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Report On HRM- Employee Planning Comparison Of Pharmaceutical Companies

Course Title: Human resource Management

Course Code: MKT-208

Submitted to:

Mansura Akter

Lecturer

Department of Marketing

Jahangirnagar University

Submitted by:

Daffodils

Department of Marketing

Jahangirnagar University

Date of Submission : August 14th , 2011

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We Are…..

The Group of Deffodils

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Serial No. Name ID

1. Ummay Hani Islam 1300

2. Tasmiah Khan 1306

3. Ashraful Islam Nishad 1312

4. Abdullah-Al-Fahad 1313

5. Abdur Rahman Al Mahmud 1316

6. Areful Islam Shiblu 1334

7. Robel Miah 1803

Letter of Transmittal

August 14th, 2011

Mansura Akter

Lecturer

Department of Marketing

Jahangirnagar University

Subject: Submitting the report on “HRM- Employee Planning Comparison Of

Pharmaceutical Companies”

Dear Madam,

We are submitting a well-structured and comprehensive comparison report on “HRM-

Employee Planning Comparison Of Pharmaceutical Companies” in due time. Despite many

constraints like scope and access to information, we have tried to create something satisfactory.

We have tried to follow your guideline in every aspects of preparing this report. We have

concentrated on the most relevant and logical areas to make our report coherent as well as

practical.

We hope this report will entice your kind appreciation.

Sincerely,

________________

Abdullah-Al-Fahad

(On behalf of the group members)

BBA 1st Batch

Department of Marketing

Jahangirnagar University

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Acknowledgement

At the very beginning, we would like to convey our sincere appreciation to the

almighty god for giving us the strength, ability and confidence the tasked within the

planned time.

We are indebted to our course instructor Mansura Akter, lecturer, Department of

Marketing, Jahangirnagar University for her meticulous support and direction. Her

suggestions and encouragement helped us in preparing this report.

Our fellow classmates supported us in every possible way. We would like to thank

them for all their support.

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Table of contents

EXECUTIVE SUMMARY...............................................................................8

INTRODUCTION........................................................................................10

ORIGIN OF THE REPORT.....................................................................................................................................................10USE OF METHOD.............................................................................................................................................................10

Data collection Method..........................................................................................................................................10SCOPE:..........................................................................................................................................................................11LIMITATIONS...................................................................................................................................................................11

INDUSTRY ANALYSIS...................................................................................12

DRUG QUALITY...............................................................................................................................................................13DOMESTIC DRUG DISTRIBUTION.........................................................................................................................................14EXPORT MARKET.............................................................................................................................................................16

Regulated:..............................................................................................................................................................16Moderately Regulated:...........................................................................................................................................16Unregulated:...........................................................................................................................................................16

HUMAN RESOURCE PLANNING OF SQUARE PHARMACEUTICALS LTD BANGLADESH.............................................................................................18

ORGANIZATIONAL FRAMEWORK.........................................................................................................................................18Vision......................................................................................................................................................................18Mission...................................................................................................................................................................18Objective.................................................................................................................................................................18

HUMAN RESOURCE MANAGEMENT POLICY:.........................................................................................................................19Mission of Human Resource Department:..............................................................................................................19

RECRUITMENT POLICY:.....................................................................................................................................................19SELECTION PROCESS:........................................................................................................................................................20TRAINING AND DEVELOPMENT PROCESS:.............................................................................................................................21

Training and Development Strategy of the Square Pharmaceuticals Limited:........................................................21Training Method.....................................................................................................................................................22

COMPENSATION POLICIES:.................................................................................................................................................22Promotion:..............................................................................................................................................................23Basic Salary:............................................................................................................................................................23Annual Bonus:.........................................................................................................................................................23Increments:.............................................................................................................................................................23House Rent:............................................................................................................................................................23Medical Allowances:...............................................................................................................................................23Profit Sharing:.........................................................................................................................................................23

PERFORMANCE APPRAISAL:...............................................................................................................................................24CONCLUSION:.................................................................................................................................................................24

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HUMAN RESOURCE MANAGEMENT IN ACME PHARMACEUTICALS LTD BANGLADESH.............................................................................................25

ORGANIZATIONAL FRAMEWORK.........................................................................................................................................25LINKING ORGANIZATIONAL STRATEGY TO HUMAN RECOURSE PLANNING....................................................................................25

Assessing Current Human Recourses......................................................................................................................26Human Recourse Information Systems:..................................................................................................................26Determining the Demand for Labor:.......................................................................................................................26Predicting the future Labor supply..........................................................................................................................26Matching labor demand and supply.......................................................................................................................27

RECRUITING....................................................................................................................................................................27Internal Source........................................................................................................................................................28External Source.......................................................................................................................................................28

EMPLOYEE TRAINING........................................................................................................................................................28Determining the training needs:.............................................................................................................................28Training Methods:..................................................................................................................................................28Conclusion:.............................................................................................................................................................30

HUMAN RESOURCE PLANNING OF BEXIMCO PHARMACEUTICALS LTD (BPL), BANGLADESH.............................................................................................31

ORGANIZATIONAL FRAMEWORK.........................................................................................................................................31RECRUITMENT AND SELECTION PROCESS IN BPL:...................................................................................................................31

Recruitment process:..............................................................................................................................................32Source of Recruitment :..........................................................................................................................................32Selection Process:...................................................................................................................................................34

EMPLOYEE SOCIALIZATION.................................................................................................................................................37TRAINING AND DEVELOPMENT PROGRAM OF BPL:.................................................................................................................38

Training:.................................................................................................................................................................38Employee Training Method.....................................................................................................................................38

DEVELOPMENT:...............................................................................................................................................................39Employee Development Method.............................................................................................................................40Types of Training:...................................................................................................................................................40Training Process......................................................................................................................................................40

PERFORMANCE APPRAISAL:...............................................................................................................................................41EMPLOYEE COMPENSATION:..............................................................................................................................................41

Direct financial payments:......................................................................................................................................41Factors influencing the design of compensation plan.............................................................................................42Establishing Pay Rates............................................................................................................................................42

COMPARISON..................................................................................................................................................................44

RECOMMENDATION...................................................................................51

CONCLUSION..............................................................................................52

REFERENCE.................................................................................................53

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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

Planning, Recruiting, Selection, Socialization, Training and Development, Performance

Appraisal, Compensation, Labor relation, and Motivation function

Square Pharma ,Beximco Pharma (BPL) and ACME Pharma are the leading edge

pharmaceutical companies based in Bangladesh and are 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 Square Pharma ,Beximco Pharma (BPL) and ACME

Pharma are 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 Square Pharma ,Beximco Pharma (BPL) and ACME Pharma 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 are 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

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future threats of international open market 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.

