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IndexContents Page #

01. Letter of Transmittal------------------------------------------------------------02

02. Acknowledgment----------------------------------------------------------------- 03

03. Executive Summary--------------------------------------------------------------03

04. Introduction------------------------------------------------------------------------04

05. Methodology------------------------------------------------------------------------04

06. Limitations of the study----------------------------------------------------------0407. Objective----------------------------------------------------------------------------0408.Company history of Bangla Trac Ltd--------------------------------------------0509. Features & Benefits of Bangla Trac ltd. ----------------------------------------0510. Vision----------------------------------------------------------------------------------0611. Mission--------------------------------------------------------------------------------0612. Corporate Objective -----------------------------------------------------------------0713. Organizational Structure---------------------------------------------------------0914. COMPENSATION FOR TOP MID AND OPERATING LEVEL-----------------------------11

15. Compensation---------------------------------------------------------------------13

16 Employee Benefit-------------------------------------------------------------------1317. COMPENSATION DIMENSION----------------------------------------------------16

18. Non-compensation---------------------------------------------------------------19

Workplace Flexibility----------------------------------------------20

19. Compensation Strategy:--------------------------------------------------------21

20. JOB ANALYSIS------------------------------------------------------------2221. CONCLUSION & DRAWBACKS---------------------------------------------24

22.APPENDIX------------------------------------------------------------------------25

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Letter of Transmittal

1ST December, 2010

 ToMd. Monzoor MorshedIndependent University Bangladesh

Baridhara, Dhaka-1212

 Subject: Submission of report on Compensation system of Bangla Cat

Dear Sir,It is an honor and great pleasure for us to present our Compensation system report on Bangla

Trac Limited(conducting business under the name Bangla Cat). During threw process of

constricting our assignment on this particular company we had the chance of experiencing and

rediscovering our potential. This Compensation system gave us an opportunity to apply our

theoretical expertise, sharpies our views ideas and communication skills and bride them with the

real world of practical experience, which will be good start for our future professional career.

We hope you will find the term paper presented in an appropriate manner. We deeply appreciate

your cooperation.

Thanking you and looking forward to receive your cordial approval of your submission.

Thanking You…………

School of business Independent University, Bangladesh

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Acknowledgment

The successfully accomplishment of this assignment is the outcome of contribution and

involvement of a number of people, especially those who took time share their thoughtful

guidance and suggestion to improve the assignment .At the beginning we would like to pay our

gratitude to the almighty for giving us ability to work hard under pressure.

We have deepest gratitude to our respected course instructor Md. Monzoor Morshed. We are

thankful to HIM for his continuous support and supervision, suggestion, providing us with

valuable information that was very much need for the completion of this compensation policy.

We are also thankful to the employees of Bangla Cat who gave us sufficient information about

the company when we demanded to them.

Finally, our sincere gratitude goes to our classmates who helped us whenever we needed.

Executive Summary The term report titled as “Compensation system” is submitted in partial requirement for the

fulfillment of the course HRM 370 of BBA Program. The primary goal of this report is to

provide the students with business exposure & an opportunity to apply HR plan and theoretical

knowledge in real life. Through this program a good balance between theory and practice is

gained.

The report is prepared based on the analyzing the hypothetical information of Bangla Cat. The

term compensation analysis is defined as a tool or technique, which is used to investigate the

company’s position. It measures all the compensation planning, how to develop compensation

strategy, compensation component, compensation dimensions, non-compensation dimensions.

Although this report was carried out within a short span of time, but we have tried our best to

provide the best accurate and true information regarding the report and its relevant information’s

without which the report is not considered to be completed.

The report is basically divided into six parts based on different parts of the report. The six

different parts of the report are Introduction, organizational overview, organizational structure,

compensation component, compensation dimensions, non-compensation dimensions and

compensation strategy.

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Introduction

This assignment we prepared as an obligation of the course. For this assignment topic we

selected bangle cat. To do this assignment we take different kind of compensation and strategies.

