'Compensation system by zobaer\r'

'These injure exercises include benevolent mental imagery architectural planning, en constituteing and cream, induction, raining, death penalty estimation, employee development, compensation plan, and so forth This proveion has go outd the fortune to break a authority the maltreat practices of a communication channel body of rules and to none out the facts which argon creating barriers to effective rail at. †90- Introduction adult male mental imagery focal point (HARM) Is a relatively fresh cin one casept In Bangladesh. It was few historic period past that this was considered as a part of the administrative manoeuvrections of an nerve.There was no one-on-one identity for HARM. But as sentence passed good deal recognized the importance of HARM in arrangings. They realized that HARM is to just to hire people. obscure complicate to hiring, HARM has lots of functions which help an inventoryamental law to gain competitive advantage (Islam, 2006). Ef fective HARM practices support assembly line line goals and objectives. That is why effective HARM practices argon strategic. It stand improve the implementation of an system of rules by improving customer satisfaction, innovation and productivity.So from HER planning, enlisting and selection to procreation, carrying into action appraisal, compensation, solely(a) practices of HARM atomic function 18 now considered as equally Important as each impudent(prenominal) aspects of the giving medication much(prenominal)(prenominal) as marketing, financing, etc. Literature Review human beings preference vigilance (HARM) is both an academic theory and a business practice that addresses the theoretical and practical techniques of managing a body of workforce. Synonyms include personnel administration, personnel way, manpower management, and industrial management (http en. Wisped. Erg). concord to Non, Hollowness, Gerhard and Wright (2006), human vision management quot es to the policies, practices and systems that influence employees air, attitudes, and military operation. They excessively say that m both(prenominal) companies refer to HARM as involving ‘people practices. HARM is the organisational function that deals tit issues think to people much(prenominal) as compensation, hiring, performance management, nerve development, safety, tumefyness, benefits, employee motivation, communication, administration, and educate (Hatfield, 2006). fit in to Walked, a web base encyclopedia, HARM serves five place functions: 1) Hilling, 2) Compensation, 3) Evaluation and Management (of Performance), 4) Promotions, and 5) Management, Volvo. 10, Nos. 3&4: Volvo. 11, Nos. 1 & 2- 91 †of activities, and key among them is deciding what staffing subscribes the organization has and whether to use indep dismissent contractors or hire employees to deal these deeds, recruiting and knowledge the beat employees, ensuring they argon hi gh performers, transaction with performance issues, and ensuring that the personnel and management practices conform to heterogeneous regulations.Activities overly include managing the organizations approach to employee benefits and compensation, employee records and personnel policies (Manager, 2006). According to Winning, what necessary in an HER Department ar the functions and responsibilities which no(prenominal) else either wants or is cap suit competent of doing. From recruiting to orienting cleanfangled employees, from writing argument comments to tracking att annihilateance, and from instituting ND observe policies to monitoring benefits, on that point has been a need for an HER generalist to assist senior management in both establishing a coordinate to hold down be of administration (Winning, 2005).The ultimate aim of HARM is to encounter that at all times the business is aright staffed by the right human activity of people with the achievements relevant to the business needs (Islam, 2006). so HARM is meant to unlock the talent, experience, wisdom and common sense of m all at bottom the organization by making work simpler, quicker, reenforcementing, safer and fun (http://www. Cell-team. Com). Research Methodology This look article is chance direct-based. Squ ar Pharmaceuticals Ltd (SSP) does dupe a separate Human Resource Department.The major part of this model register is based on face-to-face interviews with managers and executives, using a call into questionnaire. , which consists of view and opinions of those particular people, which might raise the question of bias. In some cases some of them were not able to provide concrete facts or fugues. In this case some assumptions had to be made. Interviewing the managers and executives of SSP has provided the primary sources of discipline. Furtherto a greater extent, order brochures, documents, and the ac connection website were the secondary sources of data. No survey metho d has been use in this regard.Finally, due to time constraints it was not executable to conduct extensive interviews and surveys which could raise the interrogation report card more informative. A case landing field is the fact of any particular issues, the contents of which require an in-depth focus of the affable sciences field