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Introduction

Pharmaceuticals Industry is one of the major industries in Bangladesh. Because many people are

directly or indirectly related with this industry. In 1982 this industry was formed. But at that time

we had not skilled labours. So we were lacking behind in compare of most of the country. But

situation have been changed. Now we have skilled persons. That’s why now meeting the local

demand, we export our drugs to different countries and our country earn a handsome amount of

foreign currency. It becomes possible that almost every pharmaceuticals company have their own

human recourse department and they work to expand the skill of labours. In this report we choose

three top companies and discuss about their HR planning and compare them and decide which

company are the best in HR.

Origin of the reportThe preparation of this report is a requirement of the course on “Human Resource Management”,

Mansura Akter, Lecturer, Department of Marketing at faculty of Business Studies, Jahangirnagar

University.

The course teacher of “Human Resource Management” Mansura Akter, has assigned the students of

BBA, Marketing department 1st batch to select any three companies from the Pharmaceutical

Industry of Bangladesh & Compare their employee planning system with efficient use information

at every level and prepare a report.

Use of Method The methodology used in this research was conducted by our group members. We had been able to

manage appointment & meeting personnel of our chosen three companies to collect HRM related

data. After collecting the information about their HMR process, we have analyzed it and created this

report.

Data collection Method

Primary Source

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Our group members had been able to manage appointment & meeting personnel of our chosen three

companies to collect HRM related data. We collected information from –

Mr. Mohshin. (HRM Accountant, Beximco)

.Mr. Mosiur Rahman Khan (GM HRM ACME)

Mr.Fahmid Azad (Manager HR ,Square)

Secondary Source

Secondary data have been collected from various sources like reports published by newspapers,

magazine, and also via internet.

Scope:Bangladesh is a over populated country. Here we find some pharmaceutical companies which are

doing business very well here not only inside the border but also outside (Exporting) of it & of

course it’s helping our economy to extend by providing its value. Bangladesh must also think about

it broadly. On basis of that Comparison among three pharmaceutical companies on their employee

planning & industry analysis can be a worth thing to work for & understanding this industry better

& for practical experience. First it’s important to identify when, how and to whom it should be

launched.

LimitationsAs we have done a research report on pharmaceutical industry, we have faced some troubles, these

can be explained as –

There was a trouble of time limitation and money.

We can only hope & assume that the collected information were worth & liable enough.

It’s hard to get inside information from the employees of the companies..

Most of the officials are very busy, so they hardly want to spend time & understand the

issues of our report purpose, so it’s hard to take answers definitely.

Trouble facing arise from lack of proper information experience.

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Industry Analysis

Bangladeshi pharmaceutical firms focus primarily on branded generic final formulations using

imported APIs. About 80% of the drugs sold in Bangladesh are generics and 20% are patented

drugs.[1] The country manufactures about 450 generic drugs for 5,300 registered brands which have

8,300 different forms of dosages and strengths. These include a wide range of products from anti

ulcerants, flouroquinolones, anti-rheumatic non-steroid drugs, non-narcotic analgesics,

antihistamines, and oral anti-diabetic drugs. Some larger firms are also starting to produce anti-

cancer and anti-retroviral drugs (Sampath 2007) [2].

Domestically, Bangladeshi firms generate 82% of the market in pharmaceuticals; locally based

MNCs account for 13%, and the final 5% is imported. Although 235

pharmaceutical companies are registered in Bangladesh, only about 85 are actively producing

drugs. The top 30 to 40 companies dominate almost the entire market; the top 10 hold 70% of

domestic market share; and the top two, Beximco and Square, capture over 25% of the market

(Chowdhury 2006). The industry structure is relatively concentrated. In comparison, the top ten

Japanese firms generated approximately 45% of the domestic industry revenue in 2006, while the

top ten UK firms generated approximately 53%, and the top ten German firms generated

approximately 60% (IMS Health 2006).

Because Bangladesh API capacity is insignificant, API firms import approximately 80% of their

APIs. Fifteen to seventeen Bangladeshi firms are involved in the manufacture of about twenty APIs,

but they usually run the final chemical synthesis stage with API intermediaries, instead of the

complete chemical synthesis. The other 1,000 required APIs are imported.6 Approximately 75-80%

of the imported APIs are generic. [3] In 2005, the size of the Bangladeshi pharmaceutical market

was $500 million in terms of

production, and it is expected to grow at 10% per annum. [4] In Figure 1, the industry’s annual

historical growth rate in terms of production, is compared with Square Pharmaceutical’s, the largest

domestic firm. the figures. The authors note that obtaining current industry and firm information is

difficult. They made their estimates based on statements from the industry and data from a 1999-

2003 survey of 54 firms.

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Figure 1: Annual Growth Rates of the Bangladesh Pharmaceutical Sector in

terms

2001 2002 2003 2004 20050%

5%

10%

15%

20%

25%

Bangladesh Pharmaceutical Sec-tor

Square Pharmaceutical

Source: Annual Report of Square Pharmaceutical, 2005–2006

Drug QualityFor generic pharmaceutical products, quality is defined as the generic drug having the same active

ingredients as the original formulation and being bioequivalent to the brand name counterpart with

respect to pharmacokinetic and pharmacodynamic properties (equivalent absorption rates,

elimination rates, and other in vivo effects). By extension, therefore, generics are assumed to be

identical to the original product in dose, strength, route of administration, safety, efficacy and

intended use. While some Bangladeshi pharmaceutical products on the market are of world-class

standards, others are less so. Medical professionals and pharmacists interviewed voiced strong

opinions on the quality levels of different brands. Although further comprehensive and systematic

analysis is required to assess Bangladesh’s pharmaceutical quality, some anecdotal reports exist of

lower quality drugs.

