Human Resource Management Issues for Jamuna Group

Table of Contents

Executive Summary .......................................................................................................................2

Introduction ....................................................................................................................................3
Methodology ...................................................................................................................................4
Company Background ...................................................................................................................4
Culture of Interpersonal Relationship .........................................................................................7
Current HR System .......................................................................................................................8
Recruitment………………………………………………………………………………..9

Selection Process………………………………………………………...........................10

Training & Development………………….……………………………………………..11

Benefit Offered…………………………………………………………………………..13

Implication of Strategic Human Resource Management………………….…………………13

Recommendations……………………………………………………………………………..14

Conclusion……………………………………………………………………………...……….14

References……………………………………………………………………………………….16

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Human Resource Management Issues for Jamuna Group

Executive Summary

The founder of Jamuna Group is NURUL ISLAM BABUL, who established the company in
1970. He is an architect and is now the present chairman of Jamuna Group. Mr. Nurul Islam is
considered to be one of the richest and one of the most powerful businessmen in Bangladesh. He
is well known for his mammoth accomplishments such as the Jamuna Group of companies as a
whole and Jamuna Future Park; one of the biggest shopping malls in South-east Asia. Mr. Nurul
Islam is also the owner of the Bangla Daily Jugantor.

Our company of choice for our Human Resource Project regarding HRP dept. analysis is
Jamuna Group. The report we have created is entirely based on the interview with Md. Jahangir
Alam (Deputy general manager, Admin & HR Manager of Jamuna Group ltd.), and Sadek Habib
Ahmed (AGM, Admin & HR manager of Jamuna Group ltd.). They both gave us a proper view
of how the HMR department of the company works and what it is responsible for. They
mentioned that the HRM department plays an important role in the growth process of the
company and talked about their HRM processes.

Mr. Jahangir, and Mr. Sadek emphasized that Jamuna Group recognizes the importance of staff
as true ‘Human Resources’: valuable assets that contribute to the continuing growth of the
company. By placing emphasis on personnel at every level of the business and they always
encourage a true team spirit by creating a friendly environment free of discrimination and
unscrupulous associates. They also mentioned about what the organization does to motivate its
employees as motivated employees bring productivity and efficiency in the firm.

In addition to that, they helped us understand the HRM recruitment procedures and how or when
internal and external recruitment is carried out based on situation demand. Moroever, the
mentioned how selection of the right employees based on criteria’s mentioned in the report
entirely, which includes several well defined steps. The organization also gives importance in
training and development of the employee which ensures having the productive employees in the
organization.

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Human Resource Management Issues for Jamuna Group

Introduction

The Human resource management department is crucial for companies which have globally
recognized. The success of the company relies on Human Resources Management. Human
resource management is the valuable assets for Jamuna group for growth process. The term
human resource management describes the formal system instrument which can analyze the
management of people within the organization. They follow human resource management to
encourage their employee with a true team spirit. As they believe that a true team can asset of
their company to achieve the success. The most important goal for human resource management
is the maximizing the profit of organization by keeping unnecessary costs low. Jamuna group
participates in our national building activities and is one of the biggest employers of people
nation-wide.

Jamuna group is considered to be one of the largest Bangladeshi industrial conglomerates.

Jamuna group was founded in 1974 and the headquarter is situated in Dhaka, Bangadesh. Jamuna
group established its first large scale production unit by setting up Textile Manufacturing
Industries (En.m.wikipedia.org, 2017). Other than that, Jamuna group has several other types of
SBU’s such as as well such as Jugantor (a national daily newspaper)Jamuna Future Park (the
largest shopping mall in the Bangladesh, Jamuna TV, JW Marriott Hotels (Bangladesh), Crown
Beverage, JamunaKniting& Dyeing Ltd., Jamuna Denims Ltd., Jamuna Spinning Mills Ltd.,
Shameem Spinning Mills Ltd., Shameem Composite Mills Ltd., Shameem Rotor Spinning Ltd..
JamunaCityNew Uttara Model Town. Pegasus Leathers Ltd., JamunaDistilery Ltd., Jamuna
Welding Electrode Ltd., and Jamuna Electronics & Automobiles.Jamuna group is also currently
listed in the Stock Exchange (Industries., 2017).

From material to land JAMUNA Group has various business interests. Over the thirty-four years
of operation, the Group has wandered into electrical, designing, synthetic, cowhide, articles of
clothing and materials including turning, sewing and coloring, beautifying agents, toiletries,
refreshments, land, lodging, print and electronic media parts. JAMUNA has a solid generosity
for its items and operation in both nearby and worldwide market. It is basic to bring up that
JAMUNA has developed another world of materials with the best innovation and tools imported
from Germany, Switzerland, USA, Japan, India, Italy and so forth to produce the best quality
items for the worldwide market (Scribd, 2017). A standout amongst the most noteworthy and
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capable backup of JAMUNA Group is THE DAILY JUGANTOR, which is one of the main
daily paper of Bangladesh. The JUGANTOR is the uncommon accomplishment of the Group,
with the thought process to ensure human rights and give genuine and fair news to the nation.

