INTERNSHIP REPORT ON HR PRACTICES IN RENATA LIMITED HR PRACTICES IN RENATA LIMITED 23/05/2012 BRAC University PREPARED FOR, Ms. KOHINUR AKTER SENIOR LECTURER, BRAC BUSINESS SCHOOL COURSE ID: BUS-400 PREPARED BY, NAZMUS SAKIB STUDENT ID: 07304004 BRAC BUSINESS SCHOOL BRAC UNIVERSITY Letter of Transmittal May 23, 2012 Kohinur Akter Senior Lecturer BRAC Business School BRAC University Subject: Submission of Internship Report Dear Ms. Kohinur Akter, With due respect and immense pleasure I am submitting my internship report on “HR Practices in Renata Limited” that you have assigned me as an essential equirement of Internship program. It is really an enormous prospect for me to gather together vast information and grasp the subject matter in an appropriate way. I have found the study is quite attention-grabbing, beneficial & insightful. I tried my level best to prepare an effective & creditable report. The report will provide clear concept about the overall functions of “HR Practices in Renata Limited”, I welcome your entire query & criticism on the report is beneficial for me as it will give me the opportunity to learn more and enrich my knowledge.
I hope you will consider the mistakes that may take place in the report in the spite of my best effort Yours Sincerely ______________________ Nazmus Sakib I Acknowledgement Preparation of this Report, I would like to acknowledge the encouragement, guidance and assistance given from a number of responsible persons. I am most grateful to my internship supervisor Ms. Kohinur Akter (Senior Lecturer) BRAC Business School for providing feedback and support throughout the semester on this report. I would like to express my gratefulness to Ms. Safina Hasan (HR Manager), Mr. Sheikh Md. Masbaul Alam (Sr.
Additional Manager) and Md. Mahmudul Haque Hasan (HR Executive) of Renata Limited. Thanks to them for helping me with the relevant information about HR Functions of Renata Limited that I needed to prepare this report. In addition, I would like to thanks all the staff and the responsible persons of Renata Limited (Corporate Headquarters) for providing me necessary support whenever required. Without their contribution, it would not have been possible for me to conduct this project work. Besides this, I am also thankful to one of my senior brother Mr. Khalek Haider (Internee) in Renata Limited. II Table of Content
Topic Chapter -01: The Organization 1. 1 Brief History 1. 2 Company Profile 1. 3 Mission Page No. 1 1 1 1 1. 4 Vision 1. 5 Values 1. 6 Capabilities 1. 7 Products/Services 1. 8 Business Activities 1. 9 Financial Performance 1. 10 Industry Overview Chapter -02: Job Responsibilities & Observation 2. 1 Job Responsibilities at Different Division 2. 2 Observation and Recommendation 2 2 2,3 3 4 5,6 7 7 Chapter- 03: The Project (HR Practices of Renata Limited) 3. 1 Description of the Project 3. 1. 1 Objectives of the report 3. 1. 2 Methodology of the report 3. 1. 3 Data Analysis & Reporting 3. 1. 4 Limitations of the report 8 8 9 3. 2 HRM Philosophy & Functions of Renata Limited 3. 2. 1 Philosophy 3. 2. 2 Functions 3. 3 Code of Conduct 10 10 11-12 3. 4 Recruitment & Selection 3. 4. 1 Recruitment Philosophy 3. 4. 2 Recruitment Goals 3. 4. 3 Recruitment Method & Responsibility 3. 4. 4 Manpower Approval Process 3. 4. 5 Policy Guideline 3. 4. 6 Sources of Recruitment 13 14 14,15 15 16 17 3. 4. 7 Recruitment Process 17,18 3. 4. 9 Selection 3. 4. 10 Selection Criteria 3. 4. 11 Selection Tools 3. 4. 12 Selection Parameters 3. 4. 13 Employment Checklist 3. 4. 14 Selection Process 19 20 20 21 21,22 3. 5 Training & Development . 5. 1 Training 3. 5. 2 Topics Covered by Renata 3. 5. 3 Identifying Needs of Training 3. 5. 4 Planning & Design Effective Training System 3. 5. 5 Training Source 3. 5. 6 Trainer Selection 23 23 24 24, 25 25 26 26 3. 5. 7 Materials Used by Renata 3. 5. 8 Methods of Training 3. 5. 9 Training Process 3. 5. 10 Evaluate Trainees 26,27 28 28 3. 6 Compensation & Benefit 3. 6. 1 Principles of Salary 3. 6. 2 Components of Salary 3. 6. 3 Payment of Salary 3. 6. 4 Loan Against Salary 29 30 30 30 3. 6. 5 Salary Enhancement 3. 6. 6 Annual/ Periodic Payments 3. 6. 7 Medical Facilities 3. 6. 8 Provident Fund 3. . 9 Gratuity 3. 6. 10 Insurance 31-33 33 33-34 34 35 3. 7 Employee Relations 36 Chapter -04: Findings 37,38 Chapter- 05: Recommendation & Conclusion 5. 1 Recommendation 5. 2 Conclusion Bibliography 39 40 41 V Executive Summary Bangladesh is a developing country in south Asia. Its economy depends mostly on agriculture. In the earliest period jute and tea industry were very raising industry. But the scenario is changed. Now our economy mostly depends on Ready Made Garments industry. Apart from garments industry Pharmaceuticals industry is a raising industry in Bangladesh. So the scenario is changing.
Now there are 225 registered pharmaceutical companies in our country. Most of them are local, but there are also some multinational and joint venture companies operating their business in our country. They are also contributing to earn foreign exchange in our country. Renata is one of the most leading pharmaceuticals company in Bangladesh. Its corporate headquarters is at plot no- 1, milk vita road, sec- 7, mirpur and it has two production sites (one is at Mirpur and another is at Rajendrapur). Modern sophisticated machineries and highly qualified and skilled professionals are the main instrument for this Renata’s success.
In this report we have gone through the overall HR policies and practices of Renata Limited. Renata’s HR functions like Recruitment & Selection, Training & Development, Compensation & Benefit and Employee Relation are very systematic and legal. Renata always tries to recruit efficient candidates for the vacant position. They provide management development training, overseas training, and Field forces training and development program, manager training, training program for distribution assignments and data entry operations, on the job training and off the job training, basic training and advanced training etc.
