
1. Corporate Rating
2. Small & Medium Enterprise (SME) Rating

2.7 Corporate Rating

A corporate credit rating is an opinion of the credit rating agency regarding the likelihood that
a corporation will fully meet its financial obligations in the due future. Corporate credit ratings
not only address a corporation’s financial instruments i.e., debt security such as a bond but also
the corporation itself. Ratings are assigned by using the letter designations such as A, B, C, D,
etc. Higher grades are intended to represent a lower probability of default. But lower grades
mean a higher probability of default of that organization. Under the corporate credit rating,
there are mainly two types of rating. They are-

❖ Long-term rating (All loans/facilities with an original maturity exceeding one year)
❖ Short-term rating (All loans/facilities with original maturity within one year)

2.8 SME (Small & Medium Enterprise) Rating

While Rating SMEs (Small & Medium Enterprises), ECRL evaluates factors such as the
candidate SME’s management, ownership, organization structure, key human resources,
business environment, relationships with trade partners, financial strength, operational
efficiency and capabilities, and other non-financial parameters that may have an impact on its
creditworthiness. These ratings are entity-specific, and not specific to debt issuances. The SME
rating has its unique features, unlike the large corporates. ECRL SME rating would not only
provide credit assessments but also educate the SME sector entrepreneurs to enhance their
entrepreneurship and managerial skills.

9
2.9 Product/Service Mix
As ECRL is a credit rating agency, its main product or service is the “Credit rating services” it
provides to its clients both corporate and SME (Small & Medium Enterprise). It offers the
ratings of securities issued by manufacturing companies, corporate bodies, commercial
agencies, non-agency financial institutions (NBFI), investment agencies and mutual funds, and
other types of organizations. The securities include long-term instruments such as bonds and
debentures, medium-term instruments such as fixed deposit programs, and short-term
instruments such as commercial papers. ECRL also offers ratings of structured obligations and
sector-specific debt obligations such as instruments issued by Power, Telecom, and
Infrastructure companies.

• Corporate Debt Rating

Assess the probability of timely repayment of principal and payment of interest over the term
till the maturity of such debts.

• Entity Rating
Assess the probability of timely repayment of principal and payment of interest over the term
till the maturity of all debt obligations that the entity holds at that date. Since it does not analyze
the individual characteristics of the borrowings based on their specific structure, and terms and
conditions, therefore it does not comment on each borrowing; instead, entity rating gives a
generalized opinion on all borrowings of the rated entity. This form of rating also includes an
IPO (Initial Public Offering) rating.

• Bond Rating
Assess the likelihood of timely repayment of principal and payment of interest over the term
till the maturity of such debts.

• Financial Institutions Rating

Assess the creditworthiness of financial institutions, i.e., commercial and investment agencies
as well as Islamic Financial Institutions, finance companies, and discount houses. ECRL is
proud to be the first rating agency in Bangladesh to introduce a specific set of rating symbols
and definitions designed exclusively for Islamic Financial Institutions.

• Insurance Rating
Assess the creditworthiness of insurance companies, both general and life insurance, i.e., the
financial security characteristics of the insurance company and its ability to meet its
policyholder obligations.

10
 • Project Finance Rating
Assess the likelihood of timely repayment of principal and payment of interest on debt
securities issued by a corporate.

• SME Rating
The rating of Small and Medium Enterprises (SME) indicates the relative level of
creditworthiness of an SME entity with other SMEs.

2.10 Rating Process

The overall credit rating procedure of ECRL involves a series of steps. Those steps are
described here sequentially but in short, because the whole credit rating procedure of them is
very lengthy. Those steps are as follows-

Figure 1: Rating Process of ECRL

11
 Chapter: 3
Credit Rating Industry in Bangladesh With
HRM System

12
3.1 Industry Size and Growth Trends
There are a few credit rating agencies in Bangladesh that are

• WASO Credit Rating Company Ltd.

• Alpha Credit Rating Ltd.
• Emerging Credit Rating Ltd.
• National Credit Ratings Ltd.
• ARGUS Credit Rating Services Ltd.
• Bangladesh Rating Agency Ltd.
• Credit Rating Information and Services Ltd.
• Credit Rating Agency of Bangladesh Ltd.

Name of Company Date of Registered Certificate

Credit Rating Information and Services Ltd. 21.08.2002
Credit Rating Agency of Bangladesh Ltd. 24.10.2004
Emerging Credit Rating Ltd. 22.06.2010
National Credit Ratings Ltd. 22.06.2010
ARGUS Credit Rating Services Ltd. 21.07.2011
WASO Credit Rating Company Ltd. 15.02.2012
Alpha Credit Rating Ltd. 20.02.2012
Bangladesh Rating Agency Ltd. 07.03.2012

