Submitted To: Faisal Wali Senior Lecturer North South University Course: HRM 430 Section:01 Submitted By: Tasnia Azmeri Madiha ID:0930151030 Nahian Ahmed ID:1020205030 Najmus Saaqib ID:1120109030 Manon Chakma ID:1120121030 2
Introduction: In Bangladesh ACI, RAK Ceramics, AAMRA Technologies and BGIC are companies that are operating their business for certain period and doing very good in their respective markets. Among these companies all are local companies except ACI was previously an MNC but started their operation as local from early 90s. Respectively they are trying to maintain their own HR activities and they are trying to implement successful changes in relevant fields if needed. All the firms has their own strong HR network that works for different HR related issues and tries to settle problem if arises. Bangladesh is a developing country with a very good growth rate and good growing GDP. Scope of international business is widely open for the corporations. There are a good number of MNCs entered into the market and trying to expand business in different sector of the market and creating a very good and healthy competition for the local companies. In todays job market those companies are doing well who has a rich HR policy for their employees because a good HR policy is related directly to performance and motivation for the employees. The company has good practice of HR they are facing less employee retention and producing good performance in their relevant sector. Methodology: For this research we have used the secondary data collection process through direct interview of the HR officials of the respective organizations. We went through a fixed questionnaire for all the companies. Among the 4 companies two are producing consumer goods, one is providing 3
technological solutions and the other is an insurance company. From the questionnaire we tried to find the related existing HR practices of the organizations. Here all interview data was transcribed in the form of narrative stories. So that it helps the reader to compare between the companies HR practice.
Here at first we have presented the data of the companies from different HR related topic and then we compared those data within the companies.
Data of the companies: About the organization: Table 1: About the Organizations Category
COMPANIES ACI
RAK AAMRA TECH. BGIC Main Products & services
Consumer Good Ceramics goods and tiles Technological solution Insurance Establishment Year
1992 1998 1985 1985 Organization type Flat Tall Flat Tall No. of employees
8000(approx.) 1150(approx.) 450(approx.) 300(approx.) No. of Departments
SBU-4 2 3 7 Employee turnover rate Not given Not given Not given Not given
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Findings: ACI: As an organization ACI Limited is flat in nature. The main managerial decisions comes from the relevant departments. The company has different functional units and those are divided in main 4 SBUs. The mother organization was ICI- a British MNC and started as ACI in 1992. The company has Approx. 8000 employees in different SBUs. RAK Ceramics: As an organization RAK is tall in nature means the main decisions come from the top management. The company has many business but the functions are divided into two main divisions; procurement and production. The company founded in the year of 1998. The total manpower of the company is Approx. 1150. AAMRA Technologies: AAMRA Technologies is one of the leading technology solution providers in the country. They are flat in nature having 3 departments along with 450(approx.) employees. They have started their operation from 1985. BGIC: As an organization BGIC is tall in nature, so all major decisions are followed from top to bottom as hierarchy of the management. The company is an insurance company and is in operation for 28 years. Its current employees are 300(approx.). 5
Recruitment and Selection: Table 2: Recruitment and Selection Category
COMPANIES ACI
RAK AAMRA TECH. BGIC Preferable candidate type Internal and External External and referral External and referral Fresh Graduates/interns Main attribute of selection Result, job knowledge Result, job knowledge, suitable personality Job knowledge and convincing ability Result Recruitment source Website, Own portal, social media Website, Own portal, print media Website Personal approach and reference Type of interview Panel Panel Panel Panel Number of days for selection >7 days > 7 days 5-6 days < 1 month Number of steps in recruitment 5 3 4 2 Time spend in each step Variable Variable Variable Variable Media Own HR dept. Own HR, consulting firms Own HR, consulting firms N/A
Findings: ACI: ACI takes both internal and external candidates for recruitment depending on the situation and job vacancy. The main criteria regarding the recruitment is the academic result along with the job 6
knowledge. Other than that extracurricular activities and communicational skill is also considered for marketing jobs. Company uses their own job portal, job websites and social and professional media. The interview has 5 steps takes more than a month. Regarding the recruitment their own HR plays the main role RAK Ceramics: Firm takes the external candidates as well as referral candidates for new recruitments. Result, job knowledge and suitable personality, work experience play the vital role regarding the recruitment. The firms own website, print media, job websites works as the source of job. The recruitment process have 3 steps and the duration of the recruitment process is more than a month. The interview is generally panel interview and the firms own HRD and consulting firm work for the process. AAMRA Technologies: For recruitment AAMRA prefers external candidates having a sound technological background and also referral candidates from other sources. Main criteria for selection is job knowledge and convincing ability in interview. Job source or advertisement is website based. Candidates have to pass through 4 steps for selection process. Mainly own HRD and other consultancy firms work in recruitment process. BGIC: BGIC always select fresh graduates and intern because they believe those candidates are energetic and can be transform into skillful employee to provide service. BGIC choose candidates with good result from best universities across the country. Moreover they seek 7
