Human Resource Management Practices of Fu-Wang Ceramic Industry Limited

Internship Report on:

Human Resource Management Practices of FuWang Ceramic Industry Limited

Human Resource Management Practices of Fu-Wang Ceramic Industry Limited

25th June, 2013

Declaration
I do hereby declare that this report titled Human Resource Management Practices of Fu-Wang Ceramic Industry Limited, for the Degree of Masters of Business Administration is an original work. It has not been submitted earlier partly or wholly to any other University or Institute for any Degree, Diploma, Associate-ship, Studentship, Fellowship, or Prize. Bangladesh: A Study on Fu-Wang Ceramic Industry Limited submitted by me to Daffodil International University.

.................................. Name ID: Major: Minor: Masters of Business Administration Department of Business Administration Daffodil International University

Human Resource Management Practices of Fu-Wang Ceramic Industry Limited

Certificate of Supervisor
With regard to this report Human Resource Management Practices of Fu-Wang Ceramic Industry Limited submitted by (Name), for the Degree of Masters of Business Administration, I hereby certify that: (1) She has carried out internship under my direct supervision and guidance (for three months) and that the manuscript of the report has been scrutinized by me and (2)The final composed copy of this, which is being submitted to the Daffodil International University, has been carefully read by me for its material and language.

(Professor . ) ..

(Professor . ) ..

Human Resource Management Practices of Fu-Wang Ceramic Industry Limited

Letter of Transmittal
To --------------------------. .. .. Sub: Letter of Transmittal Dear Sir, It is indeed a great pleasure for us to be able to hand over the result of our hardship of the HRM report on Fu-Wang Ceramics Industries Ltd. This report is the result of the knowledge which has been acquired from the respective course. We tried our level best for preparing this report. The information of this report is mainly based on Internet information. Some other details were gathered from the HR personnel of that company. All of us gave our hundred percent for making this report come together. We, fervently hope that you will find this plan worth reading. Please feel free for any query or clarification that you would like us to explain. Hope you will appreciate our hard work and excuse the minor errors. Thanking you for your cooperation. Sincerely, . . .

Human Resource Management Practices of Fu-Wang Ceramic Industry Limited

CONTENT

Sl. No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Contents Executive Summery Introduction Methodology Scope & Limitations Company Profile HR Practices HR Department Job Analysis Human Resource Planning Recruitment Selection Training & Development Performance Appraisal Promotion Policy Benefits & Rewards Conclusion Reference/ Bibliography

Page No.

Human Resource Management Practices of Fu-Wang Ceramic Industry Limited

Executive Summery
The country's ceramic industry is now in the boom as the sector has grown up more than 200 per cent in last 5 years. Over the years, the ceramic industry in Bangladesh has flourished immensely and has gained recognition throughout the world. Local ceramic ware manufacturing industry is expecting a steady growth with a US $100 million return from exports by 2015 as the global market favors more shipment from Bangladesh. Quality of products has helped Bangladesh to carve a niche in the global market; the manufacturers in this sector are taking risks while diversifying their designs into world-class standards. Furthermore, the natural gas that is used in the kilns of the Bangladesh's ceramic industry does not contain any sulphur and that is why the country's ceramic products look brighter and shiny. The close competitors of Bangladesh are China and India, but they mostly produce traditional items. Moreover, due to recent global financial crisis and rising labor cost, the developed countries are placing more orders to low-cost countries like Bangladesh. Fu-Wang Ceramic Industry Ltd, a concern of Fu-Wang Group, which has been producing tiles since 1995, is exporting its products to India, Nepal and the Maldives after meeting domestic demand. The company is engaged in manufacturing and marketing of various types and sizes of floor tiles and glazed wall tiles in its factory at Hotapara in Gazipur. The company has created direct employment facilities for about 3,000 people, 60 percent of them are women. Human resource management can be defined as a process of procuring, developing & maintaining competent human resource in the organization so, that goal of an organization are achieved in an effective and efficient manner. Human Resource Management The policies and practices involved in carrying out the people or human resource aspects of a management position, including recruiting, training, rewarding, and appraising. HR Division of Fu-Wang Ceramics is one of the most valuable departments with the responsibilities of staffing, training and development, organization development, performance appraisals, rewarding, control and maintenance etc. The Human Resource of Fu-Wang Ceramics is exactly well thought and perfectly managed. Fu-Wang Ceramics is committed to focus all its energy on its customer as well as its employees. This is sure a strong Human Resource practices will help Fu-Wang Ceramics to pave the way leading outmost destination. Human Resource Division in Fu-Wang Ceramics is under massive reconstruction program ensures the future benefits and high corporate culture and the secured place of contribution and dedication the experience and the exposure of high professionalism. In this report the Overall work of the human resource department will be focused and described. To know the details of the company we interviewed some HR personnel of Fu-Wang Ceramics and other information were collected and gathered with the help of the internet. FuWang Ceramics is the organization where actually the HR activities are applied with a huge effort, and the outcome is also very satisfying.

