Human Resource Management Practice at Beximco Pharmaceutical Limited

TABLE OF CONTENTS

Serial No Topic Page No

Title page

Table of Contents 1-2

Letter of Transmittal 3

Abstract 4

1.1 Introduction 5

1.2 Literature review 6

1.3 Objectives 7

1.4 Methodology 8

2.1 About Company 9

2.2 Vision 9

1

2.3 Mission 10

2.4 Goals 10

2.5 Core Values 10

2.6 Corporate Social Responsibilities 11

2.7 Human Resource Management 11

2.8 Human Resource Management in BEXIMCO

Pharmaceuticals Ltd (BPL), Bangladesh

12-29

3.1 Findings 30

3.2 Recommendations 30-32

3.3 Conclusion 32-33

Reference 34

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Letter of Transmittal

Date: 08th December, 2013

To

Dr. Muhammad Mahboob Ali

Professor

School of Business

Independent University, Bangladesh

Dhaka.

Subject: Submission of Report on “Human Resource Management Practice at Beximco

Pharmaceutical Limited”.

Dear Sir,

We would like to thank you for providing us an opportunity to explore our knowledge as well as

helping us throughout our course. This course has given us opportunity to experience one of the

latest and unexplored areas of business in Bangladesh and has expanded our present knowledge

manifold.

This report is a study on “Human Resource Management Practice at Beximco Pharmaceutical

Limited”. The report contains in-depth review of the “Human Resource Management Practice at

Beximco Pharmaceutical Limited”.

Please feel free in contacting us if you have any queries. We would be glad to provide any

clarification regarding the project.

Sincerely yours,

M. A. JABED KHAN ID# 0920233

ASSADUZZAMAN MOTIN ID#1221542

MAHDI IBNE BASHIR ID#1310053

3

Abstract

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: 1) Planning, 2) Recruiting, 3) Selection, 4)

Socialization, 5)Training and Development, 6) Performance Appraisal, 7) promotion, transfer,

demotion, separation . 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 marketed. 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

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Chapter-1

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 mindshare 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 long-term vision.

BPL is one of the first companies to have an extensively computerized and automated working

environment connecting every corner of the country to the center. Productivity through

connectivity is one of our heritages 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.

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1.2 Literature review

1. Although strategic human resource (HR) management research has established a

significant relationship between high-performance HR practices and firm-level financial

and market outcomes, few studies have considered the important role of employees’

perceptions of HR practice use or examined the more proximal outcomes of high-

performance HR practices that may play mediating roles in the HR practice–performance

relationship. To address recent calls in the literature for an investigation of this nature,

this study examined the relationships between employees’ perceptions of high-

performance HR practice use in their job groups and employee absenteeism, intent to

remain with the organization, and organizational citizenship behavior, dedicating a focus

to the possible mediating role of affective organizational commitment in these

relationships. (Patrick M. Wright-2010)

2. Human Resource Management is the organizational function that deals with issues

related to people such as compensation, hiring, performance management, organization

development, safety, wellness, benefits, employee motivation, communication,

administration, and training.

HRM is also a strategic and comprehensive approach to managing people and the

workplace culture and environment. Effective HRM enables employees to contribute

effectively and productively to the overall. (Shruti Garg 2009)

3. HRM is widening with every passing day. It covers but is not limited to HR planning,

hiring (recruitment and selection), training and development, payroll management,

rewards and recognitions, Industrial relations, grievance handling, legal procedures etc.

In other words, we can say that it’s about developing and managing harmonious

relationships at workplace and striking a balance between organizational goals and

individual goals. (Shashwat Kamath Jun 29 2012)

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4. Human Resource Management (HRM) is the function within an organization that focuses

on recruitment of, management of, and providing direction for the people who work in

the organization. HRM can also be performed by line managers.HRM is the

organizational function that deals with issues related to people such as compensation,

hiring, performance management, organization development, safety, wellness, benefits,

employee motivation, communication, administration, and training. (Susan M.

Heathfield2008,)

5. Training and development are important for all businesses and are particularly critical for

small organizations. Experienced, competent people contribute to both the productivity

and profitability of the company. Remaining competitive depends in large measure on

ensuring that your workforce is trained and up to date with ever-changing skills and

knowledge, especially in today’s global economy, in which keeping up with new methods

is so important. (Butteriss, M. 1999)

1.3 Objectives:

Our main objective is to prepare this report to know about the human recourse practice inan

organization. We try to focus on the report about the HR practice in BEXIMCO-PHARMA. The

objectives of the study are as follows:

1. To know the HRM policies followed in BPL, Bangladesh.

2. To identify the various avenues for improving the HRM policies of BPL,Bangladesh.

3. To have an overall view about HR activities of Beximco pharmaceuticals Limited (BPL).

4. To know the HRM problems and issues facing BPL.

5. To identify HRM approaches, need to be taken by Beximco pharmaceutical to ensure

ongoing strategic competitive advantages.

6. Beximco pharmaceutical-HRM challenges in 21th century.

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1.4 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. A sit is a report so our data

is secondary data.

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Chapter-2

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: 1980

Status: Public Limited Company

Authorized Capital (Taka):2,000 million

Paid-up Capital (Taka):1,259.57 million.

Number of Shareholders: Around 66,000

Number of Employees: 2,310

Stock Exchange Listings: Dhaka Stock Exchange, Chittagong Stock Exchange and AIM of

London Stock Exchange.

Business Lines: Manufacturing and marketing of Pharmaceutical Finished Formulation Products,

Large Volume Parenteral, Small Volume parenteral, 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.

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

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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.