to Human Resource Management Practices -92- reckon its phenomenon on the basis of it being an individual enigma (Leeds, 1997). One of the essential characteristics of using the case abide approach is that it focuses on ‘one instance of the amour that is to be investigated (Denseness, 1998).The advantage of the case study oer some radical(prenominal) methods is that it attempts to be comprehensive, and involves the researcher in describing and analyzing the full moon notes, ‘one of the advantages cited for case study research is its uniqueness, its depicted object for understanding complexity in particular contexts. apart from g eneralization, some other criticisms canful be that the case study method is a slight rigorous form of inquiry, based on the accumulation of information and there is a lack of discipline in what smith (1991) described as the logically weakest method of knowing.Mitchell (1999) states that the radical problem in the use of case strong is theoretical that case studies prove valuable in situations where existing knowledge is limited, often providing in-depth contextual information, which may return in a superior take of understanding. Furthermore, case studies prove advantageous when the focus of the study is not typicality but the unusual, unexpected, covert or extracurricular (Hartley, 1994).The objective of this study is achieved by means of one individual case study which provides both depth and reliability (see, for trial runple, Harris and Gabon, 1998; Marching and Harrison, 1991; Sturdy, 1992). This case study is selected for a number of reasons, data accessibility , establishment organization, size and contribution in the sector and so on. It is said that a whizz case study is not enough for research. However, a single case study can fleet a lot of depth in the research atomic number 18a (see, for example, Dollar and Quaked, 2005.Mullahs et al. , 2002). Square Pharmaceuticals Ltd †Company Overview In Bangladesh, Square straight past symbolizes a name †a state of mind. But its Journey to harvest-festival and successfulness has been no bed of roses. From the inception in 1958, it has today burgeoned into one of the top line conglomerates in Bangladesh. SSP is the largest pharmaceutical company in Bangladesh and it has been continuously in the start- forth position among all national and multinational Sir Lankan daybook of Management, Volvo. 10, 3&4: Volvo. 11, NOS. 1 & 2-93- companies since 1985.SSP is the manufacturer and vender of finished pharmaceutical products, prefatorial chemicals and agro vet products. Its products are manufactured in the form of tablets, capsules, suppositories, injections, liquids, drops, ointment, cream and powder, ad-lib dry powder, inhalers and meter dose inhalers. SSP was converted into a public limited company in 1991. before long the ales turnover of SSP is more than Take 622 core with 16. 23 portion market share having a growth rate of somewhat 14. 91 per centum. Square Pharmaceuticals Ltd. Ousted 11 percent growth in pharmaceutical planning in 2004 and the company alike introduced 43 new products during the intent (December 25, The Daily Star- 2004). SSP has blanket(a) her range of work towards the highway of the global market. She pioneered exports of medicines from Bangladesh in 1987 and has been exporting antibiotics and other pharmaceutical products. This extension in business and go has manifested the credibility of SSP. SSP strives, above all, for top calibre health care products at the least cost orbit the lowest rungs of the economic cla ss of people in the coun extend.They value their societal obligations. They owe a duty to their shareholders and strive for protection of their capital as well as ensure the highest return and growth of their as stage sets (http:// www. Squarers. Com. Bad). According to SSP, their vision, mission and objectives are: Vision: [Square Pharmaceuticals Ltd] view business as a means to the material and social well being of the investors, employees and society at large, leaders to accretion f wealth finished monetary and moral gains as a part of the litigate of human civilization.Mission: [Square Pharmaceuticals Ltd] mission is to produce and provide quality and innovative healthcare relief for people, maintain purely ethical standards in business operation and also ensuring benefit to the shareholders, stakeholders and Objectives: [Square Pharmaceuticals Ltd] objectives are to conduct transparent business operations based on the market mechanism within the legal and social framew ork with aims to shine the mission reflected by [their] vision. (http / www. Squarers. Com. Bad). Human Resource Management Practices Supply Chain Department of Square Pharmaceuticals Ltd.Square Pharmaceuticals Ltd consists of some(prenominal) individual subdivisions much(prenominal) as accounting & finance, marketing, sales, administration, human preference, fork out range of mountains, etc. All these divisions are relate with one or more sections within the organization. For this research composition we prepare concentrated on the sum drawing string segment of SSP. Throughout the research paper we pass on describe the HER activities related to this incision