Human Resource Management Practices of Fu-Wang Ceramic Industry Limited

Introduction
Human Resource Management plays a very much important role for every business organization. It helps the organization to run perfectly & to achieve the organizational goals. Naturally employees develop themselves day by day. They make any work broken down & divide it into small & small job, which helps to do the work more effectively; When we hear this word of Human Resources Management naturally we think that it is related to human activities. As part of the internship program of Masters of Business Administration (MBA) course requirement, I was assigned for doing my internship in Fu-Wang Ceramic Industry Ltd. for the period of 90 days starting from 01 April, 2013 to 30th June, 2013. During my Internship period in this companys head office at Gulshan, I learn many things of Human Resource Management.

Human Resource Management Practices of Fu-Wang Ceramic Industry Limited

Objectives of the Study Main Objective: The main objective was to find the out overall practices of Human Resources Management in Bangladesh analyzing the performance of Fu-Wang Ceramic Industry Ltd. Special Objectives: To acquire in depth knowledge over Fu-Wang Ceramic Human Resource To develop work flow & their inter-divisional dependencies. To learn about recruitment & selection procedure of the company. To know about appointment, placement, compensation, transfers procedure. To identify training & development methods applied in the company. Scope This report is about the HR functions of HSBC. So it is a great opportunity to know about the organizations in detail. By focusing on the HR activities, we understood the application of HR theories in practice aspects. Chance of knowing the reality of HR practices in Bangladesh.

Human Resource Management Practices of Fu-Wang Ceramic Industry Limited

Methodology This report has been prepared on the basis of experience gathered during the period of internship from April 01, 13 to June 30, 13. For preparing this report, I have undertaken group discussion, collected data and sent some questionnaire to the selected officers and other employees. During I have collected my information & data from the following sources, which helped me to make the report. The source has been divided by two parts. Such as: Primary Sources: Oral interview of the responsible officers. Personal experience gained by visiting different desks during internship period. Official records of Fu-Wang Ceramic Industry Ltd. Secondary Sources: Annual Reports of Fu-Wang Ceramic Industry Ltd. Webpage of Fu-Wang Ceramic Industry Ltd Relevant Papers & different books. Manual of different departments. Limitations of the Study Therefore, the views expressed in this report are likely to be restricted by limitations. So, lack of experience in preparing the report it also a limitation. Many officials of this company are not well informed about different systems of Fu-Wang Ceramic Industry Ltd. The Officers are very co-operative but they are too much busy to give time to get knowledge about practical activities. Lack of knowledge and experience was my limitations as well.

Human Resource Management Practices of Fu-Wang Ceramic Industry Limited

COMPANY PROFILE Fu-Wang Ceramic Industry Limited, the pioneer ceramic manufacturer in Bangladesh was established in May 1995 as a joint venture company. Subsequently, in 1998, it was listed in the Dhaka and Chittagong capital markets. Since then, it has been operating as a public limited company with an authorised capital of Tk. 1 billion and a paid-up capital of Tk. 769 million. The company is engaged in production of various types of wall and floor tiles. Within a short period, the business expanded its market share by its unique quality, competitive price, exclusive designs, and wide variety of sizes and models. Its effective and creative marketing campaign enabled the company to establish its brand value in the tiles market in Bangladesh. Fu-Wang Ceramic Industry Limited is capable of meeting the increasing demand of customers countrywide. By using high quality raw materials, Italian/Chinese machinery and highly experienced foreign and local engineers, the company has created good reputation in the Bangladesh ceramic market. The business is engaged in selling luxurious glazed floor and wall tiles, that are produced by utilizing the latest printing and laser cut technology. Fu-Wang Ceramic Industry Limited meets European standards in production. With an affordable pricing structure, the company aims to reach a vast residential and commercial property development market that is presently experiencing rapid growth in Bangladesh. The company is also exporting its products to the North Eastern region of India. MISSION 1. To offer state of the art surfacing solutions to both the home and commercial builders. This will be done by supplying products and services of the highest quality. 2. To ensure customer satisfaction by matching all expectations. To develop business by way of product innovation, thereby enhancing shareholder wealth. 3. Developing human resources to achieve maximum productivity and efficiency VISION To be recognized by our customers as one of the best manufacturers of glazed floor and wall tiles. Management Mr. Alexander Lee Mr. Khaled N. Kabir, FCA Mr. Narayan Roy, FCA, FCS Mr. Mustafa Mohiuddin Mr. Masudur Rahman Chairman Managing Director Independent Director Independent Director Independent Director
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(AA)

CORPORATE STRUCTURE

1. Company Formation The Company was formed under the laws of Bangladesh and incorporated with Joint Stock Companies and Firms, Bangladesh as a private limited company in May 1995 which subsequently converted into a public limited company in February 1998 and accordingly offered shares to the public listing with Dhaka & Chittagong Stock Exchanges. 2. Location The production facilities are located on 5.50 acre (16.67 bigha) of land owned by the Company situated at Hotapara, Gazipur 3. Paid-up Capital Taka 330,000,000 (Taka Three Hundred Thirty Million) having 3,300,000 shares of Taka 100 each having both local and foreign shareholders. 4. Market Capitalization Taka 1,465,200,000 (Taka One Billion Four Hundred Sixty Five Million Two Hundred Thousand) considering last traded price that transacted in Dhaka Stock Exchange of February 15, 2010. 5. Board of Directors Consisting six (6) Directors including one (1) Independent Director. 6. Chairman of the Board The Board is the ultimate policy maker and reviews production and financial status on routine basis. The Sponsor-Director, Mr. Hsu Chin Hua, a national of Taiwan and Chairs the Board. 7. Managing Director Mr. Khaled N. Kabir, FCA a Bangladesh national. Managing Director is the CEO and reports to the Board. 8. Management Team The Departmental Heads are the core Team Members consisting of local and foreign personnel. The Team runs the day to-day smooth functions and prepares financial planning, annual forecast, marketing argets, material planning, maintenance, human
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Human Resource Management Practices of Fu-Wang Ceramic Industry Limited

