Documente Academic
Documente Profesional
Documente Cultură
Prepared for:
Dr. A.N.M. Shibly Noman Khan
Assistant Professor, Human Resource Management
Prepared by:
NAME: ID:
1
November 10, 2010
Dear Sir,
I am very much enthusiastic to let you know that my assigned final report has been done
with pre-announced time limitation and I am going to submit it herewith.
Basically, the report had been developed based on the “HRM of Delta Pharmaceuticals
Ltd.”
Because of my crude knowledge, slip-up might be visible to some extents. I anticipate your
forgiveness in this regard.
2
ACKNOWLEDGEMENT
Last but not the least; I would like to thank our honorable course instructor Dr.
A.N.M. Shibly Noman Khan for giving me proper guide line for project. It would be
impossible for me to prepare this report without his assistance.
CONTENT AT A GLANCE
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TOPIC PAGE NO.
1. ABSTRACT 5
2. INTRODUCTION 6
4. SUDY LIMITATIONS 9
5. LITERATURE REVIEW 9
6. ANALYSIS OF HRM 9
8. RECOMMENDATION 30
9. CONCLUSION 30
10. REFERENCES 32
Abstract:
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Now-a-days, Effective firms of developed countries have become much more aware
compared to previous time to implement their manpower appropriately for achieving competitive
advantages. Human Resource Department exists in almost all of those firms. It is considered as a
part and parcel of the organization. Managers of all levels of those firms have realized that
competitive advantage always comes not only from a good design of product, ensuring good
quality, choosing the world best machineries’ and spare parts but from organized, motivated,
enthusiastic and loyal employees. But, they believe that it is not an easy job to motivate the
employees and ensure their loyalty as people are animated with emotion, likes and dislikes. So,
an appropriate strategic system is required to deal with Human resource. But, who will develop
this strategy and resolve different issues regarding Human Resource (HR)? So, a different HR
department was established by the firms and the norm flourished day by day. The scenario is
somewhat different here in Bangladesh. We are still lacking behind. Still, a good number of
organizations of us don’t have a HR department. What is worse is that many of those
organizations perceive HR department worthless and unnecessary investment. But, it’s a matter
of happiness that there are some organizations including the multinational corporations which
have a very strong HR department and which rely on the worth of the establishment of a sole HR
department like other departments such as Marketing, Finance, Account, R&D and so forth.
“Delta pharmaceuticals LTD” is one of those organizations which rely heavily on its HR
department for the overall success of the firm. The HR Department of the “Delta Pharma” plays
a vital role for the overall success of the organization not only by hiring and firing but also
contributing for making good decisions and keeping the top management informed regarding
different aspects. On the other hand, to some extents, HR department is ignored in Delta. So,
there are both positive and negative aspects.
Introduction:
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According to Jeffery A. Mello it can be said that HR department of an organization not
only plays a role by recruiting and managing manpower but also assisting other departments for
achieving the goals. Marketing department might develop a very good marketing strategy;
Finance department might uphold a very good sketch as well but this aspect is not well enough
for success. It is HR which will carry on these strategies. IF Human Resource is not duly
motivated, success might not be achieved. As a result of which each and every organization
should have a well organized personnel management system and HR department which will keep
its Human Resource well motivated by ensuring full satisfaction. In our own organizations, the
HR practice has been flourishing day by day regardless of the size and nature of the
organizations. We can recognize the HR practice in the Telecom industries, Ad agencies,
educational institutions, Bank, Pharmaceuticals companies of our country.
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As long as we are dealing with a pharmaceuticals company, we have made an effort to
draw an overview of the history of pharmaceuticals companies of our country as a whole. We
have also drawn an overview of “Delta Pharmaceuticals LTD” which is our concerning
organization.
The pharmaceutical industry as a sector has been performed relatively well in Bangladesh. It has
experienced 18 % growth during the year 2009 and is now recognized to have great export potential. This
is a highly competitive industry with more than 240 companies and 4,400 products. Though number of
products seems to be higher but all of them fall into 425 categories.
The total market size of Domestic pharmaceutical market was BDT 5781 Cr in 2009. There is a
steady growth of domestic market since 1981.
The industry has thus become a leading growth sector, with some prominent manufacturers
operating under ISO certification and producing the finest medicines by internationally accepted
standard. Out of some 240 pharmaceuticals, as many as 30 big ones have most sophisticated
production plants with a capacity to meet international standard like the United States Food and
Drug Administration (USFDA). Among 49 LDCs, Bangladesh has most advanced industries in
this sector.
