beximco hrm report

“HRM Practice in BEXIMCO-Pharmaceuticals Ltd.” 1

Executive Summary

Human organization activity is simply the act of getting people together to accomplish desired goals. Any organization, whether new or old, small or big needs to run smoothly and achieve the goals and objectives which it has set forth. For it develops and implements its own Human Resource Management concepts. As such, the basic functions of HRM, broken down into seven different areas, allow for it to handle the strategic, tactical and operational decisions for the organization. The seven functions of HRM are: Planning, Recruiting, Selection, Socialization, Training and Development, Performance Appraisal, Compensation, Labor relation, and Motivation function

Beximco Pharma (BPL) is a leading edge pharmaceutical company based in Bangladesh and is acclaimed for its outstanding product quality, world-class manufacturing facilities, product development capabilities and outstanding professional services. Its strategic strengths include strong recognition of brands, highly skilled work force and diversified business mix. Being a Learning Organization the core essence of Beximco Pharma is its entrepreneurial spirit in every sphere of its management. In this spirit, the tasks of each managerial function are carried out through HRM.

In this report, we have tried our best to exemplify how the basic functions of HRM are exercised in Beximco Pharma. We have analyzed BPL’s several functions: planning, recruiting and selection, training and development, performance appraisal and employee compensation from the view of Theoretical Definition, Practical Application, Basic Principles followed and Technology used in each of the functions. We also discussed the BPL’s goals, mission and vision. This report focuses on the Organization’s recruiting process, selection process, source of recruiting, attracting, method of training, method of developing, compensation and pay rates of BPL which is very significant from contemporary managerial perspective and also a key concept of organization theory. we tried to give a thorough idea of the overall economic and industrial condition, existing competitions in both home and abroad, and future threats of international open markets etc. In addition to that, we have recommended some alternatives in the final segment of the report that we believe, could be helpful for BPL to prevail over the mentioned challenges.


Chapter-1

1.1Objectives:

Our min objective is to prepare this report to know about the human recourse practice in

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

PHARMA. The objectives of the study are as follows:

To know the HRM policies followed in BPL, Bangladesh.

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

Bangladesh.

Suggesting strategies to improve the HRM policies of BPL, Bangladesh.

1.2Methodology:

To complete our report and reach in a decision we use some method. To collect

information we search internet, read newspaper, and utilize our personal observation. As

it is a report so our data is secondary data.

1.3Introduction:

Beximco Pharmaceuticals Ltd. (BPL) has been the trendsetter in Bangladesh

Pharmaceutical Market since its inception in 1979. Over the last decade BPL actually

rose to a new standard – moving beyond manufacturing quality medicines to win mind

share of patients, physicians, shareholders, business partners, and communities where we

work and live. Our dedication to add more value to the common wealth of the society

compounded by innovative strategies for growth and diversification, pioneering role in

bringing new technology and implementing new ideas, and commitment for total quality

management distills the glory of our success. Today BPL is not merely a market leader.

Most of the products that it actively markets enjoy leadership position demonstrating

incomparable trust of the healthcare professionals. This is the reward for the outstanding

quality of our products- at BPL we never compromise with the quality of our products so

that our fellow citizens can live long, happy and better. BPL is the pioneer in introducing


medical service activities: publishing a full-fledged medical newsletter regularly,

conducting clinical seminars and symposiums to have better understanding of various

diseases and their management. BPL is the first national company who dared to diversify

its business into manufacturing bulk drugs to integrate it self backwards as well as

develop the nation’s pharma industry. While it would have been relatively easy to

diversify the business into consumer products, BPL chose the harder path with a long-

term vision. Today BPL is ready to face the challenge of scarce sourcing of Active

Pharmaceutical Ingredients (API) in the post-WTO era, with its advanced API

manufacturing capability.

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

working environment connecting every corner of the country to the centre. Productivity

through connectivity is one of our heritage of progress. BPL is the first company to go

beyond the national boundary, exporting its quality products in overseas markets in Asia,

Africa, and Europe. More than that, BPL has probably fulfilled a national aspiration of

turning a once import dependent country into an exporter of quality medicines. We

believe, With our technological and managerial know-how and ability to take on

challenges, we will be able to progress much faster towards our objective of becoming

the nation’s most Visionary company.

1.4 Scope:

Our assignment is only document basis so we have not opportunity to take interview,

survey and make observation. As it is a report about an organization so we have

opportunity to collect data by reading documents from their web sites.