resource planning and address all other compliances under the supervision of the Managing Director. Management Hierarchy of Fu-Wang Ceramics Industry Ltd. Board of Directors

Managing Director

Deputy Managing Director

Director

Executive Director

General Manager

Deputy General Manager

Assistant General Manager

Sr. Manager

Manager

Assistant Manager

Executive Officer

Junior Officer

Management Trainee Officer 12

Human Resource Management Practices of Fu-Wang Ceramic Industry Limited

(BB)

PRODUCTION FACILITIES

1. Technology Technology of production facilities are of Chinese (ACMI) & Italian (SACMI) in origin. 2. Products The Facility has advanced technology including laser cutting for producing luxurious Glazed Ceramic Floor and Wall Tiles with Borders & Decors of different sizes (20 x 30 cm to 41.5 x 41.5 cm) and various design having current capacity of around three (3) million sq ft/ month. 3. Basic Raw Materials White & red clay, silica sand, lime stone, glaze, pigment and colors. 4. Sourcing of Raw Materials i. White clay is sourced locally form the Companys own mine situated at Netrokona and Sherpur mines owned by private individuals. The Company procures red clay from Mymensing mines owned by private individuals. The Company also procures silica sand of Sherpur origin and lime stone from Sylhet origin. ii. Glaze, pigment and colors are procured from abroad especially from China, Spain, Thailand, Taiwan & Malaysia.

5. Total Number of Employees Now the Company has 309 numbers of employees (Permanent 267) of which 100 are female employees. The Company is sincerely addressing about gender equality without any discrimination of faith and locality. (CC) MARKETING OF PRODUCT

1. Marketing Team Marketing Team headed by the Chief Marketing Officer conducts market survey throughout the year and prepares annual and monthly forecast about market demands of our products. Marketing Team also feeds back about new designers of our products. Production Department initiates monthly production as per requirement of Marketing Department. Marketing Department executes agreements with Developers as per Companys format.

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The Companys sales centre (Fu-Wang Gallery) is situated at a rental space measuring 2,000 sqft at Hatirpool, Dhaka (Ahsan Plaza (1st Floor), 84 CR Dutta Road, Sonargaon Road, Dhaka). All invoices are processed through the sales centre and forwarded to the Factory Site. 2. Distribution Chain The whole of Bangladesh is divided in twelve (12) marketing zones and fifty (50) Dealers been appointed to cater our products. The said Dealers through their marketing net work cover the demand throughout the country. The company directly sells to the Develops or GOB Agencies. The Company is also exporting to Indian seven sisters. Due to production constraints we are not exploring export demand at this point of time. (DD) REVENUE TO GOB EXCHEQUER i. Supplementary Duty & VAT on sell: Other than payment of Customs Duty and other charges at import point, the Company is paying 26.5% (Supplementary Duty & VAT combined) on sale of each sqft of tiles, e.g., the Company is paying Taka 26.50 to GOB for sell of tiles of Taka 100. Companys VAT Registration No. 5141004691 ii. Corporate Tax The Company is also paying corporate tax on profit of the Company. Companys Tax Identification Number (TIN) 003-200-3740 (EE) RISKS FACTORS i. Change in GOB policy about extracting clay from mines ii. Energy shortage iii. Price undercut by the competitors and new entrants CORPORATE SOCIAL RESPONSIBILITY The Company has established a primary level school (Fu-Wang Tiles Model School) on its own land and subsidizing the entire revenue shortfall for meeting all expenses. Presently there are 255 students (girl students 132). The fees are nominal comparing to other
schools of the locality and children of employees of the Company are entitled for reduced fees. The Company is providing all out support for attaining GOB recognition to upgrade the school up to SSC level.

(FF)

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Human Resource Management Practices of Fu-Wang Ceramic Industry Limited

Financial Highlights :

2010 11 Net Turnover Gross Profit Net Profit (Loss) before tax Net Profit (Loss) after tax Shareholder's equity Earnings per share after tax Cash/Stock Dividend Per Share

2009 10 428,081 107,352 33,484 24,276

2008 09 312,617 68,458 3,515 2,548

2007 08 296,668 65,530 (7,440) (7,440)

(Figures in Thousands) 2006 07 2005 - 06 304,433 72,197 12,115 7,269 342,032 96,502 35,440 21,264

607.801 176.413 93.119 67.511

909.857 10.74

459,044 7.71

434,769 0.85

432,221 (2.48)

446,463 2.42

446,022 7.08

10%

10%

10%

*5.00%

*5.00%

*7.00%

* Dividend has been declared for all shareholders other than Sponsors/ Directors.

