Human Resource Management Practices of Bangladesh – Term Paper

Term paper on Human Resource Management Practices of Bangladesh: A Case Study on Orion Infusion Limited (OIL) Date of submission: August 17, 2007 SUBMITTED TO Mr. Sheikh Abdur Rahim Lecturer Department of Management Studies Faculty of Business Administration and Management SUBMITTED BY Group: 01(Warrior) Human Resource Management Course code: MST 224 Group list Name of the students Md. Kamruzzaman (L) Shuvradeb Barai Roll No. 01 09 Abu Zafour Sahana Parveen Nazmul Alam Siddiqui 21 07 25 Letter of Transmittal Date: August 17, 2007 Mr.

Sheikh Abdur Rahim Lecturer Department of Management Studies Faculty of Business Administration and Management Patuakhali Science and Technology University Subject: Submission Report on Human Resource Management Dear Sir, Here we are submitting our report on “Human Resource Management Practices of Bangladesh: A Case Study on Orion Infusion Limited” prescribed by you in your course Human Resource Management. For this Purpose, we have gone through internet, different books, articles, journals, interview of authorities and employees of the respective organizations and class lecture sheets for the relevant information of the assigned topic.

Please call me for any further information at your convenient time and place. Yours truly, Group: 01(Warrior) Level-II, Semester-II Faculty of Business Administration and Management Patuakhali Science and Technology University Letter of Authorization Date: August 17, 2007 Mr. Sheikh Abdur Rahim Lecturer Department of Management Studies Faculty of Business Administration and Management Patuakhali Science and Technology University Subject: Declaration regarding the validity of the research report.

Dear Sir, This is our truthful declaration that the “Report on Human Resource Management Practices of Bangladesh: A Case Study on Orion Infusion Limited ” we have been prepared is not a copy of any research report previously made by any other students. We also express my honest confirmation in support of the fact that the said “Report” has neither been used before to fulfill any other course related purpose nor it will be submitted to any other person or authority in future. Yours truly, Group: 01(Warrior) Level-II, Semester-II Faculty of Business Administration and Management Patuakhali Science and Technology University

Acknowledgement At first we desire to express our deepest sense of gratitude of almighty Allah. With profound regard we gratefully acknowledge our respected course teacher Mr. Sheikh Abdur Rahim Lecturer, Department of Management Studies, Faculty of Business Administration and Management for his generous help and day to day suggestion during the survey. We like to give thanks especially to our friends and many individuals, for their enthusiastic encouragements and helps during the preparation of this report us by sharing ideas regarding this subject and for their assistance in typing and proof reading this manuscript.

Table of contents Chapter–1 Page 1. Introduction >1. 01 Executive Summary ………………. ….. ……. …………………………07 >1. 02 Scope and Objective of the Study…… ……. …………………………. 08 >1. 03 Methodology of the Study………… ……………………………… ……09 >1. 04 Limitation of the Study…… …………………. ………………………….. 10 Chapter – 2 2. Description >2. 01 Company chronology … ….. …………………………………… … ….. 11 >2. 02 Skilled People are There Asset …. ………………. ……… … …… …. 12 >2. 03 Company Organogram ……… ……. ………… ………………… …. …13 >2. 04 Human Resource Management ……. ………… ………………… …. …14 >2. 05 Human Resource Planning.. ……… …………………………….. ….. 14 >2. 06 Recruitment and Selection ………………………… ……………… ….. 14 >2. 07 Job Analysis and Job Description ……………………. …………… …… 16 >2. 08 Job Design …………………………………………….. ……….. …….. 16 >2. 09 Job Evaluation ………………………………………………………. …17 >2. 10 Training and Development ……………. ……………………. ……… … 17 >2. 11 Performance Appraisal …………. ……. …………. …………. ….. …. …19 Chapter – 3 3. 0. Findings and Analysis ……………………………………….. ………. ……. ……20 Chapter – 4 4. 01. Conclusion………………………………………………………….. ……. …. ….. 21 4. 02. Bibliography …………………………………………… ……………….. ….. …… 22 4. 03.