Chapter-2

2.0 COMPANY OVERVIEW

2.1 ABOUT COMPANY:

Beximco Pharmaceuticals Ltd. is a leading edge pharmaceutical company based in

Dhaka, Bangladesh and is acclaimed for its outstanding product quality, world-class

manufacturing facilities, product development capabilities and outstanding professional

services. Beximco Pharma is the pioneer in pharmaceutical export from Bangladesh and

has received National Export Trophy (Gold), the highest national accolade for export, for

record three times.

Year of Establishment:

1976

Commercial Production:

1980

Status:

Public Limited Company

Business Lines:

Manufacturing and marketing of Pharmaceutical Finished Formulation Products, Large

Volume Parenterals, Small Volume Parenterals, Ophthalmic Preparations, Nebulizer

Solutions and Active Pharmaceutical Ingredients (APIs)

Overseas Offices & Associates:

Australia, Bhutan, Cambodia, Chile, Ghana, Hong Kong, Indonesia, Jordan, Kenya,

Kuwait, Malaysia, Myanmar, Nepal, Pakistan, Philippines, Saudi Arabia, Singapore, Sri

Lanka, Vietnam and Yemen

Authorized Capital (Taka):

2,000 million

Paid-up Capital (Taka):

1,259.57 million


Number of Shareholders:

Around 66,000

Stock Exchange Listings:

Dhaka Stock Exchange, Chittagong Stock Exchange and AIM of London Stock

Exchange

Number of Employees:

2,310

2.2 Vision

BPL’s passionate effort to achieve excellence in all spheres of its operations and its keen

endeavor to incorporate innovative new technologies into its manufacturing practice puts

it ahead of its contemporaries. Viewing the business as a mean of the social well-being of

the investor, employees and the society and customers is the main vision of BPL. The

company makes their best effort to ascertain the financial wealth and moral gains as a

part of the process of the human civilization. Beximco Pharmaceuticals Limited is

committed to contribute to keep the earth clean.

2.3 Mission

Each of our activities must benefit and add value to the common wealth of our society.

We firmly believe that, in the final analysis we are accountable to each of the constituents

with whom we interact; namely: our employees, our customers, our business associates,

our fellow citizens and our shareholders.

2.4 Goals

BPL has a strong market focus and is anticipating continued future growth by leveraging

business capabilities and developing superior product brands and markets. The company

is now moving to the world market and trying to expand their business worldwide with a

good quality image. Innovation of new products and satisfying the ever-changing need of

consumers remains a top priority goal. Ensuring full effort to enhance shareholders

highest returns and growth of their asset also holds a key goal of the company.


2.5 Core Values

Trust and reliability to the products emerged as one of the core values of Beximco

Pharmaceuticals Limited. It maintains quality in manufacturing of products according to

the rules of the WHO. Hiring a competent branch of people who are best in their capacity

to serve the company best, strengthen the BPL function of operation .It also give

emphasize on promoting new products through research and bringing cost efficiency in

business operations.

Beximco Pharma believes that it is in the business which deals with human health which

makes it more responsible to keep the highest standards of its products. Through its

products it tries to deliver clear benefits to the patients.

Good products, however, are only one side of its expression of commitment. BPL

believes its responsibility lies even more in ensuring that the society gets benefited while

it continues to grow.

2.6 Corporate Social Responsibilities:

Corporate social responsibility is an integral part of BPL’s business strategy which is

reflected in its mission statement. Every employee of the company knows that the

company does not view its success and achievements in financial terms only, but also in

terms of its deep relationship with the society.

Each year, an increasing amount of contribution is ploughed back into social causes,

demonstrating Beximco Pharma's commitment to the nation. More importantly the

company's contribution extends beyond one-time donation to ongoing participation as

reflected in its partnership with NGOs working for AIDS patients, in supporting sports,

and in raising disease awareness among the people.

BPL donated medicines worth millions of taka to victims in national and international

calamities. Donation of medicines to victims of earthquake in Pakistan and victims of

tsunami in Sri Lanka are worth mentioning.

The company maintains a team of scientists who works as pharmaceutical experts for

good governance that give direct benefit to the common people and shareholders.

Beximco Pharmaceuticals Limited carefully designed its facilities for reducing hazardous

impact on the environment through operational excellence providing a friendly

environment for a healthy society for tomorrow being the main responsibility of BPL.


Chapter-3

Human Resource Management:

HRM is a field of management involves planning organizing, directing and controlling the functions of procuring, developing, maintaining and motivating a labor force.