Renata concentrates on employee development as well. They provide appropriate compensation and benefits like basic salary, over time, gratuity, different types of bonus etc. I have found that Renata’s HR policies and practices are systemic and sound enough but yet there are some problems like (few misunderstanding, lack of appropriate training to reduce faults). Remove misunderstanding and provide training and appropriate compensation when any accident occurs, authority should cooperate their employees to the problems. I think that is the way they should follow to improve and expand its business.
VI CHAPTER- 01 THE ORGANIZATION 1. 1 Brief History The company began its journey as Pfizer (Bangladesh) Limited in 1972. It passed two successful decades as a subsidiary of Pfizer Corporation. In the late 1990s Pfizer had shifted from formulations to research and in 1993 the company named as Renata. Since its inception it was conceived to manufacture ethical drugs. 1. 2 Company Profile Renata Limited is publicly listed pharmaceutical company which exports to multiple countries. Renata is listed on the Dhaka Stock Exchange with a market capitalization of almost US $400 million.
Company profile of Renata is appended below: Type of Company: Listed Public Limited (Dhaka Stock Exchange) Turnover: 5090. 3 million. Market Capitalization: $ 400 million. Main Business: Renata Limited manufactures, markets, and distributes human pharmaceuticals and animal therapeutics of Nutrition products (No. 1 in Market in terms of Sales. ) Production Sites: Two production sites. The Mirpur Site is 12 Acres and Rajendrapur Site is 19 Acres. Quality Recognition: 1S09001- 2000 (DNV) No. of Employees: 3,485 employees. 1. 3 Mission Mission statement describes a company’s function and fundamentals.
The mission of Renata Limited is: “To provide maximum value to our customer, shareholders, Colleagues and communities where we leave and work” The mission statement articulates the company’s purpose both for the organization, for the public as well. 1. 4 Vision Vision is the ultimate goal of an organization. The vision of Renata is as under: “To establish Renata Permanency among the best of Innovative branded generic companies. ” By using their innovation Renata permanently wants to establish as a one of the best pharmaceuticals company 1. 5 Values 1 HR Practices in Renata Limited
The greatest potentials for the growth of any company are generated by a commitment to high corporate values. By values, we mean the qualitative goals which the company strives to achieve in all its activities. Values are the key to energizing the five growth engines of a company; market, products & services, organization, people, and finance. Values raise the quality of corporate energies and elevate work to a higher level. Renata pursues certain values to run ethical business. These are essential elements for business success. The values of Renata are appended below:
Customer Focus: Customer satisfaction is the main reason behind all our activities Corporate Family: We recognize that people are the keystone of Renata’s success Building Leaders: Renata cannot ignore the contribution of leaders in all spheres of its activities. Therefore creating leaders is a priority. Today’s entrant must become tomorrow’s leader. Integrity: We conform to the highest ethical standard. Social Responsibility: We make active efforts to improve the welfare of the community in which we operate. 1. 6 Capabilities The capabilities of Renata are appended below:
Offers wide range of products – more than 145 molecules in over 257 dosage forms Specialization in manufacturing Hormonal products. Offer facilities for Contract-manufacturing. Provides assistance in product promotion and training in overseas market. cGMP manufacturing facilities, including a UK MHRA approved Potent Product Facility. 1. 7 Products/Services Renata has more than 145 molecules in over 257 dosage forms. Few of the products are given below: Pharmaceutical Products Anti-bacterial Preparations- Furocef Anti-spasmodic Preparation- Algin Anti-diabetic Preparations- Mepid
Hemostatics Preparation- Xamic Anti-asthmatic Preparation- Odmon 5 Vaccine- Rabipur 2 HR Practices in Renata Limited Anim Health Products mal P Poultr Products- Enrocin ry E Aqua Products- Rena Fish, Ren R naquine 10%, Biomin pond , dlife 1. 8 B Business Activities A Renat is one of th leading ph ta he harmaceutical companies o our country which succe of y essfully passe ed three decades alrea ady. With all the modern facilities Ren manufact nata tures medicin in differen nes nt formu ulations like tablets, capsu t ules, syrups, ointments, cr reams and inj jections.
Sale contributio es on by bu usiness unit of last year is g f’ given in Char 1. rt Sou urce: Official l 3 HR Practices in Renata Lim R n mited 1. 9 F Financial Performan P nce In ter rms of turnover Renata r ranks 27th am mong the list company of stock ex ted xchange of th he Count Among the pharmaceu try. uticals compa it ranks n 11th. Turno any no over of the co ompany durin ng 2010 was $5,823,3 Renata has a growth o more than 2 362. of 20% over last couple of ye t ears. Finan ncial performa ance of last fe years is sh ew hown in chart 2. Sourc Official ce: Table 1: Corpor ate Operati ional Result ts (Tak . 000) ka Parti iculars No. of Shares Tota Assets al Tota Liabilities al Net sales [Gross Profit] P Prof Before Tax fit x Net p profit After Tax T Bonu us/Right Sourc Internet ce: 2010 1,807,480 2,063,325 1,851,205 2,684,956 1,129,603 851,428 2009 1,445,984 1,643,107 1,409,727 2,088,286 823,020 603,524 20% 4 HR Practices in Renata Lim R n mited 2008 1,156,787 7 1,506,071 1,313,393 3 1,578,652 2 609,920 433,146 – 1. 10 Industry Overview Pharmaceutical Industry of Bangladesh To ensure peoples body fitness there is no other alternative of medicine.
So we have to depend on the pharmaceuticals companies. There are many types’ pharmaceuticals in our country. However, private and public pharmaceutical is the most common in this field. Pharmaceutical industry of Bangladesh is one of the most raising high tech industry’s which contributes in the country’s economy. After the promulgation of drug control ordinance – 1982, the development of the sector was accelerated. The professional knowledge, thoughts and innovative ideas of the pharmacists working in this industry is the key factors for these developments.
Due to recent development of the industry we are exporting medicine to global market including European market. The sector is also providing 95% of the total medicine requirements of the local market. Leading pharmaceutical companies are expanding their business with the aim to expand export markets. Recently fewer new industries have been established with high tech equipment and professionals which will enhance the strength of this sector. Bangladesh, currently having more than a couple of hundred manufacturing facilities with huge potential in pharmaceutical formulations, is heading on a new path of industry economics for self reliance.