Appendix ………………………………. ………….. ………….. …………. 23 Executive Summary This report is an assigned job as a partial fulfillment of course requirement by honorable Course teacher Mr. Sheikh Abdur Rahim Lecturer, Department of Management Studies, Faculty of Business Administration and Management, Patuakhali Science and Technology University. It is the optimum aggregated outcome of 5 pupils’ about “Human Resource Management Practice Of Bangladesh A Case Study On Orion Infusion Limited”. The goal of this report is to find out the Human Resource Practices of Bangladesh, in case of Orion Infusion Limited.

Orion Infusion Limited committed to draw the most talented and dynamic professionals from the available candidates. They consider their skilled people as asserts for their organization. The main goal of Orion Infusion Limited is the continuous development of the human resources (HR) through appropriate training and motivation. Their human resource department (HRD) trusts in team work and respect each other. For managing the human resource OIL follow the different steps. At first they plan their human resource for recruiting and selecting the most talented and dynamic professionals from the available candidates.

OIL provides training and development activities to develop their employee with future advancement and educate them in jobs kills. Taking constructive steps they are trying to develop the skills of the human resource pool. Scope and Objective of the Study As a business expectative in future, we should have to gather experience beside our survey. We should not concern our lesson only in classroom but to implement it in practical life that will help us in our future life . A clear objective help in preparation of well decorated report in which other take the right type of decision .

So, we identifying objectives is very much important. Our purpose of preparing the report is: To know the human resource management (HRM) practice of Orion Infusion Limited • To identify the various avenues for improving the HRM policies of Orion Infusion Limited • To know about the management ability of Orion Infusion Limited • Suggesting strategies to improve the HRM policies of Orion Infusion Limited. • This study covers the HRM policies of Orion Infusion Limited along with some recommendations to improve the HRM policies of Orion Infusion Limited.

Methodology of the Study This report is based on both primary and secondary data. Initially, the work is started with data those were available at Company’s Annual Report and company’s news letter. Moreover, it becomes helpful to gather some more information from the website of the company. Later on, the work progressed through some depth interviews of good range professionals trying to heat some expected area of the study. After that, an effective questionnaire is designed to collect likely data from the target group of people.

Then we analyze those data from many angles, in different aspect and present the information in different segment according to their category, in compact way. We highlight different important things, which we found during our survey. After doing all of those we submit the report to the proper authority. Limitations of the Study As a student of faculty of Business Administration and Management, 4th semester, this is our first initiative for making a report on “Human Resource Management Practice of Bangladesh a Case Study on Orion Infusion Limited” by meeting a survey.

I was really unable to collect enough information from due to their official restrictions. Many things were so confidential that I was not entitled to access there. Beside this we have faced the following hindrances in preparing this report: > Lack of knowledge and experience > Short of time > Lack of computer facilities > Lack of sufficient privileges > Lack of communication facilities The survey report focuses on Human Resource Management Practice of Bangladesh a Case Study on Orion Infusion Limited The survey may not be more comparable or more valid.

Moreover, the report is emphasized on the primary data such as interview of the human resource manager of Orion Infusion Limited. Here we consider the information to prepare this report that we collect from the annul report and our survey. Company Chronology Founded in 1989 Orion Infusion Ltd. is a state-of-the-art Large Volume Parenterals (LVP) manufacturing company. It is inception; the company was named as Mala Chemical & Pharmaceuticals industries Ltd. which became a public limited company in the year 1994. The company is devoted to producing LVP products and other life saving IV fluids.

Orion Infusion Ltd. (OIL) has created a new vista in manufacturing large volume parenteral (LVP) products in Bangladesh. Manufacturing excellence is one of the core strengths of Orion Infusion Ltd. OIL is in the pursuit of using the state – of – the – art technology and high level quality assurance in their production which ensuring products of international standard. Through proper documentation and implementation of quality management system through out the organization, OIL has achieved ISO 9001:2000 version certification from United Kingdom Accreditation Services (UKAS) Quality Management System, UK.