Human Resource Management Process:

Human Resource Management Process consists of eight activities necessary for staffing the organization and sustaining high employed performance. The process is described below:

3.0 Human Resource Management in BEXIMCO Pharmaceuticals Ltd

(BPL), Bangladesh

3.1 Human Resource Planning in BPL :

“HRM Practice in BEXIMCO-Pharmaceuticals Ltd.”

HR Planning &Requisition

Selection

Orientation Training

Appraisal &

Evaluation

Benefits & Compensation

8

Planning is the core area of all the functions of management. It is the foundation upon

which the other three areas should be built. Planning requires management to evaluate

where human resource of the company is currently, and where it would like to be in the

future. From there an appropriate course of action to attain the company's goals and

objectives is determined and implemented.

Every organization has employment planning. BPL has also its employment planning.

They usually forecast their personnel needs based on their mission, strategic goals &

objectives & technological and other changes resulting in increased productivity.

Although there are several methods to predict personnel needs, but they use managerial

judgment because it gives the more real world scenario for personnel needs. They think

that the other methods can not give the accurate situation of the personnel needs. These

are basically graphical methods, which can not measure the actual personnel needs. But

managerial judgment method depends upon the change in productivity, market conditions

etc.

3.2 Recruitment and Selection process in BPL:

BPL looks for top-caliber people who want the flexibility and resources to grow in their

career. If you're the kind of person who has always stood out, we offer a place where you

can continue to excel. No matter what your field or range of interests, there are vacancies

where your talents can likely be applied and developed. They have thousands of diverse

people from different cultures and backgrounds working in a variety of different jobs in

different fields

Merit is the sole criteria for selection.

Attitude is given as much weight age as functional competencies.

Panel interviews comprising of Functional Head & HR Head.

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

internal job postings and the internet.

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

Antecedent verification is an integral part of our recruitment process.

Medical fitness is pre-requisite for all positions.


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

community, religion or sex.

3.2-(A) Recruitment process:

A responsibility for recruitment usually belongs to the HR department. This department

works to find and attract capable applicants. Job description and speciation provide the

needed information upon which the recruitment process starts. The functions of the

recruitment office of BPL are given below:

1. Need Assessment

2. Defining the position description

3. Checking the recruiting options

4. Advertisement

5. Screening and Short – listing Applications

6. Written test

7. Selection interview (3 – tier)

8. Employment decision (Application Bank)

9. Pre- employment medical check-up

10. Offer letter

11. Orientation / Induction

12. Placement

13. Follow –up

3.2-(A-1) Source of Recruitment:

Bangladesh is done in four ways depending on the job category of the vacant position.

Therefore, the recruitment process of this organization is classified into four types, which

are done based on the job grade/ group. These are as follows:

Entry-level management

MT (Manager Trainee)

Mid or / and Senior level management

Graded staff / Non- management staff


Internal Source:

There could be a person competent for the required job working within the organization.

If there is, the existing manpower is then shuffled to place the selected person in the new

post. If there is no such person inside the company, then the management goes for the

second step.

Job-posting programs:

HR departments become involved when internal job openings are publicized to

employees through job positioning programs, which informs employees about opening

and required qualifications and invite qualify employees to apply. The notices usually are

posted on company bulletin boards or are placed in the company newspaper.

Qualification and other facts typically are drawn from the job analysis information.

The purpose of job posting is to encourage employees to seek promotion and transfers the

help the HR department fill internal opening and meet employee’s personal objectives.

Not all jobs openings are posted .Besides entry level positions, senior management and

top stuff positions may be filled by merit or with external recruiting. Job posting is most

common for lower level clerical, technical and supervisory positions.

Departing Employees:

An often overlooked source of recruiters consists of departing employees. Many

employees leave because they can no longer work the traditional 40 hours work

week .School, child care needs and other commitments are the common reason. Some

might gladly stay if they could rearrange their hours of work or their

responsibilities .Instead, they quit when a transfer to a part-time job may retain their

valuable skill and training. Even if part-time work is not a solution, a temporary leave of

absence may satisfy the employee and some future recruiting need of the employer.


External Source:

All the above options being considered, the company goes for external recruiting if

needed. Those who best meet the skills, qualifications, experience and competencies

required for the position should fill vacancies. Therefore, if there is no candidate within

BPL, Bangladesh who is suitable for the role, external advertisement should be placed to

attract the potential candidates followed by the selection procedures.

