1.

INTRODUCTION: 1.1 Objective: To find the existing human resource planning process of Square Pharmaceuticals. To analyze the HR demand forecast of the organization. To identify the process of employee demand and supply forecasting process conducted for sub-units. To identify the promotion process within the organization and to know the process to prepare replacement chart. To learn how to collect information from both internal and external sources. To learn how to use primary and secondary sources to gather required information for the report.

1.2 Methodology : This term paper mainly is Based and focused on the Application of the HUMAN Resource Planning Approaches of Square Pharmaceuticals Ltd, Bangladesh. In order to accomplish the specific objectives, data and informations we have collected data from Square Pharmaceuticals and from other secondary sources. We went to Square Pharmaceuticals Ltd.(Head office at Mohakhali) physically and interviewed the Executive HR for acquiring and gathering necessary informations. Both primary as well as the secondary form of data was used to prepare the report. The details of these sources are highlighted below:

1.2.1: Types of Sources Data: 1.2.1.1Primary Sources: Primary data for this report had been collected through the questionnaire, interview, conversation & discussion of Executive HR in Human resource department. On the job observation of officers

has helped a lot to know information of working process in the Service sector. The Executive HR of Square Pharmaceuticals Limited was quite friendly & cooperative to provide lots of information to prepare this report. 3.1.2 Secondary Sources:

We gathered secondary source of data, which are already existed or collected for some purpose other than the current investigation, which we used in report. We gather information from many sources of books, journals, articles and some other relevant publication documents. 1.2.2: Analysis Plan: Firstly, we gathered all the data for making this report. Then we arrange different data methodically. 1.3 Limitation of the study: When we studied this we found some problems .these problems affect or study highly. These limitations make a barrier to fulfill our study. To make this report we face difficulties in coordination of time of all group members, it was difficult to sit together for the task because of recent political conditions. We also did not get the chance to talk with the higher level management of Square Pharmaceuticals Ltd. Another limitation was, we were not allowed to use any recording device while interviewing.

2.0 LITERATURE REVIEW:

3.0. BACKGROUND OF SQUARE PHARMACEUTICALS LIMITED

SQUARE today symbolizes a name a state of mind. But its journey to the growth and prosperity has been no bed of roses. From the inception in 1958, it has today burgeoned into one of the top line conglomerates in Bangladesh. It is a flagship company in the pharmaceutical industry which has reached this mountain of success by fighting many potential competitors like BEXIMCO Parma, INCEPTA, ACME, RENETA, and OPSONIN etc. It initially started as a Partnership in 1958. It was incorporated as a Private Limited Company in 1964 and converted into Public Limited Company in 1991. Its initial public offering started in Dhaka and Chittagong stock exchange simultaneously in 1995. Their mission is to produce and provide quality & innovative healthcare relief for people, maintain stringently ethical standard in business operation also ensuring benefit to the shareholders, stakeholders and the society at large.

Vision:
They view business as a means to the material and social wellbeing of the investors, employees and the society at large, leading to accretion of wealth through financial and moral gains as a part of the process of the human civilization.

Mission:
Their Mission is to produce and provide quality & innovative healthcare relief for people, maintain stringently ethical standard in business operation also ensuring benefit to the shareholders, stakeholders and the society at large

Objective:
Their objectives are to conduct transparent business operation based on market mechanism within the legal & social framework with aims to attain the mission reflected by our vision.

3.1. Corporate Information:

3.1.1. Corporate Governance
Square Pharmaceutical Limiteds vision, mission and objectives are to emphasize on the quality of product, process and services leading to growth of the company imbibed with good governance.

3.1.1.1 Top Management: Board of Directors As per provisions of the Article of Association, Board of Directors holds periodic meetings to resolve issue of policies and strategies, recording minutes/decisions for implementation by the Executive Management. 3.1.1.2 Executive Management The Executive Management is headed by the Managing Director, the Chief Executive Officer (CEO) who has been delegated necessary and adequate authority by the Board of Directors. The Executive Management operates through further delegations of authority at every echelon of the line management. The Executive Management is responsible for preparation of segment plans/sub-segment plans for every profit centers with budgetary targets for every item of goods & services and is held accountable for deficiencies with appreciation for exceptional performance. These operations are carried out by the Executive Management through series of committees, sub-committees, ad-hock committees, standing committees assisting the line management.

