A Comprehensive Study on the Managerial
Structure of IPDC Finance Ltd
Course Name: Principles of Management (F-109)
Expanding Latitude Rising Unbound
Group No:16
A Comprehensive Study on the Managerial
Structure of IPDC Finance Ltd
Prepared for:
Ms. Khaleda Khatun
Professor
Department of Finance
Faculty of Business Studies
University of Dhaka
Prepared by:
Group No: 16
Department of Finance
Faculty of Business Studies
University of Dhaka
November 21, 2017
Group Profile
Group No: 16
Section: B
Batch: 23rd
Department of Finance
University of Dhaka
A cohesive effort of
Sl. No Name Id No Remarks
01 Shuvo Roy 23-036
02 Rakibul Hasan 23-054
03 Nusrat Jahan 23-117
04 Aklima Akter 23-136
05 Shaikh Saifullah Khalid 23-160
Letter of Transmittal
September 26, 2017
Ms. Khaleda Khatun
Professor
Department of Finance
Faculty of Business Studies
University of Dhaka
Subject: Submission of report
Dear Madam,
We consider ourselves very fortunate to prepare this report under your valuable
guidance. Working for this report was both a challenge and pleasure to us. We are
indebted to you.
Your suggestion of the topic of our report “Managerial Structure of IPDC Finance” was
very appropriate. Your constant guidance helped us to apply our theoretical acquired in
the classroom to the practical world.
Thank you for giving this kind of challenging task.
Sincerely yours,
………………….
Shuvo Roy
On Behalf of “Group 16”
Roll: 23-036
Department of Finance
Faculty of Business Studies
University of Dhaka
Table of Contents
Executive Summary ........................................................................................................ 7
Introduction ..................................................................................................................... 8
Objectives of the Study ................................................................................................ 8
Background of the Report ............................................................................................ 8
Research Methods ....................................................................................................... 8
Limitations of the Study................................................................................................ 8
Company Overview ......................................................................................................... 9
IPDC Finance at a glance ............................................................................................ 9
Milestone Investments ................................................................................................. 9
Vision ......................................................................................................................... 10
Mission ....................................................................................................................... 10
Values ........................................................................................................................ 10
Planning Functions of IPDC Finance Ltd ...................................................................... 11
Approaches to Planning ............................................................................................. 11
Organization Structure .................................................................................................. 12
Human Resource Management .................................................................................... 13
Employee Recruitment Procedure ............................................................................. 13
Corporate Social Responsibility .................................................................................... 14
Education ................................................................................................................... 14
Well being .................................................................................................................. 14
Sports ........................................................................................................................ 15
Health ........................................................................................................................ 15
Sanitation ................................................................................................................... 15
Environment ............................................................................................................... 15
Leadership of IPDC Finance Ltd ................................................................................... 16
Contemporary Management Issues .............................................................................. 17
Managing Downsizing ................................................................................................ 17
Managing Work-Life Balance ..................................................................................... 17
Controlling Customer Interactions .............................................................................. 17
Corporate Governance .............................................................................................. 18
Conclusion .................................................................................................................... 19
Works Cited................................................................................................................... 20
A Comprehensive Study on the Managerial Structure of IPDC Finance Ltd
Executive Summary
IPDC Finance Limited (previously known as "Industrial Promotion and Development
Company of Bangladesh Limited") is the first private sector financial institution of the
country established in 1981 by a distinguished group of shareholders namely
International Finance Corporation (IFC), USA, German Investment and Development
Company (DEG), Germany, The Aga Khan Fund for Economic Development (AKFED),
Switzerland, Commonwealth Development Corporation (CDC), UK and the Government
of Bangladesh.
In this report we mainly emphasized on these topics:
Company Overview: In this section, we represented the brief history, mission, vision
and values of IPDC Finance ltd.
Planning: We discussed their planning types and approaches.
Organizational Structure: We provided a chart of their organogram
HRM: We tried to cover their HRM function and recruitment process.
CSR: We represented their social works.
Contemporary Issues: In this section, we covered some recent management issues
and compare them with our preferred company.
Leadership: We analyzed their leader’s mindset and compared it with our textbook
topic.
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A Comprehensive Study on the Managerial Structure of IPDC Finance Ltd
Introduction
Management is a core subject of business studies. If we want to manage any
organization the knowledge of management is very much needed. From our F-109
course, we learnt the basic concepts of management such as planning, organizational
structure, organizational culture, corporate social responsibility, HRM, control etc.