Advertisement:

The Company gives advertisement in national dailies (both Bangla and English) to attract

the talents from the market. BPL, Bangladesh puts two types of advertisements in the

newspapers. It sometimes keeps the identity concealed in the ads, mentioning a GPO

BOX number only. The purpose of the concealed identity is to avoid the unwanted

pressure from the stakeholders for the employment of their desired candidates. But this

way the company may lose the talents out there in the market who would have applied for

the same post had they known the name of the organization. This is why the company

kept the identity open in their recent job advertisement when the quality of the candidate

was a very important factor to consider. By revealing the BPL identify, the company

attempts to attract the best potentials among all the others.

Employee referrals:

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

recommendation from a current employee regarding a job applicant. The logic behind

employee referral is that “it takes one to know one”. Employees working in the, in this

case, are encouraged to recommend the names of their friends working in other

organization for a possible vacancy in the near future.

Employment Agency:

An agency finds and prescreens applicants, referring those who seem qualified to the

organization for further assessment and final selection. An agency can screen effectively

only it has a clear understanding of the position it is trying to fill. Thus it is very


important that an employer be as specific and accurate as possible when describing a

position and its recruitment to an employment agency.

Walk-ins and Write-ins:

Walk-ins are some seekers who arrived at the HR department of BPL in search of a job;

Write-ins are those who send a written enquire .both groups normally are ask to complete

and application blank to determine their interest and abilities. Usable application is kept

in an active file until a suitable opening occurs or until an application is too old to be

considered valid, usually six months.

Consulting the CV Bank:

The unsolicited applications stored in the data bank are consulted. If the quality of a

person matches with the requirements mentioned in the position description, then he / she

is called for interview. If not, then the third step is followed.

3.2-(B) Selection Process:

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

deciding who should be employed in particular jobs.

3.2-(B1) Screening and Short-listing Applications:

The responses to the advertisements are sorted and screened. The CVs as well as the

Covering letters are judged. In the covering letter, the style and language of writing, the

emphasis put on the areas asked for tin the advertisements and the quality of the letter

(whether it is specifically tailored to the advertisement or just a standard response) are the

aspects that are judged. Different weights are assigned to the selection criteria mentioned

in the man specification depending on their relative importance. (for example,

educational institutions like IBA, BUET are given the highest weight among the local

ones and the foreign universities of UK, Australia, etc. are put at par with the best of the

country). Based on the presence of these factors to the desired extent (experience,

educational degree, computer literacy, etc) the cumulative weights for all the applicants


are counted and the short list of a sizable number of the top most candidates is generated.

However, the HR officials also study the CVs with the respective line manager to check

whether any valuable deciding parameter is missed that are mentioned in the CVs. Then

the candidates selected in the short list are called for the written test.

3.2-(B2) Written Test

Written test is not a regular part of the normal recruitment process. It is conducted as and

when required. Previously no written test was taken for the management employee, the

applicants had to go directly through the interview process. After the introduction of the

manager trainee program, the written test before the interview process has proved to be

effective and a useful tool to select the desirable candidates. The written test includes

psychometric test, test on behavioral competency, and written test on communication

skills. The candidates are called for the preliminary (first) interview based on their

performance in the written test.

3.2-(B3) Selection Interview

The interview process is a three-tier one. A preliminary interview is conducted which

follows the “elimination method”. After that, the second interview takes place with a very

few number of candidates. Then the finally selected person is called for the final

interview. The interview time is kept convenient for the candidate especially if s/he is

working elsewhere at the time of interview. In that case the chosen time is after the

business hour.

3.2-(B4) Reference Check

Reference checks allow obtaining information and opinions regarding the person’s

character, quality of the work and suitability for the position. It is an opportunity to

validate the information received from the candidate via their resume and the interview.

Speaking to the candidate’s manager or other people whom they have worked with

should also check internal candidates. The opinion of a referee who has worked can for

an extended period is likely to be more accurate than the assessment from one to two

hours of interviewing.


The candidate’s immediate supervisors are needed to be contacted. Permission should be

obtained to contact the candidate’s referee especially if their current employer is

contacted. It is not unusual for a candidate to be uncomfortable with the organization’s

speaking to a current employer. If they are uncomfortable, an alternative person other

than the current employer has to be chosen by the candidate (work colleague, for

example). Unless the candidate is a graduate or school leaver with no prior work

experience, only contact work related referees should be contacted. At least two reference

cheeks should be done, however the more the better.

There is a sample reference-checking guide that is more or less followed. It is important

to prepare a reference check guide that asks the referee about the key skills, competencies

and experience required for the position. Reference checks need to be done by line

manager or personnel of the HR department.

During the interviews, the candidates would have given some examples of incidents,

tasks or projects that can be asked about. The referee should be asked what the candidate

did in those examples, which ascertain whether the information received from the

candidate is consistent with that of the referee.