3.2 Human Resource: Practices & Climates: SQUARE, with its progressive business outlook, believes and practices corporate work culture with a classic blend of efficiency and equity. SQUARE believes in company growth by increasing efficiency level of employees and for that offering excellent environment and support for skill and knowledge up gradation. Square values productivity as the spontaneous contribution of Human Resources. Strategic Human Resource Development Programs are the energy sources for SQUARE HR for running towards the zenith of success. Flow of clear and specific information and justification of queries play the vital role to ensure the market reputation of SQUARE as the most trusted and transparent company and it enriches the motivation level of HR who are the real contributors and owners of his / her own jobs. At SQUARE, HRD symbolizes the unique blending of professionalism as well as sharing the stress and success equally like a family where every member has deep concern, feelings and pride for their own company SQUARE. HR ensures the strong supporting role to develop & implement HR policy guidelines for ensuring uninterrupted operation and spontaneous participation to achieve organizational objective as well as fulfillment of employee needs. HR is maintaining an effective way to deal with labor union and still no unrest has been recorded as dispute. Personnel working here are taking care of SQUARE as if it is their own family. Employee-employer relation is cordial and supporting always. 3.3 From the external environment: 3.3.1 Technology: Square Pharmaceuticals uses both automatic and manual technology. Also uses some specialized software for some other purpose. The company is endeavoring to upgrade and adopt new technology in production, quality control, distribution and administration of its, products to patients. 3.3.2 Completion:

Bangladeshs pharmaceutical industry is the third largest tax paying industry in the country. Square Pharmaceuticals Limited (SPL) is the largest pharmaceuticals company in Bangladesh. Incepta, Beximco, Oposonin, Reneta, ACI and ACME were the main competitor of Square Pharma. The IMS audit found Square Parma maintaining its leadership position in the domestic market with its share at 18.71 per cent, followed by Incept, at 9.34 per cent. Beximco Pharma's position in the retail market was the third one, accounting for 8.82 per cent share of the overall market. Opposing Parma was placed as the fourth drug producer in Bangladesh, with its market share at 5.09 per cent, and sales growth by 27.18 per cent. The IMS data said Renata and Eskayef were in the fifth and sixth positions in the market. 3.3.4 Labor standard: SPL recognizes that progressive labor policies are good business practices, especially for a company that has global ambition. The Company follows laws and encourages a work environment that welcomes diversity and fair treatment in the recruiting process and the workplace. Groups HR policy strictly prohibits any form of forced labor in SPL or in any other SBUs of Square. The Group actively pursues the policy of No employment for Children in Square and at present, no child is employed in Square Pharmaceuticals Ltd or any other SBUs of the Group. 3.3.5 Government regulations: Square lay down and practiced policies to foster good industrial relations in all its plants and establishments. SPL like the other Strategic Business Units (SBU) of the Group maintains and upholds HR policies that are consistent with the Labor Laws of the country. Square Pharmaceuticals Ltd leads the Group in encouraging workers freedom of association and their right for collective bargaining

4.0. MANPOWER DEMAND AND SUPPLY CALCULATION:

MANPOWER REQUIREMENT FOR THE YEAR 2012 2007 Executive Staff Workers Total manpower
1143 796 764 2703

2008
1242 913 846 3001

2009
1525 1110 929 3564

2010
1710 1339 1050 4099

2011
1845 1532 1320 4697

4.1. MOVING AVERAGE METHOD:

2007 Executive Staff Workers Total manpower

1143 796 764 2703

2008
1242 913 846 3001

2009
1525 1110 929 3564

2010
1710 1339 1050 4099

2011
1845 1532 1320 4697

Forecast (2012)
1493 1138 981 3612

Moving average forecasting =Total number of employee / Number of year = 2703+3001+3564+4099+4697 / 5

= 18064/5

= 3612.8
10

= 3612

4.2. WEIGHTED AVERAGE METHOD: 2007 Weight Executive Staff Workers Total manpower 1
1143 796 764 2703

2008 2
1242 913 846 3001

2009 3
1525 1110 929 3564

2010 4
1710 1339 1050 4099

2011 5
1845 1532 1320 4697

Forecast (2012)
1617 1264 1069 3950

Executive Requirement = (1143*1) + (1243*2) + (1525*3) + (1710*4) + (1845*5) 15 = 1143+2486+4575+6840+9225 15 = 1617

Staff Requirement = (796*1) + (913*2) + (1110*3) + (1339*4) + (1532*5) 15 = 796+1826+3330+5356+7660 15 = 1264

Worker Requirement = (764*1) + (846*2) + (929*3) + (1050*4) + (1320*5) 15 = 764+1692+2787+4200+6600 15

11

= 1069.