Table 2: Date of Registered Certificate of all agencies

Credit denotes financial responsibility, while rating denotes the symbolic outcome of an
evaluation. However, the blend of these words signifies more than just their implication; it also
means the procedure of assessing someone's creditworthiness. This approach gained traction
after the global financial crisis began. Typically, agencies and financial organizations are well-
known for lending or crediting money that depositors have put with them. Many other
organizations and organizations, such as ICRA and ACRAA, arose to regulate, control,
formulate regulations, and integrate credit rating practices. Initially, agencies, financial
institutions, and non-agency financial institutions (NBFIs) were required to use it. It gradually
became apparent that it was also applicable to large businesses and SMEs Finally, credit rating

13
practice began in Bangladesh in 2002, utilizing CRISL as a guide. The BASEL agreement was
also administered by the Bangladesh Agency, which also updated the credit rating laws of 1996.
ECRL was the industry's initial mover, incorporated in 2004. According to data released by
Bangladesh Agency in its Financial Stability Report 2018 last month, no new rating companies
have entered the market since 2012. Three companies are approved to deliver the service in
that year. WASO Credit Rating Company Limited, Alpha Credit Rating Limited (ACRL), and
the Bangladesh Rating Agency Limited are the three companies in question.

3.2 Maturity of the Industry

Figure 2: Credit Rating Score Measurement

3.2.1 Credit Rating in Bangladesh

The credit rating business in this country began with the obligation that almost all public debt
securities, right-of-first-refusal issuance, and premium-priced shares be granted a credit rating
before even being issued to the general public. In 2002, Bangladesh's first recognized credit
score organization, Credit Rating Information & Services Limited (CRISL), commenced
operations.
Bangladesh Agency's Credit Risk Grading Handbook, which is commonly used for analyzing
credit grade before such a loan to its borrowed clients, was issued via BRPD on the Adoption
of Credit Risk Grading Handbook. In time, CRISL rating accounts had proven to be extremely
useful to users; in particular, a CRISL rating assessment on a then-Baraka Agency had

14
persuaded the Bangladesh Agency of the importance of credit ratings, the point that this rating
had taken the lead in making credit scores mandatory for all agency’s before going public.

Following the central agency's lead, the insurance regulator mandated that all general insurance
businesses be rated yearly and life insurance companies biannually. The credit rating is required
before a firm may file for a direct listing, according to the Dhaka Stock Exchange's direct listing
requirements.

In the country's financial and capital markets, the foregoing legislation provided an enabling
climate for credit rating.

The notion of customer rating by rating agencies to promote agency capital adequacy arose in
response to Bangladesh Agency's obligation to follow the Basel Two capital capability outline.
Conferring to the Basel Two framework, BB developed a consistent method to credit risk,
requiring rating agencies' services under specific tight circumstances. The agency customer
rating is a delicate subject, given that the majority of private sector businesses that use services
do not keep standard financial records that can be used for proper evaluation. The ratings are
guaranteed to generate incorrect signals until all of the above elements are adequately analyzed
through sector-by-sector investigations. The Bangladesh Securities and Exchange Commission
(SECB) enables credit rating agencies to default at a rate of 2%. If the default rate exceeds 2%,
the SECB may impose penalties, the most severe of which is the loss of the defaulter rating
agency's license. National Credit Ratings Ltd and Emerging Credit Ratings Ltd, two other
credit rating firms, began operations in 2010. Since 2011, ARGUS Credit Rating Services Ltd.
has been in business. Finally, in 2012, four new credit rating organizations, WASO Credit
Rating Company Limited, Alpha Credit Rating Limited, the Bangladesh Rating Agency
Limited, and WASO Credit Assessment Firm Ltd, began operations.

As an appendix to the study, there is a list of credit assessment companies that function in this
country. Bangladesh has the greatest number of credit rating agencies, according to the
Association of Credit Rating Agencies of Asia. There are only two credit rating agencies
operating in India, Asia's largest economy. On the other side, China, the world's second-largest
economy, is continuing to thrive despite having only one credit rating Company.

The industry of ratings is currently thought of as a parentless business in Bangladesh. The

regulators' actions in promoting this business appear to be irrational. Rating agencies are still

15
classified as financial counseling firms under SEC regulations. For a long time, this hasn't
altered.

3.3 Regulatory, Political, and Legal Concerns

3.3.1 Limitation of Credit Rating

The most prevalent charge thrown against rating agencies throughout the world is that they are
unable to forecast upcoming difficulties. A portion of the difficulty is the evaluation procedure,
which is heavily reliant on preceding mathematical data and average ratios, with minimal use
of judgment and knowledge of the underlying company or national economy. Statistics are not
always consistent.

Most of the circumstances, particularly in today's complicated financial environment. The

pointless over-reliance on statistics in Bangladesh's bad nation ranking is a great example.

A credit rating is a decent estimate of a company's certain creditworthiness in general, but it

cannot forecast extreme events that are unlikely to be expected by a large number of investors
in any case. Investors must be aware that credit ratings are not infallible and that they must
perform their own research and due diligence before investing in any product. They should use
the score as a starting point for their effort and as a reference. Examining the actions of the
stock value, assuming it is publicly traded, is one way to do so. The market as a whole is much
better at anticipating problems than any credit rating company. Consider how companies' stock
values dropped after their credit ratings were downgraded.

