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“HRM Practice in BEXIMCO-Pharmaceuticals Ltd.

” 1
Executive Summary

Human organization activity is simply the act of getting people together to accomplish
desired goals. Any organization, whether new or old, small or big needs to run smoothly
and achieve the goals and objectives which it has set forth. For it develops and
implements its own Human Resource Management concepts. As such, the basic functions
of HRM, broken down into seven different areas, allow for it to handle the strategic,
tactical and operational decisions for the organization. The seven functions of HRM are:
Planning, Recruiting, Selection, Socialization, Training and Development, Performance
Appraisal, Compensation, Labor relation, and Motivation function

Beximco Pharma (BPL) is a leading edge pharmaceutical company based in Bangladesh

and is acclaimed for its outstanding product quality, world-class manufacturing facilities,
product development capabilities and outstanding professional services. Its strategic
strengths include strong recognition of brands, highly skilled work force and diversified
business mix. Being a Learning Organization the core essence of Beximco Pharma is its
entrepreneurial spirit in every sphere of its management. In this spirit, the tasks of each
managerial function are carried out through HRM.

In this report, we have tried our best to exemplify how the basic functions of HRM are
exercised in Beximco Pharma. We have analyzed BPL’s several functions: planning,
recruiting and selection, training and development, performance appraisal and employee
compensation from the view of Theoretical Definition, Practical Application, Basic
Principles followed and Technology used in each of the functions. We also discussed the
BPL’s goals, mission and vision. This report focuses on the Organization’s recruiting
process, selection process, source of recruiting, attracting, method of training,
method of developing, compensation and pay rates of BPL which is very significant
from contemporary managerial perspective and also a key concept of organization theory.
we tried to give a thorough idea of the overall economic and industrial condition, existing
competitions in both home and abroad, and future threats of international open markets
etc. In addition to that, we have recommended some alternatives in the final segment of
the report that we believe, could be helpful for BPL to prevail over the mentioned

“HRM Practice in BEXIMCO-Pharmaceuticals Ltd.” 2


Our min objective is to prepare this report to know about the human recourse practice in
an organization. We try to focus on the report about the HR practice in BEXIMCO-
PHARMA. The objectives of the study are as follows:

♦ To know the HRM policies followed in BPL, Bangladesh.

♦ To identify the various avenues for improving the HRM policies of BPL,


♦ Suggesting strategies to improve the HRM policies of BPL, Bangladesh.

To complete our report and reach in a decision we use some method. To collect
information we search internet, read newspaper, and utilize our personal observation. As
it is a report so our data is secondary data.


Beximco Pharmaceuticals Ltd. (BPL) has been the trendsetter in Bangladesh

Pharmaceutical Market since its inception in 1979. Over the last decade BPL actually
rose to a new standard – moving beyond manufacturing quality medicines to win mind
share of patients, physicians, shareholders, business partners, and communities where we
work and live. Our dedication to add more value to the common wealth of the society
compounded by innovative strategies for growth and diversification, pioneering role in
bringing new technology and implementing new ideas, and commitment for total quality
management distills the glory of our success. Today BPL is not merely a market leader.
Most of the products that it actively markets enjoy leadership position demonstrating
incomparable trust of the healthcare professionals. This is the reward for the outstanding
quality of our products- at BPL we never compromise with the quality of our products so
that our fellow citizens can live long, happy and better. BPL is the pioneer in introducing

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medical service activities: publishing a full-fledged medical newsletter regularly,
conducting clinical seminars and symposiums to have better understanding of various
diseases and their management. BPL is the first national company who dared to diversify
its business into manufacturing bulk drugs to integrate it self backwards as well as
develop the nation’s pharma industry. While it would have been relatively easy to
diversify the business into consumer products, BPL chose the harder path with a long-
term vision. Today BPL is ready to face the challenge of scarce sourcing of Active
Pharmaceutical Ingredients (API) in the post-WTO era, with its advanced API
manufacturing capability.

BPL is one of the first companies to have an extensively computerized and automated
working environment connecting every corner of the country to the centre. Productivity
through connectivity is one of our heritage of progress. BPL is the first company to go
beyond the national boundary, exporting its quality products in overseas markets in Asia,
Africa, and Europe. More than that, BPL has probably fulfilled a national aspiration of
turning a once import dependent country into an exporter of quality medicines. We
believe, With our technological and managerial know-how and ability to take on
challenges, we will be able to progress much faster towards our objective of becoming
the nation’s most Visionary company.

1.4 Scope:

Our assignment is only document basis so we have not opportunity to take interview,
survey and make observation. As it is a report about an organization so we have
opportunity to collect data by reading documents from their web sites.