The International Centre for Diarrhoeal Disease Research, Bangladesh (ICDDR, B) tested

the zinc content in 20 zinc-syrup formulations marketed in Bangladesh. The samples were

purchased from local pharmacies in Dhaka. Only two of the tested products contained zinc

concentrations within 5% of the stated content. The rest contained zinc, just not enough. The

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problem could have originated from either poor manufacturing or poor product handling in

the distribution channel, because zinc degrades if exposed to light. [5]

Of eleven drugs UNICEF sent for testing to a laboratory in Australia, two had substandard

results. When the manufacturers were informed, one company immediately stopped

production until it found the problem—a very good response The other company however,

refused to address the problem, claiming that the test was in error. UNICEF sent the drug for

a second testing to a lab in Denmark where the drug was also found substandard. The

company still refused to address the issue. [6]

Some Bangladeshi firms have invested in quality raw materials, manufacturing processes and

environment, and technical know-how. However, a “perverse incentive” exists against upgrading

due to the weak regulatory structure. Firms that have invested minimally in quality continue to sell

drugs alongside those that have invested substantially. Because of weak regulations, the consumer

cannot determine quality differences and select for purchase the superior product. As a result, firms

that have invested in quality manufacturing and quality processes are in a sense penalized.

Domestic Drug DistributionBangladesh’s drug distribution marketplace is composed of small independent pharmacies. This

structure combined with an under-regulated industry, few firms manufacturing pharmaceuticals,

and companies competing to sell branded generics based on brand names provides ample

opportunity for the sale of low-quality drugs at higher prices. [7] And this partly explains why the

quality of drugs available for sale varies significantly in Bangladesh.

Pharmaceutical firms can sell their products to private sector pharmacies, the government and its

public health care facilities, or to international organizations operating in Bangladesh (e.g.,

UNICEF). Government sales are not as profitable as private sector sales because the government

pays less, on consignment, and at times, after considerable delay. Pharmaceutical firms nevertheless

still target pubic facilities because doctors become acquainted with the firms’ drugs and then

prescribe them in their private practices. And, because drugs are not readily available at public

facilities, patients receiving treatment there may still go to a private pharmacy to procure the

required drugs. Without these public sector connections, many firms would turn more attention to

the private sector. [8]

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Although there are approximately 200,000 private pharmacies in Bangladesh, the government lists

officially only 76,000 pharmacies. [9] The rest are illegal, without a license or a licensed pharmacist

on staff. Pharmacists have varying education levels and many lack adequate training. For example,

a visit to four pharmacies in Dhaka and ten pharmacies in the bordering Gazipur, Narayanganj,

Keranigonj and Manikgonj Districts revealed that each had one professional pharmacist, who had

four years of coursework; while the two medium-sized pharmacies visited had one person with a

year’s training and several untrained coworkers, all of whom were working as pharmacists. Rural

pharmacies may have pharmacists with high school education and approximately two weeks

training. The Bangladesh Pharmacist Society is currently implementing the first phase of a three-

phased program to improve skills of pharmacists. The program should be completed in seven to

eight years. [10]

Most pharmacies are individual shops, though some chains are starting to develop, especially in

urban areas. Large pharmacies visited reported buying medicines according to sales trends, e.g.,

what sells the most. The medium and small pharmacies visited reported linkages with a medical

doctor. Their sales were therefore usually skewed towards that medical professional’s preferences.

Several brands of each drug, with variable quality levels, are on the market. In urban areas, the

visited pharmacies tended to sell higher quality brands, whereas in more rural areas, pharmacies

visited tended to sell lower quality, lower cost brands. This may be due to a district’s political sway

influencing brand selection. The pharmacies visited tended to have brands associated with people

who held power in that district. Those more distant from the city center also had increasingly more

ayurvedic and herbal medicines.

The top twenty pharmaceutical manufacturing firms have established extensive sales and

distribution networks. Each pharmacy visited has 10-50 pharmaceutical firms supplying their

medicines daily. For example, Beximco Pharmaceuticals has 1,200 representatives visiting

pharmacies daily to take drug orders. Each pharmacy receives approximately [11] Beximco

shipments per month. Acme Pharmaceuticals has 1,100 representatives and Square Pharmaceuticals

has 950 representatives visiting pharmacies. 15 None of the pharmacies visited restock any

medicine that does not sell well. The small pharmacies report only keeping a medicine for a

maximum of six months.

A significant number of drug consumers obtain drugs without a prescription. When consumers

lacks a prescription, they will usually either ask a pharmacist for a specific drug or describe their

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ailment to a pharmacist who diagnoses the problem and recommends a drug on the spot. Popular

products include a variety of antibiotics, painkillers, and gastric remedies. Consumers purchase one

to ten tablets or capsules at a time. The quantity of drugs purchased often depends more on the

consumer’s finances of than on the required dose of medicine.

Export MarketPharmaceutical firms in Bangladesh export approximately $27.54 million in products to 68

countries. [12] Bangladeshi firms can export to the following markets:

Regulated: Square Pharmaceuticals, the only Bangladeshi pharmaceutical firm Accredited in a regulated

market, received the UK’s regulatory approval in May 2007. The largest barriers to regulated

markets are manufacturing facilities which come at a cost of at least $50 million and know-

how.

Moderately Regulated: Some markets, such as Tanzania and Malaysia, are moderately regulated. While countries do

not always require stringent certification, a certification from a regulated market signifies

quality and provides a firm with a competitive advantage.

Unregulated: Most Bangladeshi pharmaceuticals are exported to less than fully regulated markets such as

Bhutan, Pakistan, Sri Lanka, Nepal, Vietnam and Myanmar (Chowdhury 2006).

Bangladesh’s exports are growing rapidly, as shown in Table 1.