Subjective questions may not always be a reliable guide; however it can be useful to get

the referee’s opinion on areas such as quality and quantity of work, strengths and

weaknesses etc. a format of Reference Checking Guide is presented in Appendix-1.

3.2-(B5) Employment Decision

If the candidate has no problem with the stated terms and conditions of the job and the

organization mentioned and discussed in the final interview, s/he is offered an application

blank. The application blank is a standard format of employee-information that includes

all the information the organization needs regarding the personnel. The candidate has to

fill this blank and submit this to the company along with a CV.


3.2-(B6) Pre-employment Medical Check-up:

After submission of the application and the CV, the selected person has to go through full

medical check-up that guarantees her/his physical fitness to perform the job successfully.

A medical practitioner who uses a physical capability analysis that assesses the candidate

against the physical capabilities documented for each role conducts the medical. A

medical is also appropriate for internal candidates if they are applying for positions that

require different physical capabilities.

3.2-(B7) Offering the Role:

Once the health check-up is done, the candidate is given an offer letter specifying the

salary package, job responsibilities, utilities that will be provided by the organization.

Even at this stage the selected candidate has the chance to withdraw her/himself from the

job offer. s/he is always free to discuss whatever difficulty may arise regarding pay-

structure/facilities, etc. the door of HR is kept open for any sort of relevant discussion.

Verbal offer:

The verbal offer of the role to the candidate is given once the medical and reference

checks have been successfully completed. The discussion should cover the following:

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

Congratulate them.

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

Ask them if they are happy with it.

Ask them if they verbally accept the position.

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

package.

Written letter of offer:

A written letter of offer must be forwarded to the candidate. Once the candidate has

verbally accepted the position, the appropriate letter of offer is organized. This letter

should be sent to the candidate within two days of making the verbal offer. An

introductory package will be sent to the successful candidate, along with the letter of


offer. At least one week before the person commencing in their new position, an

Appointment notice will be placed on notice boards and/or the internet.

THE RECRUITMENT AND SELECTION PROCESS OF BPL:


Need assessment

Vacancy in existing post(s)

Market expansion Increase in production

capacity• Launching new product Introducing new system

Checking the recruiting options

Internal External

Advertisement in National Dailies

(Both Bangla and English)

Sorting Applications

Weights are assigned based on the selection criteria

Selection Application blank filling Medical check-up Offer letter

Follow up

HR Department continuously interacts with the new entrants assisting to cope up with the work environment, work culture, peer group etc.

Interview Preliminary interview:

elimination process (short-listing)

Second interview: work knowledge /behavioral competency

Final interview: pre-selection interview

Written test (optional) IQ test Behavioral competencies Communication skills

Orientation /induction

Exposure to all important business /functions and locations of the company

Feedback report focusing on learning experience (s) of the induction program

Placement

3.3 Employee Socialization

Socialization is a process of adaptation. Organization entry socialization refers to the

adaptation that takes place when an individual passes from outside the organization to the

role of an inside member.

BPL organize its Socialization process of three stages:

1. Pre-arrival stage: This stage explicitly recognizes that each individual arrives

with a set of organizational values, attitude, and expectations.

2. Encounter stage: Here the individuals confront the possible the dichotomy

between their expectations and reality.

3. Metamorphosis stage: Finally, the new member must work out any problems

discovered during the encounter stage.

The organization gets higher productivity, greater employee commitment, and lower

turnover rates through socialization. Employees achieved reduced anxiety, increased

awareness of what is expected on the job, and an increased feeling of being accepted by

their peers and bosses. When socialization works, employees receive the confidence and

satisfaction what comes from feeling that they are members in good standing in the

organization.

3.4 Training and Development program of BPL:

3.4-(A) Training:

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

will improve his or her ability to perform on the job. To make training a success, a trainer

should take care of the following points:

Make learning meaningful.

Make skills transfer easy and

Motivate the learner

3.4-(A1) Employee Training Method

On-the-job Training:

On the job training is a training that shows the employee how to perform the job and

allows him or her to do it under the trainer’s supervision


On the job training is normally given by a senior employee or a manager like senior

merchandiser or a manager. The employee is shown how to perform the job and allowed

to do it under the trainer’s supervision.

Advantages:

Relatively inexpensive

Trainees learn while producing

No need off-site facilities

Drawbacks:

Low productivity while the employees develop their skills

The errors made by the trainees while they learn.

Apprenticeship Training: It traditionally involves having the learner study under the

tutelage of a master craftsperson.

