Compensation theory and practice of United Commercial Bank Limited (UCBL)

Abstract

A good compensation system is very much effective for an organization. It makes an opportunity for high involvement for the employee of an organization. Employees can compare themselves with others. It was a great opportunity for us to make a report on compensation. The titled of this term paper is “Compensation Theory and Practice of UCBL”. UCB is one of the oldest private banks in Bangladesh. Sponsored by some dynamic and reputed entrepreneurs and eminent industrialists of the country and also participated by the Government. Being one of the first generation private sectors Bank in Bangladesh, it started its commercial operations from mid 1983. United Commercial Bank Limited incorporated on 26 June, 1983 as a public company with limited liability under the Companies Act 1993. The bank obtained permission to commence business with effect from 27 June, 1983. Finally started banking operations on 29 June 1983 with an authorized capital of Tk. 100 million divided into 1 million ordinary shares of Tk. 100 each Compensation is the sum total of all forms of payments or rewards provided to employees for performing tasks to achieve organizational objectives. According to Byars and Rue “Compensation refers to the extrinsic rewards that employees receive in exchange for their work. It is composed of the base wage or salary and incentives or bonuses and any benefits.” Compensation impacts an employer’s ability to attract and retain employees