and try to identify the problems and provide some recommendations to reduce or eliminate the problems. The try strand division f SSP mainly whole caboodle as the procurement incision.It purchases all the undeniable raw materials, machinery and equipment, things needed for official work, food, vehicles needed for staff and management, etc. thus all the draw and quarter in truth takes place finished the summate concatenation subdivision. It is known as the tot up kitchen stove surgical incision as it also maintains the suppliers exterior of the organization on behalf of the organization. All the discussion sections of the organization that need their necessary things cast a requisition to the yield chain discussion section with the take over of the discussion section head. Then the put out chain incision obtains the consent of theExecutive Director, Administration (DEAD) and contacts with different suppliers. It collects the quotations from the different-suppliers and decides from which supplier it will purchase the goods. The supply chain surgical incision not only deals with the local suppliers but also with the foreign suppliers (The structure of the supply chain surgical incision of SSP is precondition in the appendix). Key Themes While manipulation dif ferent human resource activities related to the supply chain subdivision we have found that SSP does not have any specific human recapitulating course of instruction for the supply chain segment.It does not follow any aroma labor demand forecasting and quieten did not take any initiative to square the labor supply properly. So it still cannot mensuration whether there are more or less employees than what it existingly needs. Sir Lankan diary of Management, Volvo. 10, Nos. 3 & 4: Volvo. 11, Nos. 1 & 2 †95 †While going through the recruitment and selection surgical sue we found that afterward the vacancy circulation lots of people submit their C.v.. So it is precise difficult to sort these large numbers racket of C.v. and identify the person who can compete in the further steps of selection to ful withdraw the reflect requirement.In the selection work on the candidates only o through the write exam and interviews. The company does not provide any bu siness organisation related problems for the candidates to solve. therefore it becomes very difficult to understand whether the candidates will be able to handle the avocation-oriented problems in reality. While providing the melodic line verbal description to the new employee the supply chain contact the HER department to make them know round these changes. Thus the HER department cannot know properly what a new employee is actually doing in the company and what his responsibilities are. SSP sometimes provides on the affair training and off the railway line training.It has the capability to heighten the knowledge level f the employees to improve the skills and abilities of the employees. In the supply chain department of SSP there are no specific employee development processes. The employees are stipulation progresss on the basis of their performance at the end of the year. But there is no practice of Job enlargement or enrichment or any other career development plan. The employees acquire close the Job from the training platform and sometimes learn from the mentoring of their head. Thus the employees do not have any probability to develop their career through diversification.The employees of the supply chain department are valued only by self-importance and the previous for performance appraisal. But the employees are not evaluated by other parties such as the suppliers, peers, etc. Even the feedback is not always provided to the employees properly. So it seems to us that the appraisal system is not consistent with the application as now there are more strategic foc employ performance appraisal systems in practice. There are no specific takings systems for the employees recognition except the promotions. They do not retrieve any bonus or increment based on their performance.The whole compensation system for the employees of this department is quite sound though there is no Human Resource Management Practices regular practice of a specific no n-monetary compensation system such as recognition, praise, etc. To encourage the employees. The employee information system is not well organized. For some aspects of record sustenance an employee database is used and some other information of the employees is record manually by the file system. So sometimes there may be redundancy in data storing which is not cost effective for the company.Human Resource Planning The human resource planning process starts with a forecast of the people needed for the company and consists of goal setting and strategic planning and plan implementation and evaluation (Non et al. , 2006). In the following part of the report we will debate human resource planning in SSP in the context of its supply chain department. Human Resource Plan and prophecy The human resource plan for the supply chain department is the identical as that for all the other departments of SSP. The HER department prepares the plan at the end of the year.It collects the informati on from all the