Informal Learning: This learning process is not determined or designed by the

organization. But the organization may ensure it by creating a learning environment in

the organization.

Job Instruction Training: Listing each jobs basic task, along with key points, in order to

provide step-by-step training for employees.

Lectures: The most simple and quick way to provide knowledge to large groups of

trainees.

Simulated Training: It places the trainee in an artificial environment that closely mirrors

actual working conditions.

Off-the-job Training:

It includes:

The Case Study Method: Here the manager is presented with a written

description of an organizational problem to solve in a discussion with other

trainees.

Management Game: The manager presented with a computerized decisions

regarding but simulated situations.


Outside Seminars: Many organizations now are using this popular method on

various aspects of business and management.

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

reinforcement-Transfer of training.

3.4(B) Development:

Any attempt to improve current or future management performance by imparting

knowledge, changing attitudes, or increasing skills.

Any effort toward developing employees must begin by looking at the organizations

objectives. The objectives tell us where were going and provide a framework from which

our managerial needs can be determined.

3.4-(B1) Employee Development Method

Managerial On-the-Job Training: The development of employee’s abilities can take

place on the job. It includes:

Job Rotation: It involves moving a trainee from department to department to

broaden their understanding of all parts of the business and test their abilities.

Coaching Approach: The trainee works directly with a senior manager or with

the person they are to replace.

Action learning: Here the management trainees are allowed to work full-time

analyzing and solving problems in other departments.

3.4-(B2) Types of Training:

Technical Training

Management Training

Safety Training

Occupational Health

General Training (Management, Accounts, Sale etc.)

Social Skill Training

Refresher Training

Workers Education Training

3.4-(B3) Training Process


Identifying the training needs: What kind of training is needed for how

many people to what standard of performance the objectives of the training

must be determined.

Analyzing the attitudes, skills & knowledge(ASK)of the job:

Designing what has to be learned.

3.4-(B4) Planning the training program & implementing

The stages of the training

Recording the results

Providing the stuff and equipment

3.4-(B5) Evaluating the results

Deciding whether the training objectives have been met

Considering how they could have been met more effectively

3.4-(B6) Training Aids

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

Multi media

Overhead projector

Flip chart

White board etc.

3.5 Performance Appraisal:

At BPL appraisals are done by the Self-appraisal system. Goals are set by participative

management approach and performance is evaluated quantitatively against those

previously set objectives. Managers appraise the performance of their subordinates

through a 5 points Graphic Rating Scale. The total appraisal process is completely

transparent to everyone within the organization.

1 for unsatisfactory

2 for marginal

3 for target

4 for superior

5 for outstanding


3.6 Employee Compensation:

Employee compensation refers to all forms of pay or rewards going to employees and

arising from their employment. It has two min components:

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

There are two ways to pay directly:

Time based pay: Daily, hourly, weekly, biweekly or monthly wages and

salaries

Performance based pay: Ties compensation directly to the amount of

product the worker generates.

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

3.6(A) Factors influencing the design of compensation plan

Legal considerations in compensation

Union influences on compensation decisions

Corporate policies and competitive strategy

Policy issues affecting the plan of an organization

3.6(B) Establishing Pay Rates

Step-1

The Salary Survey: A survey aimed at determining prevailing wage rates. A

good salary survey provides specific wage rates for specific jobs. Formal written

questionnaire surveys are the most comprehensive, but telephone surveys and

newspaper ads are also sources of information.

Step-2

Job Evaluation: A systematic comparison done in order to determine the worth

of one job relative to another. Job Evaluation method includes:

1. Ranking: Involves ranking each job relative to all other jobs, usually based on

overall difficulty. There are several steps in this method:


Obtain job information for each job

Rank jobs by department or in clusters

Select just one compensable factor

Rank jobs

Combine ratings

2. Job Classification: Categorize jobs into groups

3. Point Method: A number of compensable factors are identified and then the

degree to which each of these factors is present on the job is determined.

4. Factor comparison: Ranking jobs according to a variety of skill and difficulty

factors, and then adding up these rankings to arrive at an overall numerical rating

for each given job.

Step-3

Group Similar Jobs into Pay Grades: A pay grade is comprised of jobs of

approximately equal difficulty.

Step-4

Price each Pay Grade-Wage Curves: This curve shows the relationship between

the value of the job and the average wage paid for this job.

Step-5

Fine-Tune Pay Rates: A series of steps or levels within as pay grade usually

based upon years of service.

3.6(C) Benefits and Rewards Package

Indirect financial and non financial payments employees receive for continuing their

employment with the company.