JAMUNA group is also involved in real estate development and one of the biggest project it has
undertaken is The JamunaFuture Park. The project is located at BARIDHARA, Dhaka on 33
acres of land. JamunaFuture park is the 3rd largest shopping mall and commercial complex in
ASIA, which houses other recreational facilities and even offices of Jamuna Group.Its ongoing
projects area modern television building, a modern 500 beds Hospital, a Five Star Hotel etc
located in Banshundhara R/A

Methodology

Primary source:As a primary source to talk about the HRM issues of Jamuna
group ltd we took Interview with two people. They are:

1. Md. Jahangir Alam, Deputy general manager (Admin & HR),

2. Sadek habib ahmed, AGM (Admin & HR),

Secondary Information: As a secondary source we used Jamuna group ltd.’s

official website and for basic HRM information we took help from our human
resource management book by Gary Dessler, 13th edition.

Company Background

Mr. Md. Nurul Islam is an architect and an industrial leader in the private sector. He announced
jamuna group as a private industrial sector in 1974 with the mission and vision of building newly
independent Bangladesh country. Jamuna started its journey in 1974 with Jamuna electronic
manufacturing Co. Ltd and in 1975 the manufacturing accessories and fittings
(Jamunagroup.com.bd, 2017).

Jamuna group has varied business interests from textile to real estate. They are involved in other
businesses like engineering, chemical leather, garments and textiles including spinning, knitting
and dyeing, cosmetics, toiletries, beverages, real estate, housing, print and electronic media
sectors.

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Jamuna group textile division sector are involved in business with optimo denims ltd, shameem
spinning ltd, shameen rotor spinning ltd, shameen composite mills ltd. Media & advertisement
sector comprises of the daily jugantor, jamuna television and rubicon advertising for promoting
their products. Pegasus leather ltd and Pegasus leather processing ltd are its units for raw leather
processing. Jamuna electric and engineering sector comprises of Jamuna welding electronics
ltd.,Jamuna Television and Jamuna Automobiles.

JAMUNA Group has a solid altruism for its items and operates in both local and international
market. JAMUNA Group has adopted innovation as one of their core competencies as
apparatuses to carry our R&D is imported from Germany, Switzerland, USA, Japan, India, Italy
and so on for creating the best quality value propositions.

Board of Directors
Mr. Shamim Islam

Mrs. Salma Islam

Mrs. Shariat Tasreen Soniya

Mrs. Monika Nazneen Islam

Ms. Sumaiya Rozalin Islam

Mr. M.Z. Hossain

Mr. S. M. Abdul Wadud

Working in the HRM main department as Directors are:

Names Country

Md. Sirajul Islam (Bengali) Bangladesh

Md. Abdul Aleem (Pakistani) Pakistan

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Mr. Saled Upenan (Indian) India

Furthermore, top level General Managers of Jamuna includes three departments. These are:

Manager Name
Department Name
GM Auditing Md. Mahabub-A-Khoda Chowdhury

GM Controller of Accounts Md. Shafiqul Islam

GM Head of Procurement Md. Mujibur Rahman

Mission and Objective

Jamuna Group strives to excel under the followed belief of “development of civilization.”

As per their stated mission, Jamuna Group has a separate Mission and Objective in terms of
operating (Jamunagroup.com.bd, 2017).

The statements are given below:

Mission:
“Our mission is to produce and provide quality services and innovative products for people,
maintain ethical standards in business operation, also ensuring benefit to the stakeholders and
people of Bangladesh.”

It was understood that Jamuna Group communicated primarily to the people of their
organization, members and employees, by giving a clear picture and shared understanding
of the organization’s intended direction. It defines continuous and ongoing focus of the
organization.

Objective:
“To accomplish our Vision and Mission we are constantly pursuing for betterment of socio-
economic lives of our people.”

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The aforementioned statement was understood to be a vision statement, which explained

where the company would be likely to appear in a future successful state if it were to obtain
its objective of attaining socio-economic goals.

Goals and Targets

Jamuna Group recognizes the significance of staff as true ‘Human Resources’ who are valuable
assets that contribute to the continuing growth of the company. By placing emphasis on
personnel at every level of the business, they hope to encourage a true team spirit.

Managing Director, Mr. Md. Nurul Islam Babul, considers Jamuna Group team to be:
“…a quality of people who understand the dynamics of the industry; that have enough
experience in the industry to anticipate what the competitors are doing and still have a loyalty
with the customers. They are the people who are really laying down the touchstones for this
business.”