Multinational and large national companies generally follow current good manufacturing
practices (cGMP) including rigorous quality control of their products.
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requires of health care of the community and recovered future for the country, whereas, in each stride,
from the procurement of raw material to the manufacturing of finished goods, the company chases,
imitate and support the latest World Health Organization (WHO) permitted all principles of Good
Manufacturing Practices (GMP). In 2010 DELTA PHARMA LTD receive ISO certification for its quality
management system. Besides the national market, DELTA PHARMA LTD started its business
internationally. Currently DELTA PHARMA is doing business in 9 countries and business with 11 other
countries is under process.
PRODUCT OFFERINGS
Delta offers a wide range of pharmaceutical portfolio of different therapeutic segments of more
than 65 generics in more than 100 presentations. Moreover, Delta has gained a leading edge in many
therapeutic groups like Anticancer, Antibiotic, Cardiovascular, Antipsychotic, Vitamins and Minerals,
Antidiabetics, Antiallergies, Antioxidents, Haematinics, NSAIDs, Antiulcerants and so on. To remain at
the forefront of challenging pharma field, Delta is also headed towards the launching of new and
innovative molecules.
Managing Director
General Manager
(HR-IT-Planning)
General Manager General Manager
(Commercial) (Plant)
Marketing
Manager
(HR-IT-Planning)
Fig
HR IT AC
` Quality
Production
Product Sales Control
Literature review:
I intended to fine-tune my study with appropriate back up of previous relative study or
consultant’s opinion. Here, i have made an effort to come up with the crucial definition of the
consultants of some important topics those are very much relevant with my study. I have also
studied some relevant articles done before to add new dimension in our report. All these features
have been explained below:
Analysis:
Here, I am make an effort to analyze critically some very important issues associated
with the practice of HRM in Delta Pharmaceuticals Ltd other. I will also try to focus on those
extents where HR is not practiced in Delta pharma.
HRM planning:
To bring any sorts of initiatives into practice an organization should fine-tune its Human
Resource Planning (HRP). The department head of HR department of Delta pharma LTD Mr.
Arifur Rahman and manager of product management department Mr. Zaiur rahman perceived the
same thing. So, Delta pharma is always conscious about this aspect.
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There are two reasons for Delta Pharma for developing HR planning:
Ω To ensure outstanding assistance from employees to achieve success as they are the
strategic resource for Delta.
For hiring new employee HR department of Delta adopts a specific guideline which is a
formal one, it is well structured and it generally does not vary from situation to situation. This
guide line is strictly followed for hiring all entry level employees including –
Ω Product executive,
Ω Medical promotion representatives and
Ω Executive or official levels employees.
The guideline is only changed a bit in term of defining and revising the job
responsibilities and job specification.
A recruitment and selection process for a product executive has been discussed below by
mentioning different sequential approach:
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Reviewing requirements:
Once the prerequisites and objectives are well defined, a board meeting is held including the
departmental managers to decide whether they will go for the recruitment process or not.
To ensure a needy recruitment the following aspects are considered:
♠ Whether the newly hired candidates will contribute for attaining the organizational goal.
♠ Whether the departmental manager is able to keep up the better performance if the candidates
is not hired.
♠ Assessing ROI
After considering the above factors, decisions have been taken regarding the recruitment. ROI is
a crucial part here. A regression analysis is conducted to examine whether the recruitment will
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exceed the investment or not. If it is justified with respect to the investment, recruitment process
is taken place.
The pre-defined responsibilities for this particular position are revised in this stage and to some
extents new dimensions are added here. The firm focuses in this regard to rearrange the job
description by adding or eliminating responsibilities. Based on this new job description, a job
specification is also developed. The major considerations are as follows:
◊ The expectation of the management from the employee for this position.
◊ To highlight the basic weakness and achievement of the previous employee for this position.
Job specification:
Basically for this position, Job specification or requirement has been developed based on major
three dimensions- • Age
• Education
• Qualification
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Apart from that some other factors are also considered as important which have been discussed
below:
• Education: Their criterion is a graduate from Pharmacy, Medical collage or from Biochemistry
with preferably MBA
• Qualification: Experienced candidates are preferred rather than fresh graduates having better
analytical ability and product management knowledge.