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Beximco Pharmaceuticals Ltd. is a leading edge pharmaceutical company based in

Dhaka, Bangladesh and is acclaimed for its outstanding product quality, world-class
manufacturing facilities, product development capabilities and outstanding professional
services. Beximco Pharma is the pioneer in pharmaceutical export from Bangladesh and
has received National Export Trophy (Gold), the highest national accolade for export, for
record three times.
Year of Establishment:
Commercial Production:
Public Limited Company
Business Lines:
Manufacturing and marketing of Pharmaceutical Finished Formulation Products, Large
Volume Parenterals, Small Volume Parenterals, Ophthalmic Preparations, Nebulizer
Solutions and Active Pharmaceutical Ingredients (APIs)
Overseas Offices & Associates:
Australia, Bhutan, Cambodia, Chile, Ghana, Hong Kong, Indonesia, Jordan, Kenya,
Kuwait, Malaysia, Myanmar, Nepal, Pakistan, Philippines, Saudi Arabia, Singapore, Sri
Lanka, Vietnam and Yemen
Authorized Capital (Taka):
2,000 million
Paid-up Capital (Taka):
1,259.57 million

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Number of Shareholders:
Around 66,000
Stock Exchange Listings:
Dhaka Stock Exchange, Chittagong Stock Exchange and AIM of London Stock
Number of Employees:


2.2 Vision
BPL’s passionate effort to achieve excellence in all spheres of its operations and its keen
endeavor to incorporate innovative new technologies into its manufacturing practice puts
it ahead of its contemporaries. Viewing the business as a mean of the social well-being of
the investor, employees and the society and customers is the main vision of BPL. The
company makes their best effort to ascertain the financial wealth and moral gains as a
part of the process of the human civilization. Beximco Pharmaceuticals Limited is
committed to contribute to keep the earth clean.

2.3 Mission

Each of our activities must benefit and add value to the common wealth of our society.
We firmly believe that, in the final analysis we are accountable to each of the constituents
with whom we interact; namely: our employees, our customers, our business associates,
our fellow citizens and our shareholders.

2.4 Goals
BPL has a strong market focus and is anticipating continued future growth by leveraging
business capabilities and developing superior product brands and markets. The company
is now moving to the world market and trying to expand their business worldwide with a
good quality image. Innovation of new products and satisfying the ever-changing need of
consumers remains a top priority goal. Ensuring full effort to enhance shareholders
highest returns and growth of their asset also holds a key goal of the company.

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2.5 Core Values
Trust and reliability to the products emerged as one of the core values of Beximco
Pharmaceuticals Limited. It maintains quality in manufacturing of products according to
the rules of the WHO. Hiring a competent branch of people who are best in their capacity
to serve the company best, strengthen the BPL function of operation .It also give
emphasize on promoting new products through research and bringing cost efficiency in
business operations.
Beximco Pharma believes that it is in the business which deals with human health which
makes it more responsible to keep the highest standards of its products. Through its
products it tries to deliver clear benefits to the patients.
Good products, however, are only one side of its expression of commitment. BPL
believes its responsibility lies even more in ensuring that the society gets benefited while
it continues to grow.
2.6 Corporate Social Responsibilities:
Corporate social responsibility is an integral part of BPL’s business strategy which is
reflected in its mission statement. Every employee of the company knows that the
company does not view its success and achievements in financial terms only, but also in
terms of its deep relationship with the society.
Each year, an increasing amount of contribution is ploughed back into social causes,
demonstrating Beximco Pharma's commitment to the nation. More importantly the
company's contribution extends beyond one-time donation to ongoing participation as
reflected in its partnership with NGOs working for AIDS patients, in supporting sports,
and in raising disease awareness among the people.
BPL donated medicines worth millions of taka to victims in national and international
calamities. Donation of medicines to victims of earthquake in Pakistan and victims of
tsunami in Sri Lanka are worth mentioning.
The company maintains a team of scientists who works as pharmaceutical experts for
good governance that give direct benefit to the common people and shareholders.
Beximco Pharmaceuticals Limited carefully designed its facilities for reducing hazardous
impact on the environment through operational excellence providing a friendly
environment for a healthy society for tomorrow being the main responsibility of BPL.

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Human Resource Management:

HRM is a field of management involves planning organizing, directing and controlling

the functions of procuring, developing, maintaining and motivating a labor force.

