Compensation system by zobaer

These disability practices intromit sympathetic imagery figurening, enlisting and plectron, induction, raining, feat judgment, employee education, compensation plan, and so forth This discussion has pull up stakesd the opportunity to analyze the HARM practices of a business brass section and to find out the facts which atomic number 18 creating barriers to effective HARM. 90- Introduction gentle imaging Management (HARM) Is a relatively overbold concept In Bangladesh. It was few socio-economic classs ago that this was considered as a part of the administrative functions of an organization.There was no mortal indistinguishability for HARM. tho as eon passed plenty recognized the importance of HARM in organizations. They realized that HARM is to just to direct hoi polloi. Apart form hiring, HARM has atomic reactors of functions which help an organization to gain warring service (Islam, 2006). Effective HARM practices support business goals and objectives. That is wherefore effective HARM practices atomic number 18 strategic. It put up meliorate the military operation of an organization by improving customer satisfaction, innovation and productivity.So from HER planning, recruitment and selection to educate, performance appraisal, compensation, altogether practices of HARM argon this instant considered as equally Important as all other(a) aspects of the organization much(prenominal)(prenominal) as food marketing, financing, and so forth Literature Review benignant imaginativeness management (HARM) is two an academic theory and a business practice that addresses the theoretical and practical techniques of managing a workforce. Synonyms include violence administration, psychenel management, manpower management, and industrial management (http en. Wisped. Erg). According to Non, Hollowness, Gerhard and Wright (2006), human option management refers to the policies, practices and systems that influence employees behavior, at soft dietudes, and performance. They excessively say that mevery companies refer to HARM as involving people practices. HARM is the organizational function that deals tit issues related to people such as compensation, hiring, performance management, organization development, safety, considerablyness, benefits, employee motivation, communication, administration, and readiness (Hatfield, 2006).According to Walked, a web establish encyclopedia, HARM serves five discover functions 1) Hilling, 2) Compensation, 3) Evaluation and Management (of surgical operation), 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 occupyfully the organization has and whether to use independent contractors or hire employees to fill these deeds, recruiting and readiness the top hat employees, ensuring they are high performers, dealing with performance issues, and ensuring that the personnel and management pra ctices conform to various regulations.Activities overly include managing the organizations approach to employee benefits and compensation, employee records and personnel policies ( theatre director, 2006). According to Winning, what necessary in an HER Department are the functions and responsibilities which n hotshot else either wants or is capable of doing. From recruiting to orienting new employees, from writing line descriptions to tracking attendance, and from instituting ND monitoring policies to monitoring benefits, at that place has been a adopt for an HER generalist to assist senior management in both establishing a mental synthesis to hold down costs of administration (Winning, 2005).The ultimate aim of HARM is to stop that at all times the business is correctly staffed by the right number of people with the skills relevant to the business needs (Islam, 2006). Thus HARM is meant to unlock the talent, experience, wisdom and common sense of many within the organization by making work simpler, quicker, rewarding, safer and fun (http//www. Cell-team. Com). Research Methodology This research article is eccentric person cigaretvass-establish. Square Pharmaceuticals Ltd (SSP) does give birth a separate Human Resource Department.The major part of this lesson select is establish on face-to-face querys with managers and executives, using a questionnaire. , which consists of view and opinions of those particular people, which might raise the question of bias. In both(prenominal) cases some of them were not able to exit 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 information. Furthermore, company brochures, documents, and the company website were the secondary sources of data. No survey method has been used in this regard.Finally, repayable to time constraints it was not possible to conduct extensive interviews and surveys which could nurse the research paper more informative. A case study is the fact of any particular issues, the contents of which require an in-depth focus of the well-disposed sciences area to Human Resource Management Practices -92- empathise its phenomenon on the tush of it being an individual problem (Leeds, 1997). One of the requisite characteristics of using the case study approach is that it focuses on one instance of the thing that is to be investigated (Denseness, 1998).The advantage of the case study over other methods is that it attempts to be comprehensive, and involves the researcher in describing and analyzing the full notes, one of the advantages cited for case study research is its uniqueness, its capacity for understanding complexity in particular contexts. Apart from generalization, other criticisms great deal be that the case study method is a less rigorous form of inquiry, based on the accumulation of information and there is a lack of discipline in what Smith (1991) desc ri sock as the logically weakest method of knowing.Mitchell (1999) states that the basic problem in the use of case material is theoretical that case studies prove valuable in situations where existing knowledge is restrict, often providing in-depth contextual information, which may result in a superior level of understanding. Furthermore, case studies prove advantageous when the focus of the study is not typicality and the unusual, unexpected, covert or illicit (Hartley, 1994).The objective of this study is achieved by one single case study which provides both depth and reliability (see, for testingple, Harris and Gabon, 1998 Marching and Harrison, 1991 Sturdy, 1992). This case study is selected for a number of reasons, data accessibility, organization organization, size and contribution in the sector and so on. It is said that a single case study is not enough for research. However, a single case study can give a lot of depth in the research area (see, for example, Dollar and Quaked, 2005.Mullahs et al. , 2002). Square Pharmaceuticals Ltd Company Overview In Bangladesh, Square at once symbolizes a name a state of mind. But its Journey to branch 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. SSP is the largest pharmaceutical company in Bangladesh and it has been continuously in the first-class honours degree 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 marketer of finished pharmaceutical products, basic chemicals and agro vet products. Its products are manufactured in the form of tablets, capsules, suppositories, injections, liquids, drops, ointment, cream and powder, oral dry powder, inhalers and meter dose inhalers. SSP was converted into a public limited company in 1991. Currently the ales turnover of SSP is more than Take 622 core with 16. 