3.3.2 Laws of Credit Rating in Bangladesh

Credit rating businesses in this country are ruled by the "Credit Rating Companies Rules,
1996," which were endorsed by the Bangladesh Securities and Exchange Commission (BSEC)
by notice of SEC/Section-7/117 on June 24, 1996. The following is a fundamental overview of
the law:

Credit Rating Obligation: An issuer may not make a luxury public offering of debt instruments
or shares (including rights shares) unless the matter has indeed been esteemed by a credit
assessment firm and a statement about the rating has been included in the proposal letter,
brochure, or right sharing offer record.

16
Eligibility for Registration: If a corporation achieves or surpasses the following qualifications
or standards, it can register under these laws to commence conducting business as a credit
rating organization:

The Companies Act of 1994 defines it as a public corporation. It has the expertise, financial
stability, and a combined development or technological partnership agreement with a
respectable credit rating corporation; it employs at least dual professionals with an expert or
comment finance degree, accounting, business, economics, or law, as well as at least two
decades of expertise in credit rating as well as investment recommended actions.

Cancellation or Suspension of Registration: If the BSEC discovers that a credit assessment firm
has violated any facility of the Order or law or instruction issued or set thereunder, the
Commission may, if it thinks through it essential in the community concern, cancel or suspend
the credit rating firm's registration by writing order. No such order may be imposed until the
creditworthiness firm has been allowed to be heard.

3.4 The Importance of Credit Rating

The credit rating industry is not large but it’s getting attention lately for its necessity, The
industry will rise in further future also and will get the recognition that it deserves. It is
necessary –

To Gain Investment: The government has issued that rating for creditworthiness is compulsory
as a result for investment and to get a loan from an agency a company must get a credit rating,
The rating will determine the investor’s investment strategy and also will gain loans per
requirement.

Gain Market Recognition: nowadays everything is stock market based so to get recognition in
the stock market it is necessary to get a credit rating. Without a good rating in creditworthiness,
it is not possible to stand on the market.

To Comply with Regulatory Requirements: As the government has made compulsory it’s a vital
task for every registered institution.

17
3.5 Human Resource Management (HRM)
The term "human resources" refers to the people who make up an organization of workers, but
it is also used for other purposes that benefit the community, such as business associations or
even entire nations. A position in an organization that is fully responsible for the
implementation of strategies and policies related to human governance is known as "human
resources" at the Daffodil Institute of IT (DIIT). The script "HR" is typically used to identify
this function name.

3.6 Human Resource Purpose and Role

Basically put, a human asset administration organization ought to minimize money-related
hazards and maximize return on a venture in an organization's human assets. Human asset
offices seek people with potential and ability who can contribute to the company's current
commerce procedures in arrange to realize this objective. to secure an effective and affluent
show as well as to maximize the return on a venture. Human asset advancement in this setting
points to viably meeting organizational human asset needs whereas moreover working,
counting legitimate, legitimate, and, to a more noteworthy degree, practicing in a way that gives
care, back, and regard to staff.

3.7 Key Functions

Human resources can develop plans and develop policies, models, systems, and processes that
implement these strategies at the local level. The following is true for many organizations
✔ Development and training
✔ Payments, rewards, and management benefits

✔ Human analysis and management of staff records

✔ Performance, conduct, and behavior management

✔ Business transformation and change management

✔ Design and organizational development

✔ Recruitment, selection, and boarding

18
3.8 Components of Compensation
➢ Basic Salaries
This talk of money is based on other plan strategies that can be planned compensation
models. It may be a reliable rate that modifies in reaction to development or increment. The
term "compensation" alludes to the month-to-month installment, in any case of the number
of hours the worker has authorized. Compensation is characterized as the number of hours
worked per hour. There are annual compensations and stipends accessible. They change
from worker to worker and are based on the job's necessities, age, and capabilities.

➢ Dearness allowance
Employers and employees can more easily avoid price increases or decrease for the goods
and services they use by making charitable contributions. The quality of life has been
positively impacted by cost increases. As inflation rises, the increase in the discount rate
falls until it reaches zero and then starts to fall. Employees can tolerate higher earnings by
paying love payments, which may be a proportion of lower wages.

➢ Incentives
Pay-as-you-go is another name for the additional support, which is paid in addition to
salaries and wages. The work done by the manufacturer, supplier, merchant, or discount
will determine increases. includes (a) self-sufficiency and (b) cooperation. For the unique
requirements of personnel, individual support is an option. Support is paid for both teams
if a game is to be played in a group setting. The value is split by the subgroups' equivalence.

➢ Bonus
It is possible to pay additional fees over time. It can be changed to be paid annually or in
these circumstances to be more effective as a percentage of the base wage. All employees
and staff are paid the minimum salary by the government. A payment plan is also available,
which makes payments to executives and staff members based on sales or interest rates.
Process planning may also be based on the effectiveness of the budget as well as on
productivity in the energy industry.

19
➢ No monetary Benefits
These benefits provide psychological satisfaction to employees even when financial
benefits are not available. Such benefits are Recognition of merit by certificate, providing
challenging responsibilities in the workplace, promoting growth prospects, Comfortable
working conditions, Competent supervision, and Sharing jobs.