Aiming at minimizing the import dependency on basic drugs, the country’s prime concern is about building up of own capability in the manufacturing of active pharmaceutical ingredients, base materials and other Allied industry inputs. The pharmaceutical sector is capturing near about 12% of market capitalization which is the second largest. This position also indicates the positive sign for investment in pharmaceutical sector. The combined capacity of the industry for the pharmaceutical formulation is huge and a number of companies have recently got approval from UNICEF as its global as well as local supplier of pharmaceutical products.
Besides, out of the total domestic requirement of medicines almost 95% is met by the local manufacturing and Bangladesh also exports formulations to 27 countries around the world. The current turnover of the industry in Bangladesh is TK. 3000 crore. According to industry sources, the formulation industry in Bangladesh country grow and the rate of 22%. Today, Bangladesh is dealing with USA, India, Taiwan, Hong Kong, European Union, Singapore, Malaysia, Pakistan, Thailand, and Burma, Nepal, Yemen, Vietnam, Mexico, Colombia, Russia, Kenya, Maldives etc. s well as with the least developing countries where there is hardly any industry for the production of pharmaceutical formulations. Total turnover is about 14% from pharmaceutical industry. This position also indicates the positive sign for investment in pharmaceutical sector. However, the trend is now favorable to the country as the domestic pharmaceutical industry as well as the companies from neighboring countries like India, China and even MNCs have queued up to put in investment on this front as every stakeholder will be benefitted of vast potential that Bangladesh can offer.
The local entrepreneurs are capable and willing to invest and collaborate with suitable foreign partners in order to develop the existing API manufacturing facilities. According to S M Shafiuzzaman, president of Bangladesh Association of Pharmaceutical Industries (BAPI), since 1972 the association has been the only recognized association for pharmaceutical manufacturers of Bangladesh playing pivotal role in the development of pharmaceutical sector.
The apex and premier pharmaceutical trade and promotion body of Bangladesh has been very actively working on the industry development programs to enhance the existing capabilities and also to promote the countries industrial opportunities among the developed world by attract perspective collaborators in terms of technology, product sourcing infrastructure etc. Presently top pharmaceutical industries in Bangladesh are also in the progress of getting into bulk drug production with collaborative technology, technology transfer and joint venture basis. The large scale players in Bangladesh 5 HR Practices in Renata Limited harmaceutical industry currently include Square, Beximco, Incepta, Opsonin pharma ltd, Apson chemicals, General pharma, Hudson pharma among others. The MNCs that have a major presence in the country’s Pharma sector are Aventis, Renata Limited, Novartis and Astra Zeneca. 6 HR Practices in Renata Limited 7 HR Practices in Renata Limited RENATA LIMITED PLOT # 1, MILK VITA ROAD, SECTION # 7, MIRPUR, DHAKA? 1216 ORGANIZATION CHART SYED S. KAISER KABIR MANAGING DIRECTOR (1887) PLANT MANAGER (634) H. R MANAGER (134) G. M. FINANCE (21) ADDL. MANAGER MANAGER DEPUTY MANAGER ADDL. MANAGER ASSTT. MANAGER PRODUCTION MANAGER GENERAL MANAGER
OPERATION (18) HORMONE ( 28 ) DY. MANAGERS ASSTT. MANAGERS International Business (4) NSM (1016) MANAGER IN-HOUSE QUALITY ASSURANCE MANAGER FIELD FORCE ADDL. MANAGERS MANAGERS ADDL. MANAGERS DY. MANAGERS ASSTT. MANAGERS PLANT ENGINEER G. ENERAL MANAGER ANIMAL HEALTH (112) DEPUTY MANAGERS ASSTT. MANAGERS DY. MANAGER PLANT – PERSONNEL MARKETING (10) SR. RSMS RSMS SR. DSMS DSMS DEPOT OPERATION MANAGER IN HOUSE FIELD FORCE DEPOT MANAGERS RSM ADDL. MANAGER DY. MANAGER ASSTT. MANAGER SR. DSM/DSM 8 HR Practices in Renata Limited TSM/SR. TSO/ TSO DEPOT OFFICERS DEPOT STAFF PSMS SR. PSRS PSRS CHAPTER- 02 JOB RESPONSIBILITIES &
OBSERVATION 2. 1 Job Responsibilities & Observation My internship period was from February 15,2012 to May 15, 2012. I joined there on the appointed date. I had to do different duties and tasks during that period. Undertake and manage transportation system and housekeeping Maintain plant security system by constantly communicating with ansar and security guards Purchase snacks as required and deal with regular vendors Issue all type of application or recommendation letter as per HR manager’s requirement Entry the corporate vehicle bill to the software. Entry employees the leave application form to the software.
Any other job assigned by the management from time to time 2. 2 Observation and Recommendation As a fresh graduate, going to Renata Limited (Corporate Headquarter) was very encouraging and great experience for me. I have learnt many things from there. My observations and recommendations are as follows: Friendly working environment and employees are very co-operative. Employees are active and sincere to their assigned job responsibilities. Working hour is 08. 30 am to 5. 00 pm. Working hour extends on basis of work volume. According to work volume number of employees is few in HR department of Renata Limited.
So they should think of increasing number of employees. 1 HR Practices in Renata Limited CHAPTER- 03 THE PROJECT 3. 1 Description of the Project 3. 1. 1 Objectives of the Project General Objective Leading objective of the report is to analyze the “HR Policies and Practices in Renata Limited. ’’ Specific Objectives To understand the functions done HR Department, Renata Limited. To determine how Renata maintain recruitment and selection process. To examine the training and development program practiced in Renata. To highlight the compensation and benefits provided by Renata.
To know how Renata maintains employee relationship with their employees. To provide some recommendations to improve the HR practice of the Renata. 3. 1. 2 Methodology The nature of the report is exploratory and descriptive. The required information is collected from the following sources: Primary data: primary data is collected through interview and questionnaires. Secondary data: Internal Sources: Published documents of Renata Limited, Renata Limited’s Website, Annual Reports. External Sources: Books, Articles, Journals, Newspaper, Web browsing. Questionnaire Design Questionnaire was prepared with both open and close ended questions.