HUMAN RESOURCES AND MANAGEMENT Management and human resources management are one and the same. They should never be separated, Management is personnel administration. Management has the three jobs, two of which are directly related to personnel managing workers and work management is the process of efficiently getting things done with and through other people. HRD deals with the design of formal systems in an organization to ensure the effective and efficient use of human talents to accomplish organizational goals. There are many definitions about human resource management (HRM). One of the well known definitions offered by Michael Jucious (1984). He defined human resources management Personnel management as the field of management which involves elements organizing, directing and controlling the function of processing, developing, maintaining and motivating a labor force. It is process of acquiring, retaining, terminating, developing and properly using the human resource in an organization. Human resource management can be defined as a process of procuring, developing and maintaining competent human resource in the organization so that goals of an organization are achieved in an effective and efficient manner.

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Human Resource Management Practices of Fu-Wang Ceramic Industry Limited

Human resource management is The policies and practices involved in carrying out the People or human resource aspects of a management position, including recruiting, screening, training, rewarding and appraising. Duties of HRD Acquisition functions of HRD. Developing functions of HRD. Motivating functions of HRD. Maintaining function of HRD. Functions of HRM HR managers are performing a variety of functions. The functional areas of HR Management are changing as the time goes on. The main HRM functions include: JOB ANALYSIS In this company employees are not in a huge number. They need highly skilled employees technical & general employees. The technical employees are mainly engineer and general employees are Masters/MBA/BBA or others educational background. Fu-Wang Ceramic is a large industry in Bangladesh. They have about 309 employees in the total organization. Its HR department is consisted about 12 employees who are controlled by an Assistant General Manager among that number. These employees are highly qualified and skilled in their respective job positions. They have about 105 female employees.

Job Category: Management

Executive Officer Staff Staff (Casual)

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Job Category: Gender

Male Employees Female Employees

Job Category : Education

Technical (Engineer) General (Masters/MBA/Others)

HUMAN RESOURCE PLANNING OF FU-WANG CERAMIC INDUSTRY LTD. Fresh universities post-graduates will be requested in two entry levels. MTO and Executive they will be probation for period of one year Diving Probation period. They Will be paid a consolidated remuneration fixed the board. Recruitment for all employees:

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Human Resource Management Practices of Fu-Wang Ceramic Industry Limited

A) Age: A fresh candidate will not be more than 30 years of age. Recruitments as an Executive officer in case difference maximum age limits 32 years with suitable experience and physical fitness. B) Physical Fitness: No person will be appointed in the service of corporate house unless he/she is declared physically fit by a competent medical authority of the company, on Minimum recruitment for MTO: Candidates have no past experience must not be over 30 years of age as on the date of application. MTO should have the following qualification: a. MBA with minimum CGPA 3.00 or Second Class in other exam or Master Degree in any discipline with minimum Two 1st Division and Second Division and not having 3rd Division for any recognized Govt. / Private University. b. Candidates securing the 1st Class in Masters Degree/MBA with CGPA 3.00 or above in any of the subjects appointed by the competent authority for recruitment of MTO may be appointed after VIVA/VOCE/Interview without written test if they are sound and suitable. Minimum recruitment for TAO: a. Candidates not over 30 years of age and master degree obtaining minimum 10 points based on educational qualification shall be eligible for applications. b. Basis to be followed for educational points in respect of education qualifications: Name SSC HSC Hons / Graduate Masters Grade - A 3 3 3 3 Grade - B 2 2 2 2 Grade - C 1 1 1 1

Computers literacy: All new recruit should have minimum computer knowledge of following: Operational system: Dos and windows Word processing: MS word Spread Sheet: Lotus/MS Excel Grading/Marking: The selection committee will follow a grading system as follows: a. For education maximum marks is 12 out of which qualifying marks for 10 and others( no probation) b. Written test will be for 50/100 marks and 50% marks will be qualities marks
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Human Resource Management Practices of Fu-Wang Ceramic Industry Limited

c. VIVA will be for 25 marks and qualifying marks will be 15 in viva General knowledge about his / her subject will be selected. RECRUITMENT Recruitment is the process of finding and attracting qualified or suitable applicants to fill vacancies. Recruitment is a linking process in that it tries to bring together job seekers and employees with jobs. It is a joining process in that it tries to bring together job seekers and employer with a view to encouraging the former to apply for a job to the letter. The objective of recruitment is to develop a group of potentially qualified people. To this end, the organization must project the position in such a way that job seekers respond. Fu-Wang Ceramic believes in the Process of attracting qualified job applicants. Strategic recruitment involves the appropriate use of internal and external sources. The process of finding and attempting to attract job candidates who are capable of effectively filling job vacancies.

Internal Recruitment Internal recruitment is the process of finding internal candidates and encouraging them to apply for and be willing to accept organizational jobs opening. It includes the of following things Promotion Demotion Transfer Separation.