The overall management of Orion Infusion Ltd. is vested in a board of director which is accountable to the shareholders and entrusted with the responsibility to guide the company towards realizations of its objectives in order to maximize shareholders’ wealth. A sound system of internal and financial control has been established by OIL, which involves periodical reporting, continuous audit of different segments of the business and budgetary control to ensure optimum utilization of the company’s resources. OIL is a highly professionally managed organization.

A team of skilled professionals has been dedicating their efforts in order to achieve the corporate objectives. Skilled People are their Asset They are committed to ensuring their business practices meet high standards and that their employees behave ethical standards act responsibly and comply with the law. Competitive advantages can only be achieved by building up highly motivated and skilled employees at all levels that we enable organization to compete in a fiercely competitive market scenario and to respond appropriately to the market needs, with regard to quality products and services and technological innovations.

Orion Infusion Ltd. puts maximum emphasis on tits vision to be regarded as World Class Infusion Company and to be the best in the country, both in term of turn over and profit. So the management of Orion has embarked upon on arduous program for development of employee competence through continuous training and counseling. To augment all activities related to development of Human Resource, the management has established a Human Resource Department and hired on experienced manager for its operation. The highly skilled professionals of OIL: Skilled Professionals Pharmacists Chemists Microbiologists Engineers Doctors Graduates

Numbers 05 14 02 08 01 More then 300 Human Resource Management The term human resource refers to the people in an organization. Human resource management is concerned with people dimensions in management. When managers engaged in human resource activities as a part of their job, they seek to facilitate the contribution; people make to achieve an organizations strategies and plans. Human resource management encompasses those activities designed to provide for and co-ordinate the Human efforts, so that they can contribute to achieve the goals of the organizations.

Human resource department of OIL follows the following steps for managing the human resource. 1. Human Resource Planning Policies of Orion Infusion Limited Human resource planning is the process of estimating human resource needs for achieving human resource and organizational goals. It is the process through which organizational goals are translated into objective. At Orion Infusion Limited, they believe that their Human Resources give the company a significant competitive edge in terms of knowledge and experiences.

Along the line up adopting new innovative and advanced technologies for its high-tech manufacturing plant, the company continued to draw talented and dynamic professionals of the industry, as well as, taking constructive steps in developing the skills of the human resource pool. The effective working days of this organization is 6 days per week and each employee will work 8 hours per day. If it is required to slot in them for overtime duties then the duty time will be utmost 60 hours/ weeks. For festival leave, usually they will get the vacation of 13 days.

Orion Infusion Limited usually paid their salaries to employees within 10 days of the next month. They try maintaining to continuous development of the human resource through appropriate training and motivation. 2. Recruiting and Selection Policies of Orion Infusion Limited Recruiting is the process of searching the potential job candidates in order to fill up the vacant position of the organization and selection is the process of choosing the best candidate among the available candidates. The candidates who are successfully perform the job.

Orion Infusion Ltd. follows both the internal and external sources of recruitment. In case of internal source they mainly follow – promotion, transfer and job rotation and in case of external source they follow – advertisement, employment agency. In case of recruitment and selection Orion Infusion Limited considers the following process: Need assessment Orion Infusion Limited take need assessment to identify in which sector, it is needed to recruit the employee for achieving their target and goals.

In their assessment they have to realize that they need human resource (HR) in the following situation- vacancy in existing post(s), market expansion, increase in production capacity, launching new product, introducing new system. Checking the recruiting options Internal Current employees are a major source of recruits the employees but entry-level position. Internal source are included- promotion, transfer, job rotation, friends and relatives of existing employees. In Orion Infusion Limited promotion and transfer are typically directed by operating manager with little involvement by the HRD.

External When job opening can not be filled internally, the HRD must look outside organization for expert employees. External source included- advertisement, employment agencies, and campus recruiting. Usually Orion Infusion Limited considers the advertisement for their external recruiting. They mainly provide the notice of available job in both Bangla and English dailies. Screening and Short-listing Applications The responses to the advertisements are sorted and screened. The CVs as well as the covering letters are judged.