There are several types of benefits:

Supplemental Pay Benefits

Insurance Benefits

Vacations and Holidays

Sick Leave

Parental Leave and Family Leave

Medical Leave


Retirement Benefits

3.7 Health & Safety

3.7-(A) Health

Pre- employment medical check-up: The selected person before joining has to go

through full medical check-up that guarantees his /her physical fitness to perform the job

successfully. A medical practitioner who uses a physical capability analysis that assesses

the candidate against the physical capabilities documented for each role conducts the

medical check-up. A medical is also appropriate for internal candidates if they are

applying for positions that require different physical capabilities.

Medical Facilities: Doctors are arranged to visit each location of numbers of times a

week to provide necessary medical support to the employees. Moreover, the non-

management staffs enjoy medical treatment at Hospital at company arrangement.

Health Insurance Policy: Management staffs enjoy health insurance for self, spouse

and two children up to 21 years for hospitalization only. Delta Life Insurance provides

the insurance and the company pays the premium.

3.7-(B) Safeties

SHEQ SHES (Safety Health Environment Security)

S for Safety

H for Health

E for Environment

Q for Quality

Why Safety and Environment Issues are required?

The safety and environment issues are required because of the following reasons:

Safety leads improved productivity

Employees Satisfaction


To comply the national law and order

To keep the work environment sound and healthy

Maximum productivity through employees’ satisfaction

Helps loss prevention

Now a day, safety is considered as the most vital issue for all occupation & work

situation in all the developed country of the world. It is very good sign that in our country

certain organizations are also emphasized on safety like other developed country of the

world. Safety aspects are also incorporated with “ IMMSS Policy” i. e., integrated

management system & standard. It is developed from the following standard.

In house safety of the BPL (that was previously practiced)

NOSA

ISO (Specially for electrode business)

Environment Laws of Bangladesh

Labor Law of Bangladesh (it comes from the Salt Act (1905) then Indian Labor Act

(1935) and finally modified through The National Assembly on Bangladesh on 1982.

From these standards IMSS has taken 36 sections under consideration. 20 sections are

included from ISO and rest from others. It should be noted here that IMSS is now on

implementation phase and it will take 4 to 5 years to get a shape in BCCP, Bangladesh.

Company Safety Policy

It comes from the group chief executive to adapt in all the country. The local CEO

counter signs the policy for each individual country and the copy of the policy is

circulated to all the levels in the organization. So it is the duty of all the employees to

emphasize on safety. There is an Oath in BPL, Bangladesh regarding safety. That is

“ SAFETY FIRST – QUALITY MUST”.The safety policy of BPL, Bangladesh “ safety

health and environment management” which is signed by the CEO carries certain

messages for us. It complies with the local safety laws of Bangladesh. One important

issue of this policy is DUTY OF CARE. It can be described as ‘not to do any things that

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

hazardous to him only. There is another planning for emphasized on safety. Safety aspect


may include in every one’s KPI & CSF. There are some other important points of the

policy that we should care and implement in hour daily work. The copy of the safety

policy is attached herewith for the ready reference.

Finally it should be noted that BPL, Bangladesh not only believes the oath “safety first”

but also implements it through their works. Beginning of the orientation program with

Safety Department may be an example of this practice.

3.8 Motivating Employees in Beximco Pharma:

The advantage of having a Management by Objective (MBO) system is that everyone

becomes Self-motivated. Everyone is motivated to achieve, to perform. The only

challenges is to keep the employees’ moral high in times of failure. In BPL, one of the

tasks of the management is counseling. Managers are there to help the employees to

achieve the goals, which in turn keep the employees motivated.

Apart from creating a healthy working environment and ensuring employee

empowerment, BPL offers a number of benefits to keep them motivated.

The benefits offered by the company are given below:

1. Education costs of the children

2. Permanent job facility

3. Leave facilities

4. Yearly Employee Awards

5. Promotion

6. Foreign Travel with Family Offers

7. Share from revenue etc.

Chapter-4

4.1 SWOT Analysis:


4.2 FINDINGS AND RECOMMEDATIONS:

At the conclusion of the report I would like to say that the BPL, Bangladesh has practiced

the standard human resource management. Here I have some recommendations that

identify avenues for improving the human resource management policies of BPL,

Bangladesh.

1. The company should be prepared the standard human resource planning. Because

the success and failure of the organization is highly depend on the proper human resource

planning.

2. The OMR process practiced in the organization is a very effective tool to fill

probable vacancy. The in –house circulars within the group also act as a useful device to

find the right person of the right job.