• Preferred institution:
The students from leading public universities which have a better Pharmacy or
biochemistry department such as Dhaka University, Jahangirnogor University, Rajshahi
University, Chittagong University get priority for this positrion. The candidates from the leading
private universities having a strong pharmacy department such as NSU, EWU are also hired.
• Communication skill.
• Leadership ability.
• Accountability.
• Strategic capability.
Product executive officers are hired both internally and externally. The following options are
considered as important here:
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Internal search:
Succession planning:
The firm, first of all considers its succession planning to see whether any potential employee can
fill this vacant position. Promoting an internal employee into the position for motivating is also a
consideration. But, the most important consideration is the negative consequences if any internal
employee is filled for the vacant position. If the negative aspects are greater than those of
positive, the internal recruitment will not be taken place and vice versa.
External Search:
Advertisement:
The HRD of Delta Pharma always prefers to advertise in renowned newspapers. Both English
and Bengali well known national dailies are considered equally important in this regard.
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Executive search:
As the organization always prefer experienced employees in this regard; executive search is
considered as a better option for finding the potential employees who are already employed in
well reputed organization. So, the HRD of Delta makes an effort to attract those employees.
Basically, it is not possible for the firm to conduct a written test exam for all the candidates.
So, before going for the written test, some candidates are eliminated primarily based on different
criteria such as style and language of CV and cover letter, qualification, experience, educational
back ground and so on. Around 60% candidates are eliminated in this stage and rest of the 60%
employees is asked for the written test.
Written test:
This is a very crucial part in the recruitment process. It is a mandatory part for the recruitment
process. Written test is basically conducted to evaluate the technical knowledge, analytical
ability and creative power which are very important for all positions, job knowledge and other
competencies. Generally, 50% (out of rest 40%) candidates are eliminated here.
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Selection process:
1st interview:
The 1st interview board is consisted of all departmental heads including the head of the HR
department of the firm. Here, the departmental head ask different question such as-
◊ Stress question
◊ Situational question
◊ Puzzled question and
◊ Job related other question.
The interviewers always focus on the reliability and validity of the questions.
Here, the interviewees try to examine the following aspects of the employees:
Employment interview:
In is regard, the candidates are in formed regarding the posting location, salary package,
job condition, specific job responsibility. The candidates are asked as well regarding their
expectation. Around eliminating process is also active in this regard. Around 1:3candiates are
kept in this stage with respect to the number of employees to be recruited.
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Reference check:
After checking out the reference, the candidates are asked to accomplish a through
medical check up. Once the candidates submit the medical report, it is evaluated properly to see
whether the candidate is physically eligible to play a role foe the organization.
Final candidate is selected after checking medical and references.
Once the final candidate joins for the firm, the selection process comes to an end. The
management generally always has 2nd and 3rd option apart from the finally selected candidate.
If the finally selected candidate doesn’t join for the firm, the management goes for the 2nd and
3rd options.
As described earlier the recruitment and selection process of Delta is very formal and
structured. The firm generally follows the recruitment policy very strictly. Delta adopts the same
type of recruitment and selection process for medical and executive or officer level which they
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adopt for the product executive position. Only the goal and job specification vary from the
recruitment process of product executive.
♦ To expand the organizational dimension and promoting and launching a new product.
Job specification:
♦Experience: In this regard, the firm prefer the fresh graduates rather than the experienced
candidates.
♦ SKA: Skill, knowledge and ability is always is always crucial for any kind of job.
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♠ Experience: Should have minimum 5 years job involvement.
♠ Leadership ability: Leadership ability is considered as very important for this position.
♠ Proper job knowledge: The candidates should posses a cery good job knowledge.
♠ Analytical ability: Some times play vital role for initiating or developing new product. So,
analytical ability is crucial.
Figure-2: Recruitment and selection yield pyramid based on a recent recruitment for
product executive:
No. of candidates
Reviewing
Revising job Defining job
requirements:
responsibilities: specification:
• Forecasting future
• Examining the main role • Required
vacancy.
competencies.
• Departmental • Major required strength
requirement. • SKA
• Weakness of the last
• Market expansion. candidate for the position. • Accountability.
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• To cope up with • Strategic ability.
changing
environment.
Recruitment option: Evaluating CVs: Written test:
Ω Internal search: • Language and style of • Accountability
CVs and cover letter.
• Previous employees • Knowledge
• Evaluating educational
• Referred employees • Problem solving
background,
qualification, experiences ability.