Experience, educational degree, computer literacy, etc are the basis of judging the candidates application. Written test It is the mot important and effective tool for judging the candidates. The written test includes IQ test, behavioral competencies, and communication skills. Interview The selection interview is a formal, in-depth conversation conducted to evaluate an applicant’s acceptability. Trough interviews the interviewers of Orion Infusion Limited seek to answer three broad questions: 1. Can the applicant do the job? 2.

Will the applicant do the job? 3. How does the applicants compare with other who are being considered for the job? Selection interview are most widely used selection technique. They can be adapted to unskilled, skilled, and managerial and staff employees. They also allow two-way exchange information: interviewers learn about the applicant and the applicants learn about the employer. Reference checking Reference and background check are important, which refers the process to undertake of those application that appear to offer potential as employees.

Reference check is indented to verify that was state on the application from correct and accurate information. Some question are arises through reference checking. Those are: 1. Is the applicant a good, reliable worker? 2. Are the job accomplishments, titles, educational background, and other facts of the Resume or application true? 3. What type of person is the applicant? 4. What information id relevant to match the applicant and the job? Medical check-up Normally, the evaluation consists of a health checklist and asked the applicant to indicate the health and accident information.

The medical evaluation may: 1. Entitle the employer to lower health or life insurance rates for company pain insurance. 2. Be required by state or local health officials, particularly in food handling operations where communicable diseases are a danger. 3. Be useful to evaluate where the applicant can handle the physical or mental stress of a job. Offer letter When the candidates satisfy the Human Resource Recruiting Broad, then the broad provide to the candidate offer letter.

Orientation /induction Through orientation Orion Infusion Limited thy to introducing the new comers or new employees with its work unit, rules and regulation, culture, norms, value, believe and exposure to all important functions and locations of the company and so forth. Follow up For make the employee more effective and efficient Human Resource Department continuously interacts with the new entrants assisting to cope up with the work environment, work culture, peer groups etc. In this stage the management tries to help the employee to get settled her/his problems in the job, work environment and workplace-culture. . Training Policies of Orion Infusion Limited Training is a learning process that involves the acquisition of skills, concepts, rules, and attitudes to increases the performances of the employees in the organizations. On the other hand development is more future oriented, and more concerned with education, than is employees training or assisting a person to become a better performer. Orion Infusion Limited gives emphasis both for internal and external training. Any new operations or product is marketed, they gives training to the employees attached to the operations.

Development helps the individuals handle future responsibilities, with little concern for current job duties. In order to excel in a competitive marketing environment there is no alternative to development knowledge and skilled level of people through training. Training and development program of OIL include orientation activities that > Inform employees of policies and procedure of OIL > Educate them in job skills > Develop them for future advancement Program content Needs assessment Training & development objectives Actual program Learning Principles

Skills, knowledge, ability of workers Evaluation criteria Evaluation Figure: Preliminary steps involve in preparing a training and development program The above figure shows the sequences that should be followed by OIL before any training and development begin. Need assessment identify the current problems and future challenges to be met through training and development. Then they set different training and development objectives for the new comers/ employees. Actual training program are set from the available program according to the performance of the employee.

After the end of training period their skills, knowledge, and ability of working are evaluated. In the year 2006, the following training programs were conducted: > MPO Recruitment training > Team building and leadership > Development of team building and leadership > Development of managerial skills 4. Job Analysis and Job Evaluation Process of Orion Infusion Limited. Job Analysis Job evaluation is the process of appraising the different positions of employees in the organization with a view to establish a well conceived for pay-structure.

For job analysis OIL consider several common uses such as- job definition, job re-design, orientation, socialization, carrier counseling, employee safety, performance appraisal and compensation. OIL follows the observational method for job analysis. In this process they observe the individual or individuals performing the job and pertinent notes describing the jobs or describing the work. This information includes such things as what was done, how it was done , how long it do, what the job environment was like, and what equipment was used. In this process information about jobs is systematically collected, evaluated, and organized.