This is leverage base business. For that there fixed cost is high. Their main competitor is for that

they follow a good compensation policy.

Methodology

To find out the answer of these topics we selected quality method. From the base of these topics

we designed the questionnaires for the director of Bangla Trac Limited.

It is important to design questions very carefully. A poorly designed questionnaire renders results

meaningless. There are many factors to consider. Like Make items clear, Avoid double-barreled

questions, Respondent must be competent to, Questions should be relevant.

Limitations of the study

To completed this assignment we have to take interview, data collection, data analysis, data

processing and other actives. Such an assignment it is very difficult to complete our work with

full satisfaction. But we do our best effort for this assignment.

Objective:

The specific objectives of this report are:

To provide Company Overview.

To reveal Company Structure.

To provide compensation component.

To provide compensation and non-compensation dimensions.

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To find out compensation strategy

Company History

Bangla Trac Limited (concluding business under the name ‘Bangla CAT’) was appointed the dealership for Caterpillar engines and equipments in the People’s Republic of Bangladesh on the 11th of October 2004. Bangla CAT’s management brings with it over thirty years of experience in marketing Caterpillar products in Bangladesh. Bangla CAT also brings with it the commitment to improve the already high level of service and coverage that Caterpillar customers receive. With a corporate Office located in the heart of Dhaka in 4, Mohakhali Commercial Area and a Service Centre in the highly industrialized region of Vulta on the easily accessible Dhaka-Narshingdi highway, Bangla CAT will provide unparalleled nationwide customer access. Starting with an impressive fleet of dedicated servicing vehicles, Bangla CAT also aims to expand its facilitates to a fleet of servicing vehicles capable of providing round the clock support, a regional office in the Chittagong region and a fully-equipped Service Workshop north of Dhaka by mid-2005. This expansion will result in unparalleled service coverage, access and most importantly, customer satisfaction

FEATURE OF BANGLA TRAC LTD :

Largest electrical power generation(EPG) dealer for Caterpillar Asia Pacific.

Among the top 5 caterpillar EPG dealer globally

Largest gas engine dealer

Bangla cat is passionately involved in corporate social responsibilities

 Industry Leadership:A career at Bangla CAT means working for an industry leader that enables progress drives development and paves the way for positive and sustainable growth in communities around the globe. Innovative TechnologiesOur teams work together to build, refine and innovate advanced technologies and our remanufacturing processes—that address the consumer and environmental demands our customers face every day.

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Global Opportunities

Explore your world. Caterpillar manufactures more than 300 products in 23 countries and serves customers in 200 countries worldwide. Career DevelopmentWe aim to inspire our employees to reach their full potential. So we provide them with continuous career development opportunities to help grow their skills and guide their careers. DiversityOur global workforce is made up of people with different backgrounds and varied experiences. We believe a diverse culture builds a stronger Bangla CAT team. CompensationOur compensation packages are designed to attract, retain, motivate and reward the valuable individuals who contribute to Bangla CAT success and growth.  Well Being Bangla CAT offers its employees more than just a paycheck. Check out the other elements of our Total Rewards package, including our employee assistance program.  

Vision :

We make progress possible through excellence in technology, integrity & best in class customer services. 

Mission :

 We add value to our stakeholders by

Using our expertise to understand their needs

Providing innovative solutions

Actively encouraging a culture of continuous improvement

Developing and utilizing our people, technology and capital efficiently and

effectively.

 

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 Our Values : Customer Service First Teamwork Integrity Innovation Leadership Through Excellence Quality Ownership Mentality

Corporate Objective :

We make progress possible through excellence in technology,integrity and best in cless customer service through:

QUALITY INTEGRITY INNOVATION LEADERSHIP THROUGH EXCELLENCE TEAMWORK

PRODUCTS : GAS GENERATORSDIESEL GENERATORSHFO GENERATORSCONSTRUCTION MACHINERIESMATERIAL HANDLINGMARINE SOLUTIONRENTALSPARTS

Gas Generators: Caterpillar Gas Generator sets deliver low emissions with power ratings from 80 kWe and the fuel flexibility to burn biomass, pipeline natural gas, LPG, LNG and CBM. Robust design provides life-long and simplified operation. 

