Hrm practice in BEXIMCO-Pharmacuticals Ltd.
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A Report study on the basis o f “Human Resource Practice in BEXIMCOPharmaceuticals Ltd.”
Submitted To: Fazilatun Nesa Course Instructor Human Resource Management(HRM)
Submitted By: Mohammad Jaber Chowdhury ID-107 MD. Rubel Ahmed ID-244(15th) Sharmin Akter ID-101 Muhammad Rajib Khan ID-106 Siddqua Binta Saide ID-102 Nur Ahmed Rayhan ID-096
Intake-16th Section-3 Program-BBA
Date of Submission- 26th December 2009 Bangladesh University of Business & Technology (BUBT)
Leter of transmital
26 December 2009 Ms. Fazilatun Nesa Lecturer Human Resource Department Bangladesh University of Business & Technology(BUBT) Mirpur, Dhaka. Subject: A report on “Human resource practice in an organization” Dear Madam, Here in our report on “Human resource practice in an organization” you assigned us to prepare this report as a part of Human Resource Management course requirement. While writing this report, we have tried to follow the given instruction. This report will help us to know the present situation of human resource in an organization. We have tried to gather accurate information about this topic. We sincerely hope that this report will meet your approval. We would be glad to furnish you with any clarification if required. Truly Yours Mohammad Jaber Chowdhury ID:07083101107
Sharmin Akter ID: 07083101101
Md. Rubel Ahmed ID:07083101244
Muhammad Rajib Khan ID: 07083101106
Nur Ahmed Rayhan ID:07083101096
Siddqua Binta Saide ID:07083101102
First of all we want to give thanks to Almighty Allah for giving us the opportunity to complete this assignment. Then we would like to express our grateful thanks to our honorable parents. After that we would like to express our gratitude to our teacher Fazilatun Nesa Lecturer in HRM. His advice helped us a lot to prepare a complete assignment and he never hesitate to give us valuable time while preparing the assignment whenever we needed.
We also want to give thanks to all of them who have given a lot of valuable suggestions and moral support to us.
Executive Summary human organization activity is simply the act of getting people together to accomplish desired goals. Any organization, whether new or old, small or big needs to run smoothly and achieve the goals and objectives which it has set forth. For it develops and implements its own Human Resource Management concepts. As such, the basic functions of HRM, broken down into seven different areas, allow for it to handle the strategic, tactical and operational decisions for the organization. The seven functions of HRM are: Planning, Recruiting, Selection, Socialization, Training and Development, Performance Appraisal, Compensation, Labor relation, and Motivation function Beximco Pharma (BPL) is a leading edge pharmaceutical company based in Bangladesh and is acclaimed for its outstanding product quality, world-class manufacturing facilities, product development capabilities and outstanding professional services. Its strategic strengths include strong recognition of brands, highly skilled work force and diversified business mix. Being a Learning Organization the core essence of Beximco Pharma is its entrepreneurial spirit in every sphere of its management. In this spirit, the tasks of each managerial function are carried out through HRM. In this report, we have tried our best to exemplify how the basic functions of HRM are exercised in Beximco Pharma. We have analyzed BPL’s several functions: planning, recruiting and selection, training and development, performance appraisal and employee compensation from the view of Theoretical Definition, Practical Application, Basic Principles followed and Technology used in each of the functions. We also discussed the BPL’s goals, mission and vision. This report focuses on the Organization’s recruiting process, selection process, source of recruiting, attracting, method of training, method of developing, compensation and pay rates of BPL which is very significant from contemporary managerial perspective and also a key concept of organization theory. we tried to give a thorough idea of the overall economic and industrial condition, existing competitions in both home and abroad, and future threats of international open markets etc. In addition to that, we have recommended some alternatives in the final segment of the report that we believe, could be helpful for BPL to prevail over the mentioned challenges.
1.1 Introduction: Beximco Pharmaceuticals Ltd.(BPL) has been the trendsetter in Bangladesh Pharmaceutical Market since its inception in 1979. Over the last decade BPL actually rose to a new standard – moving beyond manufacturing quality medicines to win mind share of patients, physicians, shareholders, business partners, and communities where we work and live. Our dedication to add more value to the common wealth of the society compounded by innovative strategies for growth and diversification, pioneering role in bringing new technology and implementing new ideas, and commitment for total quality management distills the glory of our success. Today BPL is not merely a market leader. Most of the products that it actively markets enjoy leadership position demonstrating incomparable trust of the healthcare professionals. This is the reward for the outstanding quality of our products- at BPL we never compromise with the quality of our products so that our fellow citizens can live long, happy and better. BPL is the pioneer in introducing medical service activities: publishing a full-fledged medical newsletter regularly, conducting clinical seminars and symposiums to have better understanding of various diseases and their management. BPL is the first national company who dared to diversify its business into manufacturing bulk drugs to integrate it self backwards as well as develop the nation’s pharma industry. While it would have been relatively easy to diversify the business into consumer products, BPL chose the harder path with a longterm vision. Today BPL is ready to face the challenge of scarce sourcing of Active Pharmaceutical Ingredients (API) in the post-WTO era, with its advanced API manufacturing capability.