Ω External search:
• 1st round elimination. • Analytical ability
• Advertisement
• Strategic ability
• Executive search
Employment
1st interview: interview: Reference check:
Medical report:
•Confirmation letter
• Full medical check up.
• Joining report
• Physical capability for performing the job.
• Orientation.
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As a part of this the employees try to observe special days. For example in last Bangla New Year
they observe the festival “Pohela Baishakh” in their plant at Kishoregonj, where all employees
with their family were invited. There were cultural program, raffle draw, village fair etc.
Apart from that the top management always discusses with their subordinates for making crucial
decision and takes their recommendations before making decisions. For every policy making and
implementation they have a committee, where representative of the concerned departments are
involved. As a result of which employees perceive themselves as very active part of the
organization and they are well motivated as well which eventually ensures a sound in-house
employee relation.
Delta Pharma always focuses on training and development programs. The management
always considers the training and development programs as investment rather than expenditure.
For all departments there is a training program schedule for the year. This is a bit more structured
in sales department, as they need the training more frequently compared to other departments.
Types and reasons for initiating training and development programs:
Type:
1. Basic training for the fresh employees and
2. Refresher training for existing employee for promoting their skill.
Reasons:
To promote the working skills for both new and current employees
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Return on Investment of training and development program:
There are no direct means of calculating the RIO of training, rather it is measured qualitatively. HRD
measures the performance especially in sales forces before and after the training.
TRANSFER POLICIES:
Mr. Arifur Rahman, Head of HR department of Delta Pharma said, “We have nine other
depot offices outside Dhaka. So, we has a very structured transfer policies regarding to what
extents the employees would be transferred and how would be they transferred across different
positions and branches.
Transfer is mainly required for following purpose:
a. Employee interest: If any employee interested to have a transfer, we analyze is there are
vacancy and transfer him or her.
b. Company interest: If company needs anyone to transfer we transfer the employee with
transfer benefits.
e. Job Rotation: Job of the employees is rotated from one position to another for managing the
succession planning.
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EVALUATION OF JOB:
Job analysis can be regarded as an examination of the job in an organization with a view to
documenting the skill, knowledge and abilities (SKAs) associated with successful performance
of those job. The written outcomes of this process are referred to either as a job description or a
job specification.
Job description refers to the duties or tasks to be carried on the job whereas job specification
refers to the competencies the job holder must possesses for the success of the job.
The above mentioned features are evaluated properly to analyze a job. Apart from that, for all
position there are some criteria for evaluating the employees’ performance. There are some
quantitative and some qualitative criteria for all employees by which their performances is
evaluated in every month.
For example for an Medical Promotion Officer the major criteria are sales achievement
percentage, prescription share, Monthly exam result, product return percentages, monthly
outstanding status etc.
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PAY POLICY:
Delta has a fixed portion in the total salary for each position. Employee will get it
regardless the performance. But there is a variable portion of the salary which depends on the
months’ performance of the employee. So, two employees of similar position and similar basic
salary may receive different payment depending on their performance.
Some other issues:
• Pay scale: Information is not given as it is very much confidential.
• Provident fund: Around 8% of the basic salary goes to the provident fund.
• Medical facilities: The doctors appointed by the firm always take care of the
employees. Apart from that, employees can always consume their company provided medicine
free for charge. But, the medicines should be prescribed by the doctors. Unless and until payment
is mandatory
• OHS: The management of Delta Pharma Ltd is very much aware about the term OHS
(Occupational health and safety). They have an official and unofficial device to compensate the
employees when the employees are found victim due to an accident occurred within the province
of the organization.
Officially they have group insurance and unofficially the employees personally contribute to help
the employee.
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I
FIG:5
DISCIPLINARY PROGRAMS:
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To maintain the total discipline Delta has incentive and punishment. Depending on the
severity of the unethical practice management has following disciplinary actions:
• Transfer
• Not to carry out any lawful order imposed by the authority and to induce others for
doing the same thing by undue influence or coercion.
PUBLIC RELATION:
Delta Pharma Ltd. always focuses on maintaining a proper communal relationship with general
♠ Public,
♠ Government,
♠ Non-government and
♠ Private organizations.
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The HRD always focuses on the different strategies to maintain a proper relationship based on
the type of the firm.
ADMINISTRATIVE ACTIVITIES:
• Transfer: Job rotation, promotion, transferring for punishment.
• Cautionary note: Cautionary letter is sent to the employees to make them aware if they are
found guilty for the involvement with unethical or criminal offences.