23 percent market share having a growth rate of roughly 14. 91 percent. Square Pharmaceuticals Ltd. Ousted 11 percent growth in pharmaceutical formulation in 2004 and the company also introduced 43 new products during the period (December 25, The unremarkable Star- 2004). SSP has extended her range of services 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 denotation in business and services has manifested the credibility of SSP. SSP strives, above all, for top quality wellness care products at the least cost reaching the lowest rungs of the economic class of people in the country.They abide by their social obligations. They owe a responsibility to their shareholders and strive for protection of their capital as well as ensure the highest return and growth of their assets (http// www. Squarers. Com. Bad). According to SSP, their vision, armorial bearing 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, leading to accretion f wealth through financial and moral gains as a part of the sue of human civilization.Mission Square Pharmaceuticals Ltd mission is to produce and provide quality and innovative healthcare relief for people, maintain stringently 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 framework with aims to attain 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 several individual sections such as accounting & finance, marketing, s ales, administration, human resource, tack on bowed stringed instrument, etc. All these sections are relate with one or more sections within the organization. For this research paper we have concentrated on the hang on ambit incision of SSP. Throughout the research paper we will describe the HER activities related to this department and try to identify the problems and provide some recommendations to reduce or eliminate the problems. The generate filament department f SSP mainly industrial plant as the procurement department.It secures all the needed raw materials, machinery and equipment, things needed for official work, food, vehicles needed for staff and management, etc. Thus all the purchasing actually takes place through the supply range of mountains department. It is known as the supply chain department as it also maintains the suppliers outside of the organization on behalf of the organization. All the departments of the organization that need their necessary things send a requisition to the supply chain department with the consent of the department head. wherefore the supply chain department obtains the consent of theExecutive Director, Administration (DEAD) and contacts with different suppliers. It collects the quotations from the different-suppliers and conciliates from which supplier it will purchase the goods. The supply chain department not only deals with the local suppliers but also with the foreign suppliers (The organise of the supply chain department of SSP is given in the appendix). Key Themes While finding different human resource activities related to the supply chain department we have found that SSP does not have any particular(prenominal) human recapitulating political platform for the supply chain department.It does not follow any aroma tug demand look forward toing and still did not take any initiative to determine the pains supply decently. So it still cannot measure whether there are more or less employees than what it actually needs. Sir Lankan journal of Management, Volvo. 10, Nos. 3 & 4 Volvo. 11, Nos. 1 & 2 95 While going through the recruitment and selection process we found that subsequently the vacancy circulation lots of people submit their C.v.. So it is very unenviable to sort these large numbers of C.v. and identify the person who can compete in the further stairs of selection to fulfill the suppose requirement.In the selection process the candidates only o through the written exam and interviews. The company does not provide any Job related problems for the candidates to solve. Thus it becomes very difficult to understand whether the candidates will be able to dedicatele the Job-oriented problems in reality. While providing the Job description to the new employee the supply chain contact the HER department to marque them know about these changes. Thus the HER department cannot know properly what a new employee is actually doing in the company and what his responsibi lities are. SSP sometimes provides on the Job study and off the Job prep.It has the capability to enhance 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 given promotions on the dry land of their performance at the end of the year. But there is no practice of Job enlargement or enrichment or any other rush development plan. The employees learn about the Job from the training course of instruction and sometimes learn from the mentoring of their boss. Thus the employees do not have any opportunity to develop their career through diversification.The employees of the supply chain department are evaluated only by self 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 t hat the appraisal system is not consistent with the industry as now there are more strategic focused performance appraisal systems in practice. There are no specific reward systems for the employees fruition except the promotions. They do not get any subsidy or increment based on their performance.The whole compensation system for the employees of this department is quite sizeable though there is no Human Resource Management Practices regular practice of a specific non-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 maintenance an employee database is used and some other information of the employees is recorded 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 program implementation and rating (Non et al. , 2006). In the following part of the report we will discuss human resource planning in SSP in the context of its supply chain department. Human Resource Plan and Forecasting The human resource plan for the supply chain department is the same as that for all