The target population was Management of Renata & Employees of Renata. 3. 1. 3 Data Analysis and Reporting A total 20 sample was selected for the survey. The sampling size was the database of the permanent employees of Renata corporate headquarter and mirpur plant. The sampling size of the population was as under: Human Resource Department Other Department ( Marketing, operation, Finance) 2 HR Practices in Renata Limited Quantitative analysis has been used to collect and analyze the gathered data. 3. 1. 4 Limitations After giving utmost effort to prepare the report, there are some limitations of the Study.
Such are as followsLimitation of time creates constraints to make an intensive study. The budget is constrained for the survey. Non availability of adequate information is one kind of obstacle. The time is limited for the survey and also for preparing this report. Some respondents of the survey failed to response properly due to their work pressure during the survey. 3 HR Practices in Renata Limited 3. 2 HRM Philosophy & Functions 3. 2. 1 Philosophy Renata considers human resources as a key department. Renata is well aware of the need for human resource. It recognizes that human capital forms the core of the competencies.
The HRM philosophy of Renata is enumerated as under: Having a HR philosophy and values consistent with those of the organization. Having a HR vision that is actively shared by the entire group and that always value a super ordinate goal. The vision is oriented to the strategic needs of the organization Having the best HR product available for the customer. Forming a flexible and dynamic structure that brings maximum service to the customer and maximum motivation to the HR staff. Having a HR philosophy that is always proactive not reactive Being seen as successfully creating a great place to work 3. 2. Functions HR department of Renata Limited has various functions. Renata Limited provides the highest priority to its people. The HR department presents HR functions for the people guided by the Management. The main activities of Renata’s HR department fall under following general head. These are appended below: Recruitment & Selection Training & Development Compensation & Benefits Employee Relations H. R. Development H. R. Services 4 HR Practices in Renata Limited 3. 3 Code of Conduct For stronger compliance culture the employees of Renata should follow the principles and practices established by the company.
These are codified in the code of conduct of Renata Limited. This code of conduct is very important to the employees as it describes the terms and condition of employment. The code of conduct has been adopted in order to describe the following standard of Renata Limited: Loyalty to Renata Limited Ethical and legal behavior Support of and respect the protection of internationally proclaimed human rights Professionalism and good business practice Fair and appropriate consideration of the interests of the other stake holders and of the environment
Supports to the protection of the human rights, nondiscriminatory and fair labor standards, protection of the environment, ensure health and safety of the workers. Safeguard the confidential business information of Renata Limited The code of conduct covers the following areas Personal obligations Conflicts of interest Discrimination Insider trading Antitrust Compliance with the law Use of protection of business assets and information All Renata employees must make all-out efforts to comply with the code of conduct. Noncompliance from their part will result in disciplinary actions which may include dismissal.
Personal obligations • The law and adhere to high ethical standards should be followed by all the employees of the Company. While performing their job they should demonstrate social and environmental responsibility, professionalism and good business practice. Trust and integrity are the fundamental values of Renata. Employee should be familiar with good business practices relevant to their job and should implement their consistency. Employees should use their good judgment and common sense in all situations when the requirements of the law or good business practice seem to be unclear.
In such a situation, employee should seek for suggestions/advices from his/her superior. Conflicts of interest The interest of Renata should be in the mind with most of the priority while conducting a business transaction. 5 HR Practices in Renata Limited The employee of Renata can’t get any additional personal interest by using his/her position in the Company. Situation conflicting with the personal interest of the employee and the responsibility of the employee in Renata should be avoided. Discrimination
Each employee has the right to get due and fair respect and the recognition for his/her cultural, racial, national, regional, gender and also religious standings from his/her colleagues in Renata. Insider trading Business dealings should be made in the manner of maintaining the full interest of Renata limited; the official dealings should remain secret to anyone including friends and family. Antitrust It should cover the following areas Compliance- Nonviolence of antitrust law along with the respect to the principle of fair competition Agreement has to be verified- It should be legally compliant Prohibited agreements and arrangement.
All agreements between competitors aimed at coordinating market behavior are prohibited Legal counsel involvement and government notification should be included in acquisition Intellectual property rights. Compliance with the Law Compliance with the Labor Law Compliance with the Law of EHS Compliance with the Law of IRO Compliance with the other Law Use of protection of business assets and information Good business practice with proper business security. Maintenance of proper business secrecy Safeguard to protect business information Respecting the academic freedom of information 6 HR Practices in Renata Limited . 4 Recruitment & Selection Recruitment: is a process to attract qualified and prospective applicants for a specific position in an organization. 3. 4. 1 Recruitment Philosophy Renata commits to promote best employment equality practice in its efforts to eliminate discrimination and create working environments where are treated fairly and with respect. No written document is maintained its recruitment and selection philosophy is concerned. However the Company believes: To have a workforce that reflects the diversity of local communities and the believe that it can best serve the citizens of the country;
All people should have an equal chance to apply for and be considered for jobs; Harassment, bullying and discrimination are not acceptable; and, People’s differences should be valued. Comply fully with and implement legal requirements and employment guidance; Ensure all employees are aware of the Company’s Employment Equality Policy Statement. through training and guidance; Create working environments that promote fair and equal opportunities; Develop, implement and publish plans for employment equality; Monitor the existing workforce and job applicants to see if the policy is working and take action to deal with under representation;
Regularly monitor and review all employment procedures and make changes to them where they are found to be discriminatory. Take seriously any concerns that an existing employee or job applicant raises about discrimination, harassment or bullying. Compliance to have strict rules to ensure that the recruitment decisions are based on merit and the aim is to ensure that everyone has an equal chance to apply and be considered for jobs. Future Focused Hiring Renata hires for the future.
While a new employee has to make economic sense for today’s tasks, the best hires are people who position as to profit the company as the business moves into the future. New people should provide the skills needed in the future, not just match the job demands of today. Understanding Job The management of Renata believes that finding the right people to hire is much easier when a company first analyzes the job it wants to fill. Best is to determine what kinds of people do the best in a particular job?
It is not difficult to have a top performer already in the job, the job of the recruiters to learn from them, observe their behavior, ask those questions and talk with their peers, to get a clear understanding what characteristics make them effective in their job. Legal Aspect Renata makes sure that its hiring process is legal. The process ensures Equal Employment Opportunity and avoids other discrimination. 7 HR Practices in Renata Limited Standardization of Process The hiring process of Renata includes criteria-based screening of an adequate number of candidates, a background check, standardized assessments and structured interviews.