Diesel Generators :Caterpillar is the world’s largest manufacturer of high-speed diesel generator sets and engines, offering the largest range ratings from 12 kWe to 17,463 kWe of specifications available. 

HFO Generators:Caterpillar Motoren GmbH Co. & KG manufactures low emission-high efficiency liquid fuel fired gensets ranging from 2.5 MWe to 13.9 MWe and Natural Gas fired Genset of 6.5 MWe at 500 to 750 RPM. Caterpillar liquid fuel fired engines eventually can run up to 700 cSt of fuel quality. Caterpillar Motoren provides detailed customer consultation and engineering to make the project reliable and worthy with simple cycle and cogeneration that consistently exceed our customers’ expectations. Our experience spans the globe with

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installations on every continent, delivering power from 2.8 to over 100 MWe. Our trust is earned and sustained every day through the continuous success of our customers together we have demonstrated the power to make progress possible:

Construction Machineries:The Caterpillar equipment product line, consisting of more than 300 machines, sets the standard for our industry-one that is increasingly customer-focused. We plan to remain the leader, and continue to help you meet your needs with our equipment, with the best distribution and product support system in any capital goods industry and the continual introduction and updating of products

Material Handling :Our complete line of lift truck range covers capacities from 800 kg to 15,000 kg. Choose from solid or pneumatic tires, as well as electric, gasoline, LPG, diesel and electric narrow aisle products such as stackers, reach trucks, order pickers and pallet movers. We also offer a wide range of attachments from basic forks and clamps to load stabilizers and drum handlers.

Marine Solutions:Caterpillar is the marine industry’s leading provider of medium and high speed marine diesel engines, generator sets and auxiliary engines. Manufacturing both the Cat ® and MaK brands for marine engines, Caterpillar Marine Power Systems is committed to meeting customer requirements regardless of their vessel or location. Every Caterpillar marine engine comes with 75 years of engine experience. Our world-class product line of high speed and medium-speed marine engines for commercial, ocean-going and pleasure craft marine power systems applications allows us to offer power solutions for the output range of 11 kW-16,000 kW, main propulsion and onboard power supply, including emergency generator sets, single or multi-engine plants and complete propulsion systems. Caterpillar Marine Power Systems has a clear focus on the key segments that make up the global marine industry, developing products and services to support the unique, individual needs of each of these segments: Cruise / Ferry / General Cargo / Inland Waterway / Tug & Salvage / Dredge / Offshore.

Rental

Bangla CAT Power rental fleet ranges from 100 kVA to 635 kVA with a total fleet capacity of 9 MWe. Rental fleet has the most modern tools and highly trained service personnel to back these products. Units are all ‘Prime’ rated and thus suitable for unlimited continuous usage applications. Our rental agreement allows for the maximum operating hours in the industry and our engines have the best fuel consumption efficiency which results in overall lower cost of operations. Moreover these premium qualities Caterpillar generators have been maintained to the highest standards using genuine CAT parts and qualified engineers to ensure the quality in every Bangla CAT Power Rental solutions.

Parts :Bangla CAT offers you the complete range of the genuine spares, parts and kits from Caterpillar at competitive price, Result: you buy more than just parts. You buy yourself Reliability, Productivity and Peace of mind. Bangla CAT also offers 06 (six) months warranty of

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CAT spare parts and kits.