4.3. EXTERNAL MANPOWER SUPPLY:

External supply = Current workforce size* (Replacement % per year + Change % per year) Current workforce size = 4697 (Year 2011) We assume that Replacement % per year = 6% Change % per year = - 7% External supply = 4697* (6% - 7%) = 4697*0.13 = - 610 Now we know the total demand is (4697-3950 = 747) 714. So internal supply is, Internal supply = HR demand External supply = (747) (- 610) = - 1357

4.4. EXPONENCIAL SMOOTHING METHOD:

Forecasted manpower requirement for the previous period (Ft-1) = 4099 Actual manpower requirement for the previous period (At-1) = 4697 Smoothing constant () = 0.4 We Know, Forecasted manpower (Fm) = Ft + (At-1 Ft-1) = 4099+ 0.4 (4697-4099)
= 4338.2 = 4338

12

So, Forecasted manpower for 2012 is 4338.

4.5. LABOR TURNOVER IINDEX: Beginning Manpower = 5000 Ending manpower in the same year = 4697 Number of recruitment = 0

Number of employees leaving Labor turnover index = ------------------------------------------------------* 100 Average number of employees employed

5000-4697 = ---------------------------------------- * 100 (5000+4697)/ 2 = 6.25

COHORT ANALYSIS:

Beginning Manpower = 2000

Year 2007 2008 2009 2010 2011

Employee leave 30 33 35 36 38

Remaining employee 1970/2000 1937/2000 1902/2000 1866/2000 1828/2000

% of survival 98.5 96.85 95.1 93.3 91.4

13

5.0 PLAN AND CONDUCT NEEDED PROGRAMS:

5.1. Career planning:

Square phamas human resource planning process starts with a forecast of the people needed for the company and consists of goal setting and strategic planning and program implementation and evaluation.

5.2. HR Forecasting:
Square pharmaceutical company conduct its HR forecasting cindering some factors. Such as First each organization sub unit has to submit its net employee requirement to the head office forecasting unit based on future needs for labor required to meet the agreed on corporate and sub unit objectives ( market share, production, size or expansion). Second For calculating every sub-unit HR demand it basically consider how many employees retire, die, are fired or otherwise terminated or take long-term leave as well as the replacement for individuals who are promoted, or transferred out of the department. All these elements they included in the calculation of departmental or sub-unit HR demands. These sub-unit labor demands are then aggregated and used as the starting point for the HR demand forecasting. Sometime when they expand the product line in to their organization, than their employee demand is more in to their organization that are considering in to their demand forecasting. It has many non-managerial positions such as- senior marketing Promotion Officer, marketing Promotion Officer, and Territory Manager. Senior Regional manager (SRM) collects information from every Territory Manager, how many employees they have need in this year. Then SRM calculate the aggregate demand of employee and send the information to the HR manager. Its Production department is dividing in two units, one is Dhaka unit and another one is Pabna unit. There are 5000 employees in total in two projects.. Both unit manager calculate their own

14

unit requirement and send the information to the HR manager. Pabna unit manager also do same work. Third HR manager calculate the all aggregate demand of employee for this year. employee in two way on the on time horizon basis. One is short-term forecasting and long-term forecasting. But usually they forecast for short term. Short-term forecasting offer the best estimate of the immediate HR need of an organization. Sometime they forecast for long term. But long-term forecasting do not provide actual requirement in to organization. Though square pharmaceutical use long-term forecasting for some long-term project or executive level forecasting. It thinks that short-term forecasting is the best time horizon. When it start forecast for needed employees, 5.3. HR Forecasting for managerial employee: For the managerial employee it collect information from each department than aggregate them. After aggregating all information from all departments they get required manpower. In previous calculation we saw that external supply is 610.and internal supply is 1357. As both supply is in (-) figure so no need to requite new employee in managerial level. Company should downsize employee. In the admin department they have 279 existing employee, and they need 461 employee during the year. In the marketing department they have 1614 existing employee and they need 1871 employee during the year. In the operation department they have 1490 existing employee and they need 1765 employee during the year. So total aggregate existing employee 3383, and they need 4097 employee during the year. 5.4. HR Forecasting for non managerial employee: For non managerial employees, HR forecasting is basically done on the basis of expansion plan of the company. About 1600 non-managerial employee are work in the two project. On the basis of current human resource from the year 2006 to 2011 & calculating by using MOVING AVERAGE METHOD the company needs to recruit more 981 & by using WEIGHTED AVERAGE METHOD 1069 worker for non managerial level, as they have plan to expand their business.