departments of the company about how many people they will need in the next year. The perfect departments heads send the requisition with detailed information about what kind of person they need or their departments. Thus forecasting of future employees for the supply chain department is made in this way. Then human resource department takes the initiative for recruitment of those people, which we will discuss in the next segment of recruitment and selection. If the department needs more people at any time of the resource department.Except this forecasting part, SSP does not have any formal strategic planning. They did not go about any labor surplus problem so far. So they did not need to plan for cut back the labor surplus by downsizing, early privacy or any other techniques of laying off people (Personal communication, 2006). Sir Lankan Journal of Management, Volvo. 10, Nos. 3 & 4: Volvo. 11, Nos. 1 & 2- 97- enlisting and Selection Human resource recr uitment is the practice or activity carried out by the organization with the primary purpose of identifying and attracting say-so employees.Selection is the process by which companies decide who will or will not be allowed into organizations (Non et al. , 2006). Thus recruitment is the process of getting a jackpot of candidates for the organization who can meet the requirements of a specific Job. after(prenominal) that selecting a person from those candidates is one of the toughest Jobs for an organization. In todays competitive business world it is very difficult to survive without potential manpower. Successful recruitment and selection can be expensive and time-consuming.But unsuccessful recruitment and selection can be a cause of the death of a business. SSP is one of the biggest employers in Bangladesh. Here we will discuss the recruitment policies and process for the supply chain department of SSP. Recruitment Objectives SSP needs such people for the supply chain department who can meet the needs of the organization to maintain the core business activities. Thus it searches for such people who are capable of doing the procurements and also maintaining the relationship with the supplier as a example of SSP.Thus the objective of SSP is to hire a dynamic and enceinte person in the supply chain management area. Recruitment Policies Recruitment for the supply chain department in SSP is a Job of the human resource department. The human resource department finds a pool of candidates and along with the supply chain department selects the best person for the Job. Human Resource Management Practices -98- Recruitment Process for Supply Chain Department For the recruitment process JPLs supply chain department follows a very formal hiring process.Here the process is described briefly. The jock General Manager (GM) of the department fills up a requisition form with the Job position, requirements, criteria, Job description, and number of positions. It also clarif ies why the department needs a new person. Then the requisition is verified and approved by the HER Manager. The HER department publishes a circular in the newspaper for both the executives and non- executive level posts. It also publishes a circular in Job inquisitory websites on the Internet (I. E. Boots) for the executive level posts.After receiving the C.v. from the candidates the selection process starts (Personal communication, 2006). Selection Process The HER department does a primary sorting of the C.v. and sends them to the supply candidates for a written examination. The HER department and the supply chain department make the question papers and conduct the exam. Both the HER department and the supply chain department weaken the exam scripts. The selected candidates from the written exam are called for an interview with the HER department and the supply chain department.Before going for the interview candidates fill a management application form with their individualis ed information and remuneration expectations. Sir Lankan Journal of Management, Volvo. 10, Nos. 3 & 4: Volvo. 11, Nos. 1 & 2- 99- Sometimes the salary negotiation is make at the interview. The candidates selected from this interview are formally of selected for the Job. After that the selected candidates are sent for a checkup check up. If everything is fine in the medical report indeed the appointment letter is accustomed to the candidates with a set of instructions about the code of conduct of the organization (PersonalInduction and Probation Period for New Employees Induction refers to the process of dowery people to make the transition into a new workplace, a new role or area of responsibility. It is considered to be a continuous process which principally starts with contact prior to victorious up involution and proceeds through arrival, first days/weeks on the Job and generally up to the third calendar month of employment. Induction is essential for all staff disregardless of category or conditions of employment (http:// woman. Monish. Deed. AU).In SSP induction is the process of introducing the new employee to the organization. The HER department sakes the initiative to introduce the new employee to all the departments of SSP. A presentation is