However, in this report we are using our learnt knowledge to show the managerial
function of IPDC Finance.
Objectives of the Study
To represent the managerial function of IPDC Finance
To utilize our theoretical knowledge in real business world
To develop managerial skills
Background of the Report
This report is a requirement of our F-109 course. Our course teacher assigned this
report to us so that we could use the conceptual framework of management into a real
organization.
Research Methods
We visited the office of IPDC Finance at Agargaon. We met with Mr. Quazi Salekin
Shehab and collected our materials for our report. However, we also used the website
of IPDC Finance Ltd to collect information for our report.
Limitations of the Study
Dependency on secondary data
Lack of time
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A Comprehensive Study on the Managerial Structure of IPDC Finance Ltd
Company Overview
IPDC Finance Limited (previously known as "Industrial Promotion and Development
Company of Bangladesh Limited") is the first private sector financial institution of the
country established in 1981 by a distinguished group of shareholders namely
International Finance Corporation (IFC), USA, German Investment and Development
Company (DEG), Germany, The Aga Khan Fund for Economic Development (AKFED),
Switzerland, Commonwealth Development Corporation (CDC), UK and the Government
of Bangladesh
IPDC Finance at a glance
Established in: 1981
No of branches: 10
No of employees: 285
No of customers: 3496
Loan portfolio: 28.97 bn
Deposit portfolio: 24.85 bn
Milestone Investments
Since its inception IPDC Finance has played a pivotal role in developing country’s
industrial landscape. They had been partner to many of the very renowned corporate
houses in Bangladesh in their incubation stage. No other financial institution of the
country has played such a significant role in private sector development of the country.
IPDC Finance has been a partner in a number of milestone projects that were the first of
its kind in Bangladesh. There are many in this list but we mention here only the few from
different sectors to give an understanding to the reader.
IDLC Finance Ltd: First leasing company
Fantasy Kingdom: First theme park
Holcim: First preference share investment
Summit: First independence power producer
DBH: First housing finance company
National Housing: Second housing finance company
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A Comprehensive Study on the Managerial Structure of IPDC Finance Ltd
Vision
To become the most passionate financial brand in the country with special focus on
youth, women and underserved areas.
Mission
To enable our customers and communities to rise unbound, to live up to their fullest
potential by extending innovative financial solutions in a friendly, timely, transparent and
cost-effective manner.
Values
Displaying the highest level of integrity in the way to conduct their business
Demonstrating a strong will to win in the market place
Promoting diversity in the work place and community
Always encouraging teamwork
Harnessing the power of technology to deliver better customer experience
Setting the standard for the best Corporate Citizenship in the communities they
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A Comprehensive Study on the Managerial Structure of IPDC Finance Ltd
Planning Functions of IPDC Finance Ltd
We asked the senior executive about the planning modules of IPDC Finance Ltd. We try
to visualize them according to class lecture framework.
i) Strategic Plan: IPDC Finance Ltd has some strategic plans. Their authority
has a specific goal which is shareholder’s wealth maximization.
ii) Operational Plan: IPDC Finance Ltd set some standards for maintaining
operational activities.
iii) Specific Plan: This organization provides training and written manual book to
the employees so that they can work effectively.
iv) Standing Plan: Standing plans include policies, rules and procedure. For
instance, their management maintains non discrimination and anti
harassment policy.
However, there are some other types of planning according to our text book. We try to
represent our collocated data regarding planning module according to class lecture
framework.
Approaches to Planning
IPDC Finance Ltd. follows traditional approach in planning. Their top managers such as
CEO, managing director set the organizational plans. And, then, plans developed by top
level manager flow down through other organizational levels.
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A Comprehensive Study on the Managerial Structure of IPDC Finance Ltd
Organization Structure
We collected a chart of their organizational structure from their annual report. Here is
the chart.
Figure 1: Organizational Hierarchy of IPDC Finance Ltd.
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A Comprehensive Study on the Managerial Structure of IPDC Finance Ltd
Human Resource Management
IPDC Finance Ltd fosters their employees to reach the zenith of their performance by
continually refining their skills and approach to let them enjoy the experience of
learning. With IPDC Finance Limited, be assured of a sustainable career with vast
learning scope internally as well overseas. This company let their employees take
calculated risk to own every possible opportunity. They believe in a competitive
compensation package that follows regular benchmarking with not only pays and perks
but also fair recognition and award system for the employees who goes an extra mile.