Human Resource Management Process:

Human Resource Management Process consists of eight activities necessary for

staffing the organization and sustaining high employed performance. The process is
described below:

HR Selection
Planning &

Orientation Training

Benefits &

3.0 Human Resource Management in BEXIMCO Pharmaceuticals Ltd

(BPL), Bangladesh
3.1 Human Resource Planning in BPL:

Planning is the core area of all the functions of management. It is the foundation upon
which the other three areas should be built. Planning requires management to evaluate

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where human resource of the company is currently, and where it would like to be in the
future. From there an appropriate course of action to attain the company's goals and
objectives is determined and implemented.
Every organization has employment planning. BPL has also its employment planning.
They usually forecast their personnel needs based on their mission, strategic goals &
objectives & technological and other changes resulting in increased productivity.
Although there are several methods to predict personnel needs, but they use managerial
judgment because it gives the more real world scenario for personnel needs. They think
that the other methods can not give the accurate situation of the personnel needs. These
are basically graphical methods, which can not measure the actual personnel needs. But
managerial judgment method depends upon the change in productivity, market conditions
3.2 Recruitment and Selection process in BPL:

BPL looks for top-caliber people who want the flexibility and resources to grow in their
career. If you're the kind of person who has always stood out, we offer a place where you
can continue to excel. No matter what your field or range of interests, there are vacancies
where your talents can likely be applied and developed. They have thousands of diverse
people from different cultures and backgrounds working in a variety of different jobs in
different fields

• Merit is the sole criteria for selection.

• Attitude is given as much weight age as functional competencies.

• Panel interviews comprising of Functional Head & HR Head.

• Sources for recruitment are through campus, consultants, employee referrals,

internal job postings and the internet.

• Positions in Officer Cadre, GET and MT involve written tests.

• Antecedent verification is an integral part of our recruitment process.

• Medical fitness is pre-requisite for all positions.

• Provide equal opportunity employer and do not discriminate on the basis of race,

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community, religion or sex.

3.2-(A) Recruitment process:

A responsibility for recruitment usually belongs to the HR department. This department
works to find and attract capable applicants. Job description and speciation provide the
needed information upon which the recruitment process starts. The functions of the
recruitment office of BPL are given below:

1. Need Assessment
2. Defining the position description
3. Checking the recruiting options
4. Advertisement
5. Screening and Short – listing Applications
6. Written test
7. Selection interview (3 – tier)
8. Employment decision (Application Bank)
9. Pre- employment medical check-up
10. Offer letter
11. Orientation / Induction
12. Placement
13. Follow –up

3.2-(A-1) Source of Recruitment:

Bangladesh is done in four ways depending on the job category of the vacant position.
Therefore, the recruitment process of this organization is classified into four types, which
are done based on the job grade/ group. These are as follows:
Ω Entry-level management
Ω MT (Manager Trainee)
Ω Mid or / and Senior level management
Ω Graded staff / Non- management staff

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Internal Source:

There could be a person competent for the required job working within the organization.
If there is, the existing manpower is then shuffled to place the selected person in the new
post. If there is no such person inside the company, then the management goes for the
second step.

Job-posting programs:

HR departments become involved when internal job openings are publicized to

employees through job positioning programs, which informs employees about opening
and required qualifications and invite qualify employees to apply. The notices usually are
posted on company bulletin boards or are placed in the company newspaper.
Qualification and other facts typically are drawn from the job analysis information.

The purpose of job posting is to encourage employees to seek promotion and transfers the
help the HR department fill internal opening and meet employee’s personal objectives.
Not all jobs openings are posted .Besides entry level positions, senior management and
top stuff positions may be filled by merit or with external recruiting. Job posting is most
common for lower level clerical, technical and supervisory positions.

Departing Employees:

An often overlooked source of recruiters consists of departing employees. Many

employees leave because they can no longer work the traditional 40 hours work week
.School, child care needs and other commitments are the common reason. Some might
gladly stay if they could rearrange their hours of work or their responsibilities .Instead,
they quit when a transfer to a part-time job may retain their valuable skill and training.
Even if part-time work is not a solution, a temporary leave of absence may satisfy the
employee and some future recruiting need of the employer.

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External Source:

All the above options being considered, the company goes for external recruiting if
needed. Those who best meet the skills, qualifications, experience and competencies
required for the position should fill vacancies. Therefore, if there is no candidate within
BPL, Bangladesh who is suitable for the role, external advertisement should be placed to
attract the potential candidates followed by the selection procedures.