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The majority of Bangladesh’s pharmaceutical exports are from Novartis/Sandoz, as shown in Table

2. Novartis/Sandoz, an MNC operating in Bangladesh, has approximately 25 manufacturing sites

globally (Bangladesh Association of Pharmaceutical Industries 2005). Bangladesh is one of its

smaller sites. The Bangladeshi manufacturing site is an EU certified plant which produces about

500 million tablets a year and generates about $35-$40 million in sales. It has been growing rapidly

—15-18% per year—and is responsible for a significant portion of Bangladesh’s pharmaceutical

export growth. It imports APIs, acquires packaging domestically, and manufactures final

formulations in Bangladesh for export of $12 million or for sale to the domestic market ranging

from $23-$28 million. [13]

Exporting a pharmaceutical product is challenging. Each country has its own product regulations,

registration requirements, language requirements, cultural preferences, national packaging

requirements, and industry protection mechanisms. Sales on the global market are quite competitive

with firms from around the world vying for business. Furthermore, initiating exports requires a

significant investment in money, time and paperwork to register the product in the target country.

As generic products are branded in less regulated markets, pharmaceutical firms also need to make

significant investments in sales and marketing to create product demand. All these investments are

made without a guarantee of future sales.

Table 2: Recent Exports by Some Bangladeshi Pharmaceutical Firms

Company Export (USD) Year of Export

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Human Resource Planning of Square Pharmaceuticals Ltd Bangladesh

Organizational Framework

SQUARE today symbolizes a name – a state of mind. But its journey to the growth and prosperity

has been no bed of roses. From the inception in 1958, it has today burgeoned into one of the top line

conglomerates in Bangladesh. Square Pharmaceuticals Ltd., the flagship company, is holding the

strong leadership position in the pharmaceutical industry of Bangladesh since 1985 and is now on

its way to becoming a high performance global player.

SQUARE Pharmaceuticals Limited is the largest pharmaceutical company in Bangladesh and it has

been continuously in the 1st position among all national and multinational companies since 1985. It

was established in 1958 and converted into a public limited company in 1991. The sales turnover of

SPL was more than Taka 11.46 Billion (US$ 163.71 million) with about 16.43% market share

(April 2009– March 2010) having a growth rate of about 16.72%.

Vision

We view business as a means to the material and social wellbeing of the investors, employees and the society

at large, leading to accretion of wealth through financial and moral gains as a part of the process of the

human civilization.

Mission

Our Mission is to produce and provide quality & innovative healthcare relief for people, maintain

stringently ethical standard in business operation also ensuring benefit to the shareholders,

stakeholders and the society at large.

ObjectiveOur objectives are to conduct transparent business operation based on market mechanism within the

legal & social frame work with aims to attain the mission reflected by our vision

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Human Resource Management Policy:Human resource management issue is now a vital element for every company. It is especially

obvious for the manufacturing industries. Human resource policy of Square Pharmaceutical Limited

will ensure to retain the best and effective employees at all level of the hierarchy. Now in the

competitive global market human resource is the most welcomed resource than other resources. So

to motivate and update the employees of Square Pharmaceutical Limited it has developed its own

compensation policy, training and development policy, recruitment and selection policy, and career

development policy and soon. It is believed that through utilizing the human resource policy it will

able to attract and retain more employees to reach its target with a short period.

Mission of Human Resource Department:Square Pharmaceutical Limited intends to attract the talented pool of personnel existing in the

country. It does its utmost to provide them with an excellent equal employment opportunity, which

will benefit for the organization fully and enhance the employees’ career to the future.

Outstandingly, the grounds of Square Pharmaceutical Limited will encourage the cerebral resources

of the organization and keep it as long run as possible with a finest way.

Recruitment Policy:Recruitment follows HR planning and goes hand in hand with the selection process by which

organizations evaluate the suitability of candidates for various jobs. Without accurate planning,

organizations may recruit the wrong number or type of employees. Without successful recruiting to

create a sizable pool of candidates, even the most accurate selection system is of little use.

Recruiting is a process by which organizations can locate and attract individuals to fill job, recruit

new employees to replace those who leave or are promoted, to acquire new skills, and to permit

organizational growth. Recruiting is an even more important activity when unemployment rates are

low and economic growth is strong, as firms compete to attract the qualified employees they need

to succeed. Recruiting can be quite expensive.

From Square Pharmaceutical Limited organizations point of view, recruitment takes place the

whole year whenever it is required or needed. It may be once in a year or more than that. The

company recruits people from external sources at all levels. Square Pharmaceutical Limited consists

of seven departments namely: Marketing department, IT department, Quality Management

department, Personal and Administration department, Technical and Service department,

Commercial department and Accounts and Finance department. Every department has heads and

executives.

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For executive positions, skilled, experienced and reputed employees are hired form the

outside.

For marketing department, the company fills higher positions through internal promotion

only.

Fresh graduates are recruited at the entry in the post of medical promotion officer. The

company does not seek any experience for recruiting entry-level employees.

Following preliminary interview, written test and final interview; medical promotion

officers are selected on a temporary basis. The temporary selected applicants are then sent

for six weeks induction training.

After the completion of training, the employees are appointed for six months as

probationary period.

On completion of probationary period, the company undertakes performance appraisal and

selects the qualified employees permanently.

Selection Process:Every organization wants to have the best employees. Because a team of best employs can

facilitates the organizations to get the quicker success. Therefore, to select the best employee is a

very important and crucial factor for an organization.

Selection occurs after the step of recruitment. There the organization decides who will be hired.

Among a huge number of employees, they short-listed the best ones. However, the selection

process varies from organization to organization. They can collect the application blanks and

conduct the brief and formal interviews. They can also take help from the tests, interviews, assessed

Centers, background checks etc. However, the second step is the costly process for selection.

Typically, firms follow these steps while selecting. These steps may vary to one firm to another.

Initial Screening

Completion of Application Form

Employment test

Comprehensive Interview

Background test

Physical Examination

Final Employment Decision

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Square Pharmaceutical Limited selection process is a bit different from the above process. They go

through the following procedures to select candidates:

At first Square Pharmaceutical Limited collects applications from candidates those have been

dropped by them either unsolicited or solicited in the response of advertisement that are

published in national media’s.