15

5.5. Develop Training & Employee Development in Square pharma: Square Pharmaceuticals Training & Development enables its people to enhance their skills, keep them updated with recent changes. Basically Square Pharmaceutical develop their training program yearly basis & offer both on-the-job and off-the- job at both theoretical and practical training opportunities through a range of Local, Regional and International Training programs that include both functional and managerial levels on the basis of Training Need Assessment. Training Need Analysis (TNA) is conducted by Department Heads and Human Resource Department jointly on the basis of job analysis. Every year 1200 approximately Field Forces-Medical Promotion Officer (MPO). MPO officer get 3 month off the job training, and then they recruit them. Senior Medical Promotion Officers (SMPO) are also get training. But they get on the job as well as of the job training, every month or every few month. Also 500 management staffs and 700 non-management staffs getting training per year. 5.6. Management Development Training Round the year, management development training is organized for managers & executives at our Corporate Headquarters, Dhaka Unit & Pabna Unit. Our own and renowned resource persons from home & abroad conduct the training sessions. We also send our employees to renowned local training institutes for specialized training. 5.7. Overseas Training It sends its employee to abroad for training program depending on availability of appropriate topics. 5.8.Field Forces Training & Development Each year, a significant number of Field Forces complete their induction training program and joined to their respective markets and appear at examination in every month for further development.

16

5.9. Field Forces Refresher Course For updating product knowledge and selling skills of field forces, Refresher Course is organized in four different regions in every month. 5.10. Territory Manager Training Twice in every year, mid-level managers of sales participate in the training program titled Sales Territory Management at a regular basis. 5.11.Distribution: Every year a number of Distribution Assistants (DA), Data Entry Operators (DEO) go under induction training program immediately after initial recruitment. Each month, Refresher course for DA, Driver and Packers is organized in two different depots for updating their knowledge. So we can say that Square is very much focused on their training. 5.12. Promotion: Promotion is very hard to get in Square. The employees are given promotions on the basis of their performance & experience at the end of the year. Employee need to show their better performance consistently at least 3 years that is evaluated by HR department. By getting promotion their salary range will be high but designation will not change very fast.

17

6.0. COMPARISION BETWEEN PRESENT AND NEW MANPOWER PLANNING PROGRAM:

Square pharmacy has now 4697 total workforce which is really large in a rather than past manpower. If square pharma wants to establish new manpower planning programs they need to change some method. In present time they provide training not only training they provide motivation to the employee. Basically Square Pharmaceutical developing their training program yearly basis. Every year 1200 approximately Field Forces-Medical Promotion Officer (MPO). MPO officer get 3 month off the job training, and then they recruit them. Senior Medical Promotion Officers (SMPO) are also get training. But they get on the job as well as of the job training, every month or every few month. Also 500 management staffs and 700 non-management staffs getting training per year. For getting training basically non-management staffs are come into focus. They are called BEAUTY OF SQUARE. Every staffs like- drivers, security grads all are getting on the job and off the job training. In addition, employees are also getting overseas training when machinerys are imported into abroad. So we can say that Square is very much focused on their training. So in future when they training they can provide training programmed over internet to the all employee. They keep record of all employees through database. Promotion is very hard to get in Square. They are basically provided by experience and by better performance. Employee need to show their better performance consistently at least 3 years. By getting promotion their salary range will be high but designation will not change very fast. Employees need at least 3 years experience to get promote from Executive to Senior Executive and to get promote Manager Position need 7-8 years experience. In present they promote employee who have at least 3 years experience. But in future to increase productivity they promote employee to the executive position who have at least 6years experience. And to get managerial position they need to have at least 10 years experience.