Organizational Structure :

Top management:

Board of directors

Managing directors

Executive vice president

Vice president

Mid level management :

Manager

Deputy manager

Assistant manager

Operating level management :

Senior executive

Executive

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Junior executive

Chain of Order :

Managing director

Vice President

Manager

Board of director

Senior Executive

Chairman

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COMPENSATION FOR TOP MID AND OPERATING LEVEL :

The compensation of Bangla Trac Ltd would be provided according to the position of the

different department. The compensation package of the Bangla Cat is designed according to the

structure shown below-

Designation and basic pay:

Top level management =80000 and above

Mid level management =Minimum-320000

Maximum-800000

Operating level = Minimum-13000 ,

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Maximum-32000

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Compensation

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Bangle Trac Ltd 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

Bangla Trac Ltd will maintain performance based compensation system. On the other hand,

promotion and salary increment will obviously depends on the performance of the employee in a

fiscal year. Other allowances will be provided based on the organizational hierarchy. The

compensation packages of the company is discussing below:

Basic Salary :

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

That means Basic salary is the Salary will provide based on the individual skills and knowledge.

Variable pay :

Variable is based on the performance of the person in that role, for example, for how well that

person achieved his or her goals for the year. Incentive plans, for example, bonus plans are a

form of variable pay of this organization.

Employee Benefit

Festival Bonus :

Employees will be given two annual bonuses in the two Eid Festival. Same as basic salary bonus

on 1st Eid Festivals and 70% of 2nd Eid Festivals, which will be settled on the basis of their basic

salary, or even one extra basic salary or gross salary.

Increments :

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

employees. Bangla Trac Ltd would provide increment to the salary of the employees according

to the satisfactory performance. They usually settle amount or calculate the increment adjusted

with every year’s inflation rate.

Loyalty bonus:

This is a bonus given normally starting of the year which is one extra either gross salary or basic

salary.

House Rent :

Usually higher the rank the better is the compensation package. So in case of house rents, Bangla

Cat provides mostly for the juniors a limited amount of monthly rent. And sometimes seniors are

offered luxurious apartments.

Medical Allowances :

There is a medical allowance for every employee. They provide this facility 8 times a year which

nearly cover a cost up to 80000.

Travel allowances :

When an employee is assigned to go outside town but within the country they are provided with

conveyance money which costs almost 1000 per day. In case of international they get P.A.D.A

which is much expensive.

Utility Bills : This Company pays a limited income of mobile bill for different levels of

employees, starting from Chairman to managers.

Discount Facility : If any employee wants to purchase any product of Bangla Cat they get

some amount of discount for sure. And even sometimes for the seniors products are offered free

of cost. Sometimes when any new products are launched then all level of employees get a sample

for free as in to test how the product actually like.

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Transportation Facilities : Employees whose basic salary is equal to or more than BDT

50000 will get car facilities and employees whose salary ranges from BDT 10,000 to BDT

25,000 will get company staff bus facilities. Sometimes directors get a luxurious car for their

private use even ,for which the fuel charge is fixed to certain km. And when there are special

occasions like stalls of bangle cat are given then all the trouble of picking up employees and

dropping them off are handled by the company itself as it might even get very late at night in

order of security.

Self, Spouse and children insurance cover:

As one employee is hired the terms and condition does include the insurance coverage of the

employee and which is very natural. But in Bangla Cat they even provide their spouse with

insurance coverage which is very much appreciable along with their children insurance as well in

some cases.

Profit sharing:

Normally employers are given 1% of the profit made by the company. But if any year their profit

level goes up the amount of profit sharing even rises.

Food :

The entire employee is provided with the lunch mostly, other than Saturdays for which they are

provided with money.

Parties and gifts:

Every year or after certain times there are get together or parties arranged in grand 5 star hotels

where the employers family is even invited so that they get more incentive and motivated as feel

as a family and mostly a family part of Bangla Cat.

COMPENSATION DIMENSION

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Leave & Holiday pay

Religious Holiday :

Agencies should make reasonable accommodation for the religious holiday needs of employees,

unless accommodation will result in undue hardship to the agencies. Also there will be break

time for Muslim employees of Friday and other weekdays for prayer

Vacations :

For vacation, in a year every employee will be paid for one week but employee should have to

inform within two week before vacations.

Time of to vote :

Bangla Trac Ltd will provide one day for vote. But if the employee’s home is very far distance

then top level will provide more than one days.

Uncertified Sick Leave :

Privileged is 3 (three) days in a calendar year but not more than 2 (two) consecutive days for

illness.