the other departments of SSP. The HER department prepares the plan at the end of the year.It collects the information from all the departments of the company about how many people they will need in the neighboring year. The entire 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 a t any time of the resource department.Except this forecasting part, SSP does not have any formal strategic planning. They did not faced any labor excessiveness problem so far. So they did not need to plan for reducing the labor surplus by downsizing, early retirement 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- recruitment and selection Human resource recruitment is the practice or activity carried out by the organization with the primary purpose of identifying and attracting potential 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 pool of candidates for the organization who can meet the requirements of a specific Job. After 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 un achievementful 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 representative of SSP.Thus the objective of SSP is to hire a dynamic and outstanding 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 Assistant ecumenical Manager (GM) of the department fills up a requisition form with the Job position, requirements, criteria, Job description, and number of positions. It also clarifies why the department needs a new person. Then the requisition is verified and approved by the HER Manager. The HER department publishes a neb in the newspaper for both the executives and non- executive level posts. It also publishes a circular in Job searching 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 s ends 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 check 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 personal information and profit expectations. Sir Lankan Journal of Management, Volvo. 10, Nos. 3 & 4 Volvo. 11, Nos. 1 & 2- 99- Sometimes the wage negotiation is done 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 medical check up. If everything is fine in the medical report then the appointment letter is given to the candidates with a set of instructions about the code of conduct of the organization (PersonalInduction and Probati on Period for New Employees Induction refers to the process of helping 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 generally starts with contact prior to taking up manipulation and proceeds through arrival, first days/weeks on the Job and generally up to the third month of employment. Induction is essential for all staff regardless 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 half doz en months after connexion the employee goes through a probation period.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 result is not satisfactory then the probation period is extended to another tether months. After three months again a performance evaluation takes place. Then if the result is satisfactory 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 Description A Job description is a list of tasks, duties, and responsibilities that a Job entails (Non et al. , 2006). Job descriptions are supposed to describe duties and performance tankards that are directly linked to organizational success factors established by the leadership, and for which it is willing to pay a salary (Moore, 2007 ). Thus it works as a guideline 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 employee. 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 required one (Personal communication, 2006). raising readying is a planned 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 2 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 Classroom 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 normal work situation which means that the empl oyee is not regarded as a amentiferous worker when training is taking place. An advantage of off-the-Job training is that it allows people to get away from work and completely 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 then 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 su pply 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 Development 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). The of import feature of any performance appraisal system is the establishment of objectives against which any assessment 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 superintendence his boss. Thus all the employees including the GM and DEAD are evaluated. The MD evaluates the Ideas performan ce. For this evaluation purpose there is a specific performance appraisal form. Then the GM, DEAD and MD sit together 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- Reward 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 offer 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 h ow much they are gainful (pay level) (Non et al. 2006). The pay structure for the employees of the supply chain department of SSP is shown below. introductory Salary + Home Rent + lift + Medical Allowance Other Benefits Besides the promotion an increment in the basic salary is apt(p) 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 donation from the company after retirement. The company also provides the profit sharing scheme 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 smudge canteen free of cost. The employees of this department get cell phone facilities from the company. SSP has an official agreement with Grahame phone. The company provides the hand set to the employees with the Simi card. Besides, SSP also pays a fixed amount of the monthly ill of the employees Basic pay Basic pay usually refers to the pay received without taking into account any additional benefits or bonuses, such as a car, medical cover, commissions, clothing, food etc. T also refers to the amount of pay to begin with 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 package are given on the basis of their basic payment presbyopic Fund The Companys Provident 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 durations with the same employer. Anybody who has served an organization for more than 5 years is eligible for Gratuity. A sight of the employees last drawn salary would be multiplied with he number of years of service and salaried out when the pull up stakes an organization after years of service.This facility has been provided by the organization when an employee will leave from the organization. Bonuses Incentive bonuses are a creative form of compensation that some employers offer their employees. Bonuses and cash incentives are a form of variable pay linked to individual, collective or organizational perform ance. 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 religious festival is called