BPL is one of the first companies to have an extensively computerized and automated working environment connecting every corner of the country to the centre. Productivity through connectivity is one of our heritage of progress. BPL is the first company to go beyond the national boundary, exporting its quality products in overseas markets in Asia, Africa, and Europe. More than that, BPL has probably fulfilled a national aspiration of turning a once import dependent country into an exporter of quality medicines. We believe, With our technological and managerial know-how and ability to take on challenges, we will be able to progress much faster towards our objective of becoming the nation’s most Visionary company.
1.2 Origin of the report: The report originated from our course instructor .He gave this report to learn the way and report writing. The origin of our report is from our class. The submission date of the report is 26 December 2009.
1.3 Objectives: Our min objective is to prepare this report to know about the human recourse practice in an organization. We try to focus on the report about the HR practice in BEXIMCOPHARMA. The objectives of the study are as follows: ♦ To know the HRM policies followed in BPL, Bangladesh. ♦ To identify the various avenues for improving the HRM policies of BPL, Bangladesh. ♦ Suggesting strategies to improve the HRM policies of BPL, Bangladesh.
1.4 Scope: Our assignment is only document basis so we have not opportunity to take interview, survey and make observation. As it is a report about an organization so we have opportunity to collect data by reading documents from their web sites.
1.5 Methodology: To complete our report and reach in a decision we use some method. To collect information we search internet, read newspaper, and utilize our personal observation. As it is a report so our data is secondary data.
1.6 Limitations: There we face some limitation to prepare this report. Those are noted below1. The abundance of computer in our lab is very poor more than students demand. 2. In lab all computers are not connected with internet. 3. We don’t get much time to prepare this repot. 4. This is the time of early final examination, so we can’t give more time to prepare this report.
2.0 COMPANY OVERVIEW 2.1 ABOUT COMPANY: Beximco Pharmaceuticals Ltd. is a leading edge pharmaceutical company based in Dhaka, Bangladesh and is acclaimed for its outstanding product quality, world-class manufacturing facilities, product development capabilities and outstanding professional services. Beximco Pharma is the pioneer in pharmaceutical export from Bangladesh and has received National Export Trophy (Gold), the highest national accolade for export, for record three times. Year of Establishment:
1976 Commercial Production:
Public Limited Company Business Lines:
Manufacturing and marketing of Pharmaceutical Finished Formulation Products, Large Volume Parenterals, Small Volume Parenterals, Ophthalmic Preparations, Nebulizer Solutions and Active Pharmaceutical Ingredients (APIs) Overseas Offices & Associates:
Australia, Bhutan, Cambodia, Chile, Ghana, Hong Kong, Indonesia, Jordan, Kenya, Kuwait, Malaysia, Myanmar, Nepal, Pakistan, Philippines, Saudi Arabia, Singapore, Sri Lanka, Vietnam and Yemen Authorized Capital (Taka):
2,000 million Paid-up Capital (Taka):
1,259.57 million Number of Shareholders:
Around 66,000 Stock Exchange Listings:
Dhaka Stock Exchange, Chittagong Stock Exchange and AIM of London Stock Exchange Number of Employees:
2.2 Vision BPL’s passionate effort to achieve excellence in all spheres of its operations and its keen endeavor to incorporate innovative new technologies into its manufacturing practice puts it ahead of its contemporaries. Viewing the business as a mean of the social well-being of the investor, employees and the society and customers is the main vision of BPL. The company makes their best effort to ascertain the financial wealth and moral gains as a part of the process of the human civilization. Beximco Pharmaceuticals Limited is committed to contribute to keep the earth clean.
2.3 Mission Each of our activities must benefit and add value to the common wealth of our society.
We firmly believe that, in the final analysis we are accountable to each of the constituents with whom we interact; namely: our employees, our customers, our business associates, our fellow citizens and our shareholders.
2.4 Goals BPL has a strong market focus and is anticipating continued future growth by leveraging business capabilities and developing superior product brands and markets. The company is now moving to the world market and trying to expand their business worldwide with a good quality image. Innovation of new products and satisfying the ever-changing need of consumers remains a top priority goal. Ensuring full effort to enhance shareholders highest returns and growth of their asset also holds a key goal of the company. 2.5 Core Values Trust and reliability to the products emerged as one of the core values of Beximco Pharmaceuticals Limited. It maintains quality in manufacturing of products according to the rules of the WHO. Hiring a competent branch of people who are best in their capacity to serve the company best, strengthen the BPL function of operation .It also give emphasize on promoting new products through research and bringing cost efficiency in business operations. Beximco Pharma believes that it is in the business which deals with human health which makes it more responsible to keep the highest standards of its products. Through its products it tries to deliver clear benefits to the patients. Good products, however, are only one side of its expression of commitment. BPL believes its responsibility lies even more in ensuring that the society gets benefited while it continues to grow.