Jamuna Group’s philosophy recognizes these people as the key element of the business and we
aim to be the employer of choice in our industry.

Some of the main goals that Jamuna Group tries to achieve are mentions below:

 Apply more sustainable practices in operation

 Educate its employees and customers about how they can make a difference.

 Jamuna is constantly trying to be environmentally friendly

 Takes the environment under much careful consideration so that water and flora fauna
around us are not adversely affected.

Culture of Interpersonal Relationship

The leadership style in Jamuna Group is Autocratic. The management style is such that one
person controls all the decisions and takes very little inputs from other group members. Jamuna
leaders often make choices or decisions based on their own beliefs and do not involve others for
their suggestion or advice.

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The interaction between Superior Management and employees is believed to be friendly. There is
a specific chain of command for communication and a systematic interaction between the
superiors and inferiors. The work environment is also said to be smooth and flexible. The
organization provides extremely emphasized workplace safety in terms of both male and female
employees. There is no gender bias or discrimination. However, the management is very strict
towards rules and regulations which they believe is necessary for a company to run properly.

When it comes to making strategic decisions with the Board of Directors and Top-Level
Management, the Human Resource Department does not take part in strategic decision making
which governs the success of the entire company. Like it has been mentioned above, All the
departments in the company is strictly prohibited from any sort of involvement in strategic decisions and
are assigned to work and concentrate in their own work areas. All the departments within the company are
instructed to work according to the responsibilities and duties assigned by the board of directors and no
department has the opportunity for a say in the direction the company is headed towards based on SBU’s.
The HRM department only provides humanitarian support according to the needs specified the SBU’s or
Board of Directors.

Current HR System

The responsibilities of HRD of Jamuna Group are given below:

 Recruitment: overall process of attracting, selecting and appointing suitable

candidates for jobs (either permanent or temporary)
 Selection: interviewing and evaluating candidates for a specific job and
selecting an individual for employment based on certain criteria
 General administration: Includes instruction in personnel and organization
policy, human resource dynamics and flows, labor relations, civil rights, human
resources law and regulations, motivation and compensation systems, work
systems, career management, employee testing and assessment, recruitment and
selection, managing employee
 Logistics support: HRM policy parameters to constitute a significant element of
the potential improvements of logistics and supply chain management

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 Transport Management: Successfully monitoring and controlling Transport for the

organization.
 Security Management of Jamuna Group: Security is an issue taken under serious
consideration within Jamuna Group. Al activities are closely monitored and
reported.

Recruitment

The recruitment process depends on the type of recruitment that the company does but generally it starts
with the first two steps mentioned below:

1st step: Order by management for the type of qualified people required and needs to be hired

2nd Step: Placing ads for vacancies (Platforms used: News papers, bdjobs.com, LinkedIn)

The first most important responsibility for Jamuna Group’s Human Resources Department is the
recruitment of employees. The department’s job is to make sure that the company’s employees
are working up to their potential and to look for new kinds of people that might be required for
the job to be done. The organization has both-

 Internal recruitment
 External recruitment

Internal recruitment

Normally internal recruitment is not so big within the organizations. However, internal recruitment is
used for immediate or emergency transfer of employees when required by management or when an
employee leaves a crucial job at very short notice. This usually happen in production level jobs.
Otherwise, they normally opt for External recruitment.

External recruitment

External recruitment is used for new projects or the establishment of new Strategic Business Units
(SBU’s), when planned vacancy arises if an employee performance is falling below expected levels, and
for Succession when new individuals are needed who have unique skill sets that are absent within the
company which may be important for the new SBU’s. Also, external recruitment is used for filling

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important job positions that require an updated skill set (in case of engineering) if current employee skill
sets are becoming antiquated/outdated, and make no effort to improve themselves.

External recruitment is done in two methods:

i. Informal Method
ii. Formal Method

Informal method

Informal method of external recruitment is usually kept at a minimum by this organization.

However, they do rely on trustworthy employee’s referrals, which are quick and inexpensive, to
fill up types vacant jobs which do not require much qualification and or is not feasible to place
ads for. Employee referrals are effective since their reputation is on line with the type of people
they would refer so they would usually refer qualified people for the job.

Formal method

Formal method of external recruitment involves ad placements on all newpapers, prominent

Bangladeshi website, BDjob.com, LinkedIn, etc. to attract new and “fresh” candidates from
outside of the organization. Although there might be thousands of applications submitted, the
organization would have a large pool of candidates to choose from.

Selection Process

The recruitment and selection process of Jamuna group comprises of series of steps mentioned below:

1st Step: Short-listing of candidates who applied based on skills, experience, and qualifications.