computer knowledge of candidate to run basic official work because they prefer computerize work. BGIC do not use any media for job advertisement, but they prefer personal approach and reference as a source of candidate. Furthermore BGIC has an interview board and panel interview of candidate are taken. BGICs recruitment process is consist of written and viva and whole recruitment process takes less than a month. Training and Development: Table 3: Training and Development Category
COMPANIES ACI
RAK AAMRA TECH. BGIC After recruitment training Yes Yes Yes Yes Types of training Operational and instrumental Operational and instrumental Operational and motivational External Training/course Training period 6 months 3 months 3-6 months Variable Training in changing job role Yes Yes N/A Yes Mentoring facility Yes Yes Yes Yes Technological up gradation training Yes Yes Yes Yes OJT Yes Yes Yes No Training facilitator HR/MDP HRD HRD External Trainers
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Findings: ACI: The Company has the facility to provide training for the employees after recruitment. The duration varies up to 6 month depending on the situation. The firm provides training if there is any change in job role. As it is a production based firm so there are training facilities if there are any technological updates. The firm also provides on the job Training for the employees. The HRD are the facilitator of the training by Management Development Programme. RAK Ceramics: RAK provides training after recruitment on relevant field. The training can extend up to 3 months based on requirement. During the training period the new recruits get help from mentors and the new recruits are considered as Under Training Officers. OJT is also available and the trainings are facilitate by the firms HRD. AAMRA Technologies: AAMRA has the facility of training after recruitment. These training are mainly operational and motivational in nature. The training period varies up to 6 month as per requirement of the employees. They have the mentoring facility for new and OJT for existing employees. Firms own HRD facilitates these trainings. BGIC: BGIC do not train internally its employee after recruitment, rather they send them to different institution for training and courses which are related to their job role. So, there is no specific time 9
period of training. However they are considered as UTO (under training officer) and senior employees guide them. Moreover they upgrade their technological field. BGIC do not provide on the job training. Promotion System: Table 4: Promotion System Category
COMPANIES ACI
RAK AAMRA TECH. BGIC Variables of promotion Performance Performance and service age Performance Performance Changing of job responsibility after promotion Variable No Variable Variable Main authority regarding promotion CEO Department head BOD CEO and MD Job rotation after promotion Variable No No No
Findings: ACI: Regarding the promotion the main factor is the performance. Changing of job responsibility is present but that is within the organization. The CEO is the main authority for the promotions. Sometimes there is rotations of job but mainly in the administrative sector. 10
RAK Ceramics: In RAK both performance and the service age are variable for promotions. The promotions are ACR based. The main job responsibility doesnt change but there are more responsibility added. Departmental heads are the key for promotions. Job rotation is no present. AAMRA Technologies: In AAMRA performance is the key factor for promotions and other position up gradation. Change of job responsibility may vary from time to time. The main authority for the promotions is the BOD. BGIC: BGIC consider only performance as a tool use to promotion of employee. In addition they have a policy of double promotion for superior performance and efficiency of employee. After promotion their employees key job does not changes in all case. CEO and MD choose employee for promotion. Salary and other Benefits: Table 5: Salary and Benefits Category
COMPANIES ACI
RAK AAMRA TECH. BGIC Salary Fixing scale Job position Job position and job role Job position and job role Job position and job description Increment rate Not fixed 20% Variable Varies on performance Increment period Yearly Yearly Yearly yearly 11
Other benefits Yes Yes Yes Yes Access to company share buying Yes Yes Yes Yes Retirement facilities Yes Yes Yes Yes Profit sharing Yes Yes Yes No Policy of leave encashment Yes Yes Yes No
Findings: ACI: Salary is fixed by the key job position of the employees. Yearly increment facility is present but that depend on different variable like performance, job responsibility, job position etc. Other benefits like health insurance, leave, leave encashment, provident fund, gratuity, maternal leave, profit sharing etc. are also present. RAK Ceramics: The salary is fixed by the job position and also the service age. The annual increment rate is 20% of the basic salary. Increment period is yearly. Other benefits like health insurance, leave, leave encashment, provident fund, gratuity, maternal leave, profit sharing etc. are present also.