2.6 Corporate Social Responsibilities: Corporate social responsibility is an integral part of BPL’s business strategy which is reflected in its mission statement. Every employee of the company knows that the company does not view its success and achievements in financial terms only, but also in terms of its deep relationship with the society. Each year, an increasing amount of contribution is ploughed back into social causes, demonstrating Beximco Pharma's commitment to the nation. More importantly the company's contribution extends beyond one-time donation to ongoing participation as reflected in its partnership with NGOs working for AIDS patients, in supporting sports, and in raising disease awareness among the people. BPL donated medicines worth millions of taka to victims in national and international calamities. Donation of medicines to victims of earthquake in Pakistan and victims of tsunami in Sri Lanka are worth mentioning. The company maintains a team of scientists who works as pharmaceutical experts for good governance that give direct benefit to the common people and shareholders. Beximco Pharmaceuticals Limited carefully designed its facilities for reducing hazardous impact on the environment through operational excellence providing a friendly environment for a healthy society for tomorrow being the main responsibility of BPL.
Chapter-3 Human Resource Management: HRM is a field of management involves planning organizing, directing and controlling the functions of procuring, developing, maintaining and motivating a labor force.
Human Resource Management Process: Human Resource Management Process consists of eight activities necessary for staffing the organization and sustaining high employee performance. The process is described below:
HR Planning & Requisition
Appraisal & Evaluation
Benefits & Compensation
3.0 Human Resource Management in BEXIMCO Pharmaceuticals Ltd (BPL), Bangladesh
3.1 Human Resource Planning in BPL: Planning is the core area of all the functions of management. It is the foundation upon which the other three areas should be built. Planning requires management to evaluate where human resource of the company is currently, and where it would like to be in the future. From there an appropriate course of action to attain the company's goals and objectives is determined and implemented. Every organization has employment planning. BPL has also its employment planning. They usually forecast their personnel needs based on their mission, strategic goals & objectives & technological and other changes resulting in increased productivity. Although there are several methods to predict personnel needs, but they use managerial judgment because it gives the more real world scenario for personnel needs. They think that the other methods can not give the accurate situation of the personnel needs. These are basically graphical methods, which can not measure the actual personnel needs. But managerial judgment method depends upon the change in productivity, market conditions etc. 3.2 Recruitment and Selection process in BPL: We are looking for top-caliber people who want the flexibility and resources to grow in their career. If you're the kind of person who has always stood out, we offer a place
where you can continue to excel. No matter what your field or range of interests, there are vacancies where your talents can likely be applied and developed. We have thousands of diverse people from different cultures and backgrounds working in a variety of different jobs in different fields
Merit is the sole criteria for selection.
Attitude is given as much weight age as functional competencies.
Panel interviews comprising of Functional Head & HR Head.
Sources for recruitment are through campus, consultants, employee referrals, internal job postings and the internet.
Positions in Officer Cadre, GET and MT involve written tests.
Antecedent verification is an integral part of our recruitment process.
Medical fitness is pre-requisite for all positions.
We are an equal opportunity employer and do not discriminate on the basis of race, community, religion or sex.
3.2-(A) Recruitment process:
A responsibility for recruitment usually belongs to the HR department. This department works to find and attract capable applicants. Job description and speciation provide the needed information upon which the recruitment process starts. The functions of the recruitment office of BPL are given below: 1. Need Assessment 2. Defining the position description 3. Checking the recruiting options 4. Advertisement 5. Screening and Short – listing Applications
6. Written test 7. Selection interview (3 – tier) 8. Employment decision (Application Bank) 9. Pre- employment medical check-up 10. Offer letter 11. Orientation / Induction 12. Placement 13. Follow –up
3.2-(A-1) Source of Recruitment: Bangladesh is done in four ways depending on the job category of the vacant position. Therefore, the recruitment process of this organization is classified into four types, which are done based on the job grade/ group. These are as follows:
Ω Entry-level management Ω MT (Manager Trainee) Ω Mid or / and Senior level management Ω Graded staff / Non- management staff
Internal Source: There could be a person competent for the required job working within the organization. If there is, the existing manpower is then shuffled to place the selected person in the new post. If there is no such person inside the company, then the management goes for the second step.
Job-posting programs: HR departments become involved when internal job openings are publicized to employees through job positioning programs, which informs employees about opening and required qualifications and invite qualify employees to apply. The notices usually are posted on company bulletin boards or are placed in the company newspaper. Qualification and other facts typically are drawn from the job analysis information. The purpose of job posting is to encourage employees to seek promotion and transfers the help the HR department fill internal opening and meet employee’s personal objectives. Not all jobs openings are posted .Besides entry level positions, senior management and top stuff positions may be filled by merit or with external recruiting. Job posting is most common for lower level clerical, technical and supervisory positions.
Departing Employees: An often overlooked source of recruiters consists of departing employees. Many employees leave because they can no longer work the traditional 40 hours work week .School, child care needs and other commitments are the common reason. Some might gladly stay if they could rearrange their hours of work or their responsibilities .Instead, they quit when a transfer to a part-time job may retain their valuable skill and training. Even if part-time work is not a solution, a temporary leave of absence may satisfy the employee and some future recruiting need of the employer.
