By Nithin Prasad R S
Presentation overview
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Defining C&B Key components of international C&B Classification Nature and scope The case study- Beximco Textile Division [BTD] Effectiveness of BTDs C&B Analysis - Attractiveness of BTDs C&B Conclusion Recommendations
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Aim
International Compensation & Benefits management, a HR issue case study on Beximco Textile Division.
Objectives
Literature study on C&B. Understanding the planning of C&B at textile industry. Analyzing the effectiveness of the BTDs C&B Analyzing the attractiveness of C&B.
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The sum total of all forms of payments or rewards provided to employees for performing tasks to achieve organizational objectives is known as Compensation. The sum total of all forms of payments or rewards provided to motivate, attract and retain employees for performing of tasks to achieve organizational objectives is known as Benefits.
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Basic salary [primary component] Foreign service inducements [may be hardship] Benefits [free fair, pension, social security, vacation] Allowances [compensate differences in living expenditure]
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Classification of Compensation
Total Compensation
Financial
Non - Financial
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Beximco Textiles Division [BTD] - industrial conglomerate of Textiles Composite, Bangladesh. During the last decade the group has been transformed from a local Business House to an International Business House. BTDs subsidiaries around the world - UK, USA, Hong Kong, Singapore and Pakistan. More than 14,000 people work.
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Over all BTD has about 14000 employees world wide including the HQ and subsidiaries. Of which, Around 2900 from spinning dept Around 3000 from fabric 7500 from garments and 800 controlling / management staff. BTD - people are the main strength of the business & conducts a well structured Compensation & Benefits Package.
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Valuing jobs
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So basically BTD had a sophisticated C&B department with going rate approach. It had a good salary structure, minimal benefits provided, Revision done from time to time. C&B records maintained by the personnel admin and HR Centralized performance appraisal system. It had a pay policy practice of Ethnocentrisms. Thus it is not a very good success in international C&B management arena.
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PF of 10% Life insurance Bonus only for 2 fests Medical benefits free for all Leave entitlements Financial assistance
Factors - Needs to be cared in C&B Transportation facility Driver for executives Mobile telephone Meal facility only for executives Accommodations Utility allowance Performance / competency based bonus, pay etc.
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Compensation Differential
Followed The degree of skill The training required The experience involved The disagreeableness of the task The hazard attendant on the work, and Not Followed The strain of work The responsibilities undertaken The fatigue involved. Performance based compensation The mental & physical requirements
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Compensation is required to reward employees past performance fairly, in line with efforts, skills and competencies. To attract and retain competitive high performing employees. To motivate the high performing employees and reinforce desirable employee behavior. To remain competitive in the labor market. To align employees future performance with organizational goals. To communicate the employees their worth to the organization. To provide employee social status.
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The attractiveness of the compensation package of this organization is low. Recruitment of Qualified fresh graduates is always there in this organization. As the employees dont stay long in this organization for their unattractiveness compensation package. A large number of switching is present in this organization with high turnover ratio.
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Conclusion
Beximco textile division - largest firm of the Beximco group of industries. Has a competitive growth rate in the present market. Organization is run by a number of qualified employees and always compensation packages are made by market analysis. All though the employees are happy to work over there, they are not satisfied with the C&B compared to their very much competitiveness in the market. Beximco textile division needs to pay more to the workers for their performance, competitiveness and high qualification and needs to reduce switching and turnover ratio.
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Recommendation
They need to redesign their compensation packages for the grater benefit of the organization. They need to give more emphasis on the unattended differential factors of C&B. Add performance/competitive bonuses for the employees. Come up with plans to benefit & retain the experienced and skilled labor. Salary structure can be altered to cater the compensation differentials.
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Bibliography
Anonymous,http://www.scribd.com/doc/15660533/Compe nsation.pdf, Retrieved on 22nd May, 2010 Anonymous,http://www.scribd.com/doc/24744328/Compe nsation-and-Benefits-Package-of-BTD, Retrieved on 23nd May, 2010 International Human resource management (2007) by K. Aswathappa and Sadhna Dash, 6th edition, Mumbai. International Human Resource Management, course notes, H. N. Nagesha.
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Thank you