The more important the position, the more rigorous the hiring process is. Job Analysis A job analysis provides a list of the personal attributes required to work effectively in the role. This list of attributes is identified first by breaking down a person’s job into logical parts. Next, each job task is analyzed according to the knowledge, skills, abilities and attitudes required to perform the job correctly. Internal Versus External Recruiting Renata neither promotes largely from within the organization nor hire from the outside for vacancies at all levels.
When there is a sudden vacancy in any position and someone within the organization is found suitable to fill the position, internal recruitment takes place. External recruitment is practiced when suitable candidates for a position are not found. Emphasizes Creativity Renata always recruits people who have creative ideas. Here recruitment is part of constant development of business. Renata wants its employees develop innovative ideas which, if implemented, will bring about a great advancement to the organization. Corporate Culture Renata has developed a corporate culture where employees are not treated mere employees.
They are treated as associates of the organization. Together they form a family and all associates are the members of the family. RECRUITMENT GOALS Some of the common business reasons for hiring by Renata includes following: Replacements for turnover Current or future business expansion Upsizing the caliber of talent because top talent has become available Limiting the talent available in the market in order to hurt a competitor’s ability to staff adequately Learning from other firms Increasing the capability of the firm by adding new skill sets Recruitment Method & Responsibility
Recruitment method refers to the process of discovering potential job candidates. Standard recruitment process will follow the guidelines given below: After receiving the approval from the Managing Director the Human Resource Department starts recruitment as per the preferred method recommended in the Staff Engagement Proposal Form. Human Resource Department can select one or multiple suitable methods of recruitment in consultation with the respective Department Head. HR Department always maintains a CV Bank in a suitable filing system so that they can be sorted out as and when required before going for costly recruitment process. HR Practices in Renata Limited HR Department should introduce an online application system in the website of Renata Limited so that any prospective candidate can apply for a suitable position any time. The HR Department checks the online applications daily and let the applicants know their application status on a regular basis. Without written approval from the Managing Director no such employment can be offered. 3. 4. 4 Manpower Approval Process Manpower approval process of Renata is detail and systematic. The process is enumerated below: Managing Director & CEO is the sole authority to approve manpower for any business or function.
Whenever a position becomes vacant the department head examines to see if the work can be redistributed amongst the remaining staff or not. If it is possible to redistribute then no such recruitment happens. When it is not possible then Renata depends on new recruitment. To recruit new employees the concerned department head will fill up the Staff Engagement Proposal Form and forward the same to the Human Resource Department. The Human Resource Department will evaluate the proposal and forward it to the Managing Director with comments if any.
Before forwarding any proposal or recommendation to Managing Director, Human Resource Department should ensure that the Job Description and Person Specification are there with the proposal. Department Head is responsible for preparing the Job Description and Person Specification while Human Resource Department gives support to the Department Head, if required. After receiving the approval from the Managing Director, Human Resource Department keeps the original Staff Engagement Proposal Form and sends a copy to the concern Department Head. Only after receiving the approval from Managing Director the Human Resource
Department can proceed for new recruitment. There will be an exception for Staff Engagement Proposal in case of the entry level field force and distribution of contractual labor. In this case the concerned Department Head takes approval from the Managing Director in the specified Staff Engagement Proposal Form by 31st December every year which remains valid for next one year. During this period any replacement will not need the approval from the Managing Director. But for increasing the manpower of any Department the concerned Department Head must take approval from the Managing Director. 9 HR Practices in Renata Limited
Policy Guidelines For any recruitment process HR of Renata follows the guidelines given below: Newspaper Advertisement: HR will make a draft for the newspaper advertisement and finalize the contents in consultation with the concerned Department Head. After finalization HR will send the advertisement to the Chosen news paper. The advertisement should be published in such a manner that it ensures the maximum visibility as well as mass coverage. HR considers the conciseness and attractiveness of the advertisement. In case of every vacancy advertisement, copies of the advertisement are placed on the notice board.
Online Advertisement: HRD has a contract with bdjobs. com. HR Manager has full access to post a circular there. Sometimes HR Manager directly posts the advertisement or her assigned person post the advertisement to bdjobs. com. Notice Board Circular: A copy of the advertisement is placed on all the company notice boards for any recruitment so that the employees are informed about the recruitment process and can recommend suitable candidates, if any. It is needless to state that employee recommendation is a way to search good candidates but by no means will it carry any significance in the selection process.
Interns: The Department Head can recommend an intern or a pre-selected person for employment. The intern must be interviewed and evaluated extensively. The pre-selected person has to be screened in accordance to the established selection procedure. All the documents or assessment in case of an intern along with a CV should be forwarded to the Managing Director for his evaluation and approval. Written Approval: Without written approval from the Managing Director no such employment can be offered.
CV Bank of HR: The Human Resource Department all the time maintains a CV bank with the CVs forwarded to them time to time from different sources, and the retention for a CV should be at least six months from the date of receiving the CV. Whenever any vacancy arises for a single or few positions, HR considers these CVs for interview at first. Using Own Field Force: Sometimes it is found beneficial to engage field force to collect CVs from field, especially during a tight recruitment situation. The concerned Department Head can engage the field force in such activities in consultation with HR Department.
Job Rotation or Transfer: In case of surplus employees prevailing within any department the concerned Department Head can recommend any of them for recruitment against any suitable position provided that the employee possesses the competency level for that position. The concerned Department Head then forward the CV of the surplus employee along with proven competency documents to the HR Department and the HR arranges interview of the person with the department head where the vacancy arises and if the person is found suitable, HR should forward those documents to the Managing Director for approval.
Also any employee can apply against any vacancy with a clearance note from the Department Head. 10 HR Practices in Renata Limited 3. 4. 6 Sources of Recruitment When recruitment is announced then question comes, “what will be the sources of recruitment? ” Renata usually tries to attract really good and suitable candidates for recruitment. Concern persons try their level best to find out the sources of recruitment. Maximum possible range of labor markets and other places wherefrom they can obtain qualified and suitable applicants in term of the required characteristics determined by job analysis according to their demands.