The Company gives advertisement in national dailies (both Bangla and English) to attract
the talents from the market. BPL, Bangladesh puts two types of advertisements in the
newspapers. It sometimes keeps the identity concealed in the ads, mentioning a GPO
BOX number only. The purpose of the concealed identity is to avoid the unwanted
pressure from the stakeholders for the employment of their desired candidates. But this
way the company may lose the talents out there in the market who would have applied for
the same post had they known the name of the organization. This is why the company
kept the identity open in their recent job advertisement when the quality of the candidate
was a very important factor to consider. By revealing the BPL identify, the company
attempts to attract the best potentials among all the others.

Employee referrals:
Employee referral means using personal contracts to locate job opportunities. It is a
recommendation from a current employee regarding a job applicant. The logic behind
employee referral is that “it takes one to know one”. Employees working in the, in this
case, are encouraged to recommend the names of their friends working in other
organization for a possible vacancy in the near future.
Employment Agency:

An agency finds and prescreens applicants, referring those who seem qualified to the
organization for further assessment and final selection. An agency can screen effectively
only it has a clear understanding of the position it is trying to fill. Thus it is very

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important that an employer be as specific and accurate as possible when describing a
position and its recruitment to an employment agency.

Walk-ins and Write-ins:

Walk-ins are some seekers who arrived at the HR department of BPL in search of a job;
Write-ins are those who send a written enquire .both groups normally are ask to complete
and application blank to determine their interest and abilities. Usable application is kept
in an active file until a suitable opening occurs or until an application is too old to be
considered valid, usually six months.

Consulting the CV Bank:

The unsolicited applications stored in the data bank are consulted. If the quality of a
person matches with the requirements mentioned in the position description, then he / she
is called for interview. If not, then the third step is followed.

3.2-(B) Selection Process:

Selection is the process of gathering information for the purpose of evaluating and
deciding who should be employed in particular jobs.

3.2-(B1) Screening and Short-listing Applications:

The responses to the advertisements are sorted and screened. The CVs as well as the
Covering letters are judged. In the covering letter, the style and language of writing, the
emphasis put on the areas asked for tin the advertisements and the quality of the letter
(whether it is specifically tailored to the advertisement or just a standard response) are the
aspects that are judged. Different weights are assigned to the selection criteria mentioned
in the man specification depending on their relative importance. (for example,
educational institutions like IBA, BUET are given the highest weight among the local
ones and the foreign universities of UK, Australia, etc. are put at par with the best of the
country). Based on the presence of these factors to the desired extent (experience,
educational degree, computer literacy, etc) the cumulative weights for all the applicants

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are counted and the short list of a sizable number of the top most candidates is generated.
However, the HR officials also study the CVs with the respective line manager to check
whether any valuable deciding parameter is missed that are mentioned in the CVs. Then
the candidates selected in the short list are called for the written test.

3.2-(B2) Written Test

Written test is not a regular part of the normal recruitment process. It is conducted as and
when required. Previously no written test was taken for the management employee, the
applicants had to go directly through the interview process. After the introduction of the
manager trainee program, the written test before the interview process has proved to be
effective and a useful tool to select the desirable candidates. The written test includes
psychometric test, test on behavioral competency, and written test on communication
skills. The candidates are called for the preliminary (first) interview based on their
performance in the written test.

3.2-(B3) Selection Interview

The interview process is a three-tier one. A preliminary interview is conducted which
follows the “elimination method”. After that, the second interview takes place with a very
few number of candidates. Then the finally selected person is called for the final
interview. The interview time is kept convenient for the candidate especially if s/he is
working elsewhere at the time of interview. In that case the chosen time is after the
business hour.

3.2-(B4) Reference Check

Reference checks allow obtaining information and opinions regarding the person’s
character, quality of the work and suitability for the position. It is an opportunity to
validate the information received from the candidate via their resume and the interview.
Speaking to the candidate’s manager or other people whom they have worked with
should also check internal candidates. The opinion of a referee who has worked can for
an extended period is likely to be more accurate than the assessment from one to two
hours of interviewing.

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The candidate’s immediate supervisors are needed to be contacted. Permission should be
obtained to contact the candidate’s referee especially if their current employer is
contacted. It is not unusual for a candidate to be uncomfortable with the organization’s
speaking to a current employer. If they are uncomfortable, an alternative person other
than the current employer has to be chosen by the candidate (work colleague, for
example). Unless the candidate is a graduate or school leaver with no prior work
experience, only contact work related referees should be contacted. At least two reference
cheeks should be done, however the more the better.

There is a sample reference-checking guide that is more or less followed. It is important

to prepare a reference check guide that asks the referee about the key skills, competencies
and experience required for the position. Reference checks need to be done by line
manager or personnel of the HR department.

During the interviews, the candidates would have given some examples of incidents,
tasks or projects that can be asked about. The referee should be asked what the candidate
did in those examples, which ascertain whether the information received from the
candidate is consistent with that of the referee.