➢ Commissions
The commission to managers and employees can be based on sales revenue or company
profits. It is always a fixed percentage of the target reached. For tax purposes, the
commission is again a taxable component of the compensation. Paying the commission as
a component of the commission is very much practiced on the target sales. Depending on
the objectives achieved, companies may pay a monthly or periodic commission.

➢ Mixed Plans
Companies can also pay employees and others a combination of salaries as well as
commissions. This plan is called a combined or mixed plan. In addition to salaries paid,
employees may be eligible for a fixed percentage of commission on reaching the fixed sales
or profit target or performance targets. Nowadays, most of the corporate sector follows this
practice. This is also called the variable compensation component.

➢ Piece rate Wages

Wages in installments per piece are predominant in manufacturing wages. Workers are paid
a salary for each of the Quantities produced by them. Gross labor income would be
equivalent to the number of goods produced by them. Wages in installments per piece
improve productivity and are an absolute measure of productivity in the wage structure.
The correctness of the compensation is based entirely on productivity and not on other
qualitative factors.

➢ Fringe benefits
Marginal benefits can be defined as a wide range of benefits and services that employees
receive as an integral part of their total compensation package. They are based on critical
work and performance factors. Self-employment benefits are indirect compensation
because they are usually extended as a condition of employment and are not directly related

20
to the performance of the employee concerned. Marginal benefits are supplements to the
regular wages received by workers at the expense of employers.

➢ Profit Sharing
Profit sharing is considered to be the basis of business development. A good payroll is a
recognition that employees receive benefits first. Joint ventures often have to decide on an
organization's profits at the end of the investment year and distribute a percentage of the
interest to skilled workers to distribute the profits. The percentage to be distributed to
employees is usually set at the beginning of the work period and is usually communicated
to employees to inform them of their earning potential.

3.9 Approaches of Compensation Management

There are 3P ways to make movies with their money that will lead to rest in their paid space
through volunteering, customer service, and professionalism. Market data from experts and
domestic law, staff do not have a design process for due process, determined by the
information required.
1. Payment for the position
2. Payment per person
3. Payment of benefits

3.10 Functional Overview and Strategy for HRM

These concerns drive a carefully considered human asset administration procedure, with
the artfulness and specificity of a showcasing technique. Disappointments within the
commerce preparation itself may result from a need for a completely arranged human
resource management procedure, and typically likely what will happen. This collection of
data is offered to cultivate thought, empower discussion, evaluate the organizational
climate, and assist you to make a strong human asset administration arrangement for your
commerce. We begin by analyzing the seven special capacities that human asset
administration offers to guarantee the achievement of the previously mentioned reason. To
think almost how to organize your organization's human asset improvement programs,
several questions are displayed within the shape of an HRM framework conclusion
checklist.

21
3.11 Major Activities of the HR Department
➢ Manpower Planning
➢ Recruitment, Selection, and Interviewing
➢ Training
➢ Re-training and Counselling
➢ Develop Skills for future jobs
➢ Remuneration and incentive
➢ Pension and Superannuation
➢ Health, safety, welfare
➢ Staff appraisal
➢ Provides salaries and wages Budget information

22
 Chapter: 4
HRM Practices of Emerging Credit Rating Ltd.

23
Employees are a fundamental resource of any organization; without them, it is
incomprehensible to oversee your organization, and the human assets have taken after human
improvement to a better level. of capacity, imagination and comes about. It avoids laborers
from taking on more responsibility and in this way looks to make the conditions to bolster the
restrictions of their capacity to move forward. Extending the capacity and openings for clients
to require a coordinated activity for victory.

In essence, human capital means that people benefit the most. Emerging Credit Rating Ltd
always decides what to do, how many people and what kind of work.

Subsequently, setting up an organizational structure makes a difference decide the abilities,

information, and capacities of the individuals holding the position. To guarantee that qualified
staff is accessible to meet the necessities set up within the arranging prepare. Organizations
accept that great workmanship comes from profoundly esteemed representatives who are
motivated and willing to require on the challenge of giving way better administrations.

4.1 Units in the HR division

There are three units in the Human Resource Division of Emerging Credit Rating Ltd.
➢ HR Staffing
➢ HR Operation
➢ Training & Development

24
4.2 HR Staffing
The workforce handle - putting individuals in the right put at the proper time - is one of the
foremost critical errands an organization faces. Work productivity can as it were be tall in
connection to staff potential. Three officers are working in the HR staffing unit. They perform
the following activities-
❖ Leave Management
❖ Personal Dossier Management
❖ Recruitment
❖ Selection

4.2.1 Recruitment
Enlisting is the method by which companies see their employees; they are the foremost vital
errand that organizations confront. Without the proper individuals, no trade can work well. To
total the enrollment preparation, directors ought to work with HR staff to characterize needs
and estimates. Acknowledgment of clients can be internal or external.