External Recruitment: External recruitment is the process of finding potential external candidates and encouraging them to apply for and be willing to accept the organizational job openings. It includes the following things Employee Referral Advertisement Employment agencies Temporary help services Walk INS Professional organization
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Human Resource Management Practices of Fu-Wang Ceramic Industry Limited

SELECTION Selection is a process hiring suitable people for job. Right man for right job is the main goal of selection. Hiring good people is particularly challenging in technology-based organization because they require a unique brand of technical and professional people. They have to be smart and able to survive in the demanding cultures of todays dynamic organizations. In addition, many of these qualified individuals are in short supply and are able to go, wherever they like once applicants have been identified, HRM must carefully screen final candidates to ensure they fit well into the organizations culture. They realities of organizational life today may focus on informal, team spirited work place one in which intense pressure to complete project quickly and on time is critical and 24/7(24 hours a day a week) work mentality dominated, selection tools used by HRM need to elect out people that arent team players and cant handle ambiguity and stress. Selection Procedures Fu-Wang Ceramic The selection process in Fu-Wang Ceramic is not different from what is practiced in most organization starts with initial screening of CVs goes on to written test and then a final interview before selecting the person. Selection decision can result in one of the four possible outcomes. Two of these outcomes are right decision and two are wrong decision. The current selection process in Fu-Wang Ceramic is described below:

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Human Resource Management Practices of Fu-Wang Ceramic Industry Limited

Initial Screening: The process starts with initial screening choosing from the CVs that fulfill the specific requirements. After a vacancy is announced and CVs are already collected from different source, the company starts the initial screening process .then called for written test. Written Employment test: The written test is taken mostly to check the candidates knowledge in the subject matter for which he is to be taken and also to check his written/communication skill for MTO position the company seeks professional service of different management consulting farm/HR Dept. of company. They conduct the written test which includes preparing question paper arranging the logistic support needed for the test scrutinizing the answer papers etc. After preparation of the result sheet they send the passing candidates list to the company. Work Sample test: For the post of Executive Officer- IT the company uses this test to assure actual Performance of the job candidates work sample tests require the applicant to perform tasks that are actually a part of work required on the job. The test is carefully constructed by the IT division to include the major job function. Interview: For entry level positions the next steps of the process is the comprehensive interview that is usually conducted by a panel comprising of the Managing Director, Deputy Managing Director, Director and the Head of Human Resource Division. The interviews are always unstructured for any appointment letter up to Director, non management and all contractual employees, if not any other person is authorized for special reason. Background investigation is mostly done for the experienced candidate is another important check the employer undertakes. It includes talking to colleagues, the references former employer to make sure whether the information given by the candidate is true. Pre-Joining Documentation: The following documentation are obtained from the candidate prior to his joining officials from HRD are responsible for collecting the following documents. Three year bond on part of the MTO. Medical report from Designated Hospital. Verification of all Certificates. Copy of last educational and where applicable professional certificates. Filled up setup papers (Service Records, Declaration of Fidelity Employees Profile).
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Human Resource Management Practices of Fu-Wang Ceramic Industry Limited

Probation Period: Those employees who do not here a previous experience have to serve a probation period for at least one year before getting confirmation as a full time employee. Those who have previous experience and not necessarily need to be trained do not go through the probation period. Sometimes the selected employee has not submitted a bond that, she/he will not leave the organization. Appointment: After finishing all the selection procedures duly approved by the Managing Director or Board the Appointment offer consists of joining open period, particulars of salary, position etc. with the employment offer the required documents and pre-medical tests report are asked by the HR to bring in the day of joining. Confirmation: On satisfactory completion of probationary period and recommendation by the functional head the incumbent will be confirmed as the permanent employees of Fu-Wang Ceramic. Termination: If any employee are out of the job in some cases is called termination. There are certain circumstances where-even through complaint is within jurisdiction the company can dismiss him without considering its merits. This is some time called early termination. Termination Process of Fu-Wang Ceramic Industry Ltd.: The company has terminates the service of a permanent employee by giving him/her notice in writing or salary in lieu therefore the period on under 120 Days notice in case of subordinate staff or salary in lieu thereof. 90 Days notice for all other grades or salaries in lieu thereof have during probation the Management may terminate the employee at any time without notice.

The authority to terminate an employee of the grades from junior officer to Executive Vice President Lies with the Managing Director while that of Deputy General Manager and above can only be exercised by the Board of Directors. Dismissal: An employee will be dismissed from the company service if he or she is guilty of misconduct or whatsoever according to the report of the enquiry committee the concerned dismissed employee will get only the own contribution of his/her provident fund.
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Human Resource Management Practices of Fu-Wang Ceramic Industry Limited