All the above options being considered, the company goes for external recruiting if needed. Those who best meet the skills, qualifications, experience and competencies required for the position should fill vacancies. Therefore, if there is no candidate within BPL, Bangladesh who is suitable for the role, external advertisement should be placed to attract the potential candidates followed by the selection procedures.
Advertisement: The Company gives advertisement in national dailies (both Bangla and English) to attract the talents from the market. BPL, Bangladesh puts two types of advertisements in the newspapers. It sometimes keeps the identity concealed in the ads, mentioning a GPO BOX number only. The purpose of the concealed identity is to avoid the unwanted pressure from the stakeholders for the employment of their desired candidates. But this way the company may lose the talents out there in the market who would have applied for the same post had they known the name of the organization. This is why the company kept the identity open in their recent job advertisement when the quality of the candidate was a very important factor to consider. By revealing the BPL identify, the company attempts to attract the best potentials among all the others.
Employee referrals: Employee referral means using personal contracts to locate job opportunities. It is a recommendation from a current employee regarding a job applicant. The logic behind employee referral is that “it takes one to know one”. Employees working in the, in this case, are encouraged to recommend the names of their friends working in other organization for a possible vacancy in the near future.
An agency finds and prescreens applicants, referring those who seem qualified to the organization for further assessment and final selection. An agency can screen effectively only it has a clear understanding of the position it is trying to fill. Thus it is very important that an employer be as specific and accurate as possible when describing a position and its recruitment to an employment agency.
Walk-ins and Write-ins: Walk-ins are some seekers who arrived at the HR department of BPL in search of a job; Write-ins are those who send a written enquire .both groups normally are ask to complete and application blank to determine their interest and abilities. Usable application is kept in an active file until a suitable opening occurs or until an application is too old to be considered valid, usually six months. Consulting the CV Bank: The unsolicited applications stored in the data bank are consulted. If the quality of a person matches with the requirements mentioned in the position description, then he / she is called for interview. If not, then the third step is followed.
3.2-(B) Selection Process: Selection is the process of gathering information for the purpose of evaluating and deciding who should be employed in particular jobs. 3.2-(B1) Screening and Short-listing Applications
The responses to the advertisements are sorted and screened. The CVs as well as the Covering letters are judged. In the covering letter, the style and language of writing, the emphasis put on the areas asked for tin the advertisements and the quality of the letter (whether it is specifically tailored to the advertisement or just a standard response) are the aspects that are judged. Different weights are assigned to the selection criteria mentioned in the man specification depending on their relative importance. (for example, educational institutions like IBA, BUET are given the highest weight among the local ones and the foreign universities of UK, Australia, etc. are put at par with the best of the country). Based on the presence of these factors to the desired extent (experience, educational degree, computer literacy, etc) the cumulative weights for all the applicants are counted and the short list of a sizable number of the top most candidates is generated. However, the HR officials also study the CVs with the respective line manager to check whether any valuable deciding parameter is missed that are mentioned in the CVs. Then the candidates selected in the short list are called for the written test.
3.2-(B2) Written Test Written test is not a regular part of the normal recruitment process. It is conducted as and when required. Previously no written test was taken for the management employee, the applicants had to go directly through the interview process. After the introduction of the manager trainee program, the written test before the interview process has proved to be effective and a useful tool to select the desirable candidates. The written test includes psychometric test, test on behavioral competency, and written test on communication skills. The candidates are called for the preliminary (first) interview based on their performance in the written test.
3.2-(B3) Selection Interview The interview process is a three-tier one. A preliminary interview is conducted which follows the “elimination method”. After that, the second interview takes place with a very
few number of candidates. Then the finally selected person is called for the final interview. The interview time is kept convenient for the candidate especially if s/he is working elsewhere at the time of interview. In that case the chosen time is after the business hour.
3.2-(B4) Reference Check Reference checks allow obtaining information and opinions regarding the person’s character, quality of the work and suitability for the position. It is an opportunity to validate the information received from the candidate via their resume and the interview. Speaking to the candidate’s manager or other people whom they have worked with should also check internal candidates. The opinion of a referee who has worked can for an extended period is likely to be more accurate than the assessment from one to two hours of interviewing. The candidate’s immediate supervisors are needed to be contacted. Permission should be obtained to contact the candidate’s referee especially if their current employer is contacted. It is not unusual for a candidate to be uncomfortable with the organization’s speaking to a current employer. If they are uncomfortable, an alternative person other than the current employer has to be chosen by the candidate (work colleague, for example). Unless the candidate is a graduate or school leaver with no prior work experience, only contact work related referees should be contacted. At least two reference cheeks should be done, however the more the better. There is a sample reference-checking guide that is more or less followed. It is important to prepare a reference check guide that asks the referee about the key skills, competencies and experience required for the position. Reference checks need to be done by line manager or personnel of the HR department. During the interviews, the candidates would have given some examples of incidents, tasks or projects that can be asked about. The referee should be asked what the candidate
did in those examples, which ascertain whether the information received from the candidate is consistent with that of the referee. Subjective questions may not always be a reliable guide; however it can be useful to get the referee’s opinion on areas such as quality and quantity of work, strengths and weaknesses etc. a format of Reference Checking Guide is presented in Appendix-1.