Types of Recruitment

For Internal Recruitment: The principal methods are-

❖ Use of computerized skill inventories

❖ Referrals from other departments
❖ Jobs posting

For External Recruitment: Organizations rely on-

❖ Advertisements
❖ Public or private placement agencies
❖ Field Recruiting
❖ Including campus recruiting
❖ Internships

Point of Recruitment

Entry Level: There are two entry-level posts for recruiting fresh graduates and postgraduates.
These are:

25
❖ Research Officer: Investigate officer's post is a rule for new graduates who don’t have any
encounter with any other work. Where online applications are permitted to Investigate
officer posts. Must be connected by beginning at bdjobs.com. Dobs give extra information
or start preparation to ECRL HR. The HR group at that point records the candidates.
Shortlisted candidates are welcome to require the test. The procedures for incorporation
within the brief frame are created in circulation. There are a few themes that have been
chosen for the brief frame. These subjects are:
I. BBA (Major in Accounting, Finance, Marketing, HRM, etc.)
II. MBA (Major in Accounting, Finance, Marketing, etc.)

❖ Research Analyst: A research Analyst is also an entry-level post like a Research officer.
Only postgraduates and freshers can apply for this post. Usually; a written test is
administered by an ECRL administrator it takes time to get the RA followed by Viva.

Lateral entry (recruitment of experienced person):

❖ Financial Analyst
❖ Senior Financial Analyst
❖ Assistant Portfolio Manager

4.2.2 Selection
Selection standards should be chosen carefully to predict the success of a candidate for the job.
For many organizations, these standards must also meet legal requirements. The critical criteria
in this regard are the correlation with jobs, reliability, and profitability. Things are taken into
account when selecting candidates-
❖ Jobs knowledge
❖ Communication Skill
❖ Physical ability
❖ Qualification
❖ Appearance
❖ Attitude
❖ Personal ability & mental ability
❖ Job knowledge (for lateral entry)

26
4.2.3 Leave management
The exit is received with debts. Permission may not be granted by law and authorized by ECRL.
Occupational services may be authorized by the superintendent or an authorized person, who
may refuse vacation time, aiding in longer leave. long. shorter than necessary, remove an item,
and remove an employee before the end of the vacation. Supervisors take time off from
employees and keep track of days off. The company’s employees are satisfied with the
following types of withdrawals-

Earned Leave: 30 days in a year as per the service rule of ECRL

Casual Leave 10 days in a year
15 days in a year + conditional additional sick leave allowed by
Sick Leave:
the mgt. as per the service rule of ECRL.
Quarantine Leave: 14 days in case of diseases this may be spread out in the office.
Pilgrimage Leave: 14 days once during the service life.
Extraordinary Leave: As per the rule of the org.
Extraordinary Leave: As per the rule of the org.
Maternity Leave: 90 days for each issue up to two children.

Table 3: Leave management of ECRL

4.2.4 Personal Dossier Management

Historical records and records of the addresses of all employees are kept in the records of each
employee. This operational record is also stored with the HR SCALED software.

4.3 HR Operations
HR professionals usually work in the field of short-term and long-term benefits for ECRL
employees, such as salaries, bonuses, illicit money, allowances, and allowances. Free etc.
❖ Employee tax processing etc.
❖ Investment with the gratuity and PF fund
❖ Submission of various salary-reporting systems of management and Executive Body.
❖ Monthly salary disbursement
❖ Employee final settlement
❖ SBS reporting

27
 ❖ Preparation and disbursement of festival bonuses and performance bonus

4.4 Training & Development

Human resources are the key to the success of a business-service organization. Some quotes
from some famous business leaders are:
a) Take our 20 best people and virtually we become a mediocre company
-Bill Gates, Chairman, Microsoft Corporation.
b) Take my assets, leave my people and within 5 years I will have it all back.
-Alfred Sloan, Chairman, General Motors.

Human resources are the key to the success of a career in the organization. Some
announcements of some of the most effective business leaders.

Steps of the training program

A typical training program can be classified into 5 steps
❖ Evaluation and follow up
❖ Implementation
❖ Need analysis
❖ Instruction design
❖ Validation

4.4.1 Need Analysis

Identify specific features needed to improve product performance and productivity. Identify
the skills and needs of potential learners and develop specialist knowledge to complement their
careers. To ensure that the work is appropriate for the specific levels of education, knowledge,
and skills of the students.

Use study reports to develop specific measurable knowledge and performance objective

❖ Technique to identify Training Needs: Task analysis and performance analysis are two
main techniques for identifying training needs.
❖ Task analysis

The first step in information decision-making of education, if any, should be made. An

important role in identifying the needs of new employees comes from making good decisions

28
about the work and throwing it into the subtasks, all of which cannot be reported to the new
employees. Therefore, a job search is a detailed job search to identify the skills needed to make
the necessary training possible.
Task Analysis form contains six types of information-
❖ Performance analysis
❖ Where best learned
❖ Skills required
❖ How often performed
❖ Standard Quality
❖ Performance condition
❖ Task List
Check for a performance gap and determine if this shortcoming needs to be addressed through
training or other means (such as employee relocation).