Once the pull of applicants applied for the vacant position, Square Pharmaceutical Limited

takes examination of them, which is a written examination.

Then among them who passed the written examination successfully are invited to attend an oral

test or viva, which is called the Managerial Viva. Here potential candidates are interviewed by

the Personnel Department Manager or by the Manager of the department.

Those that get the green signal from the Managerial Viva then are asked to face a

Comprehensive Interview in front of the Board of Directors. This is called Directors Viva. As

all know that Square is a leading National company, it is run by a Board of Directors consists

of the owners and stockholders.

These members of the Board of Directors take the final decision about selecting employees

from the peoples.

This is the overall selection process of Square Pharmaceutical Limited.

Training and Development Process:Training involves employees acquiring knowledge and learning skills that they will be able to use

immediately and employee development involves learning that will aid the organization and

employee later in the employee’s career.

Training and Development Strategy of the Square Pharmaceuticals Limited:Training and development is now a significant part for every organization to update and make

workforce competitive in the company to perform effectively and efficiently. Square

Pharmaceutical Limited would take training and development program for it is every level of the

workforce. It will conduct based on the performance and base on the situation. It will highlight to

update its workforce through external training center, as it has no internal training institution. Here

those who will receive training, have to maintain a permanent contract, which will ensure retain of

those upgraded workforce. Square Pharmaceutical Limited provides training and development

packages for its employees. They are-

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• The training programs Square Pharmaceutical Limited has are shown in the table below-

|

Training Program Duration Level of Employee

Effective Office Management Minimum 03 Days Executive and above

Negotiation Skills Minimum 03 Days Executive

Office Communication Minimum 03 Days Non Executive

Introductory Training About 02 Months Field Workers

Training Method Employees are provided both

i. On the job training and

ii. Off the job training

Though Square Pharmaceutical Limited does not have any training institute yet they train

employees by

I. Internal Trainers

II. External or Professional Trainers

Sometimes the company allows employees to take some external institutional training to contribute

more to the company. Thus, they facilitate employees with financial support under company

provisions.

Compensation Policies:Square Pharmaceutical Limited is concentrating on competitive compensation package for its all

level of employees to ensure to retain and motivates its employees. To gain competitive advantage

it has conducted salary survey. It is highly encourage performing its employees the best because

Square Pharmaceutical Limited will maintain performance based compensation system. On the

other hand, promotion and salary increment will obviously depends on the performance of the

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employee in a fiscal year. Other allowances will be provided based on the organizational hierarchy.

The compensation packages of the company is discussing below:

Promotion:People are promoted form Medical Promotion Officer to Senior Medical Promotion Officer,

Territorial Manager, Regional Sales Manager and then Sales Manager. The more efficiently

employee woks, the more quickly promotion is awarded. To award promotion, the company

systematically evaluates performance for medical promotion officer, senior medical promotion

officer and executives following the set criteria.

Basic Salary:Basic Salary is the salary, which is paid by the company to the employees for work performed. That

means Basic salary is provided to the employees based on the individual skills and knowledge.

Annual Bonus:Employees are given two annual bonuses in the two Eid Festival, which is settled based on their

basic salary.

Increments:An increment is defined as the increase in the salary according to the performance of the

employees. Square Pharmaceutical Limited would provide increment to the salary of the employees

according to the satisfactory performance.

House Rent:House allowances are provided to the top-level management and mid level management.

Medical Allowances:To ensure that everyone within the company fill secure about their health related issues and to be

motivated towards the work Square Pharmaceutical Limited will provide medical allowance for

each month with their total salary. From the top to bottom, every level of employees within the

company will receive the same amount of medical allowance in every month.

Profit Sharing:Profit sharing is two types:

I. Bonus share or dividends and

II. Fixed percentage of the profit.

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In addition, it provides sales commission, transportation facility, provident fund, city allowances,

health insurance, refreshment and canteen facility, pharmaceutical and other toiletries products of

the company at a subsidized rate.

Performance Appraisal:Performance Appraisal is the part of the part of the performance assessment and management

process in which an employee contribution to the organization during a specified

Conclusion:Square Pharmaceutical Limited is a very well known national figure in Bangladesh. They are the

biggest organization in Bangladesh. Square Pharmaceutical Limited has a very well reputation for

this working environment. Usually they only recruit people for all-level jobs, because they believe

in the internal growth of their current employees. So it is easily understandable that Square

Pharmaceutical Limited prefers their current employees first. That is why employees do not leave

this organization. It is also true that Square Pharmaceutical Limited has a number of good

employees who are talented as well as committed to the organization. They have very good

communication skills. This is because of Square Pharmaceutical Limited’s strong recruiting and

selection process. Before taking employees they analyze on those position. They find out what are

the responsibilities they should perform and what is the recruitment to perform those activities.

Square Pharmaceutical Limited has a structured planning for those processes. They conduct the

processes in different steps. For this reason they have to spend time but finally they are being able

to get the most prefect employees for their organization.

26 | P a g e

Human Resource Management in ACME Pharmaceuticals Ltd Bangladesh

Organizational FrameworkEstablishment of ACME was a great entrepreneurial effort of Late Hamidur Rahman Sinha way

back in 1954 and is a vivid example of a great mind’s vision and its materialization. He was the

founder of the firm, ACME, and was the main visionary of the organization until his sad demise in

1994.

Then comes the year 1954; the year was a milestone year in the history of the pharmaceutical

industry. Late Hamidur Rahman Sinha might have thought it was a private entrepreneurial effort

on his part, but in reality it was a resolute and brave footstep which played a part in pioneering the

present pharmaceutical industry.Because during that time, i.e. during Post colonial Bengal was a

place of great uncertainty and hardship. Industrialization facilities were meager and inadequate.

One man came forward with his vision, amidst the political turmoil and utter lethargy of the then-

new Government. It's not an easy task to set up a highly sophisticated industry, and moreover do it

without bank loans and governmental assistance. So it demanded immense effort, strong

determination along with vision and dreams.And Mr. Hamidur Rahman Sinha is that person, who

had that dream.