3.2-(B5) Employment Decision If the candidate has no problem with the stated terms and conditions of the job and the organization mentioned and discussed in the final interview, s/he is offered an application blank. The application blank is a standard format of employee-information that includes all the information the organization needs regarding the personnel. The candidate has to fill this blank and submit this to the company along with a CV. 3.2-(B6) Pre-employment Medical Check-up: After submission of the application and the CV, the selected person has to go through full medical check-up that guarantees her/his physical fitness to perform the job successfully. A medical practitioner who uses a physical capability analysis that assesses the candidate against the physical capabilities documented for each role conducts the medical. A medical is also appropriate for internal candidates if they are applying for positions that require different physical capabilities.
3.2-(B7) Offering the Role: Once the health check-up is done, the candidate is given an offer letter specifying the salary package, job responsibilities, utilities that will be provided by the organization. Even at this stage the selected candidate has the chance to withdraw her/himself from the
job offer. s/he is always free to discuss whatever difficulty may arise regarding paystructure/facilities, etc. the door of HR is kept open for any sort of relevant discussion. verbal offer:
The verbal offer of the role to the candidate is given once the medical and reference checks have been successfully completed. The discussion should cover the following: Tell the candidate that you would like to offer them the role. Congratulate them. Tell them the remuneration package that is being offered, including superannuating. Ask them if they are happy with it. Ask them if they verbally accept the position. Tell them that we will be sending them a written letter of offer and introductory package. written letter of offer:
A written letter of offer must be forwarded to the candidate. Once the candidate has verbally accepted the position, the appropriate letter of offer is organized. This letter should be sent to the candidate within two days of making the verbal offer. An introductory package will be sent to the successful candidate, along with the letter of offer. At least one week before the person commencing in their new position, an appointment notice will be placed on notice boards and/or the internet.
FIGURE: RECRUITING YIELD PYRAMID FOR BEXIMCO PHARMACEUTICALS, BANGLADESH
Number of Candidates 3 4 4 Accept job offer
Receive job offer
150 400 700
Called for the assessment Center
Invite for the written test
Initially screened out
Initial contacts/Resumes received THE RECRUITMENT AND SELECTION PROCESS OF BPL
Need assessment • • • • •
Vacancy in existing post(s) Market expansion Increase in production capacity Launching new product
Checking the recruiting options
Advertisement in National Dailies (Both Bangla and English)
Introducing new system
Interview • Preliminary interview: elimination process (shortlisting) • Second interview: work knowledge /behavioral competency • Final interview: pre-selection interview
Written test (optional) • IQ test • Behavioral competencies • Communication skills
Sorting Applications Weights are assigned based on the selection criteria
• Application blank filling • Medical check-up • Offer letter
Exposure to all important business /functions and locations of the company Feedback report focusing on learning experience (s) of the induction program
Follow up HR Department continuously interacts with the new entrants assisting to cope up with the work environment, work culture, peer group etc.
3.3 Employee Socialization Socialization is a process of adaptation. Organization entry socialization refers to the adaptation that takes place when an individual passes from outside the organization to the role of an inside member. BPL organize its Socialization process of three stages: 1. Pre-arrival stage: This stage explicitly recognizes that each individual arrives with a set of organizational values, attitude, and expectations. 2. Encounter stage: Here the individuals confront the possible the dichotomy between their expectations and reality. 3. Metamorphosis stage: Finally, the new member must work out any problems discovered during the encounter stage. The organization gets higher productivity, greater employee commitment, and lower turnover rates through socialization. Employees achieved reduced anxiety, increased awareness of what is expected on the job, and an increased feeling of being accepted by their peers and bosses. When socialization works, employees receive the confidence and satisfaction what comes from feeling that they are members in good standing in the organization.
3.4 Training and Development program of BPL: 3.4-(A) Training: A learning experience in that it seeks a relatively permanent change in an individual that will improve his or her ability to perform on the job. To make training a success, a trainer should take care of the following points:
Make learning meaningful.
Make skills transfer easy and
Motivate the learner
3.4-(A1) Employee Training Method
On-the-job Training: On the job training is a training that shows the employee how to perform the job and allows him or her to do it under the trainer’s supervision On the job training is normally given by a senior employee or a manager like senior merchandiser or a manager. The employee is shown how to perform the job and allowed to do it under the trainer’s supervision.
Trainees learn while producing
No need off-site facilities
Low productivity while the employees develop their skills
The errors made by the trainees while they learn.
Apprenticeship Training: It traditionally involves having the learner study under the tutelage of a master craftsperson.
Informal Learning: This learning process is not determined or designed by the organization. But the organization may ensure it by creating a learning environment in the organization. Job Instruction Training: Listing each jobs basic task, along with key points, in order to provide step-by-step training for employees. Lectures: The most simple and quick way to provide knowledge to large groups of trainees. Simulated Training: It places the trainee in an artificial environment that closely mirrors actual working conditions.