conducted by the department to let the new employee know about SSP in detail. Along with this an orientation program continues for 7-10 days to be familiar and linked with all the departments as the supply chain department is related to all other departments of the company. From six months after Joining the employee goes through a probation close.Within this time training is given to the employee. The employee tries to learn about his Job. After six months an evaluation of this employee is conducted by the GM. If the outlet is not fitting then the probation period is extended to another three months. After three months again a performance evaluation takes place. Then if the result is satisf actory the employee becomes permanent. But if the result is not satisfactory the employees Job is terminated by the department with the consent of DEAD (Personal communication, 2006).Human Resource Management Practices -100- Job explanation A Job description is a list of tasks, duties, and responsibilities that a Job entails (Non et al. , 2006). Job descriptions are vatic to describe duties and performance tankards that are directly linked to organisational success factors established by the leadership, and for which it is volition to pay up a salary (Moore, 2007). Thus it works as a guidepost for an employee to accomplish his Job activities effectively. It also provides a standard for the supervisor of the employee to evaluate the employees of the department.When an employee Joins this department the GM prepares a new Job description based on the companys Job description and the skills and abilities that the employee actually obtains. Then the Job description is given to the e mployee. The employee follows the Job description as a guideline for his Job. During performance appraisal the supervisors also use the Job description to compare the employees actual performance with the postulate one (Personal communication, 2006). development readiness is a plotted effort to facilitate the learning of Jobs related knowledge, skills and behavior by employees (Non et al. 2006). In SSP like all other departments the supply chain department also arranges for a training program. Training takes place here in different forms. These are discussed here briefly. Induction Training After Joining this department of SSP the new employees get a specific training for a period of six months. During this time they are taught their Job related activities. This training is conducted in two different ways. These are classroom training and off the job training. Sir Lankan Journal of Management, Volvo. 10, Nos. &4: Volvo. 11, Nos. 1 & 2- 101 †Classroom Training Class room training is arranged by SSP. The supply chain department sends the list of the employees who will need the training and the topics that the training should cover to the HER department. Then the HER department contacts JPLs faculties to conduct the training. Thus classroom training is provided to the employees. At the end of training the employees are evaluated through a presentation. If the training result is satisfactory then the employees probation period comes to an end.Off-the-Job Training Off-the-Job training takes place away from the standard work situation which means that the employee is not regarded as a productive worker when training is taking place. An advantage of off-the-Job training is that it allows people to get away from work and totally concentrate on the training being given. This is most effective for training concepts and ideas (http://en. Wisped. Org). For this training purpose the supply chain similarly contacts the HER department. The HER department th en arranges the training program with some outside organization to provide training.Sometimes even the employees are also sent abroad for training. Here also the employees are needed to make a presentation in front of the top-level management after the completion of the training. on-the-job Training On-the-Job training is given in a normal working situation, using the actual tools, equipment, documents or materials that they will use when fully trained. On-the-lob training is usually most effective for vocational work (http:// en. Kipped. Org). The Assistant General Manager (GM) of the supply chain department conducts a training program once a year for all the employees of the department.This is arranged for a very short period of time such as two or three days. At that time he tries to find out whether any employee needs any extensive training program or not, based on his performance evaluation. If any training program is required for the employees he contacts the HER department to arrange the training program (Personal -102- Employee using Development is the acquisition of knowledge, skills, and behaviors that improve an employees ability to meet changes in Job requirements and in client and customer demands (Non et al. , 2006).There are several methods for employee development such as, formal education program, Job enlargement, Job enrichment, Job rotation, transfer, promotions, etc. In SSP for the supply chain department there are no such employee development processes. The employees are given promotions on the basis of their