Discharge on medical Ground: If an employee is incapable to continue his/her service for continues ill health mental abnormality and disorder, then the management discharge him/her from service on medical ground. He / She may be paid a ex-gratuity with other benefit with the approval of the Managing Director. TRAINING & DEVELOPMENT Training involves the change of skills, knowledge, attitude or behavior of employee. Although training is similar to development in the methods used to affect learning they differ in the time frames. Training is more present day oriented; its focus is on individuals current jobs, and enhancing those specific skills and abilities to in the details perform their jobs. Training is job specific and is designed to make employees more effective in their current job. Training and Development Policy of Fu-Wang Ceramic are given in below: 1. Training Development 2. Management Development 3. Carrier Development Off the Job Training: Classroom Lecture: Fu-Wang Ceramic arranges the lecture of conference approach for conveying specific information, roles, procedure or method. Films: Fu-Wang Ceramic arranged motion pictures as for useful training techniques. Simulation Exercise: This Company believes any training activity that explicitly places the trainee in an artificial environment that closely mirror actual working conditions can be considered a simulation. Experimental Exercise: Fu-Wang Ceramic says, experimental exercises are usually short structure learning experience where individuals learn by doing. Vestibule Training: Fu-Wang Ceramic arranges vestibule training by that employees learn their job on the equipment they will be using but the training is conducted away from the actual work floor.

On the job Training: There are two types of training uses Fu-Wang Ceramic: Individual Career Development Identifying and Organization Conversion into General Fields and Specific Goal Testing Against the Realities
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Human Resource Management Practices of Fu-Wang Ceramic Industry Limited

Management Development of Fu-Wang Ceramic A. On the Job Development : a. Coaching b. Under Study c. Committee Assignment d. Job Rotation B. Off the Job Development: a. Sensitivity Training b. Transactional Analysis c. Training within the company d. Training outside the company e. Lecture Courses f. Simulation Exercise C. Workers Development: a. Coaching b. Under Study c. Committee Assignment d. Group Assignment Motivation Function of HRD of Fu-Wang Ceramic Industry Ltd. Motivation is the willingness to do something and is conditioned by their actions ability to satisfy same need for the individual Fu-Wang Ceramic. Motivation process of Fu-Wang Ceramic Industry Ltd. Unsatisfied Need Tension Dives Search Behavior Goat Achievement Need Satisfaction Of Tension Job Design Performance Evaluation Rewards Job Evaluation Compensation / Benefit Discipline
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Human Resource Management Practices of Fu-Wang Ceramic Industry Limited

COMPENSATION & BENEFIT An organization exists to accomplish specific goals and objectives. The individuals hired by the organization have their own needs. One is for money, which enables them to purchase a wide variety of goods and services available in the marketplace. Hence, there is a basis for an exchange. The employee offers specific behaviors desired by the organization to meet its goals and objectives in return offer money, goods and service. Taken together, the money, goods, or services the employer provides employees constitute the employers compensation system. One goal of a compensation system is to motivate employees, yet there is tremendous variation in the value different individuals attach to a specific reward or package of rewards. Further, an individuals values also may change over time. Compensation system consists of many elements in addition to pay for time worked these components must be coordinated to work together. Employee compensation is a major cost of doing business up - to 80 percent for service firms and can determine the competitiveness of a firms product as service. The cost of living various tremendous in different geographic areas, an important consideration for firms with multiple locations.

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Human Resource Management Practices of Fu-Wang Ceramic Industry Limited

Right payment for right works, monthly payment, rewards these are the compensation principle of the organization compensation. Administrative relative to the following things: Reward & Remuneration Policy: As per their service rule there are designation wise monthly salary package that include basic pay, house allowances, medical allowances, leave fare assistance and so on. Festivals Eid-UlFitar & Eid-Ul-Azha. Annual Increment policy: As per service rule an annual increment is given to a confirmed and regular employee provided she/he does not have any adverse report during the previous year. Special Reward Policy: Includes accelerated promotion, special skill promotion training, gold medal award etc. the best performer of a year are awarded gold medals and accorded certification of congratulation at the end of the year. Employee welfare and benefit policy: Gratuity: All regular employees who have experience of at least 7 Years are entitled to gratuity. As per service rules, an eligible employee gets a gratuity an amount equal to his/her two months basic pay for each year service in our company. Provident fund: Each member contributes to the provident fund a sum equal to 10% of the basic salary payable to him / her per month and such percentage is deducted by the company from the salary of employee at the time of payment thereof. The company contributes to the fund a monthly sum equal to 10% of the basic pay of each employee. Group Insurance Policy: Fu-Wang Ceramic has a fund named Employees Social Security Superannuation Fund that provides insurance to the employee on his/her in case of death, disability or disease. Besides, there is another group insurance type arrangement her to take care of the employees house building investment. There is another fund called Employees House Building Investment Safety Scheme. Other Benefits: As per the service rules an employee after fulfilling same criteria can enjoy car facilities from the company under the transport policy, Midlevel Executive can purchase Car taking investment facilities from the company whereas top level Executives are provided cars free from the company.