Certified Sick Leave :

For certified sick leave top level manager will decided about the term and condition.

Funeral Leave : Employees will be paid for up to five days to attend the funeral of a close relative, such as a

spouse, children, parents, grandparents, siblings and corresponding in-laws.

Marriage leave :

For marriage leave employee will get 9 days but for top level manager marriage leave will be

more than 9 days.

Paternity leave :

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Bangla Trac Ltd will provide paternity leave of 2 days before expected delivery and 8 days after

delivery (total 10 days) full paid.

Maternity leave

The woman employers are given 6 months maternity leave at a commitment that they would get their same position and status after delivery.

Illness in family leave :

For illness in family every employee gets total 4 days in a calendar year.

Disability income continuation :

Short-term disability : If the employee eligible, this benefit provides him with 55 percent of his salary and this will continue maximum of 4 months.

Supplemental Disability :

For supplemental disability, this benefit replaces up to 70 percent of his salary and this will continue maximum of 8 months.

Long-term disability :

For long term disability top level manager will decide compensation.

Retirement plans :

Bangla Trac Ltd will provide retirement compensation in the term of age of job and level of

employee.

Accidental death :

Bangla Trac Ltd will provide accidental compensation. This will in basis of the employee.

Health and accident protection

Medical Allowances :

There is a medical allowance for every employee. Grade B and C get 1000 taka, And D, E and F

get 700 taka of medical allowances.

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Major medical : There is a major medical allowance for every employee. This will provide it

basis of term and condition.

Surgical :

This compensation only provide for top level of employee. But lower level employee will get

some amount of money.

Payment for Time NOT Worked

Overtime : Non-exempt employees are eligible to receive overtime pay if they work more than 40

hours in a given week. Holiday, vacation, and sick time are not included in hours used to

determine overtime eligibility. Overtime pay equals 1.5 times and employee‘s regular

hourly rate. All overtime must be approved the manager in advance.

NON-COMPENSATION DIMENSION• Nice and cool environment

• Safety of building

• Holidays and leaves

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• Cleanliness and neatness

• Proper ventilation

The job:

As a renowned multinational company it is always attractive for a person who screeching for job. They offer a good level of job.

Job Environment :

As a new hotel, every employee is new in this hotel but not in this business. Because most of the employees are experience and well trained. So they have good environment in job. There is other factor of job environment given below –

1. Sound Policies

From top level to lower level have to follow the sound policies. That means every employee cannot make shout to other junior level employee.

2. Competent Employees

Employee Competent may be good or sometime bad for the company.

3. Congenial coworkers

Congenial co-workers are very important in a company. For that they are very careful about stuffing of employee.

Workplace Flexibility

Flextime :

Bangla Cat maintains flextime workplace, like Peak-Hour Flextime, Adjusted Lunch Period, and Core Hours.

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Job sharing :

Bangla Cat has the policy of job sharing but it should be within the same department.

Workplace Security :

Workplace security policies generally address the employer‘s procedures for safeguarding its

employees and property against harm such as theft, sabotage, vandalism and workplace violence.

To implement an effective security plan, employers should begin by evaluating their security

needs.Bangle Trac Ltd is committed to maintain a safe and secure workplace.

Parking :

Bangle Trac Ltd will properly provide the car parking policy for both their employees. In

Rainbow paints Ltd, many employees will wish to use their own transport to travel to work,

because of mobility difficulties or for convenience. However Bangla trac Ltd will provide car

parking system for employees’ cars to fulfill their work duties.

Compensation Strategy:

1) Willingness to spend

2) quality of leadership

3) employee job analysis and job description

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Job duties strategy :

Bangle trac Ltd pays its workers and employees according to their job duties. Basically it pays its

labors according to their service capacity as well as based on difficulties.

Management basis strategy :

This company believes in team work. Its managerial board always influence in the compensation

strategy. Their employees have to work as a team and support co-operative efforts.