performance at the end of the year (personal communication, 2006). There are no opportunities for the employees to have Job enlargement, Job enrichment, rotation, etc. Thus they cannot learn anything more than their own Job activities and developing a career.Performance Appraisal Performance appraisal is the process through which an organization gets information on how well an employee is doing his or her Job (Non et al. , 2006). Th e central feature of any performance appraisal system is the establishment of objectives against which any mind of the performance of the individual is based. The supply chain department of SSP conducts the performance appraisal for all the employees of the department. The HER department helps in this process. At first the employees are even the opportunity of self-evaluation.Later on the employees are evaluated by their reporting boss and the person supervising his boss. Thus all the employees including the GM and DEAD are evaluated. The MD evaluates the Ideas performance. For this evaluation purpose there is a specific performance appraisal form. Then the GM, DEAD and MD sit in concert to take decisions based on the employee evaluation. If any employees performance is not satisfactory then they decide about how the performance of that employee can be improved. If any employees performance is outstanding then he gets a promotion (Personal communication. 006). Sir Lankan Journal of Management, Volvo. 10, Nos. 3&4: Volvo. 11, Nos. 1 & 2- 103- reinforcement and Compensation System The reward system of an organization includes anything that an employee may value and desire and that the employer is able or willing to rear in exchange for employee contributions. The reward system consists of a compensation and non-compensation system. Compensation refers to all forms of financial returns and tangible services and benefits employees receive as part of an employment relationship.Pay Structure Pay structure is the relative pay of different Jobs bib structure) and how much they are paid (pay level) (Non et al. 2006). The pay structure for the employees of the supply chain department of SSP is shown below. elemental Salary + household Rent + Transport + Medical Allowance other(a) Benefits Besides the promotion an increment in the introductory salary is granted for all the employees once a year to adjust with inflation. The employees get five bonuses in a year. They also have the provident fund facility.For the provident fund the company itself cuts 10 percent from the basic and the employees need to submit 10 percent from his own income. SSP also has a retirement plan for the employees. They take gratuity from the company after retirement. The company also provides the profit sharing plan for the employees. The employees get some health care benefits at a discounted rate from selected hospitals and health care centers of Square. From now the employees will get health care benefits at a discounted rate at the Square Hospital.The employees can have their food from the office canteen free of cost. The employees of this department get cell phone facilities from the company. SSP has an official sympathy with Grahame phone. The company provides the hand set to the employees with the Simi card. Besides, SSP also pays a fixed bill of the monthly ill of the employees Basic pay: Basic pay usually refers to the pay received without taking into account any excess benefits or bonuses, such as a car, medical cover, commissions, clothing, food etc. T also refers to the amount of pay before taking any deductions such as tax off. Every employees of the organization has been provided a basic salary which varies according to their ranks. Compensation bundle are given on the basis of their basic payment forethoughtful computer memory: The Companys prudent Fund is a funded scheme. All confirmed and permanent employees are entitled to be members of the Provident Fund. The employee nutrition, equal to 10% of the basic salary, is deducted each month through the payroll. The Companys Provident Fund is a funded scheme.All long-established and enduring employees are at liberty to be members of the Provident Fund. In the Provident Fund Ledger, both the employees and the Companys contributions are accredited to the individual employees account. Gratuity Facility: Gratuity is a scheme to motivate people to serve for longer duratio ns with the same employer. Anybody who has served an organization for more than 5 years is entitled for Gratuity. A portion of the employees last drawn salary would be multiplied with he number of years of service and paid out when the leave an organization after years of service.This facility has been provided by the organization when an employee will leave from the organization. premiumes: Incentive bonuses are a creative form of compensation that some employers offer their employees. Bonuses and cash incentives are a form of variant pay linked to individual, collective or organizational performance. Non cash incentives are also widely used such as; competency based pay, skill based pay, employee recognition and commission. 0 Festival Bonus: The bonus that is given on the eve of ghostlike festival is called\r\n'