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Human Resource Management Practices of Fu-Wang Ceramic Industry Limited

PERFORMANCE APPRAISAL SYSTEM (PAS) Performance appraisal system is the tool by which we measure the performance of and individuals and identity the gaps and plan future development in order to enable a better feet between the jobs and the incumbent organizations require consistent levels of high performance from their employee in order to survive in a highly competitive environment, performance refers to an employees accomplishment of assigned tasks. Performance meaning do a job effectively and efficiently. PA is a process of evaluating an employees performance of a job in terms of its requirements. It provides the basis for assessment of employee contribution, coaching for improved performance and distribution of economic rewards. It refers to the outcome of the behavior of employees. This performance appraisal means deciding the value of word done by an individual. It is a process by which organizations evaluate individual job performance. Method of PA

Setting Performance Standard: The appraisal process begins with establishment of performance standards in accordance with the organizations strategic goals. Appraisal system required performance standards, which serve as benchmarks against which performance is measured. To be effective standards should relate to the desired result of each job. Job analysis uncovers specific performance standards by analyzing the performance of current employees. If performance standards are not job related, the evaluation can lead to inaccurate or biased results, harming the managers relationship with them employees and violating equal environment opportunity rulings.

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Human Resource Management Practices of Fu-Wang Ceramic Industry Limited

Communicating Performance Expectation: Once performance standards are set, it is necessary to communicate these expectations, it should not be part of the employees job to guess what is expected of them. Employees can be involved in setting standards. It is important to note the communication is a two way street: mere transference of information from the supervisor to the employees regarding expectation is not communication. To make communication effective, feedback is necessary from the subordinates to the manager. Measuring Actual Performance : The next stapes in the appraisal performance is the measurement of performance. To determine, what actual performance is, it is necessary to acquire information about it. We should be concerned with how we measure and what we measure. Four common sources of performance: - Personal Observation - Statistical Reports - Oral Reports - Written Reports Comparing actual Performance with the Standards: The fourth step is the comparison of actual performance with standards. The point of this step is to note deviations between standard performances and actual performance so that we can proceed to the fifth step in the process - the discussion of the appraisal with the employees. Discussing the Appraisal results: A necessary requirement of the appraisal process is employee feedback through an evaluation interview. Evaluation interview are performance review sessions that give employees essential feedback about their past performance or future potential. Without feedback, improvement in human behavior is not likely and HR department will not have accurate records in its HR Information System on which to base decisions ranging have accurate records in its HR information system on which to base decisions ranging from job design to compensation. The evaluator may provide this feedback through several approaches: tell and sell, tell and listen and problem solving. Managers must create a supportive environment to put employee at case. Presenting an accurate assessment to the employee is challenging tasks.

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Human Resource Management Practices of Fu-Wang Ceramic Industry Limited

Initiative Corrective Actions : The final step in the appraisal is the identification of corrective action where necessary. Corrective actions can be of two types: One is immediate and deals with symptoms, and the other is basic, which deals with causes.

Here we mention the following bases of promotion are used in this organization Seniority, loyalty, Seniority and Performance, Efficiency, Seniority and Efficiency. This organization have career counseling program. This senior member of this organization plays mentoring role to guide juniors in building their career. Communication is the bridge it is the principle of the organization. There are some methods used in Communication. Which are mention here: Notice Board Staff Briefing The Suggestion program Magazines and News Letter Presentation

MY POSITION & DUTIES I was assigned for my doing Internship in Fu-Wang Ceramic Industry Ltd. for the period of 90 days starting from 1st April, 2013 to 30th June, 2013 at Head Office, Gulshan, Dhaka. In internship period I had no specific place. So I had no fixed duties in the organization. I worked under a Manager of HR Department and I observed his different types of activities. The working environment place of Fu-Wang Ceramic is very much friendly. Every personnel of the HR Division was very much busy but they always tried to help me from their experience. In this organization there are three HRD functions. Those are Acquisition function of HDR, Motivation Function of HRD, Maintenance function of HRD. Human Resource Planning is the process by which an organization ensures that it has the right number and kinds of people, at right place, at right time capable of effectively and efficiently completing those tasks that will help the organization achieve its overall objectives. Fu-Wang Ceramic works for the development of its executives or potential executives in order to enable them to be more effective in performing the various functions of management.

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Human Resource Management Practices of Fu-Wang Ceramic Industry Limited

SOWT ANALYSIS: SOWT Analysis of Human Resource Division of Fu-Wang Ceramic STRENGTHS Open HR Manual: The Human Resource Manual of Fu-Wang Ceramic is open for its entire employees giving total understanding of the terms and condition of the organization to its entire employees to assists the benefits and growth they can ever achieve and the role of Human Resource Department with all other divisions of the organization .This HR manual is uploaded in the internal website of Fu-Wang Ceramic. Empowered Work Force: The Human Resource of Fu-Wang Ceramic is exactly well thought and perfectly managed. As from the very first, top management believed in empowered employees, where they refused to put their finger in every part of the pie. These employees are not suffocated with authority but are able to grow as the organization matures. Strong Bonding and Belongingness: Fu-Wang Ceramic employees are one of the major assets. The employees of Fu-Wang Ceramic have a strong sense of commitment toward organization and also feel proud and a sense of belonging towards Fu-Wang Ceramic. This strong organizational culture of Fu-Wang Ceramic is a main strength of the organization. Information Technology: Online e-mail and personal computer for all employees enabled the employees work easier and faster with full of professionalism. All kinds of benefits, salaries monetary rewards are directly given to employees bank account through flex cube. Different Staff Loans: There is a set of staff loans in Fu-Wang Ceramic which increase the employees satisfaction in terms of monetary which enabled them to work more stress free and put dedication. Employee Evaluation: Employee evaluation process by Human Resource Division became strength for its fair judgment and put trust among the employees of other department on HR Department. WEAKNESSES Job Description: Job Description is a necessary accomplishment should have for each position for recruiting the most suitable candidate on the basis of skill and experience required. Still hundred percent job descriptions are not prepared by the HR Division. HR Accounting: Human Resources accounting is a strong tool for matching the benefits of each new recruitment done in the organization, calculation, turnover etc. HR Division of Fu-Wang Ceramic has not yet established this practice.