Subjective questions may not always be a reliable guide; however it can be useful to get
the referee’s opinion on areas such as quality and quantity of work, strengths and
weaknesses etc. a format of Reference Checking Guide is presented in Appendix-1.

3.2-(B5) Employment Decision

If the candidate has no problem with the stated terms and conditions of the job and the
organization mentioned and discussed in the final interview, s/he is offered an application
blank. The application blank is a standard format of employee-information that includes
all the information the organization needs regarding the personnel. The candidate has to
fill this blank and submit this to the company along with a CV.

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3.2-(B6) Pre-employment Medical Check-up:
After submission of the application and the CV, the selected person has to go through full
medical check-up that guarantees her/his physical fitness to perform the job successfully.
A medical practitioner who uses a physical capability analysis that assesses the candidate
against the physical capabilities documented for each role conducts the medical. A
medical is also appropriate for internal candidates if they are applying for positions that
require different physical capabilities.

3.2-(B7) Offering the Role:

Once the health check-up is done, the candidate is given an offer letter specifying the
salary package, job responsibilities, utilities that will be provided by the organization.
Even at this stage the selected candidate has the chance to withdraw her/himself from the
job offer. s/he is always free to discuss whatever difficulty may arise regarding pay-
structure/facilities, etc. the door of HR is kept open for any sort of relevant discussion.

Verbal offer:
The verbal offer of the role to the candidate is given once the medical and reference
checks have been successfully completed. The discussion should cover the following:
Tell the candidate that you would like to offer them the role.
Congratulate them.
Tell them the remuneration package that is being offered, including superannuating.
Ask them if they are happy with it.
Ask them if they verbally accept the position.
Tell them that we will be sending them a written letter of offer and introductory
Written letter of offer:
A written letter of offer must be forwarded to the candidate. Once the candidate has
verbally accepted the position, the appropriate letter of offer is organized. This letter
should be sent to the candidate within two days of making the verbal offer. An
introductory package will be sent to the successful candidate, along with the letter of

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offer. At least one week before the person commencing in their new position, an
Appointment notice will be placed on notice boards and/or the internet.


Need assessment Checking the recruiting Advertisement in National

options Dailies
• Vacancy in existing (Both Bangla and English)
• Internal
• Market expansion
• External
• Increase in production
• Launching new product
• Introducing new system

Written test (optional) Sorting Applications
• Preliminary interview: • IQ test
elimination process (short-
• Behavioral competencies Weights are assigned based on
• Communication skills the selection criteria
• Second interview: work
knowledge /behavioral
• Final interview: pre-selection

Selection Orientation /induction Follow up

• Application blank filling
• Medical check-up HR Department continuously
• Exposure to all important
• Offer letter interacts with the new entrants
business /functions and
assisting to cope up with the
locations of the company
work environment, work
• Feedback report focusing
culture, peer group etc.
on learning experience (s)
of the induction program
• Placement

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3.3 Employee Socialization
Socialization is a process of adaptation. Organization entry socialization refers to the
adaptation that takes place when an individual passes from outside the organization to the
role of an inside member.
BPL organize its Socialization process of three stages:
1. Pre-arrival stage: This stage explicitly recognizes that each individual arrives
with a set of organizational values, attitude, and expectations.
2. Encounter stage: Here the individuals confront the possible the dichotomy
between their expectations and reality.
3. Metamorphosis stage: Finally, the new member must work out any problems
discovered during the encounter stage.
The organization gets higher productivity, greater employee commitment, and lower
turnover rates through socialization. Employees achieved reduced anxiety, increased
awareness of what is expected on the job, and an increased feeling of being accepted by
their peers and bosses. When socialization works, employees receive the confidence and
satisfaction what comes from feeling that they are members in good standing in the

3.4 Training and Development program of BPL:

3.4-(A) Training:
A learning experience in that it seeks a relatively permanent change in an individual that
will improve his or her ability to perform on the job. To make training a success, a trainer
should take care of the following points:
 Make learning meaningful.
 Make skills transfer easy and
 Motivate the learner

3.4-(A1) Employee Training Method

On-the-job Training:

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On the job training is a training that shows the employee how to perform the job and
allows him or her to do it under the trainer’s supervision

On the job training is normally given by a senior employee or a manager like senior
merchandiser or a manager. The employee is shown how to perform the job and allowed
to do it under the trainer’s supervision.