Recruitment is more likely to achieve its objective if recruitment sources reflect the type of position to be filled. Certain recruiting sources are more effective than the others for fulfilling certain type to jobs. But while choosing the source, the strength or weakness of the sources needed to be considered. . The sources used by Renata are as under: Sources of Recruitment Internal sources External sources Internal Sources: Present, Permanent employees Present Temp/ Casual Employee referrals Dependents of diseased , disabled , retired and present employees External sources:
Advertisement (Internet postings/ Newspaper) Private Employment Agencies/ Consultancies / Professional organizations Educational Training Institutes Unsolicited applications 3. 4. 7 Recruitment Process of Renata Recruitment refers to the process by which organization locate and attract right people for the right position. Recruitment is one of the main functions of HR department. Recruitment may take place by the recruiters of the Organization directly or sometimes it may take place by an employment agency.
To attract applicants through advertising (like- online, newspapers, advertisements placed in windows, through a job center, through campus graduate recruitment programs etc) is a usual part of recruiting process. Generate candidate pool by either internal or 11 HR Practices in Renata Limited external recruitment methods and evaluate candidates through selection process. Finally selection of candidates and job offer to the candidates. In Renata, recruiters try to find and attract capable applicants. Recruiters identify job openings through HR planning or request by the manager.
Once openings have been identified the recruiters learn job requirements by reviewing the job analysis information, particularly the job descriptions and job specifications. Recruiters also may supplement their knowledge about the job requirements with discussion to the concern manager. Select the recruitment method depending on the meeting with concern Department Head/ Manager. Either internal or external recruitment; if internal recruitment (presents employees/referrals/temporary workers/contractual employees/ internee) or external recruitment. Select candidates and job offer to them.
Satisfactory level of recruitment is ended up. 12 HR Practices in Renata Limited 3. 4. 9 Selection Selection: is a process starts with gathering information from a candidate’s application and ends with selecting him/her for a particular position of an organization. 3. 4. 10 Selection Criteria at Renata To select the appropriate candidate is very important because more attention is paid to the costs of poor selection. The selection decision has always been important as the way for a company to obtain the human resource that is appropriate for the job and company.
Renata created selection criteria to make the selection procedure easier. Developing good selection criteria is a very useful technique for outlining the particular needs of the department for a particular position. This process makes the selection procedure much easier, specific, straight forwarder and less subjective. The three standards followed in Renata are explained below: Job Relatedness Job relatedness means that every standard must be specifically connected to the work to be performed on the job. All qualifications used to screen applicants in the hiring process are directly related to the job being filled.
If, for example, there is a requirement for a bachelor’s degree, that standard is shown directly related to the position. A candidate with a Ph. D. (in a field not directly related to the position being filled) would not be more qualified than an applicant with a bachelor degree in a related field. If specific knowledge of budget procedures is given as a requirement, the position must require the application or use of that knowledge. Measurability Minimum qualifications and selection criteria is always measurable and demonstrable.
That means they can be measured objectively or clearly demonstrated by the applicant or the applicant’s past history. If a selection criterion called for “maturity” or “attitude,” there might be many interpretations of what those standards mean. Therefore it would be very difficult to measure the applicant against those vague criteria. A standard such as “demonstrated ability to work effectively with supervisors, peers, subordinates,” would much more closely fit the requirement of measurability and demonstrability. Demonstration of this agility is verified through references, letters of recommendation, and checks with previous employers.
Even a criterion such as “good typist” is not as easily measurable as “ability to type 60 words a minute with only three errors. ” Successful Completion of Work Criteria listed as minimum qualifications or selection criteria must be necessary to perform the work successfully. If a bachelor’s degree is given as a requirement for the job, but it cannot be demonstrated that the actual degree is necessary for the performance of the job, then a criterion like bachelor’s degree or equivalent” is used instead. Relevance and quality of education may be considered in the selection process but must be shown to e necessary for the particular job at hand. 13 HR Practices in Renata Limited 3. 4. 11 Selection Tools Managing Director or The Chief Executive Officer has sole authority for any selection without any competitive examination. Otherwise the following procedure is used for selection of employees in Renata: Written Test Written Test is only applicable for junior management, unionized and non-managerial contractual positions. In exceptional cases where specific knowledge and skill areas are needed to be identified and the interview is not sufficient enough to deal with, written test is applied as a selection tool.
IQ Test IQ Test is applicable for all junior management and non-managerial contractual positions. HRD is solely authorized and responsible for selecting the question patterns, venue and time of examination. Interview Following is the standard interview process for junior management, managerial contractual, unionized employees, and mid-level and senior management positions: For junior management, non-managerial contractual and unionized employees, interview is conducted in a single phase, but before offering employment, it requires approval from Head of the Department and HR Manager.
The interview board is consisting of a representative from HRD and a representative from the concerned department. For mid-level management, interview is conducted in two phases. For the first phase, interview board consists of a minimum mid-level executive from HR and a senior executive from the concerned department. For the final phase, the interview board consists of the HR Manager and Concern Department Head. Signing Authority HR Manager has sole signing authority for any employment letter up to management grade Additional Manager, non-management and all contractual employees.
The Managing Director is the sole authority to sign any employment letter for management grade AII Manager and above. 3. 4. 12 Selection Parameters The job constructs (dimensions) and the sub-dimensions, against which applicants are evaluated in Renata for suitability and compatibility, are shown below. Communication skills Self motivation Interpersonal / ability to sell self and ideas Leadership potential and skills Decision making abilities Judgment abilities Knowledge / technical skills Management abilities 14 HR Practices in Renata Limited 3. 4. 13 Employment Checklist
The owing documents is obtained from the candidate prior to offering employment letter and designated person from: Application for Employment Medical Declaration Form Copy of last educational and where applicable, professional One copy of passport size photograph Curriculum Vitae 3. 4. 14 Selection Process The following figure shows a typical recruiting process where switching between tools is a frequent occurrence. 15 HR Practices in Renata Limited Organizations need to understand the skills and abilities that are required in a particular job and determine which candidates have those capabilities.
Interviews, reference checks, tests, applications, and resume all these things help to identify differences among candidates. The selection process in Renata is serrated below: Job Analysis A job analysis is used to identify job tasks and responsibilities. This is accomplished by collecting information about the position; by interviewing workers, supervisors, and other company employers; and by observing current employees. End products of a job analysis include job analysis schedule, job specifications, and a job description. Job Description
From the job analysis and specifications, Employers develop a job description, which is used to give applicants a feeling for what the job will be like. These are brief position narratives with a job title, job summary, examples of job duties, supervisory relationships, and working conditions Design Selection Process Well-designed selection process yields information about a candidate’s skills and weaknesses, enabling the company’s employer to make an informed choice. Determining Selection Tools: Applicant skills are evaluated through applications, interviews, tests, reference checks, letters of recommendation, and physicals.