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Human Resource Management Practices of Fu-Wang Ceramic Industry Limited

Compensation and Benefits: Compensation and Benefits of Fu-Wang Ceramics employees are provided by the HR Division through different software. That software is not flexible to use and have lot of limitations. OPPORTUNITIES Management Information System: In recent business practices the importance of MIS is unavoidable. Human Resources Department is not out of it. HRD of Fu-Wang Ceramic has a every potential capability to establish new MIS and use it in various manpower reporting. Human Resources Information System: Human Resources Information System is a must for a corporate environment like Fu-Wang Ceramic. Fu-Wang Ceramic is going to establish a new HRIS very soon. Salary Survey: Fu-Wang Ceramic is going to start its salary survey with the most reputed consultant of Bangladesh for its salary survey. Training and Learning: Training and learning is the core function for making the executives cope with the new scenario and make them update and knowledgeable. Fu-Wang Ceramic is going to utilize its fullest capacity and enthusiasm in this regard by publishing a library, arranging extensive element etc. very soon. THREATS Competitive Salary and Turnover: The salary package of Fu-Wang Ceramic is not as competitive as the market demands, so the turnover of manpower is increasing day by day. New/Multinational Companies: New multinational company is a threat to Fu-Wang Ceramic in respect of increasing the salary expectation of the employees and new HR practices that turning the existing employees dissatisfied. FINDINGS OF THE STUDY Fu-Wang Ceramic mainly concentrated on manufacturing of Tiles and other ceramic materials. The HRD system of Fu-Wang Ceramic is not skilled enough and does not follow latest technology. In HR Division, there is the huge lack of development activity. The employee joining FuWang Ceramic should be taken under a cordial orientation program which is absent. Proper training is very important issue for the employees of Financials organization. In FuWang Ceramic proper training need requirement is not justified rather done by the employees personal interest.

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Human Resource Management Practices of Fu-Wang Ceramic Industry Limited

Employees code of conduct or service manual is governed solely by the service quality unit. But there should be a coordination of HRD to measure the perfect evaluation of the employees performance.

CONCLUSION & RECOMMENDATION Conclusion Lot of new ceramic industries has been established in last few years and this company has made this sector very competitive. So new company have to organize their operations according to the need of the market. In this competitive world, this sector has trenched its wings wide enough to cover any kind of service anywhere in this world. The major task for companies to survive in this competitive environment is by managing its assets and liabilities in an efficient way. This report has tried to present the HR practices in Fu-Wang Ceramic. In comparison to its closest competitor in the same industry. From the analysis we found the HRD system is a very satisfactory one. There is something problem with Human Resources Department. If the entire HRD system is not fully computerized then they cannot easily complete their recruitment process by short span of time. So the HR department should be given the proper training to the employees by regular basis. Performance evaluation of employees is not done properly. Top management handles the recruitment process and they have the power to fire anybody in any time. Recommendations As I have gone through all the departments under Human Resources Management, I have come up with some points, which can improve the efficiency as well as quality of the work. Though the company was found as a productive concern, the study reveals that the company could do much more if it was handled more efficiently. However, some steps may be taken to improve the efficiency and to increase the performance of the company in future which are given below Setting proper planning for each and every work as well as for the whole department Designing jobs on priority basis Assigning necessary manpower for every job The company should develop their communication process more effective Proper managerial observation and cooperation is required Improve the knowledge of the system through training Avoiding duplication of work through better communication Developing motivational program For the selection of the industrial projects proper study should be conducted in time properly The company should increase the total number of trained employee year by year The company should also introduce gain-sharing approaches to motivate its employees. Non-monetary incentives might be a great motivation for the officers and service workers.

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Human Resource Management Practices of Fu-Wang Ceramic Industry Limited

The company does not have any practice of Human Resource Survey, which is a negative point for the companys Administrative Department. Therefore, this practice should be introduced to the companys HRM policies. The company may provide insurance benefits (especially health-related and life insurance) to the employees as an additional motivating factor. At present, the company does not have any systematic practice of employee counseling. Such a practice might be beneficial to the employees.

REFERENCES Books 1. Decenzo A david & Robbin P. Stephen & Sons Wiley Johe, Human Resource management, Inc, Singapur, Copyright 2003. 2. Khan Gary Abdul, Human Resource management & Industrial Relations, Abir Publication, 1st edition. Report Fu-Wang Ceramic Annual Report, 2008. Internship Report of Fu-Wang Ceramic, 2008 Others Manual of Fu-Wang Ceramic Prospectus of Fu-Wang Ceramic Website http://www.fuwangceramic.com/ . www.humanresourcesmanagement.com .

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