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AAMRA Technologies: The salary and other benefits is fixed along with the job position and the job role. The increment varies from key positions. Yearly increment is available. Other facilities like health insurance, leave, leave encashment, provident fund, gratuity, maternal leave, profit sharing etc. are also present. Company has a practice of profit sharing and leave encashment. BGIC: BGIC fix salary of employee by position and job description. Furthermore, they use pay scale system which include basic salary, house rent and increment. They provide increment and promotion on basis of performance, ability and experience like one increment yearly is for everyone and two or three for good performers and promotion for best performer. In addition BGIC provide group insurance, health insurance and parental leave as per as govt. rule. Employee of BGIC can buy company share without any limitation but profit is only shared with shareholder not employee. Also employee are allowed to take 15 days of sick leave, 10 days of casual leave and 30 days of earn leave. As retirement facility employees are facilitate with provident fund and gratuity. Policy of buying earn leave is subject to authorities. Performance Appraisal: Table 6: Performance Appraisal Category
COMPANIES ACI
RAK AAMRA TECH. BGIC Employee talent programme Yes Yes Yes Planning to introduce Facilities for good Fast promotion/ Financial facilities Fast promotion/ Salary increment 13
performers better increment better increment and promotion. Frequency of talent hunt programme Yearly Yearly Yearly N/A
Findings: ACI: The firm runs annual employees talent programme to find out the best performers from the different SBUs. The best performers get accelerated promotions along with better payment or better increment. RAK Ceramics: The firm runs talent programme mainly in their industrial level yearly. Here the better performers are the people who are good in productions. The benefits are mainly financial. AAMRA Technologies: The firm runs employee talent programme annually to find superior performers in different departments. The good performers have facilities like accelerated promotions along with better payment or better increment. BGIC: BGIC evaluate the performance of the employee annually and with same performance evaluation form. They provide reward as promotion sometime double promotion for performance appraisal.
RAK AAMRA TECH. BGIC Types of motivational work Variable Variable One to one discussion Bonus Availability of refreshment policy Yes Yes Yes Yes Kinds of refreshment policy Picnic, foreign trip, social gathering Picnic, others Picnic, others Picnic, Iftar party Frequency of refreshment activity Variable Variable Yearly Variable
Findings: ACI: Regarding the motivation there are motivational works like seminars or motivational training for the employees. There are yearly picnics for the employees as refreshment. The high authority might get trips in foreign locations. All these refreshment activities are variable except the annual picnic. There are also social gathering for the employees and also for the workers in the industrial level.
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RAK Ceramics: As the firm is mainly production bases so for motivational works there is counseling and also motivational training is present. There are annual picnics for the employees for refreshment. AAMRA Technologies: The firm provides consultation for demotivated or less motivated employees. The motivational works are mainly one to one discussion with higher authority. Other than that the firm has other refreshment policy like social gathering, outing, and picnics. These refreshment activities are take place annually. BGIC: As a motivation BGIC provide 2 festival bonus and 2 incentive bonus to all of their employee. In addition they arrange annual picnic and Iftar party as refreshment facility also.
Occupational Safety and Health Administration: Table 8: Occupational Safety and Health Administration Category
COMPANIES ACI
RAK AAMRA TECH. BGIC Availability of safety measures Yes Yes Yes Yes Available firefighting elements Water, Fire extinguisher Water, Fire extinguisher, dry ice Water, Fire extinguisher, dry ice Fire extinguisher Number of fire exits 1/ Floor 2/ Floor 3/Floor Null 16
Fast aid facility Yes Yes Yes Yes Fire drill practice 1/ year 1/ 6 months N/A No Precautions for other natural disasters Yes Yes Yes No
Findings: ACI: Proper safety measures are ensured in both admin office and in the industrial locations. For fire safety there are water channels, fire extinguishers, sand bucket available. There are number of fire exits in both locations. Annual fire drill is practiced in industrial sector with the help of experts. In both locations Seismographic precautions are taken. Emergency vehicles are available in case of emergency. RAK Ceramics: Proper safety measures are taken in both admin and industrial locations. Dry ice, water channels, fire extinguishers are present in all the locations. Good number of fire exits are present. Emergency vehicles are available in case of emergency. Has affiliation with local hospitals in industrial site. Every year 2 fire drill is practiced in the firm. AAMRA Technologies: The firm provides a sound safety measures for the employees. There are fire extinguishers, water channel, and dry ice facility in all the floors. There are 3 fire exits in each floor for emergency. 17
Though fire drilling is not present but there are seismographic protection in the main establishments. BGIC: As health and safety measure they only have fire extinguisher as firefighting element and fast-aid facilities and on demand doctor and ambulance for emergency.
Table 9: Comparison of HR Practices between Bangladeshi Companies
Category Companies ACI
RAK AAMRA TECH. BGIC Recruitment & Selection
Job Vacancies info.