4.4.2 Instructional Design

Write instructional goals, methods, news, descriptions, and sections of topics, for example,
exercises and activities. Make sure all materials, such as videos, the director's instructions, and
the books involved in the collaboration, are clearly written and include training together
directly for action. Do all of the work well and intelligently, whether they are made of paper,
film, or tape to be reliable and provide excellent performance.

4.4.3 Validation
Introduce and validate the training program before it is presented to the trainee.

4.4.4 Implementation
When used effectively for the achievement of excellence, focus on the dissemination of
knowledge and skills, along with educational experience.

4.4.5 Evaluation and Follow-Up

Assess program success according to -
❖ Reaction: Document the student's immediate reaction to the exercise.
❖ Learning: Use before and after experiments or counseling tools to measure what
students have learned.

29
 ❖ Behavior: Note the supervisor's impact on student achievement after completing the
course. This is a way for students to apply new skills and knowledge to their careers.
❖ Results: Identify levels of improvement in performance and measure appropriate
interventions

4.5 Setting training objective

After identifying the necessary study requirements, measurements of the concrete and suction
will be made. The objectives specify what the coach must do after the training.

4.6 Techniques of the training program

The decision to form According to the needs of employees, form Shapes of objectives Program
design, form Program crania be implemented. The Most Popular Training Techniques Are:

On-the-job training
While working, there is a student who works doing it. Almost every employee, from mailers to
the company president, gets training when they join the company.

A useful step-by-step job instruction approach for giving a new employee on-the-job training
is as follows-
❖ Follow up
❖ Performance tryout
❖ Preparation of learner
❖ Presentation of the operation

On-the-job training has several advantages-

❖ Trainees learn while the working
❖ It’s relatively inexpensive
❖ Classroom equipment is not required
❖ Students learn to do real work
❖ Get a quick reminder of the reality of their performance.
On-the-job management development techniques-
On-the-job training is one of the most popular development methods. Important techniques
here include-

30
 ❖ Action learning
❖ Junior Learning
❖ Coaching/under-study approach
❖ Job rotation

Off-the-job training
The list of key tasks of each job as well as key points to provide step-by-step training to
employees outside of the field can be varied:
❖ Video conferencing
❖ Programmed learning
❖ The vestibule or simulated training
❖ Computer-based training
❖ Tele Training
❖ Audiovisual techniques
❖ Lecture

Off-the-job management development techniques:

Many different techniques can be used to create an external control of the workplace, perhaps
in the conference room of the headquarters or off campus, or in special education. These ideas
are discussed below-
❖ Outside seminars
❖ University-related program
❖ Role-playing
❖ In-house development centers
❖ Management games
❖ Behavior modeling
❖ The case study method.

31
Chapter: 5
Analysis

32
5.1 Nature of Professional Categories of an Organization’s HR
This study looked at three aspects of the human activities that work in the real estate industry
in Bangladesh: professional, non-professional, and non-professional. High and semi-senior
positions have been elected as chairman and president, chairman and chairman of the board,
supervisor, etc. Table 4 shows that most of 70% of the total 500 working people in the industry
have some previous degree in Management, Banking, or prestige in BBA and MBA in the
industry, while only 10% of employees have a non-academic degree with a bachelor's degree
and/or a bachelor's degree in science. / Skills and 20% have short-term graduation.

Professional Employee’s Categories in Different Agencies

Name of Agency Non-Professional Semi-Professional Professional

CRISL 34% 23% 43%
CRAB 27% 40% 33%
ECRL 31% 30% 39%
WASO 40% 35% 25%
ALPHA 29% 42% 29%
*Staff (total 1 number =100%)
Table 4: Employee’s Categories in Different Agencies

5.2 Recruitment and Selection of Employees in the Credit Rating Sector

The agency follows a systematic procedure in recruitment and selection activities. For staff
recruitment and selection, these agencies meet some standards in most cases. The arrangement
for selection and recruitment is the company that decides what positions will have to fill and
how to meet immediate and future requirements. This total procedure is designed to cover all
positions from the bottom to the top. Succession planning is done by the higher authority to
identify and forecast the demand and source of human resources (Afroj 2012). Table 05 shows
the minimum educational qualification of the different categories of employees for their fresh
or departmental recruitment. Hiring is always on a formal basis and generally, the newest ones
are encouraged to apply for a basic position. Vacancies, transfers, and promotions are secondary
techniques for filling middle and higher-level positions. The surveyed agencies, in the selection
process, use the successive system of obstacles. A series of procedural steps followed, namely.

33
filling in the application form, the employment test, the comprehensive interview (written test,
viva, presentation), and the final selection of employees.