Labor market strategy :

This company designs its compensation plan with successfully compete within the established labor market. They pay good salary to its labors which are equivalent to other companies.

Incentives strategy :

To enhance employees Lifestyle Company provides festival bonus, special bonus, and medical allowance and so on.

JOB ANALYSIS

Sample of job analysis of Bangla trac ltd.

(SALES & MARKETING Manager)

Position: Assistant Manager

Reports to: Managing Director

Number of Employees: 4

Job Grade: B

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Job duration : 9 am to 6 pm

Job Location: Bangla Cat, Banani Branch

Job Summary

The person who are holding the position have to be very much careful about checking and tracking financial data, sales, revenue, profit, loss, and other financial information. He or she will reports to the deputy managing director, and financial officer. They are responsible for the entire accounts and finance department. Any kind of discrepancies in the financial statements will affect the company because at the heart of any company is profit.

Job Description

We were priveleged enough to talk to the Assistant Manager of Bangla Cat, Banani Branch. The job for the group of assistant managers is simple. They have to go through a sales & marketing forecast for a certain product. The Managing Director gives the department manager a certain sales target of a certain product which should be sold at a given price and quantity so that desired profits can be earned. Definitely the profit level is also set by the top level management. Thus, the assistant managers have to go through a complete survey or analysis of the sales & marketing of the last 10 years and find out ways and set strategies of how to achieve the given goals given to them by the organization.

Job Specification

Education

Must have an MBA Degree or above in the area of Finance and Accounting

Higher degree in financing manufacturing company will be very preferential

Experience

Have to have an earlier experience of at least 4 years of functioning in this relative discipline

Skills

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Have to have widespread knowledge with MS Office applications obligatory, together with Excel, Word, Access and PowerPoint

They should update their knowledge with the most contemporary skills

Have to have well-built organizational and administrative skillfulness in this area

Have to have capability to manage numerous assignments concurrently with attention to precedence and goal

Must have the ability to communicate effectively and delicately with personnel on all rank so that they can get the respective department’s record easily

Job Environment

The person will be working at the Long beach hotel. Here they will be providing the standard office environment.

Other Incentives

Two times bonus for festival (100% of the basic salary)

Festival leave (10 days per year)

General leave (1 day per week)

Sick leave (14 days per year)

Casual leave (10 days)

Earned leave

Other benefits.

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DRAWBACKS & CONCLUSION

Well after all analyses, and mixture with our understanding we can conclude that Bangla Trac ltd

is a much renounced company but definitely with some flaws. What we found is that the salary

gap between the top management and the junior levels is very high. Meaning they pay very less

to they operating level employees compare to the top or even mid level. This should be

decreased. Why would a graduate from a repudiated university come and agree to work at such a

low pay when on the other hand they are having so many options due to their qualification. This

way the competitors might take away these deprived employees. Secondly, they should work

more on improving the relationship between the employees and the employer. Because the

people that we talked with had a common complain against their managers that they do not listen

to them mostly.

By doing this project our concept of compensation which we got from class has been used

widely and which became much clearer than before. This paper has helped us to understand

issues related to employee compensation, better and help us to implement in an efficient way.

This paper has also helped us to expand our vision. After finishing our paper, we as business

students can now relate our works in HRM.

APPENDIX

Questionnaire:

1) Could you please tell us about your company Background?

2) Could you tell us about your organization structure?

3) How you make Compensation Strategy for your organization?

4) What type of compensation component you provide?

5) What is your organizations compensation dimension?

6) What is your organizations non-compensation dimension?

7) Could you please tell us about the job analysis process of Mauna Jute Mill?

8) Could you please tell us about your job design?

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9) Does your organization have any Base pay structure?

10)Who is responsible for developing, administering and distributing compensation of

your the organization?

11)What short term and long term incentives are provided by your organization?

12)Do you have any Executive compensation plan?

13)Do they have any benefit and service plan? What are those

14)Does your organization satisfied with current compensation system or you need

some improvement in future?

15)How you motivate your employee?

16)What type of facilities you provide for your employee?