Employee Recruitment Procedure
IPDC Finance authority gives more importance to the attitude of our potential
candidates than the skills that can be polished under their amicable colleagues and
management that employee will seldom find in any other organization. IPDC Finance
recruits members in 3 ways.
1. Management Trainee Program
2. Professional
3. Internship
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A Comprehensive Study on the Managerial Structure of IPDC Finance Ltd
Corporate Social Responsibility
IPDC Finance recently got “ADFIAP 2017 Awards” for their contribution in corporate
social responsibility filed. However, some of their social activities in various sectors are
given below:
Education
On 16 November 2016, realizing its importance, IPDC handed over books to Nandipara
Primary School with the help of Light of Hope’s library project “Porua”. The project also
made donations regarding establishment of libraries in 9 schools which are Mojar
School, Spreeha Bangladesh (After School Program), AponPathshala, Kodom Ali
Poriborton School, Baluata Sorkari PrathomikBiddaloy, 52 No. Fulkocha Govt. Primary
School, and BG Press High School. This was another project that was undertaken with
the aim of expanding educational opportunities. With the help of Light and Hope, this
project contributed towards the better education of around 300 underprivileged children.
The new books enrich their libraries and boosted the culture of reading among the
children due to availability of resources. The donated books accelerated the learning
process in schools.All of these 9 schools highly benefitted from this initiative. Besides,
PoroshmoniSomajKallyan has been funded for Purchasing books for Jhenaidah Cadet
College Library. AFM Barkatullah, Deputy Managing Director; Rizwan Dawood Shams,
General Manager; Nousheen Rahman, Head of Marketing and Corporate
Communications and WaliullahBhuiyan, Chairman, Light of hope; Maruf Islam,
Executive Director; MukulAlam, Director (Corporate Relations) were present at the
event.
Well being
IPDC Finance Limited, the first financial institution of Bangladesh established in 1981,
stood beside elderly of Apon Nibash Briddha Asroy Kendro. IPDC Finance Limited
donated medicine, walking sticks, plastic chairs, cookeries, toiletries, commodities,
groceries, clothes, stand fans, gas cylinders etc at Apon NibashBriddha Asroy Kendro in
Chandpara, Uttarkhan. "RCSSC" "Rajuk College Social Service Club" a non-profit club
of Rajuk Uttara Model College volunteered and coordinated the whole project.
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A Comprehensive Study on the Managerial Structure of IPDC Finance Ltd
Sports
The sprouting field and craze of the nation is cricket at the moment. And IPDC, boosts
the budding players by providing them with the cricket equipment in the Jubilee Games
2016 so they can go forward with their interest without any kind of hindrance in the way
Health
IPDC Finance Limited has recently distributed winter blankets and nebulizers amongst
the underprivileged people of several Upazilas of Kurigram and Rangpur.Mominul
Islam, MD and CEO, A.F.M. Barkatullah, Deputy Managing Director and Ms.
MahzabinFerdous, Head of Brand and Corporate Communications of the company were
present among others in the programme.
Sanitation
IPDC believes its maintenance is crucial to the prevention of diseases – typhoid,
cholera, salmonellosis, bacillary dysentery, tuberculosis, anthrax and parasitic worm
infection and hence, IPDC took the initiative of setting up public toilet for the better
picture of the society. IPDC’s hygienic toilet maintenance (Quantity-1) is situated in
Moghbazar Anudip CNG pump.
Environment
IPDC Finance Limited with the cooperation of Terre des hommes’ (TDH) could finance
the promotion and plantation of 100,000 Moringa trees in Kurigram and
BargunaUpazilas. These 100,000 trees planted in northern district of Bangladesh vowed
to save the salvaged planet for a sustainable tomorrow. IPDC cautiously chose Moringa
for its heavenly benefits.
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A Comprehensive Study on the Managerial Structure of IPDC Finance Ltd
Leadership of IPDC Finance Ltd
IPDC Finance Ltd fosters their employees to reach the zenith of their performance by
continually refining their skills and approach to let them enjoy the experience of
learning. With IPDC Finance Limited, be assured of a sustainable career with vast
learning scope internally as well overseas. Though we are looking at these from a
managerial perspective, we know all of the styles of leadership are formal leadership
styles.