This action are usually done by human resource specialized about each job and every person in the organization. In the time of job analysis following matters are need to be considered: 1. Identify the job to be analyzed. 2. Develop a job analysis questionnaire. 3. Collect appropriate job analysis information. Job Evaluation Orion Infusion Ltd. follows the Ranking and the Classification method for evaluating the job. In case of ranking method a committee typically compared of both management and employee to representative to arrange the job in a simple rank order, from highest to the lowest rank.

In case of classification method this classification are created by identified some common denominators like – skills, knowledge, responsibilities with the desired goals being the creations of a number of distinct classes on grades of jobs. 5. Performance Appraisal System of Orion Infusion Limited Performance appraisal information can provided needed input for determining both individual and organizational training and development needs. Another important use of performance appraisal is to encourage performance improvement.

In this regard Performance appraisals are used as means of communicating to employees how they are doing and suggesting needed changes in behavior, attitude, skill or knowledge. For apprising the performance Orion Infusion Limited (OIL) consider the different criteria of the employee, such as attendance, attitude, cooperation, initiative, dependability, quality of work, overall output, honesty, personality, ready to take challenge etc. The process of evaluating the performance of the employee of Orion Infusion Limited are shown in the following chartEmployee’s name …………………………………………………………….

Department Rater’s name Date ……………………………………………………………. …………………………………………………………… …………………………………………………………… Excellent 1. Attendance 2. Attitude 3. Cooperation 4. Initiative 5. Dependability 6. Quality of work, 7. Ready to take challenge 8. Overall output 9. Honesty 10. Personality Good Acceptable Fair poor Total Total Score Based on the above mentioned criteria the rater provides score to the employee and according to the total score their performance is appraised. The human resource department (HRD) of OIL usually designed and administers the above performance appraisal systems.

For evaluating the performance appraisal OIL mostly follows the rating scale method. 6. Promotion Policies of Orion Infusion Limited The movement of personnel within an organization- their promotion, transfer, demotion, and separation is a major aspect of human resource management. The actual decision about whom to promote, and whom to fire can also be among the mot difficult, and important, a manager has to make. For every organization promotion is extremely important, when the process based on merits and skills of the employee.

The employee of Orion Infusion Limited are gets both rewards and punishment from their employer based on their performance. Usually money transfer or other benefits are provided as rewards. On the other hand a major problem of promotion is discrimination and favoritism. 7. Pay Policies of Orion Infusion Limited Once the job evaluation is complete, the data generated become the nuclease for the development of the organization’s pay structure. This means pay rates or range will be established that are compactable with the ranges, classifications, or point arrived at through job evaluation.

Pay structure No information is given, as this is considered highly restricted information. Provident Fund In Orion Infusion Limited 12% of the basic salary goes to the and the employee pays the same amount of their basic salary. provident fund Medical Facilities Doctors are arranged to visit each location of numbers of times a week to provide necessary medical support to the employees. Moreover, the nonmanagement staffs enjoy medical treatment at Holy Family Hospital at company arrangement. Health Insurance Policy No information is given by the authority of OIL.

Findings and Analysis a) Orion Infusion Ltd. beliefs, in present competitive and dynamic environment human resource department are the most valuable department than the others. b) They consider their skilled people as asserts for their organization. c) OIL committed to draw the most talented and dynamic professionals from the available candidates. d) Orion Infusion Ltd. follows both the internal and external sources of recruitment. e) Training and development programs of OIL include orientations, and socializations activities to inform employees about policies and procedures. ) OIL try to develop their employee with future advancement and educate them in jobs kills. g) For job analysis OIL consider several common uses such as- job definition, job re-design, orientation, socialization, carrier counseling, employee safety, performance appraisal and compensation. h) Orion Infusion Ltd. , design their job in such way, which is the right person at the right place at the right time to achieve their objectives and goals. i) Orion Infusion Ltd. follows the Ranking and the Classification method for evaluating the job. ) For evaluating the performance appraisal OIL mostly follows the rating scale method. k) Taking constructive steps they are trying to develop the skills of the human resource pool. l) Their human resource department (HRD) trusts in team work and respect each other. Conclusion In present competitive and dynamic environment, human resource are now being viewed as the most valuable mean for gaining advantages over other. Competitive advantages can only be achieved by building up highly motivated and skilled employees.