Off-the-job Training: It includes: •
The Case Study Method: Here the manager is presented with a written description of an organizational problem to solve in a discussion with other trainees.
Management Game: The manager presented with a computerized decisions regarding but simulated situations.
Outside Seminars: Many organizations now are using this popular method on various aspects of business and management.
reinforcement-Transfer of training.
3.4(B) Development: Any attempt to improve current or future management performance by imparting knowledge, changing attitudes, or increasing skills.
Any effort toward developing employees must begin by looking at the organizations objectives. The objectives tell us where were going and provide a framework from which our managerial needs can be determined.
3.4-(B1) Employee Development Method
Managerial On-the-Job Training: The development of employee’s abilities can take place on the job. It includes: •
Job Rotation: It involves moving a trainee from department to department to broaden their understanding of all parts of the business and test their abilities.
Coaching Approach: The trainee works directly with a senior manager or with the person they are to replace.
Action learning: Here the management trainees are allowed to work full-time analyzing and solving problems in other departments.
3.4-(B2) Types of Training: •
General Training (Management, Accounts, Sale etc.)
Social Skill Training
Workers Education Training
3.4-(B3) Training Process •
Identifying the training needs: What kind of training is needed for how many people to what standard of performance the objectives of the training must be determined.
Analyzing the attitudes, skills & knowledge(ASK)of the job: Designing what has to be learned.
3.4-(B4) Planning the training program & implementing •
The stages of the training
Recording the results
Providing the stuff and equipment
3.4-(B5) Evaluating the results •
Deciding whether the training objectives have been met
Considering how they could have been met more effectively
3.4-(B6) Training Aids The following training aids are generally used in training programs in BAT •
White board etc.
3.5 Performance Appraisal: At BPL appraisals are done by the Self-appraisal system. Goals are set by participative management approach and performance is evaluated quantitatively against those previously set objectives. Managers appraise the performance of their subordinates through a 5 points Graphic Rating Scale. The total appraisal process is completely transparent to everyone within the organization. 1 for unsatisfactory 2 for marginal 3 for target 4 for superior 5 for outstanding
3.6 Employee Compensation: Employee compensation refers to all forms of pay or rewards going to employees and arising from their employment. It has two min components: 1. Direct financial payments: Wages, salaries, incentives, commissions, and bonuses. There are two ways to pay directly:
Time based pay: Daily, hourly, weekly, biweekly or monthly wages and salaries
Performance based pay: Ties compensation directly to the amount of product the worker generates.
2. Direct payments: Financial benefits like employer-paid insurance and vacations.
3.6(A) Factors influencing the design of compensation plan •
Legal considerations in compensation
Union influences on compensation decisions
Corporate policies and competitive strategy
Policy issues affecting the plan of an organization
3.6(B) Establishing Pay Rates Step-1 The Salary Survey: A survey aimed at determining prevailing wage rates. A good salary survey provides specific wage rates for specific jobs. Formal written questionnaire surveys are the most comprehensive, but telephone surveys and newspaper ads are also sources of information.
Step-2 Job Evaluation: A systematic comparison done in order to determine the worth of one job relative to another. Job Evaluation method includes: 1. Ranking: Involves ranking each job relative to all other jobs, usually based on overall difficulty. There are several steps in this method: •
Obtain job information for each job
Rank jobs by department or in clusters
Select just one compensable factor
2. Job Classification: Categorize jobs into groups 3. Point Method: A number of compensable factors are identified and then the degree to which each of these factors is present on the job is determined. 4. Factor comparison: Ranking jobs according to a variety of skill and difficulty factors, and then adding up these rankings to arrive at an overall numerical rating for each given job.
Step-3 Group Similar Jobs into Pay Grades: A pay grade is comprised of jobs of approximately equal difficulty. Step-4 Price each Pay Grade-Wage Curves: This curve shows the relationship between the value of the job and the average wage paid for this job. Step-5 Fine-Tune Pay Rates: A series of steps or levels within as pay grade usually based upon years of service.
3.6(C) Benefits and Rewards Package Indirect financial and non financial payments employees receive for continuing their employment with the company. There are several types of benefits:
Supplemental Pay Benefits
Vacations and Holidays
Parental Leave and Family Leave
3.7 Health & Safety
3.7-(A) Health Pre- employment medical check-up: The selected person before joining has to go through full medical check-up that guarantees his /her physical fitness to perform the job successfully. A medical practitioner who uses a physical capability analysis that assesses the candidate against the physical capabilities documented for each role conducts the medical check-up. A medical is also appropriate for internal candidates if they are applying for positions that require different physical capabilities.
Medical Facilities: Doctors are arranged to visit each location of numbers of times a week to provide necessary medical support to the employees. Moreover, the nonmanagement staffs enjoy medical treatment at Hospital at company arrangement.
Health Insurance Policy: Management staffs enjoy health insurance for self, spouse and two children up to 21 years for hospitalization only. Delta Life Insurance provides the insurance and the company pays the premium.