 Relatively inexpensive
 Trainees learn while producing
 No need off-site facilities
 Low productivity while the employees develop their skills
 The errors made by the trainees while they learn.
Apprenticeship Training: It traditionally involves having the learner study under the
tutelage of a master craftsperson.
Informal Learning: This learning process is not determined or designed by the
organization. But the organization may ensure it by creating a learning environment in
the organization.
Job Instruction Training: Listing each jobs basic task, along with key points, in order to
provide step-by-step training for employees.
Lectures: The most simple and quick way to provide knowledge to large groups of
Simulated Training: It places the trainee in an artificial environment that closely mirrors
actual working conditions.

Off-the-job Training:
It includes:

• The Case Study Method: Here the manager is presented with a written
description of an organizational problem to solve in a discussion with other

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• Management Game: The manager presented with a computerized decisions
regarding but simulated situations.
• Outside Seminars: Many organizations now are using this popular method on
various aspects of business and management.
• Behavior Modeling: It involves the Modeling-Role playing-Social
reinforcement-Transfer of training.
3.4(B) Development:
Any attempt to improve current or future management performance by imparting
knowledge, changing attitudes, or increasing skills.
Any effort toward developing employees must begin by looking at the organizations
objectives. The objectives tell us where were going and provide a framework from which
our managerial needs can be determined.

3.4-(B1) Employee Development Method

Managerial On-the-Job Training: The development of employee’s abilities can take
place on the job. It includes:
• Job Rotation: It involves moving a trainee from department to department to
broaden their understanding of all parts of the business and test their abilities.
• Coaching Approach: The trainee works directly with a senior manager or with
the person they are to replace.
• Action learning: Here the management trainees are allowed to work full-time
analyzing and solving problems in other departments.

3.4-(B2) Types of Training:

• Technical Training
• Management Training
• Safety Training
• Occupational Health
• General Training (Management, Accounts, Sale etc.)
• Social Skill Training

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• Refresher Training
• Workers Education Training
3.4-(B3) Training Process
• Identifying the training needs: What kind of training is needed for how
many people to what standard of performance the objectives of the training
must be determined.
• Analyzing the attitudes, skills & knowledge(ASK)of the job:
Designing what has to be learned.
3.4-(B4) Planning the training program & implementing
• The stages of the training
• Recording the results
• Providing the stuff and equipment
3.4-(B5) Evaluating the results
• Deciding whether the training objectives have been met
• Considering how they could have been met more effectively
3.4-(B6) Training Aids
The following training aids are generally used in training programs in BAT

• Multi media
• Overhead projector
• Flip chart
• White board etc.

3.5 Performance Appraisal:

At BPL appraisals are done by the Self-appraisal system. Goals are set by participative
management approach and performance is evaluated quantitatively against those
previously set objectives. Managers appraise the performance of their subordinates
through a 5 points Graphic Rating Scale. The total appraisal process is completely
transparent to everyone within the organization.
1 for unsatisfactory

2 for marginal

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3 for target

4 for superior

5 for outstanding

3.6 Employee Compensation:

Employee compensation refers to all forms of pay or rewards going to employees and
arising from their employment. It has two min components:

1. Direct financial payments: Wages, salaries, incentives, commissions, and bonuses.

There are two ways to pay directly:
• Time based pay: Daily, hourly, weekly, biweekly or monthly wages and
• Performance based pay: Ties compensation directly to the amount of
product the worker generates.
2. Direct payments: Financial benefits like employer-paid insurance and vacations.

3.6(A) Factors influencing the design of compensation plan

• Legal considerations in compensation

• Union influences on compensation decisions
• Corporate policies and competitive strategy
• Policy issues affecting the plan of an organization

3.6(B) Establishing Pay Rates

The Salary Survey: A survey aimed at determining prevailing wage rates. A
good salary survey provides specific wage rates for specific jobs. Formal written
questionnaire surveys are the most comprehensive, but telephone surveys and
newspaper ads are also sources of information.


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Job Evaluation: A systematic comparison done in order to determine the worth
of one job relative to another. Job Evaluation method includes:
1. Ranking: Involves ranking each job relative to all other jobs, usually based on
overall difficulty. There are several steps in this method:
• Obtain job information for each job
• Rank jobs by department or in clusters
• Select just one compensable factor
• Rank jobs
• Combine ratings
2. Job Classification: Categorize jobs into groups
3. Point Method: A number of compensable factors are identified and then the
degree to which each of these factors is present on the job is determined.
4. Factor comparison: Ranking jobs according to a variety of skill and difficulty
factors, and then adding up these rankings to arrive at an overall numerical rating
for each given job.
Group Similar Jobs into Pay Grades: A pay grade is comprised of jobs of
approximately equal difficulty.
Price each Pay Grade-Wage Curves: This curve shows the relationship between
the value of the job and the average wage paid for this job.
Fine-Tune Pay Rates: A series of steps or levels within as pay grade usually
based upon years of service.