Minimum Educational Qualification of Employee

Category of Staff Educational Qualification

BBA (Accounting, Finance, Banking, Marketing, Management),
Professional
MBA, MBM, PHD
Honors, Masters (Economics, Math, English) Diploma in
Semi-professional
certificate Banking
Non-professional H.S.C to MBA (any discipline)

Table 5: Educational Qualification of Employee

5.3 Porter’s Five-Factor Analysis

Threat of
New Entrants

Customer Supplier
Bargaining Bargaining
Power Power
Porter's
Five
Forces

Internal
Threat of Competition
Substitutes (Rivalry)

Figure 3: Porter’s Five-Factor Analysis

34
Competitive There is a limited number of credit rating companies in Bangladesh
Rivalry because of that Waso Credit Rating Company is in a competitive
situation to get clients before competitors.
Threat of ECRL is one of the established credit rating companies in Bangladesh
Substitution and it has no threat of substation right this moment.
Supplier Power This company gets clients through direct contact with clients or
through banks so they need to keep good relations with clients as well
as banks.
Buyer Power The customers are the main recipients of the credit rating facility. So,
if the rating is unjustified, they can reissue the rating proposal.
Threat of New As Government has issued credit rating requirements for a company
Entries change in power may result in a change in the rating process. Also,
cause of new entries.

5.4 PESTLE Analysis

Political Factor

Environmental Economic
Factor Factor

PESTLE
ANALYSIS

Legal Factor Social Factor

Technological
Factor

Figure 4: PESTLE Analysis

35
 Political Factors Political factors influence credit rating as the process may be changed
due to political issues. Many SME and corporate companies are hugely
affected by political issue which affects the whole credit rating process
Economic Factors Credit rating agencies are dependent on the economics of the country
as interest growth rate, and GDP growth changes the view of the rating.
Social Factors Age, lifestyle, and other social factors of the owner affect the
company’s ratings. ECRL has to consider many social factors before
analyzing the company’s status and then give a justified rating.
Technological Technological advancement affects the rating process as the more
Factors technological advance the company is the more possibility of
production thus a good rating.
Legal Factors Different laws and regulations cause a change in the rating process as
a company’s pattern changes with provided law which affects ECRL’s
rating procedure.
Environmental Environment change affects the production of certain companies which
Factor needs to be considered by ECRL before assigning a rating.

5.5 SWOT Analysis

Every organization has its strengths and weaknesses as well as some opportunities and threats
from the outside environment. ECRL is none other than them, so it also has its strengths and
weaknesses as well as opportunities and threats from other credit rating agencies of
Bangladesh. The overall SWOT analysis of ECRL is shown below-

Strengths
Strong Corporate Identity
Efficient Credit Rating Performance
Young Enthusiastic / Empowered Workforce
Friendly Working Environment
Operational efficiency & Countrywide network
Different types of credit rating services according to the customer demand

36
 Weaknesses
Absence of strong marketing activities
Lengthy procedure of credit rating
Biased rating and misrepresentations
Lack of training facility on advanced credit rating methods

Opportunities
Increased demand of credit rating (from both Corporate as well as SME)
Bigger Market for credit rating service
Renowned Rating Committee members
Mandatory Credit rating for credit facility users
Experienced and Excellent financial analysts

Threats
Threat from other credit rating agencies
Regularity control of government
Similar types of credit rating services are offered by other agencies
Differences in the rating of the two agencies
High cost of gathering credit information before rating
Employee turnover will be high in future

5.6 Strategies to Meet the Challenges and Opportunities

To meet the immense challenges as well as the strong upcoming opportunities in this industry,
ECRL must follow some steps or strategies. Those are as follows-

At first, ECRL must use the latest and advanced technologies to reduce its lengthy procedure
of credit rating and for giving better credit rating services than its competitors (other existing
credit rating agencies of Bangladesh).

37
Then, it has to utilize the increased demand for credit rating (from both Corporate as well as
SME) so that it can develop a competitive advantage based on that demand and sustain itself
in this credit rating industry.

Other credit rating agencies are also offering the same rating services as ECRL, so it should
give some additional services with the rating symbol to its’ clients both the corporate and SME
to create a competitive advantage among others.

As ECRL has experienced excellent financial analysts as well as renowned rating committee
members, they must follow some strict rules against any kind of biases in the credit rating of
their clients.

As there is a strong possibility that employee turnover will be high in the future, ECRL must
give some motivation to their experienced employees (financial analysts) whether it is financial
motivation or something else.

There will be always a threat to the authenticity of ratings done by ECRL or any other rating
agencies, so ECRL must keep hold of its “strong corporate or brand image” that ensures its’
ultimate credit rating quality.

At last, ECRL must follow all the rules and regulations given by the regulatory authority of the
government (Bangladesh Agency) so that no other client or company can doubt its “efficient
credit rating performance”

38
 Chapter: 6
Findings, Recommendations & Conclusion

39
6.1 Findings

All Credit rating agencies in Bangladesh are almost identical in nature, functions, programs,
and using human resources. However, the main findings of the study were:

❖ Professionals and potential investors: In each agency discussed there are many
professionals and potential investors. On average, 34% of the staff are professionals,
18% are part-time workers and the remaining 48% are not professionals. Among
professionals, they are usually MBA or BBA holders.
❖ IT staff: There is distrust of the IT staff in the agency. Only 4% of staff have IT
knowledge with a short training, 70% have very poor IT knowledge and the rest (26%)
have no IT knowledge.
❖ HR documentation: The study found that each agency has its organization for
information on human capital development, but none of the agencies were not
interviewed without HR documentation appropriate. All employees are managed
centrally by their respective agencies.
❖ Selecting and Hiring: Each agency followed the same process for selecting and hiring
qualified staff: filling out an application, hiring an examiner (CV test, writing, no hand),
full interview (test, submission, analysis), and selecting of final staff.
❖ Consulting Companies: There is a continuous practice of consulting companies that
deal with the advancement of HR from first to senior students, given their performance,
working hours, salary level, service operations, supported RTAs, and others.