SHEQ ⇒ SHES (Safety Health Environment Security)
Why Safety and Environment Issues are required? The safety and environment issues are required because of the following reasons:
• Safety leads improved productivity
• Employees Satisfaction
• To comply the national law and order • To keep the work environment sound and healthy
• Maximum productivity through employees’ satisfaction • Helps loss prevention Now a day, safety is considered as the most vital issue for all occupation & work situation in all the developed country of the world. It is very good sign that in our country certain organizations are also emphasized on safety like other developed country of the world. Safety aspects are also incorporated with “ IMMSS Policy” i. e., integrated management system & standard. It is developed from the following standard. ⇔ In house safety of the BPL (that was previously practiced) ⇔ NOSA ⇔ ISO (Specially for electrode business) ⇔ Environment Laws of Bangladesh ⇔ Labor Law of Bangladesh (it comes from the Salt Act (1905) then Indian Labor Act (1935) and finally modified through The National Assembly on Bangladesh on 1982. From these standards IMSS has taken 36 sections under consideration. 20 sections are included from ISO and rest from others. It should be noted here that IMSS is now on implementation phase and it will take 4 to 5 years to get a shape in BCCP, Bangladesh.
Company Safety Policy It comes from the group chief executive to adapt in all the country. The local CEO counter signs the policy for each individual country and the copy of the policy is circulated to all the levels in the organization. So it is the duty of all the employees to emphasize on safety. There is an Oath in BPL, Bangladesh regarding safety. That is “ SAFETY FIRST – QUALITY MUST”.The safety policy of BPL, Bangladesh “ safety health and environment management” which is signed by the CEO carries certain
messages for us. It complies with the local safety laws of Bangladesh. One important issue of this policy is DUTY OF CARE. It can be described as ‘ not to do any thing that may cause risk to others, properties even to myself and also let other not to do even that may hazardous to himself only. There is another planning for emphasized on safety. Safety aspect may include in every one’s KPI & CSF. There are some other important points of the policy that we should care and implement in hour daily work. The copy of the safety policy is attached herewith for the ready reference. Finally it should be noted that BPL, Bangladesh not only believes the oath “ safety first” but also implements it through their works. Beginning of the orientation program with Safety Department may be an example of this practice.
3.8 Motivating Employees in Beximco Pharma: The advantage of having a Management by Objective (MBO) system is that everyone becomes Self-motivated. Everyone is motivated to achieve, to perform. The only challenges is to keep the employees’ moral high in times of failure. In BPL, one of the tasks of the management is counseling. Managers are there to help the employees to achieve the goals, which in turn keep the employees motivated. Apart from creating a healthy working environment and ensuring employee empowerment, BPL offers a number of benefits to keep them motivated. The benefits offered by the company are given below: 1.
Education costs of the children
Permanent job facility
Yearly Employee Awards
Foreign Travel with Family Offers
Share from revenue etc.
Chapter-4 OTHERS: 4.1 Overall Situation of Economy and Industry: National Economy: National economy of our country has been instable for the last few years. Growth in industrial production, exports and remittance from NRB helped maintain GDP growth rate above earlier performances, though marginally at lower rate of 6.5% than that of 6.7% in the previous year. The period has however experienced continuous rise in prices of essential items. This is primarily attributed to abnormal price increase of crude oil in international market. This had obviously negative impact on disposable income of general masses whose expenditures on healthcare would decline as a resultant impact. Pharmaceutical Industry:
The pharmaceutical sector attained a growth of 15.80% during the year 2007 as against 4.08% during the previous year. The national Pharma market growth during the past few years is given below.
The above analysis shows that the growth of the sector, though has proven to be promising, has suffered from instability and deviation from expectation. In 2006 the market growth rate had drastically dropped. So, it is a strenuous job for the managers in this industry to cope with this wavering situation.
National Market: In Bangladesh the pharmaceutical sector is one of the most developed hi-tech sectors which is contributing in the country’s economy. The national companies account for more than 65% of the pharmaceutical business in Bangladesh. Except Beximco Pharma other leading companies are Square Pharma, Incepta Pharmaceuticals. Navana Pharma Ltd., Opsonin Chemical Industries Ltd., Aventis Pharma Ltd. Etc. Among them Square Pharma is the market leader at this moment. BPL follows Square Pharma at the 2nd position. The analysis of the two company’s financial data shows that
for the year 2007-2008 gross profit of BPL was 1,629,514,837(BDT) and Square Pharma was 3,401,781,806 (BDT) . There are a number of reasons why BPL could not beat Square Pharma for the 1 st position. The most relevant of them are stated here. • Fewer Markets Served: Square Pharma serves a larger market than BPL while BPL concentrates on market focus. For example, unlike Square Pharma BPL does not do business in the credit market. They only serve the premium market. • Producing Injectables: Again BPL does not manufacture or market Injectables where this is a huge market. In contrast, Square Pharma has a range of 44 injectables and has sold 28,289,000 units in the year 2007-2008.