3. The manager – training program of the company is a good way to groom a to -be

– manager for the probable vacancy in the future. The organization should regularly

follow this procedure to build a productive and valuable workforce. The selection tools

and procedures used in this program have also provided to be very effective. To cope

“HRM Practice in BEXIMCO-Pharmaceuticals Ltd.”

Opportunities (External)

Ability to Retain Growth & market Focus In difficult Operating SituationsAbility to Exploit Opportunities of Patent Law as an LDC in International Market.

Threats (External)

Strong Competitors in Domestic & International Market.Political InstabilityGovernment & International Regulations.Rising Trend of Material Price

Strength (Internal)

1. Employee Empowerment2. Capability to Bring Innovation & product differentiation 3. Outstanding Product Quality4. World Class Professional Service

Weakness (Internal)

Insufficient Working CapitalNot Operating in Low Cost Market.

27

with the ever-changing, competitive corporate world, the organization should welcome

new ideas as well as fresh –starters to trigger innovative ways to nature overall workforce

competence. The assessment center approach is designed to identify the essential

expertise of the candidates that enable to locate and select the right person for a

managerial. This method is formally followed only in the manager trainee selection

system. But this should also be followed in selecting the entry-level managers too.

4. The HR Department should look into the matter of consuming more time in the

process of calling the applicants after their responses very seriously. The organization

could control the size of applicants’ pool by using more clear and specific statements in

the ad in terms of the minimum educational degree, preferred institutions and other

necessary criteria based on which the initial screening of the applications were

conducted.

5. BCCP, Bangladesh could participate in the job fairs for their recruitment. A

considerable volume of applications is dropped in the organizations as a result of the

exposure created in the job fairs. The organization can promote its image as a potential

recruiter through its successful participation in the job fairs.

6. The company can recruited also for campus recruiting that could bring a yield

of highly educated fresh-starters for the entry-level the organization could arrange

seminars in the top business schools country. Also the company should facilitate online

CV-posting system that is a very popular and effective practice used by the top business

organizations.

7. The company should follow both on-the-job and off-the –job method training

when they are training their employees.

8. The HRD manager of the company should be analyzed the organizational jobs

properly. Because job analysis serves the cornerstone of all human resource functions in

an organization. Side by side the HRD manager should evaluate the different positions of

employees in the organization in order to establish the well conceived for pay-structure.

9. Before appraising the performance of employees in the organization properly,

the HRD manager should be established the standard. Here it is noticeable that the HRD


manager should appraise the performance of all employees in the organization without

showing any discrimination.

10. The HRD manager should prepare the standard promotion policy for the

employees of the organization. Here it is very much important that the employees should

get the promotion based on the performance not the nepotism, political influence and

whatsoever.

11. The HRD manager should established the standard pay structure for the

employees of the organization in order to reduce the high turnover of employees.

4.3 Conclusion

Pharmaceutical Industry has grown in Bangladesh in the last two decades at a

considerable rate. The sector consistently creates job opportunities for highly qualified

people. Pharmaceutical companies are either directly or indirectly contributing largely

towards raising the standard of healthcare through enabling local healthcare personnel to

gain access to newer products and also to latest drug information. As one of leading

pharmaceutical manufacturer Beximco Pharma plays a vital role in the industry as well as

in the national economy.

To be successful, relentless contribution and dedication of the organizations human

resource management is very much needed. To compete in international as well as in

local market in adverse situation the HR managers work has become much more difficult

in today’s ever changing business environment. Developing plans in a dynamic situation

demands critical analysis of the situation and strict adhering to the core principal of the

organization. As Beximco Pharma is decentralized organization and core values are

cherished by everyone within the organization, operating in dynamic situation is easier

than it seems.

With the development of healthcare infrastructure and increase of health awareness and

the purchasing capacity of people, this pharmaceutical industry is expected to grow at a

higher rate in future. Healthy growth is likely to encourage the pharmaceutical companies

to introduce newer drugs and newer research products, while at the same time

maintaining a healthy competitiveness in respect of the most essential drugs. So, it is a


great responsibility for Beximco Pharma as well as other companies in this industry to

concentrate on quality product and quality service to take this industry towards further

success. The Bangladesh government should also be considerable and cooperative to help

the businesses flourish.

ANNEXURE

Bibliography:

• Websites: www.beximcopharma.com www.google.com


Annual Reports: Beximco Pharma 2002, 2007, 2008, 2009 and 2010.

Text Books: Human Resource Management and Industrial Relations Dr. Abdul Awal Khan.


beximco hrm report

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