At the precise moment when this visionary man established the company at Narayangonj, though

on a small scale, he had actually sown the seeds of today’s burgeoning almost self-sufficient

pharmaceutical industry. Now Bangladesh is exporting drugs to different countries of the world.

Had Late Hamidur Rahman Sinha not taken such a courageous step, perhaps it would not have been

possible for us to reach such heights of success.

Linking organizational Strategy to Human Recourse PlanningTo ensure that appropriate personnel are available to meet the requirements set during the strategic

planning process, ACME HR manager engage in employment planning. The purpose of this

planning effort is to determine what HRM requirements exit for current and future supplies and

demand for workers.

27 | P a g e

Assessing Current Human RecoursesACME pharmaceuticals has made an employee information chart including their personal and

professional information such as their name, education, training, salary level, professional skill,

language skill, current position and specialized skills.

They made a report in every year based on the employee performance. The input of this report

would be derived from forms completed by the employee supervisor. So necessary steps will be

takes on employee performance.

Human Recourse Information Systems:HRIS is a computerized system that assists in the processing of HRM information. To assist in the

HR inventory, ACME pharmaceuticals have implemented a HRIS. The HRIS is design to quickly

fulfill the human recourse management information needs of the ACME pharmaceuticals. Their

database system keeps important information about employees in central and assessable location

even information on the global workforce.

Determining the Demand for Labor:The replacement chart helps to predict to determine the demand of the labor. When the assessment

of the current human resources situation has been made and the future direction of ACME

pharmaceuticals has been considered its time to develop a projection of human resource need.

Predicting the future Labor supplyLabor can be increased or decreased. Labor increases for four reasons and decreases for six reasons.

Figure: labor Increase

28 | P a g e

Figure: labor decrease

Matching labor demand and supplyACME pharmaceuticals at first predict the demand and supply. If demand is more than supply they

make a easy job specification but if supply is higher than demand than the make strict the job

specification.

RecruitingRecruitment refers to the process of attracting, screening, and selecting qualified people for a job.

For some components of the recruitment process, mid- and large-size organizations often retain

professional recruiters or outsource some of the process to recruitment agencies.

ACME pharmaceuticals recruit from two sources.

i. Internal Source

ii. External Source

29 | P a g e

Internal SourceACME pharmaceuticals recruit 65% from internal source. They follow

i. Promotion

ii. Recommendation of employee

iii. Recommendation of the trade union

External SourceACME pharmaceuticals recruit only 35% from external source. They follow

i. Advertisements

ii. Universities

iii. Unsolicited Applicants

Employee Training

Determining the training needs:Determining training needs typically generating answers to several questions. ACME

pharmaceuticals follow four steps to determine the training needs. At first they indentify their

goals. Then they indentify the tasks that can help to achieve the goals. Then they identify the

necessity behavior to do the task. After that they take decision for giving the training.

30 | P a g e

Figure: Determining the training needs

Training Methods:ACME pharmaceuticals follow both two training method.

i. On the job training

ii. Off the job training

On the job training:

ACME pharmaceuticals believe that employee can be trained 85% in the job. So they emphasize

on this method more than off the job method.

A. Job Rotation:

Job rotation means moving the employee horizontally or vertically to expand their skills,

knowledge and abilities ACME pharmaceuticals rotated their employee regularly to expand

the employee’s skill.

B. Assistant- to Position:

In the ACME pharmaceuticals every employees have to work under a supervisor by whom

they can learn about their work. By this they can expand their skill and ability.

Off the job training:

If necessary, ACME pharmaceuticals provide off the job training for their employee. They follow

four off the job training methods.

A. Films and Videos:31 | P a g e

ACME pharmaceuticals have a multimedia room in which they can show the video of the

some famous company’s pharmaceutical work.

B. Stimulations:

They provide some case study to solve. This is very helpful to take decision in deferent

circumstances.

C. Outdoor Training:

ACME pharmaceuticals have a training center in the Dhamrai upazila. In this training

center the employee attend seminars, and classes to expand their skills.

Conclusion:ACME Pharmaceutical Limited is one of the well known national figures in Bangladesh. It is one of

the leading organizations in Bangladesh. ACME Pharmaceutical Limited has well reputation for its

working environment and working conditions. Usually it recruits suitable people for all-level jobs,

because it believes in the internal growth of their current employees. It also believes skill

employees are key to success. So it is easily understandable that ACME Pharmaceutical Limited

prefers their current employees first. That is why employees do not leave this organization. It is also

true that ACME Pharmaceutical Limited has a number of good employees who are talented as well

as committed to the organization. They have very good communication skills. This is because of

ACME Pharmaceutical Limited’s strong recruiting and selection process. Before taking employees

they analyze on those position. They find out what are the responsibilities they should perform and

what is the recruitment to perform those activities. ACME Pharmaceutical Limited has a structured

planning for those processes. They conduct the processes in different steps. For this reason they

have to spend time but finally they are being able to get the most prefect employees for their

organization.

32 | P a g e

Human Resource Planning of BEXIMCO Pharmaceuticals Ltd (BPL), Bangladesh

Organizational FrameworkPlanning 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 cannot give the accurate situation of the

personnel needs. These are basically graphical methods, which cannot measure the actual personnel

needs. But managerial judgment method depends upon the change in productivity, market

conditions etc.

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

i. Merit is the sole criteria for selection.

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

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

iv. Sources for recruitment are through campus, consultants, employee referrals,

v. internal job postings and the internet.

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

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

viii. Medical fitness is pre-requisite for all positions.33 | P a g e

ix. We are an equal opportunity employer and do not discriminate on the basis of

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

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:

W Entry-level management

W MT (Manager Trainee)

W Mid or / and Senior level management

W 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.

34 | P a g e

I. 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.

II. 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 within BPL, Bangladesh who is suitable for

the role, external advertisement should be placed to attract the potential candidates followed by the

selection procedures.

i. 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 35 | P a g e

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.

ii. 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.

iii. 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.

iv. 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.

v. 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.

Selection Process:Selection is the process of gathering information for the purpose of evaluating and

deciding who should be employed in particular jobs.