Preparation for tests: At this point the employer converts important skill areas into specific questions or activities for the application, interview, and tests. Also, questions for the reference check may be drawn up. Providing Realistic Job Preview: The realistic job preview begins with the job announcement and position description. As prospective applicants inquire about the job, farm managers provide applications, position descriptions, and additional information. Review Applicants’ Bio-data: A properly designed application helps the farm check applicants’ minimum skills as well as their employment history.
Conduct tests Many types of tests are used in Renata to measure an applicant’s qualifications. They can be classified as written, oral, or practical tests. Check references Reference checking involves obtaining information about applicants from previous employers. 16 HR Practices in Renata Limited 3. 5 Training & Development 3. 5. 1 Training Training is a process of education to learn new information and to emphasize existing knowledge and skills. Training increase organizational productivity as well as develop the personnel of any organization.
The goal of training is to master the knowledge, skills or ability emphasized in training program and to apply it to their day-to-day activities. Training and development can be initiated to address – “Performance gap” (learning needed to meet performance standards for a current task or job) – “Growth gap” (learning needed to achieve career goals) or – “Opportunity gap” (learning needed to qualify for an identified new job or role). Education is the process of increasing the level of knowledge and understanding. Training talks about ‘know-how’ and most of the organizations are concern about it.
Human Resources Department of RENATA is highly concern with continuous training and development of their employees. 3. 5. 2 Topics Covered by Renata Training programs at Renata Limited is organized by the Human Resource Department. Training topics is selected by the time and needs of the organization. There are no specific training programs for specific period or employees. Some training courses are given below: Communication both verbal & written Basic computer skills Leadership Time management Stress Management Total Quantity Management Operation and production management Problem solving & Decision making
Job related technique training Special technique training Company rules, regulation &production Labor Laws Employees Relationship Interpersonal and Group Communication Skills Team Management Risk Assessment Event Management Later part we will try to relate the theory with the applied program’s ins and outs of Renata 17 HR Practices in Renata Limited 3. 5. 3 Identifying the Needs of Training A training program should be organized only when it is identified that – A performance appraisal indicates performance improvement is needed. To `benchmark` the status of improvement so far in a performance improvement effort.
To solve of specific operational problems As part of an overall professional development program as part of succession planning to help an employee be eligible for a planned change in role in the organization. Renata thinks, at first they make a thorough analysis to the entire organization, its operations and manpower resources available in order to find out “the trouble spots” where training is needed. To identity the training needs Renata Limited contains three types of analysis: Organizational Analysis: It centers the organizational goals. How long and what steps needs to be taken to reach the organizational goals.
The analysis of the organizational goals established the framework in which training needs can be define more clearly. Operation analysis: Operation analysis focuses on the task or job regardless of the employee doing the job. This analysis includes the determination of the worker‘s specific behavior requirement – to perform the job effectively. Employee analysis: It reviews the knowledge, attitudes and skills of the incumbent in each position and determines what type of change in knowledge; attitudes or skills must acquire to contribute satisfactorily to the attainment of Renata’s objectives.
After analyzing Renata starts planning and designing the training system: 3. 5. 4 Planning & Designing Effective Training System It is very important to make plans and design an effective training system before the process is undertaken. Design a training system according to the instructional design process which refers a systematic approach for developing training programs. Following are the six steps of this process followed by Renata: Assessment of Needs- Assessing the needs of training. Employee readinesses for training- Ensuring that employee have the motivation and basic skill to master training concept.
Create learning environment- Addresses whether the training session will create a perfect learning environment. Ensure transfer of training- Ensure trainees apply the learning content to their jobs. Select training methods- Choose a training method. Traditional on the job training or new technology such as Internet are used as Different types of training methods Evaluate training programs- Determine whether training achieved the desired learning outcomes and financial objectives. 18 HR Practices in Renata Limited Renata follow the Training Design process: Conducting need assessment
Ensuring employees’ readiness for training Organizational analysis Personal analysis Task analysis Monitoring& evaluating Conduct Evaluation Make Changes to improve the program Selection training methods Traditiona l E-learning Attitude & motivation Basic skills Developing an evaluation plan Identify learning Outcomes Chose Evaluation Design Plan CostBenefit Analysis Creating a learning environment Learning objective Materials Practice Feedback Community of learning Modeling Program administration Ensuring transfer of training Self Managem ent Peer and Manager Support Training Design Process . 5. 5 Training Source The Human Resources department determines the type of training needed for the employees. There are two types: Internal training is the form of training that is conducted within the company. The company uses its own resources facilities and logistic to provide the training. In most cases Renata arranges training by in house trainer. However, sometime, a trainer from outside may be selected. In Renata trainer can be organized by the HR department or it can be organized by the individual department i. e. marketing department organizes sales promotion training.
External Training is the form of training in which employee are sent to various training institute to participate in development programs. Renata sent their employees to different external institutes for training. The training institute may be located inside Bangladesh or abroad. Sometime, they receive book shield from different require International Business Schools. 3. 5. 6 Trainer Selection Trainer selection is one of the important tasks before organizing a training program. In terms of internal training the trainers are selected from in-house. And in terms of external training the trainers are from outside. 9 HR Practices in Renata Limited Selection of trainer is one of the important tasks before organizing a training program. The trainer should be carefully selected so that the goals of the trainer are fulfill The HR Manager, Renata decides whether the training is external or internal. But it requires prior approval of the top level management. 3. 5. 7 Materials Used by Renata: Renata uses a variety of tools and equipments to impart effective training. They are: Lectures, Conferences, seminar, staff meeting, demonstrations, short courses through coaching Role-playing and job rotation (less used tools)
Case or project studies and problem solving sessions. Use of pamphlets, charts, brochures, booklets, handbooks, manuals, etc. Graphs, pictures, books, slides, projectors, etc. Posters, displays, notice and bulletin boards. Reading rooms and library where specific books and journals are maintained for references and use. Visit the plant 3. 5. 8 Methods of Training Once the organization has decided to train employees and have identified their training needs and goals, the organization has to design appropriate training program. The most popular training methods used by the organization are:
On the job Training (OJT) From the entry level officer to the company president, gets some ‘on the job Training’ when he/she joins a firm. Renata provides the most common OJT for their employees. It is the most common, the most widely used and accepted and the most necessary method of training employees in the skill and essential for acceptable the job performance. Demonstration Demonstrations are very effective method in teaching because it is much easier to show a person how to do a job rather than to tell him to gather information’s from theories.