To fulfill the vision, mission, and core objectives of a company the management has needed to established a effective and efficient human resource department and hired the confident and most promising professionals. Recommendations OIL is a highly professionally managed organization in where safety leads improved productivity, so Orion Infusion Limited need to provide the employee more quality work life as well as more attractive environment for working. They should keep the work environment sound and healthy for the employee to work in their own environment.

Employee’s satisfaction needs to be increased by maintaining the company policy efficiently to get maximum productivity through employees’ satisfaction. Though the company has loss in different sector, above all it makes profit in the current year but it need to prevention of loss by adopting effective technology and continuous development of human resource management. OIL is a pharmaceutical company so for the responsibility of the society it needs to completely obey the national law and order of the Government. Bibliography DeCenzo David A. and Robbins Stephen P. “Personnel/Human Resource Management,” Prentice-Hall of India Private Limited, 5 August (2005), p. p. 148-227 “Annual Report,” Orion Infusion Ltd. , Financial year 2005-2006, p. p. Al. Karim Md. Ebadul, Chief Human Resource Officer, Orion Infusion Ltd. Werther William B. and Davis Keith. , “Human Resource and Personal Management,” Mc Graw Hill Book Company, Boston, USA-1981,p. p. 181- 241. Stoner James A. F. and Freeman R. Edward and Jr. Daniel Gilbert. , “Management,” Prentice-Hall of India Private Limited (2003), Sixth Edition,p. p. 374-402 Human Resource Management Practices in Bangladesh: http// www. rmpb. com/ Retrieved date June 20, 2007. Human Resource Management Practices in the 21st Century: http// www. hrmp21. com/ Retrieved date May10, 2007. Human Resource Management and Expatriate: http// www. hrmexp. com/ Retrieved date June 25, 2007. Human Resource Management of BCCP, Bangladesh: http// www. hrm. bccpba. com/ Retrieved date May 31,-2007. Questionnaire on Human Resource Management (HRM) Practices of Bangladesh Organization Designation Address Age Sex :………………………………………. :……………………………………….. :……………………………………….. ……………………………………….. :……………………………………….. :……………………………………….

Educational qualification:………………………………………. Contract no. :……………………………………… 1. In your organization which department is mainly practice? HRM (Human Resource Management) PM (Personnel Management) 2. Who is the responsible person for planning the HRM/PM in your organization? ………………………………….. ………………………………………… ……………………………. …………………. ………………… …………… …………………………………………………………………………….. 3. In the recruitment process what kind of sources is used by your organization? External Internal 4. For recruitment the employee which things is followed by your organization? Advertisement Campus Recruiting 5.

In case of selection: How your organizations select the best candidate among the available candidate? ……………………………………………………………………………. …………………………………………………………………………. … …………………………………………………………………………… 6. How do you evaluate the working efficiency of the employees of your organization? …………………………………………………………………………… …………………………………………………………………………… …………………………………………………………………………………… 7. For the job analysis of the employee which method is performed by your organization? Observational Interview Questionnaire Functional 8. In case of job analysis any time do you face any problem, if it is occur which type of problem is faced? ………………………………………………………………………… …………………………………………………………………………… …………………………………………………………………………………….. 9. For developing the working efficiency of the employees do you provide any training program? …………………………………………………………………………… …………………………………………………………………………… 10. If you arrange any training program for the employees, which type of training programs are those? …………………………………………………………………………… …………………………………………………………………………… …………………………………………………………………………… 11. For motivating the employee what sorts of activities is performed by your organization?

Promotion Transfer Job Rotation Bonus 12. How much you give importance on organization and socialization? …………………………………………………………………………… …………………………………………………………………………… …………………………………………………………………………… 13. What process is followed for appraising the performance of the employee? Formal appraisal Informal appraisal 14. According to your company the level of employee’s job satisfaction? Very high High Low Very low 15. What are you thinking about the importance of HRM/PM? …………………………………………………………………………… …………………………………………………………………………… ……………………………………………………………………………