36 | P a g e

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.

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.

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.

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 37 | P a g e

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.

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.

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.

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.

38 | P a g e

verbal offer:

i. 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:

ii. Tell the candidate that you would like to offer them the role.

iii. Congratulate them.

iv. Tell them the remuneration package that is being offered, including superannuating.

v. Ask them if they are happy with it.

vi. Ask them if they verbally accept the position.

vii. Tell them that we will be sending them a written letter of offer and introductory package.

viii. 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

Employee SocializationSocialization 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:

39 | P a g e

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.

Training and Development program of BPL:

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:

i. Make learning meaningful.

ii. Make skills transfer easy and

iii. Motivate the learner

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.

i. Apprenticeship Training:

It traditionally involves having the learner study under the tutelage of a master craftsperson.

ii. Informal Learning:

40 | P a g e

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.

iii. Job Instruction Training:

Listing each jobs basic task, along with key points, in order to provide step-by-step training for

employees.

iv. Lectures:

The most simple and quick way to provide knowledge to large groups of trainees.

v. Simulated Training:

It places the trainee in an artificial environment that closely mirrors actual working conditions.

Off-the-job Training:

It includes:

i. 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.

ii. Management Game:

The manager presented with a computerized decisions regarding but simulated situations.

iii. Outside Seminars:

Many organizations now are using this popular method on various aspects of business and

management.

iv. Behavior Modeling:

It involves the Modeling-Role playing-Social reinforcement-Transfer of training.

Development:Any attempt to improve current or future management performance by imparting

41 | P a g e

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.

42 | P a g e

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.

Types of Training:i. Technical Training

ii. Management Training

iii. Safety Training

iv. Occupational Health

v. General Training (Management, Accounts, Sale etc.)

vi. Social Skill Training

vii. Refresher Training

viii. Workers Education Training

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.

43 | P a g e

Planning the training program & implementing

I. The stages of the training

II. Recording the results

III. Providing the stuff and equipment

Evaluating the results

I. Deciding whether the training objectives have been met

II. Considering how they could have been met more effectively

Training Aids

The following training aids are generally used in training programs in BAT

i. Multi media

ii. Overhead projector

iii. Flip chart

iv. White board etc.

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

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

44 | P a g e

Direct financial payments: Wages, salaries, incentives, commissions, and bonuses.

There are two ways to pay directly:

I. Time based pay:

Daily, hourly, weekly, biweekly or monthly wages and Salaries

II. ·Performance based pay:

Ties compensation directly to the amount of product the worker generates.

III. Direct payments:

Financial benefits like employer-paid insurance and vacations.

Factors influencing the design of compensation plan

i. Legal considerations in compensation

ii. Union influences on compensation decisions

iii. Corporate policies and competitive strategy

iv. Policy issues affecting the plan of an organization

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

45 | P a g e

overall difficulty. There are several steps in this method:

I. Obtain job information for each job

II. Rank jobs by department or in clusters

III. Select just one compensable factor

IV. Rank jobs

V. 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.

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.

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:

i. Supplemental Pay Benefits

46 | P a g e

ii. Insurance Benefits

iii. Vacations and Holidays

iv. Sick Leave

v. Parental Leave and Family Leave

vi. Medical Leave

Comparison

Here we have tried to make a comparison among these three pharmaceutical companies on basis of

their Employee Planning System.

There can be taken some component criterias to make comparison among them properly –

Point of Comparison Square

Pharmaceuticals

Acme Pharmaceuticals Beximco

Pharmaceuticals

1. Mission of

Human

Resource

Department

Providing with an

excellent equal

employment

opportunity, which

will benefit for the

organization fully and

enhance the

employees’ career to

the future.

No specific HRM

mission

We are building a

better tomorrow

2. Recruiting

Policy

Recruitment takes

place the whole year

whenever it is required

or needed.

Depends on the demand-

supply method. If the

supply over than decrease

labor immediately.

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

47 | P a g e

– 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. Recruiting

Source

Recruits people from

external sources at all

levels.

ACME pharmaceuticals

recruit from two

sources.

i. Internal Source

ii. External Source

Internal Source

ACME pharmaceuticals

recruit 65% from

internal source. They

follow

1.Promotion

2.Recommendation of

employee

3.Recommendation of

the trade union

External Source

ACME pharmaceuticals

recruit only 35% from

external source. They

BPL recruit from two

sources.

i. Internal

Source

ii. External

Source

Internal

Source:

1.Job-posting

programs:

2.Departing

Employees:

External

Source:

1.Advertisement

2.Employee referrals

3.Employment Agency

48 | P a g e

follow

1.Advertisements

2.Universities

3.Unsolicited Applicants

4.Walk-ins and Write-

ins

5.Consulting the CV

Bank

4. Selection

Process i. Initial

Screening

ii. Completion of

Application

Form

iii. Employment

test

iv. Comprehensiv

e Interview

v. Background

test

vi. Physical

Examination

vii. Final

Employment

Decision

No selection process

were specified by them.

i. Written Test

ii. Selection

Interview

iii. Reference

Check

iv. Employment

Decision

v. Pre-

employment

Medical

Check-up

vi. Offering the

Role

vii. verbal offer

viii. Written letter

of offer

5. Training and

Development

Process

It’s given by square

pharmaceuticals

It’s given by Acme

pharmaceuticals

It’s given by BPL.

6. Training and

Development

Strategy

Training and

development program

for it is every level of

the workforce.

Not specified. following points:

i. Make learning

meaningful.

ii. Make skills

transfer easy

and

iii. Motivate the

learner

49 | P a g e

7. Training Method Employees are

provided both

i. On the job

training and

ii. Off the job

training

Training Methods:

ACME pharmaceuticals

follow both two training

method.

1.On the job training

2.Off the job training

Employee

Training

Method

1.On the job training

and

2.Off the job training

Employee

Development

Method:

1.Managerial On-the-

Job Training

2.Job Rotation

3.Coaching Approach

4.Action learning

8. Training

Provider

they train employees

by

I. Internal

Trainers

II. External or

Professional

Trainers

Not specified. they train employees

by

i. Internal

Trainers

ii. External or

Professional

Trainers

iii. Organizations

9. Training center Pharmaceutical

Limited does not have

any training institute

yet

ACME pharmaceuticals

have a training center in

the Dhamrai upazila.