3.6(C) Benefits and Rewards Package

Indirect financial and non financial payments employees receive for continuing their
employment with the company.
There are several types of benefits:
 Supplemental Pay Benefits

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 Insurance Benefits
 Vacations and Holidays
 Sick Leave
 Parental Leave and Family Leave
 Medical Leave
 Retirement Benefits

3.7 Health & Safety

3.7-(A) Health

Pre- employment medical check-up: The selected person before joining has to go
through full medical check-up that guarantees his /her physical fitness to perform the job
successfully. A medical practitioner who uses a physical capability analysis that assesses
the candidate against the physical capabilities documented for each role conducts the
medical check-up. A medical is also appropriate for internal candidates if they are
applying for positions that require different physical capabilities.

Medical Facilities: Doctors are arranged to visit each location of numbers of times a
week to provide necessary medical support to the employees. Moreover, the non-
management staffs enjoy medical treatment at Hospital at company arrangement.

Health Insurance Policy: Management staffs enjoy health insurance for self, spouse
and two children up to 21 years for hospitalization only. Delta Life Insurance provides
the insurance and the company pays the premium.

3.7-(B) Safeties

SHEQ ⇒ SHES (Safety Health Environment Security)

S for Safety

H for Health

E for Environment

Q for Quality

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Why Safety and Environment Issues are required?

The safety and environment issues are required because of the following reasons:

• Safety leads improved productivity

• Employees Satisfaction

• To comply the national law and order

• To keep the work environment sound and healthy
• Maximum productivity through employees’ satisfaction
• Helps loss prevention
Now a day, safety is considered as the most vital issue for all occupation & work
situation in all the developed country of the world. It is very good sign that in our country
certain organizations are also emphasized on safety like other developed country of the
world. Safety aspects are also incorporated with “ IMMSS Policy” i. e., integrated
management system & standard. It is developed from the following standard.
⇔ In house safety of the BPL (that was previously practiced)
⇔ ISO (Specially for electrode business)
⇔ Environment Laws of Bangladesh
⇔ Labor Law of Bangladesh (it comes from the Salt Act (1905) then Indian Labor Act
(1935) and finally modified through The National Assembly on Bangladesh on 1982.

From these standards IMSS has taken 36 sections under consideration. 20 sections are
included from ISO and rest from others. It should be noted here that IMSS is now on
implementation phase and it will take 4 to 5 years to get a shape in BCCP, Bangladesh.

Company Safety Policy

It comes from the group chief executive to adapt in all the country. The local CEO
counter signs the policy for each individual country and the copy of the policy is
circulated to all the levels in the organization. So it is the duty of all the employees to
emphasize on safety. There is an Oath in BPL, Bangladesh regarding safety. That is

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“ SAFETY FIRST – QUALITY MUST”.The safety policy of BPL, Bangladesh “ safety
health and environment management” which is signed by the CEO carries certain
messages for us. It complies with the local safety laws of Bangladesh. One important
issue of this policy is DUTY OF CARE. It can be described as ‘not to do any things that
may cause risk to others, properties even to me and also let other not to do even that may
hazardous to him only. There is another planning for emphasized on safety. Safety aspect
may include in every one’s KPI & CSF. There are some other important points of the
policy that we should care and implement in hour daily work. The copy of the safety
policy is attached herewith for the ready reference.

Finally it should be noted that BPL, Bangladesh not only believes the oath “safety first”
but also implements it through their works. Beginning of the orientation program with
Safety Department may be an example of this practice.

3.8 Motivating Employees in Beximco Pharma:

The advantage of having a Management by Objective (MBO) system is that everyone
becomes Self-motivated. Everyone is motivated to achieve, to perform. The only
challenges is to keep the employees’ moral high in times of failure. In BPL, one of the
tasks of the management is counseling. Managers are there to help the employees to
achieve the goals, which in turn keep the employees motivated.

Apart from creating a healthy working environment and ensuring employee

empowerment, BPL offers a number of benefits to keep them motivated.
The benefits offered by the company are given below:
1. Education costs of the children
2. Permanent job facility
3. Leave facilities
4. Yearly Employee Awards
5. Promotion
6. Foreign Travel with Family Offers
7. Share from revenue etc.