From Respective Dept. From Respective Dept. From Respective Dept. Department Head Types of Candidates
Internal and External External and referral External and referral Fresh Graduate/ Intern Main Attribute
Result, job knowledge Result, job knowledge, suitable personality Job knowledge and convincing ability Result/CGPA Sources of External Recruitment
Website, Own portal, social media Website, Own portal, print media Website N/A 18
Interview
Panel Panel Panel Panel No. of Days
>7 days >7 days 5-6 days >1 month No. of Steps
5 3 4 2 Time Spend on Steps
Variable Variable Variable Variable Media Own HR dept. Own HR, consulting firms Own HR, consulting firms N/A Training & Development Training Period
6 months 3 Months 3-6 months Variable Types
Operational and instrumenta l Operational and instrumenta l Operational and motivationa l External Training/course
Help from Mentors
Yes Yes Yes Yes Probation period
6 month 3 months 3-6 months 6 month 19
Training During Job Change
Yes Yes Yes Yes Regular Updates in Technology
Yes Yes Yes Yes Training During Up-Gradation Period
Yes Yes Yes Yes On Job Training
Yes Yes Yes No(external training and courses) Facilitate By
HR/MDP HRD HRD External Trainers Promotion System
Priority Performanc e Performanc e and service age Performanc e Performance and efficiency Change of Job Responsibiliti es after promotion
Variable No Variable Variable 20
Promotion Authority CEO Dept. head BOD CEO and MD Job Rotation Variable No No NO Salary & Benefits
Salary fixing criteria
Job position
Job position and job role Job position and job role Job position and job description Increment Scales
Variable 20% Variable Variable Frequency
Yearly Yearly Yearly Yearly(good performer twice or triple) others Benefits
Health insurance, leave, retirement plans etc. Health insurance, leave, retirement plans etc. Health insurance, leave, retirement plans etc. Group insurance, health insurance, parental leave Allow to Buying Company Share
Yes Yes Yes Yes Percentage
No limit No limit No limit No limit Retirement Facilities
Provident fund and Gratuity Provident fund and Gratuity Gratuity Provident fund and Gratuity 21
Profit Sharing
Yes Yes Yes No Same salary Structure in all Department
Variable Yes Yes Yes Buying Earned Leave
Yes
Yes Yes No Performance Appraisal Employee Talent Program
Yes Yes Yes Planning to introduce Same employee evaluation for
Yes Yes Yes Yes Facilities for performance appraisal
Fast promotion/ better increment Financial facilities Fast promotion/ better increment Promotion(sometim e double promotion) Employee Motivation Types of Motivational Facilities
Variable Variable One to one discussion 4 bonus ( 2 festival and 2 incentive bonus) 22
Picnic, foreign trip, social gathering Picnic, others Picnic, others Annual picnic, Iftar party OSHA Safety Measures for fire incident
Yes Yes Yes Yes Types of Firefighting Equipments
Water, Fire extinguishe r Water, Fire extinguisher , dry ice Water, Fire extinguisher , dry ice Fire extinguisher
No. of Fire Exits
1/ Floor
2/floor
3/floor
No Facilities for First Aid
Yes Yes Yes Yes 23
Medical Access During Emergency
Yes Yes Yes Yes Practice Firefighting Drills
Yearly Half yearly No No Pre Cautions for Natural Disasters
Yes Yes Yes No
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Summary: From the survey we tried to find out the different aspects of HR practices in local organizations. Over here some of the HR related issues are well practiced but few criterias are missing as these companies are not MNCs. As local companies they are trying to set the standard with respect to the Labor Law of Bangladesh. In this research we have tried to focus mainly on 7 HR topic. Among the companies ACI and RAK Ceramics are directly related with production, so the discussed topic are well practiced in both of the companies. They are trying to reduce time in recruitment and also trying to implement skill based job system for the employees. For recruitment they are focusing mainly on job criteria so that they can take the best possible person for the job. AAMRA Tec. is a technology solution provider and they are mainly focused on web based job screening process where as BGIC is an insurance firm, mainly focuses on extrovert personality while selection. The other discussion topic are more or less same for all the companies. All the companies follow their own rule regarding the promotion, facilities, benefits, promotions or motivation. These criterias are fixed from the companys internal authority. Sometimes they take help from the external sources but that is not well practiced in these companies. Regarding the safety issues all these companies are well prepared except BGIC is lacking in some aspects. ACI and RAK have very strong safety measures in their industrial site. AAMRA has well equipments in their office space for fire casualties. The main purpose of these precautions are to reduce the casualties and all these companies are well prepared to do so.