18

Square pharmaceutical company forecasting their employee in two ways on the basis on time horizon. One is short-term forecasting and long-term forecasting. Generally most of the time they forecast for short term. Sometime they forecast for long term. Because they think that short-term forecasting is the best time horizon. As a result, short-term forecasting is best assumption about the future. But long-term forecasting do not provide actual requirement in to organization. Though square pharmaceutical use longterm forecasting for some long-term project or executive level forecasting. Short-term forecasting offer the best estimate of the immediate HR need of an organization. When they forecast employee need, First each organization sub unit has to submit its net employee requirement to the corporate forecasting unit based on future needs for labor required to meet the agreed on corporate and sub unit objects. When we calculate every sub-unit, we consider how many employees retire, die, are fired or otherwise terminated or take long-term leave as well as the replacement for individuals who are promoted, or transferred out of the department. All these elements they included in the calculation of departmental or sub-unit HR demands. These sub-unit labor demands are then aggregated and used as the starting point for the HR demand forecasting. Sometime when they expand the product line in to their organization, than their employee demand is more in to their organization that are considering in to their demand forecasting. In future situation Square pharma each sub unit provide HR requirement to the head office. So they can decide how much HR requires for their organization.

SPL recognizes that progressive labor policies are good business practices, especially for a company that has global ambition. The Company follows laws and encourages a work environment that welcomes diversity and fair treatment in the recruiting process and the workplace. Groups HR policy strictly prohibits any form of forced labor in SPL or in any other SBUs of Square. The Group actively pursues the policy of No employment for Children in Square and at present, no child is employed in Square Pharmaceuticals Ltd or any other SBUs of the Group.

19

7.0 SUGGESSIONS TO DEVELOP MANPOWER PLANNING:

As we can see that total current manpower of the SPL is 4697. After conduction the moving average forecasting we found the total manpower required for 2012 is 3613. After conducting weighted average method we found that manpower requirement for 2012 is less than their current level of manpower. Currently SPL should not go for a downsizing because their employees are very much qualified and trained. Its recommended that organization should retain their quality employees thats why organization can open a new department and replace their existing employees. Currently SPL dont have to recruit manpower. But if needed in the future they should emphasis on internal recruitment because its profitable for them. It does not follow any formal labor demand forecasting and still did not take any initiative to determine the labor supply properly. So it still cannot measure whether there are more or less employees than what it actually needs. For effective human resource planning SPL's HR department can introduce some methods for labor demand forecasting and determining the labor supply. They can develop an application form for all the candidates who want to apply. During the selection procedure they should go for background checking of candidates and give some job oriented problems to examine their reasoning ability. Job analysis should be done after a specific time period which will help to explore new skills, abilities and knowledge required for the jobs. The HR department can arrange web based training programs to make the training program cost effective. Besides they should also introduce job enlargement, enrichment, rotation, team work to develop the skills and abilities of the employees. The management must appreciate the performance of the employees. Recognition, praise, and adding responsibilities all work as motivators for the employees. They can give salary increments to the employees based on their improved performance. There should be 360- degree feedback system by interview. For this process different people who are related with the employees such as suppliers, customers, peers, etc. evaluate their performance and the performance feedback should be provided to the employees on a regular basis. All the aspects of human resources should be maintained in the

20

employee database to reduce the manual file work and data redundancy in order to make the employee information system cost effective. SPL should conduct a formalized moving average method or weighted average method to identify the accurate forecasting for the organization. Employees are the most important assets for any organization. So the organization must ensure that the right person is hired for the right position at the right time and he is trained and developed properly to accomplish his job activities effectively. While providing the job description to the new employee the supply chain department itself changes the job description to fit it with the employee. They do not contact the HR department to make them know about these changes. Thus the HR department cannot know properly what a new employee is actually doing in the company and what his responsibilities are. SPL should also work on this issue.

21

8.0 CONCLUTION:
Square Pharmaceuticals Ltd. now-a-days is holding the top position in pharmaceuticals industry in Bangladesh, with market share of 18.71 percent. It strictly follows the labor law to recruit employees and maintain them. The most widely used recruitment source for this company is external sources. It provides training for all employees working in different levels of the organization. This training includes both skill development training and safety training. Promotion process is very tough in Square. But after a certain accomplishment it provides incentive facilities for employees.

22

REFERENCE
1. www.polarisproject.org/
2. www.sljm.pim.lk/.../human_resource_management_practices-a_case_

23