• Product Range: BPL has a fewer range of products than Square Pharma does. BPL manufactures only over 300 products in comparison to Square Pharma’s over 500 products. International Market: In international market the main competitors for pharmaceutical companies in our country are India and China. The challenge faced in open market competition is the scarcity and unavailability of raw materials in local market. So, companies in our country have to import these materials from abroad (India, China and a few countries from Europe) at high price. Besides, the privileges of being LDC as a result of the Patent Law will no longer be in effect after 2015.
5.1 SWOT Analysis:
Strength (Internal) 1. Employee Empowerment 2. Capability to Bring Innovation & product differentiation 3. Outstanding Product Quality 4. World Class Professional Service
Weakness (Internal) Insufficient Working Capital Not Operating in Low Cost Market.
Opportunities (External) Ability to Retain Growth & market Focus In difficult Operating Situations Ability to Exploit Opportunities of Patent Law as an LDC in International Market.
Threats (External) Strong Competitors in Domestic & International Market. Political Instability Government & International Regulations. Rising Trend of Material Price
5.2 FINDINGS AND RECOMMEDATIONS: At the conclusion of the report I would like to say that the BPL, Bangladesh has practiced the standard human resource management. Here I have some recommendations that identify avenues for improving the human resource management policies of BPL, Bangladesh.
1. The company should be prepared the standard human resource planning. Because the success and failure of the organization is highly depend on the proper human resource planning. 2. The OMR process practiced in the organization is a very effective tool to fill probable vacancy. The in –house circulars within the group also act as a useful device to find the right person of the right job. 3. The manager – training program of the company is a good way to groom a to -be – manager for the probable vacancy in the future. The organization should regularly follow this procedure to build a productive and valuable workforce. The selection tools and procedures used in this program have also provided to be very effective. To cope with the ever-changing, competitive corporate world, the organization should welcome new ideas as well as fresh –starters to trigger innovative ways to nature overall workforce competence. The assessment center approach is designed to identify the essential expertise of the candidates that enable to locate and select the right person for a managerial. This method is formally followed only in the manager trainee selection system. But this should also be followed in selecting the entry-level managers too. 4. The HR Department should look into the matter of consuming more time in the process of calling the applicants after their responses very seriously. The organization could control the size of applicants’ pool by using more clear and specific statements in the ad in terms of the minimum educational degree, preferred institutions and other necessary criteria based on which the initial screening of the applications were conducted. 5. BCCP, Bangladesh could participate in the job fairs for their recruitment. A considerable volume of applications is dropped in the organizations as a result of the exposure created in the job fairs. The organization can promote its image as a potential recruiter through its successful participation in the job fairs. 6. The company can recruited also for campus recruiting that could bring a yield of highly educated fresh-starters for the entry-level the organization could arrange
seminars in the top business schools country. Also the company should facilitate online CV-posting system that is a very popular and effective practice used by the top business organizations. 7. The company should follow both on-the-job and off-the –job method training when they are training their employees. 8. The HRD manager of the company should be analyzed the organizational jobs properly. Because job analysis serves the cornerstone of all human resource functions in an organization. Side by side the HRD manager should evaluate the different positions of employees in the organization in order to establish the well conceived for pay-structure. 9. Before appraising the performance of employees in the organization properly, the HRD manager should be established the standard. Here it is noticeable that the HRD manager should appraise the performance of all employees in the organization without showing any discrimination. 10. The HRD manager should prepare the standard promotion policy for the employees of the organization. Here it is very much important that the employees should get the promotion based on the performance not the nepotism, political influence and whatsoever. 11. The HRD manager should established the standard pay structure for the employees of the organization in order to reduce the high turnover of employees.
5.3 Conclusion Pharmaceutical Industry has grown in Bangladesh in the last two decades at a considerable rate. The sector consistently creates job opportunities for highly qualified people. Pharmaceutical companies are either directly or indirectly contributing largely towards raising the standard of healthcare through enabling local healthcare personnel to
gain access to newer products and also to latest drug information. As one of leading pharmaceutical manufacturer Beximco Pharma plays a vital role in the industry as well as in the national economy. To be successful, relentless contribution and dedication of the organizations human resource management is very much needed. To compete in international as well as in local market in adverse situation the HR managers work has become much more difficult in today’s ever changing business environment. Developing plans in a dynamic situation demands critical analysis of the situation and strict adhering to the core principal of the organization. As Beximco Pharma is decentralized organization and core values are cherished by everyone within the organization, operating in dynamic situation is easier than it seems. With the development of healthcare infrastructure and increase of health awareness and the purchasing capacity of people, this pharmaceutical industry is expected to grow at a higher rate in future. Healthy growth is likely to encourage the pharmaceutical companies to introduce newer drugs and newer research products, while at the same time maintaining a healthy competitiveness in respect of the most essential drugs. So, it is a great responsibility for Beximco Pharma as well as other companies in this industry to concentrate on quality product and quality service to take this industry towards further success. The Bangladesh government should also be considerable and cooperative to help the businesses flourish.
ANNEXURE Bibliography: •
www.squarepharma.com www.scribd.com www.google.com Annual Reports: Beximco Pharma 2002, 2007,2008 & Square Pharma 2007
Text Books: Fundamental of Human Resource Management by S. P. Robbins, David A. DeCenzo