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4.1 SWOT Analysis:

Strength (Internal)
Weakness (Internal)
1. Employee Empowerment
2. Capability to Bring Innovation & Insufficient Working Capital
product differentiation Not Operating in Low Cost
3. Outstanding Product Quality Market.
4. World Class Professional Service

Opportunities (External)
Threats (External)
Ability to Retain Growth & market
Strong Competitors in Domestic &
Focus In difficult Operating
International Market.
Political Instability
Ability to Exploit Opportunities of
Government & International Regulations.
Patent Law as an LDC in
Rising Trend of Material Price
International Market.


At the conclusion of the report I would like to say that the BPL, Bangladesh has practiced
the standard human resource management. Here I have some recommendations that
identify avenues for improving the human resource management policies of BPL,

1. The company should be prepared the standard human resource planning. Because
the success and failure of the organization is highly depend on the proper human resource

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2. The OMR process practiced in the organization is a very effective tool to fill
probable vacancy. The in –house circulars within the group also act as a useful device to
find the right person of the right job.

3. The manager – training program of the company is a good way to groom a to -be
– manager for the probable vacancy in the future. The organization should regularly
follow this procedure to build a productive and valuable workforce. The selection tools
and procedures used in this program have also provided to be very effective. To cope
with the ever-changing, competitive corporate world, the organization should welcome
new ideas as well as fresh –starters to trigger innovative ways to nature overall workforce
competence. The assessment center approach is designed to identify the essential
expertise of the candidates that enable to locate and select the right person for a
managerial. This method is formally followed only in the manager trainee selection
system. But this should also be followed in selecting the entry-level managers too.

4. The HR Department should look into the matter of consuming more time in the
process of calling the applicants after their responses very seriously. The organization
could control the size of applicants’ pool by using more clear and specific statements in
the ad in terms of the minimum educational degree, preferred institutions and other
necessary criteria based on which the initial screening of the applications were

5. BCCP, Bangladesh could participate in the job fairs for their recruitment. A
considerable volume of applications is dropped in the organizations as a result of the
exposure created in the job fairs. The organization can promote its image as a potential
recruiter through its successful participation in the job fairs.

6. The company can recruited also for campus recruiting that could bring a yield
of highly educated fresh-starters for the entry-level the organization could arrange
seminars in the top business schools country. Also the company should facilitate online
CV-posting system that is a very popular and effective practice used by the top business

7. The company should follow both on-the-job and off-the –job method training
when they are training their employees.

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8. The HRD manager of the company should be analyzed the organizational jobs
properly. Because job analysis serves the cornerstone of all human resource functions in
an organization. Side by side the HRD manager should evaluate the different positions of
employees in the organization in order to establish the well conceived for pay-structure.

9. Before appraising the performance of employees in the organization properly,

the HRD manager should be established the standard. Here it is noticeable that the HRD
manager should appraise the performance of all employees in the organization without
showing any discrimination.

10. The HRD manager should prepare the standard promotion policy for the
employees of the organization. Here it is very much important that the employees should
get the promotion based on the performance not the nepotism, political influence and

11. The HRD manager should established the standard pay structure for the
employees of the organization in order to reduce the high turnover of employees.

4.3 Conclusion
Pharmaceutical Industry has grown in Bangladesh in the last two decades at a
considerable rate. The sector consistently creates job opportunities for highly qualified
people. Pharmaceutical companies are either directly or indirectly contributing largely
towards raising the standard of healthcare through enabling local healthcare personnel to
gain access to newer products and also to latest drug information. As one of leading
pharmaceutical manufacturer Beximco Pharma plays a vital role in the industry as well as
in the national economy.
To be successful, relentless contribution and dedication of the organizations human
resource management is very much needed. To compete in international as well as in
local market in adverse situation the HR managers work has become much more difficult
in today’s ever changing business environment. Developing plans in a dynamic situation
demands critical analysis of the situation and strict adhering to the core principal of the
organization. As Beximco Pharma is decentralized organization and core values are

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cherished by everyone within the organization, operating in dynamic situation is easier
than it seems.
With the development of healthcare infrastructure and increase of health awareness and
the purchasing capacity of people, this pharmaceutical industry is expected to grow at a
higher rate in future. Healthy growth is likely to encourage the pharmaceutical companies
to introduce newer drugs and newer research products, while at the same time
maintaining a healthy competitiveness in respect of the most essential drugs. So, it is a
great responsibility for Beximco Pharma as well as other companies in this industry to
concentrate on quality product and quality service to take this industry towards further
success. The Bangladesh government should also be considerable and cooperative to help
the businesses flourish.

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• Websites:

• Annual Reports: Beximco Pharma 2002, 2007, 2008, 2009 and 2010.

• Text Books: Human Resource Management and Industrial Relations Dr.

Abdul Awal Khan.

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