IPDC Finance Ltd literally follows 'The Ohio State Studies' which identified two
important dimensions of leader behavior. The dimensions are
Initiating Structure: The extent to which a leader defines his or her role and the
roles of group members in attaining goals. Here, leaders attempt to organize
work, work relationships and goals.
Consideration: It is the extent to which a leader has work relationships
characterized by mutual trust and respect for group members' ideas and feelings.
Here leaders are high in consideration of helping group members with personal
problems, being friendly and approachable and treating all group members as
equals.
IPDC includes a few leaders who are high in both initiating structure and consideration
which sometimes achieves high group task performance and high group member
satisfaction.
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A Comprehensive Study on the Managerial Structure of IPDC Finance Ltd
Contemporary Management Issues
Managing Downsizing
Downsizing or layoffs is the planned elimination of jobs in an organization. However,
IPDC Finance Ltd. maintains some policies in case of downsizing. They are:
Communicate openly and honestly
Explain the impact of layoffs
Follow any laws regulating severance pay or benefits
Offer individualized reassurance
Managing Sexual Harassment
According to Mary Coulter, sexual harassment is any unwanted action or activity of a
sexual nature that directly or indirectly affects an individual’s employment, performance,
or work environment. IPDC Finance Ltd. is committed to protecting the rights of their
female employees. They established particular cell for complaining about sexual
harassment.
Managing Work-Life Balance
Research on work-family life balance has shown positive outcomes when individuals
are able to combine work and family roles. However, IPDC Finance Ltd. tries to
maintain flexibility in work place so that management can get the best output from the
employees. Company’s authority tries to reduce the stress of the employees. They
designed the tasks of every worker so that they can perform it efficiently. Thus, it helps
to maintain a balance in worker’s professional and personal life. IPDC Finance Ltd.
often arranges picnic/ refreshment programs for their employees.
Controlling Customer Interactions
A service profit chain is the service sequence from employees to customers to profit.
IPDC Finance Ltd’s strategy and delivery system guide how employees deal with
customers. IPDC authority tries to ensure sustainable environment that enables
employees to deliver high levels of quality service.
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A Comprehensive Study on the Managerial Structure of IPDC Finance Ltd
Corporate Governance
Corporate governance protects the interests of corporate owners. IPDC’s board of
directors oversees the managerial activities of the organization to ensure the rights of
corporate owners. In addition, IPDC has an independent group of audit committee. This
audit team verifies the transparency of corporate financial information..
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A Comprehensive Study on the Managerial Structure of IPDC Finance Ltd
Conclusion
As far as we concern that all the theories in our books and our designed course outline
are same with IPDC Finance Ltd. Now a days, organizations focus on the culture and
environment. They also focus on CSR (Corporate Social Responsibility).Besides all the
activities remain unchanged. Therefore IPDC Finance Ltd has a mission and vision. It
has to plan according to their mission and vision it also sets goal. To achieve that goal
takes some strategies. Arrange all the element and organizes .Manages human
resource and motivates them.
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A Comprehensive Study on the Managerial Structure of IPDC Finance Ltd
Works Cited
I. IPDC Finance Ltd. (2017). Management: IPDC Finance Ltd. Retrieved November 17,
2017, from IPDC Finance Limited: https://www.ipdcbd.com/aboutus/corporategov
II. IPDC Finance Ltd. (2016). Annual Report 2016. Dhaka: IPDC Finance Ltd.
III. IPDC Finance Ltd. (2017). IPDC at a glance: IPDC Finance Ltd. Retrieved November
14, 2017, from IPDC Finance Ltd.: https://www.ipdcbd.com/aboutus/ataglance
IV. IPDC Finance Ltd. (2017). Mission, Vision and Values: IPDC Finance Ltd. Retrieved
November 17, 2017, from IPDC Finance Ltd.: https://www.ipdcbd.com/aboutus/mission
V. Shihab, Q. S. (2017, October 30). Sturucture of IPDC Finance Ltd. (R. H. Shaikh
Saifullah Khalid, Interviewer)
VI. Stephen P.Robbins, M. C. (2014). Management 12th Edition. Essex: Pearson.
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