Not specified.

10. Promotion: The more efficiently

employee woks, the

more quickly

promotion is awarded.

To award promotion,

the company

Promotion is recruiting

performance appraisal

giving source for them

but not specified.

Managers appraise the

performance of their

subordinates through a

5 points Graphic

Rating Scale. The total

appraisal process is

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systematically

evaluates performance

for medical promotion

officer, senior medical

promotion officer and

executives following

the set criteria.

completely transparent

to everyone within the

organization.

1 for unsatisfactory

2 for marginal

3 for target

4 for superior

5 for outstanding

11. Basic Salary: That means Basic

salary is provided to

the employees based

on the individual skills

and knowledge.

Not specified. Not specified.

12. Annual Bonus Employees are given

two annual bonuses in

the two Eid Festival,

which is settled based

on their basic salary

Not specified. Not specified.

13. Increments Provide increment to

the salary of the

employees according

to the satisfactory

performance.

Not specified. Not specified.

14. House Rent House allowances are

provided to the top-

level management and

mid level

management.

Not mentioned. Not specified.

15. Medical

Allowances

Everyone within the

company provided

medical allowance for

Not mentioned. Not specified.

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each month with their

total salary. From the

top to bottom, every

level of employees

within the company

will receive the same

amount of medical

allowance in every

month.

16. Profit Sharing Profit sharing is two

types:

I. Bonus share or

dividends and

II. Fixed

percentage of

the profit.

No. they don’t share the

profit with employees.

No. they don’t share

the profit with

employees.

17. Additional

Benefits

Sales commission,

transportation facility,

provident fund, city

allowances, health

insurance, refreshment

and canteen facility,

pharmaceutical and

other toiletries

products of the

company at a

subsidized rate.

Not mentioned. There are several

types of benefits:

i. Supplemental

Pay Benefits

ii. Insurance

Benefits

iii. Vacations and

Holidays

iv. Sick Leave

v. Parental Leave

and Family

Leave

vi. Medical Leave

vii. Retirement

Benefits

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18. Performance

Appraisal

It’s given by square

pharmaceuticals but

not specified.

They provide some case

study to solve. This is

very helpful to take

decision in deferent

circumstances.

Not mentioned.

On basis discussion over the total employee planning process over here, we have tried to show the

basic difference among these three company’s employee planning process.

So far, we have found out that over the 18 criterias under which we have shown the difference we

can rank the Pharmaceutical Companies in –

1. Square Pharmaceuticals Ltd Bangladesh

2. BEXIMCO Pharmaceuticals Ltd (BPL), Bangladesh &

3. ACME Pharmaceuticals Ltd Bangladesh

Square Pharmaceuticals Ltd Bangladesh, become 1st on rank because –

i) They have very well defined & structured HRM process.

ii) They mentioned & specified every aspect of their planning process.

iii) They have specified all sorts of benefits & appraisals they give to their employees.

iv) Acme group follows the method of demand-supply & any they can decrease their amount of

labors, so employees always will go through the insecurity of being sacked. But in the case

of square pharmaceutical, it’s not the same. They insure job security.

v) Square pharmaceutical ltd. gives lots of additional specified benefits to their employees like

– profit sharing, house rent, medical allowance, increment, annual bonus etc. but other 2

companies don’t provide them specifically.

vi) They provide all level of employees with proper training for their on the job skill

development & future career.

So far for all these reasons we considered Square Pharmaceuticals Ltd Bangladesh, as the best one

with its employee planning process. Its serves the employees with it’s best & also make sure about

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their proper output in the industry.

Recommendation

We can recommend the best parts of HRM system of Square Pharmaceutical Ltd to other organizations and they are given below:

There is a proverb “Its man not building makes a company successful”. So this must be ensured to retain the best and effective employees at all level of the hierarchy

Now-a-days employees are very conscious about their rights and compensate. So it is very necessary to provide employees with an excellent equal employment opportunity

Now the world become cost conservative. This is very tough to run an organization with core employee. So to reduce cost, temporary employees should be appointed and trained

Today’s life is becoming professionals. So employee should be trained up the employees by professionals

Quality does not mean everything. Now motivation is important .Compensation policies are really necessary to motivate employees

Secured job helps to increase employees overall production

Sharing company profit so that they feel that they are really a core part of the company Retaining the employees through the HRM philosophies

So, if a organization can follow these recommendation, it can be able to attract more talented employees for a long-run.

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Conclusion

After analyzing the whole report, we can say that Square Pharmaceutical Ltd. is the best

organization among three pharmaceuticals that we have chosen. Square Pharma is providing the

best HRM system among them. The company is ensuring the satisfactory job environment, secured

job, compensation policies, employee training and development and other facilities. These all

initiatives that the company is providing to employees help to motivate employees and increase the

production and net income of the company. So, we can conclude by saying this that proper HRM

system is really important for all organizations.

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Reference

1. Interview with Samson Chowdhury, Chairman, Square Pharmaceuticals.

May 2007.

2. Interview with Nazmul Hassan, Beximco Pharmaceuticals CEO. February

2007.

3. Interview with Square Pharmaceuticals. May 2007.

4. Data given to the writers of the Strategy for Establishing the API Park

report. Industry members provided

5. Interview with Dr. Charles Larson, Director Health Systems and Infectious

Diseases Division. ICDDR,B. February 2007.

6. Interview with UNICEF Supply & Procurement Section. February 2007.

7. Interview with Padmashree Gehl Sampath. United Nations University –

MERIT. 2007.

8. Interview with Square Pharmaceuticals. February 2007.

9. Interview with BAPI. May 2007.

10. Interview with Bangladesh Pharmaceutical Society. February 2007.

11. Interview with BAPI. May 2007.

12. Interview with BAPI. February 2007.

13. Interview with Ashfaque ur Rahman, Managing Director, Novartis

Bangladesh. May 2007

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