• Force leave: Often the firm induces the employees to take leave for getting rid of monotony. It
is done deliberately by the firm sometimes with an intention to create a chance for job rotation
and developing succession planning.
• Termination etc.
The manager of product management department, Mr. Ziaur Rahman said, “Before
launching a project or new product or we conduct a feasibility study. This includes marketing
feasibility (done by marketing division), commercial feasibility (done by Commercial division),
financial feasibility (done by Accounts department) and technical feasibility (done by Plant). If
the project is feasible then we go for launching with a detailed launching plan done by marketing
division. We always consider the recommendations of the employees if it is good.”
So, you can easily recognize that the role of HR is not visible for developing a new concept
which might not motivate the employees of HR department for their 100% effort.
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PERFORMANCE MANAGEMENT:
Delta pharmaceuticals Ltd. always manage the performance of the employees using a rating
system. The system has been discussed below using figure and scoring methods:
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Illustration of the above figures:
2= Performance is not meeting the level of anticipation and still need improvements.
The HR department keeps the record of performance of each and every employee. There
is a part of salary which totally depends on the performance. This is a major device Delta uses to
maintain the employees’ performance. Besides, yearly evaluation is done based on performance.
Apart from that the employees scoring 1 and 2 on regular basis are motivated to promote
their performance. Those who score 4 and 5 are encouraged to keep up their performance and
they are treated with reward.
According to the product Manager of Delta pharma, Mr. Ziaur rahman it can be said that the
organization rely heavily on their HR and HR department for the overall performance of the
organization. At the same time he insisted that “Human Resource” is their major core-
competence.
To be honest HR is well practiced in Delta but to some extents the HRD is ignored and get
less priority in the organization.
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CONCLUSION:
After visiting Delta Pharma Ltd, we came to learn that HR is practiced very well there
and it has a positive impact for the overall performance of the organization. The role of HR
department is quite visible here in term of HR planning, recruitment, maintaining a sound
employee relation, making the salary package attractive and so forth. The manager of the product
management department of Delta Mr. Ziaur Rahman mentioned, “The performance of our HRD
is outstanding. They have managed to ensure a very good in house employee relation by
motivating the employees in an appropriate way through the implementation of different
motives. As a result of which our turn over rate has been reduced from 30% to 7%.”
But Delta is not free from drawbacks. To some extents the role of Hunan Resource
Department is not visible. Organizational design should be changed for improving those aspects.
If Delta could do it then it would be very much helpful for achieving competitive advantages.
Recommendations:
To be honest, Delta is a very organized firm and the role of HR department is quite
visible in Delta apart from few aspects. To some extents the role of HR department is quite
needed but they HR department is not getting the chance to access those parts of the
organization. We would like to recommend Delta to improve those aspects and to ensure the role
of HR department. The aspects have been discussed below:
Role of HR department:
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Delta always concentrates more on the Marketing, finance and IT planning. The HR
planning and HRD is somewhat ignored in Delta to some extents. But, HRD should be given
proper concentration like other department and HR planning should be developed appropriately
like other plantings.
Delta always initiates training and development programs only for promoting the skills of
the employees. This is the sole objective for Delta to initiate training and development program.
Delta never initiate training and development program for increasing the cultural
awareness of the employees. But, cultural awareness is a crucial issue for any kind of
organization. The overall improvement of internal common corporate culture promotes the
overall performance of the employees.
Selection process:
As described earlier, in term of final selection of new candidates the particular departmental head
gets more priority depending on the department for which recruitment has been accomplished.
For example, if a marketing executive is supposed to be hired, the final candidates would be
selected by the marketing departmental head.
But, the head of the HR department should have the authority along with the
departmental head to select the final candidates as well. HR department is responsible always for
hiring a new employee and ensuring their satisfaction by ensuring a good working environment,
preparing an attractive salary package, resolving problems and so forth. So, HR department
actually deal with people. As a result of which, if HR manager does not have the authority like
the departmental head to select the final candidate then he would not be motivated. Eventually,
this aspect might have a negative impact on the overall performance of HR department
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REFERENCES:
1. Mello, Jeffrey A. Strategic Human Resource Management: Singapore:
Thomson Asia pte Ltd, 2002.
Glossary:
We have used some technical term and short form of different crucial terms for
convenience throughout the whole report. We would like to clarify those terms below:
• Bivariate Analysis: An analysis consisted of two variables- One dependent and one
independent variable.
Thank you…
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