40
6.2 Recommendations

Based on the results of the study, the following recommendations are made for better Human
Recourse Management practice in Emerging Credit Rating Ltd.

❖ Management should be designed for the hiring of professional staff with postgraduate
and postgraduate studies in computer science in the IT department of the agency.
Teaching skills, experience, competencies, competencies, and ICT knowledge of
candidates are discussed in Recruitment and Recruitment.
❖ The wage package and administrative status of agencies are very attractive.
❖ To improve human resources, the agency must implement a variety of HRD services,
including continuing education and training, IT orientation, job development, and more.
at home and abroad.
❖ Agency Should Regularly Organize Seminars, Workshops, Conferences, Various Short
Courses, and Lunch Training Programs on Financial Matters, Current Affairs, and
Software Classification, which would surely contribute to the Development of a Well-
formed Workforce, of the sensible alga professional.
❖ All agencies and support bodies should allocate sufficient budgets and send competent
staff to international conferences and seminars to prepare them for the competitive
knowledge market in the 21st century.
❖ The agency has separate offices for individuals. But it is necessary to allow the agency
or division to solve multiple HR tasks in the agency. Deployments need to be integrated
with HRIS (Central Human Information System) and new IT tools.
❖ ECRL should aim to open divisions outside of the capital to expand its market.
❖ ECRL must try to employ a separate body for observing credit rating organizations.
❖ ECRL should also focus on hiring employees as soon as an employee leaves or is sacked
as the work pressure is immense shortage of employees causes unnecessary pressure on
other employees.

41
6.3 Conclusion

Credit rating as well as the credit rating industry is a quite new concept in Bangladesh. The
credit rating industry of Bangladesh is growing rapidly year after year because credit rating is
very much important for both investors and borrowers. So, the demand for credit rating services
is increasing day by day which is a very positive sign for this industry’s future. ECRL is the
second-leading Credit Rating agency; providing rating, grading, advisory, and information
services. ECRL is recognized around the country and across all kinds of industries in
Bangladesh as a market leader in credit ratings and research. It was a great experience working
with the financial analyst team of ECRL especially SME (Small and medium enterprises)
which was my department.
In this project report, I have tried to present the overall analysis of the credit rating industry in
Bangladesh and specifically the analysis of the “Emerging Credit Rating Limited Ltd” and its
Human Resources Management System. I have described several important things about
Emerging Credit Rating Limited Ltd. like what type of organization is it (credit rating agency),
what are their main functions of them (credit rating service), how they perform its tasks (credit
rating functions), what steps they follow to perform their tasks (credit rating process), activities
of HR manager. I have also identified ECRL’s potential opportunities as well as upcoming
challenges in the future and suggested them some strategies as well as recommendations so
that they can improve their credit rating performances in the future. The demand for credit
rating and the credit rating agencies of Bangladesh is increasing day-by-day which will help
ECRL as well as other credit rating agencies to prosper in the upcoming future.

42
6.4 Reference

Books-
a) Becker, B. &. (2010). How did increased competition affect credit ratings? Journal of
Financial Economics.

b) Gonzalez, F. H. (2004). Market dynamics associated with credit ratings: a literature

review. Banque de France Financial Stability Review, 53-76

c) Majumder, M., & Hossain, T. (2012). Human resource management practices and
employees’ satisfaction towards private banking sector in Bangladesh. Human
Resource Management Practices and Employees’ Satisfaction Towards Private Banking
Sector in Bangladesh (January 2, 2012). International Review of Management and
Marketing, 2(1), 52-58.

d) Sarker, A. R. (2014). Increasing employee job satisfaction as well as organizational

performance through effective HRM practices in the private commercial banking sector
of Bangladesh. Journal of Economics and Sustainable development, 5(10), 157-165.

e) Uddin, M. (2018). Practicality of green human resource management practices: A study

on banking sector in Bangladesh. International Journal of economics, commerce and
management. VI (6), 382-393

Website-
a) Emerging Credit Rating Ltd: An independent house of risk assessment, (n.d.). Retrieved
from https://www.linkedin.com/company/emerging-credit-rating-limited
b) https://emergingrating.com/
c) National Credit Ratings Limited (NCR): Welcome to Bangladesh. (2017, May 13).
Retrieved from www.ncrbd.com
d) https://wasocreditrating.com/
e) http://www.wikirating.org/wiki/List_of_credit_rating_agencies
f) http://www.wealthson.com/1327/top-10-credit-rating-agencies-of-the-world
g) http://www.ncrbd.com/ http://www.bdral.com/
h) https://sec.gov.bd/home/cragency

43