Demonstrations are often used in combination with lectures, pictures, text materials, discussion etc. Behavior Modeling Behavior modeling is one of the most effective techniques for teaching interpersonal skills. It typically focuses on one interpersonal skill such as coaching or communication ideas. Renata is yet to undertake specific programs as such, but the programs that send specific individuals to get trained outside the company. Adventure learning Adventure learning focuses on the development of teamwork and leadership skills using structured outdoors activities. Renata ltd. does not entertain such activities yet. 0 HR Practices in Renata Limited Team Training Team training involves coordinating the performance of individuals who work together to achieve a common goal. Depending upon the needs Renata arranges such training. Vestibule Training This method attempts to duplicate on the job situations in a classroom of the company. It is a classroom training, which is often impart with the help of the equipments, machines or materials which are identical with those in use in the place of work. This technique enables the trainee to concentrate on learning the new skill rather than on performing an actual job.
Renata provides such facilities and they send their employees to its Rajendrapur plant. Training by Supervisors Such training is on the job training by the workers’ immediate supervisors. The supervisors have an opportunity to judge the ability and possibility of trainee in terms of their job performance. Off the Job Methods Off the job training is arranged at outside of the actual work place. Employees have to leave their work station for such training. Renata arranges off the job training as well: Special Courses- Renata sends their employees to different training institutes/ business schools either home or abroad for special courses.
Conferences- Renata organizes annual conference which is another off the job method. Employees get new ideas, thoughts from the top level managers and potential managers. Simulations- A simulation is a training method that represents a real life situation, with trainees decisions resulting in outcomes that mirror what would happen if the trainee where on the job. 21 HR Practices in Renata Limited 3. 5. 9 Training Process To train employees is a recent trend in our country. Organizations consider training as a prime concern. Training has become a standard process for the development of companies as well as personnel.
Renata Limited is highly concerned about the training as an important and essential dimension. The phases of training process are: Phase 1: Pre Training The first phase is Pre Training. It determines the reason, method and process of training. To identify the specific job performance, skills need, to analyzed the skills and needs of the prospective trainees, and to develop specific, measurable knowledge and performance objective, instructional deigns are the part of this phase. Phase 2: Training Training is to provide the knowledge and techniques, to increase a person’s ability and aptitude.
Phase 3: Post-training This phase states that there should be an evaluation and follow-up step in which the program’s successes or failures are assessed. Evaluate Trainees It is important to evaluate trainees. Renata evaluates the trainees after providing training. There are few ways of evaluation. Renata’s followings are given below: Performance Review- Renata review performance of the trainees by the supervisor or line manager. Questionnaire- Trainer makes a questionnaire and assesses the trainees through it. The questionnaire consist the content of the training session. 22 HR Practices in Renata Limited . 6 Compensation & Benefits Renata Limited is committed about maintaining salaries and benefits that are fair to all employees and competitive in the local market place. The management monitors changes in the economy and salary market to ensure that the overall compensation package is sufficient to attract, recruit and retain high quality staff within the financial capabilities of Renata Limited. As per Renata’s language: 3. 6. 1 Principles of Salary The compensation structure is framed with the objective to attract and retain high quality people. The guiding principles of the compensation policies are: i. i. iii. iv. v. Individuals background and experience External pay market levels and trends (determined through compensation survey) Particular skills requirements of the Company. Company’s affordability Company’s statutory obligations 3. 6. 2 Components of Salary The components of compensation package are: a) Office Management / In-House i. Monthly: Basic Salary, House Rent, Conveyance Allowance, Entertainment Allowance, Utility ii. Yearly: – iii. Yearly Leave Fare Assistance Yearly Festival Bonus-4 (2 bonus in each festival) Yearly Performance Bonus – Paid at the end of the year depending on performance
Yearly Workers Profit Participation Fund (WPPF) Long Term: – Provident Fund Gratuity Group Insurance Policy Medical Benefits (Actual) b) Field Staff i. Monthly: Basic Salary, House Rent, Personal Up-keep Allowance, Public Relation and Work Allowance, Utility ii. Quarterly/Yearly: 23 HR Practices in Renata Limited iii. Yearly Leave Fare Assistance Yearly 4 Festival Bonuses (2 bonus in each festival) Quarterly Sales Incentive paid at the end of the year Long Term – Provident Fund Gratuity Group Insurance Policy Medical Benefits (Actual) 3. 6. 3 Payment of Salary i. Mode of Payment: Payment shall be made only in Bangladeshi Taka.
Every employee should have a salary account in company-nominated bank. The salary will be transferred to the respective salary accounts from the Finance Department within 25th of the month. ii. Pro-rata Payment: If any employee is hired in the middle of a month, the salary will be paid on pro-rata basis and the salary can be paid in cash if the salary account is yet to be opened. iii. Advance Salary Payment: No advance salary or advance from already earned salary can be distributed to any employee without written approval of the Managing Director. 3. 6. 4 Loan against salary
Generally loan is discouraged. Only in extreme cases, depending upon the employee’s performance/merit/contribution to the company, loan may be considered and approval of loan will be required from the Managing Director. 3. 6. 5 Salary Enhancement Time of Increment Increment will be paid annually on the basis of evaluation of performance effective from 1st January. Annual Increment Annual increment is paid on the basis of performance. Performance is ranked in 3 steps: – step for those who are rated fair, – 2 steps for those who are rated good, – 3 steps for those who are rated very good and outstanding. 4 HR Practices in Renata Limited However, the Divisional or Department Head of Renata can give special increments as a reward of exceptionally remarkable performances. In that case, the Divisional Head must mention the reason for giving such special increment. Interim Increments If any employee in Renata is promoted to higher position with increment of salary or had a simple enhancement of salary; he/she will not be entitled to annual increment if it falls within next six months of the promotion or increment. For any increment within six months of promotion or increment,