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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

2.7 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

seven activities necessary for staffing the organization and sustaining high employed

performance. The process is described below -

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2.8 Human Resource Management in BEXIMCO Pharmaceuticals Ltd (BPL), Bangladesh

2.8.1 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 conditioned.

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2.8.1.1 Recruitment and Selection process in BPL:

BPL looks 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. They have thousands of diverse people from different

cultures and backgrounds working in a variety of different jobs indifferent fields.

1. Merit is the sole criteria for selection.

2. Attitude is given as much weight age as functional competencies.

3. Panel interviews comprising of Functional Head & HR Head.

4. Sources for recruitment are through campus, consultants, employee referrals, internal job

postings and the internet.

5. Positions in Officer Cadre, GET and MT involve written tests.

6. Antecedent verification is an integral part of our recruitment process.

7. Medical fitness is pre-requisite for all positions.

8. Provide equal opportunity employer and do not discriminate on the basis of race

community, religion or sex.

(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

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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

(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:

Entry-level management

MT (Manager Trainee)

Mid or / and Senior level management

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

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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.

External Source:

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 withinBPL, Bangladesh who is

suitable for the role, external advertisement should be placed toattract 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 GPOBOX 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.

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Employee referrals:

Employee referral means using personal contracts to locate job opportunities. It is commendation

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.

Employment Agency:

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.

2.8.1.2 (B) Selection Process:

Selection is the process of gathering information for the purpose of evaluating and deciding who

should be employed in particular jobs.

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(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. (forexample, educational institutions like IBA, BUET are

given the highest weight among the localones 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.

(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 communications kills. The candidates are called for the

preliminary (first) interview based on their performance in the written test.

(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

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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.

(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 getthe

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.

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(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 candidates has to fill this blank

and submit this to the company along with a CV.

(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.

(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 pay-structure/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.

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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 hasverbally

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 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.

2.8.1.3 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 organizes 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

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socialization works, employees receive the confidence and satisfaction what comes from feeling

that they are members in good standing in the organization.

2.8.1.4 Training and Development program of BPL:

(A) Training:

A learning experience in that it seeks a relatively permanent change in an individual that will

improves 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

(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.

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.

Advantages:

Relatively inexpensive

Trainees learn while producing

No need off-site facilities

Drawbacks:

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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 trainee

Management Game: Many organizations now are using this popular method on various

aspects of business and management.

Behavior Modeling: It involves the Modeling-Role playing-Social reinforcement-

Transfer of training.

(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.

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(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.

(B2) Types of Training:

Technical Training

Management Training

Safety Training

Occupational Health

General Training (Management, Accounts, Sale etc.)

Social Skill Training

Refresher Training

Workers Education Training

(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.

(B4) Planning the training program & implementing

The stages of the training

Recording the results

Providing the stuff and equipment

(B5) Evaluating the results

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Deciding whether the training objectives have been met

Considering how they could have been met more effectively

(B6) Training Aids

The following training aids are generally used in training programs in BPL-

Multi media

Overhead projector

Flip chart

White board etc.

2.8.1.5 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 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

2.8.2 Employee Compensation:

Employee compensation refers to all forms of pay or rewards going to employee 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.

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2. Direct payments: Financial benefits like employer-paid insurance and vacations.

(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

(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

Rank jobs

Combine ratings

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.

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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.

(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

Insurance Benefits

Vacations and Holidays

Sick Leave

Parental Leave and Family Leave

Medical Leave

Retirement Benefits

2.8.3 Health & Safety

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(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 non-

management 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.

(B) Safeties

SHEQ⇒SHES (Safety Health Environment Security)

S for Safety

H for Health

E for Environment

Q for Quality

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

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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 (Especially 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 Encounter 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 things

that may cause risk to others, properties even to me and also let other not to do even that may

hazardous to him 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

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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.

2.8.4 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:

Education costs of the children

Permanent job facility

Leave facilities

Yearly Employee Awards

Promotion

Foreign Travel with Family Offers

Share from revenue etc.

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Chapter- 3

3.1 Findings

1. There are several methods to predict personnel needs. These are basically graphical

methods, which can not measure the actual personnel needs.

2. Lack of new idea and fresh point of view.

3. Promotion and transfer create dissatisfaction in the mind of employees

4. The sometime HRD manager does not follow the standard promotion policy for the

employees of the organization.

5. The human resource planning of BPL is not standard.

6. External recruitment leads to nepotism & unfairness at BPL.

7. Recruit& hiring people is a huge process consists of different steps, so it is costly and

time consuming.

8. The HRD manager of BPL Company does not analyze the organizational jobs properly.

9. In BPL company both on-the-job and off-the job training method is not work properly

when they give training their employees.

10. Because of improper induction productivity of labors also decreased, which impact

negatively on BPL.

3.2 Recommendations:

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.

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2. 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 what so

ever.

3. 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.

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

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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. 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.

10. The HRD manager should established the standard pay structure for the employees of the

organization in order to reduce the high turnover of employees.

3.3 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

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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.

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References

Noe Raymond A, Hollenbeck John R., Gerhart Barry, Patrick M. Wright “Human Resource

Management”, 5th Edition.

Werther William B. and Keith Davis., 1981 “Human Resource and Personal Management,”

Mc Graw Hill Book Company, Boston, USA.

“Annual Report,” Beximco Pharma Ltd ., Financial year 2010-2011, p.p. Al.

DeCenzo David A. and Robbins Stephen P.,5 August (2005) “ Personnel/Human Resource

Management”, India, Prentice-Hall of India Private Limited.

V. Skinner S.J., Ivancevich J.M. (2003), “Business for the 21st century” Richard D. Irwin Inc

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