2nd Step: Interview calls for shortlisted candidates

3rd Step: Interview conduct by the Head of Department where the employee will be positioned

5th Step: Final interview by a member of the Board of Directors

6th Step: Issuing of offer letter

7th Step: Issuing of agreement letter

8th Step: Issue of joining Letter

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9th Step: Induction/orientation

10th Step: Sitting arrangement by the HRD dept. position wise of the employee

11th Step: Order of stationary and tools for the new job holders

Effective selection process is very important for the success of an organization since the
company is run by the employees. For Jamuna Group, while recruiting the candidates, there are
some pre-conditions. If the candidates just completed the undergraduation from the university,
the CGPA requirement for them is a minimum of 3. The organization places low priority for
private university students and more recruitment from public universities. They give more
priority to the candidates who are from struggling family background as a way of helping the
society and candidates as mentioned by the HR manager.

For the other candidates, the requirement for General Manager level jobs is 10 years minimum of
work experience for those who are from public universities and for Higher Management level
jobs, 15 years of work experience for those who are from private universities.

As mentioned above, the selection of the candidates are mostly based on their interview
responses which are judged by the Board of Directors.

Training & Development

The new or current employees will need training to acquire skills for the job so that they can give
them optimum performance level. So, training and development of the employees is to enhance
and improve employee managerial skills which can possibly even lead to the succession of the
employees to higher level jobs. When employees see an effective training program, they feel that
the company cares about them and their development (succession) which will motivate them to
perform better.

Identifying Training Needs

The company identifies training needs by evaluation of an employee’s performance through performance
appraisal techniques and comparing results to preset benchmarks/standards. The supervisors will make an
effort to evaluate and compare Job-related performance data, make observations, and carry our tests to
evaluate competencies of employees holding crucial job positions. Performance of the workforce in

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general is judged upon accounts records as well do see a pattern of how the company is performing
overall. Accounts records are extensively used when determining performance of Sales staff. If
performance is below standard, training is given to revitalize performance.

Training and Development Facilities

Jamuna Group as a company conducts training of it employees in-house. Third party training is not used
by the company yet. However, the company plans to employ third party trainers somewhere in the future
when the company needs specialized training in order to train its employees for job positions depending
on the competitive environment of the business.

Jamuna Group usually conducts On-the-job training for production and sales level workers who learn by
actually performing the job, and in-house coaching for people who are responsible for keeping accurate
company records in areas of Microsoft Excel and Microsoft Access. Off-the-job training is not applicable
yet company wide. However, they plan to adopt this approach in the near future and in circumstances of
situation demand.

Succession policies

Succession of employees to a high level job is based on the following criterias:

i) Performance
ii) Communication skills
iii) On the book and off the book skill sets
iv) Years of experience
v) Qualifications
vi) Records of misconduct (incidental records)

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Benefit Offered

Salary Range of Low-level, Mid-level and High-level employees?

Low-Level Mid-Level GM High-Level

BDT 12,000 BDT 50,000 - 60,000 1.5-3 lacs 3-10 lacs

Financial benefits aside from salaries

The company has grown so big in scale and they employ a lot of people which makes it difficult for them
to offer everyone significant financial benefits as it might be very costly for the company. However, there
are certain financial benefits offered such as YEARLY INCREMENT, PERFORMANCE BONUSES and
EID FESTIVAL BONUSES. The HRM department mentioned that these costs are more predictable and
easier to incorporate into accounts, so that a certain portion of company profits can be set aside for these
payment options every year.

Non-Financial Benefits

No non-financial benefits or fringe benefits are offered whatsoever, to the mid and low levels employees
working for Jamuna Group. However, Assistant General Managers (AGM) and Directors are given
transport facilities such as use of company cars and cost of fuel and chauffer is borne by the company for
up to 25,000tk per car provided to higher level employees and Directors.

Implication of Strategic HRM

Strategic HRM ensures that all the aspects of human resources are in tune with each other to gain
the maximum benefits which determines the success of the company. Jamuna Group with their
friendly yet strict and disciplined culture and the benefits mentioned above are designed in such
a way that boosts and retains employee motivation as well as overall organization’s performance
which helps them collectively work towards achieving their objectives and goals.

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Recommendations

Although Jamuna Group has well established HRM department, there are things that can
certainly be added in the processes which can help improve overall employee performance.

Employee turnover: Employee turnover occurs most in areas of sales due to preset low
compensation, lack of promotional opportunities, burnout and overwork which is a recurring
problem within the company. Therefore, providing compensation benefits, allowing the
employees to take leaves which are paid or allowing them flexible work schedules through
flexing might boost employee morale and their performance.

Training Program: The organiation doesn’t offer off-the-job training method to which they are
looking for solutions. If they are able to offer this training, then it would enhance the employees
creativity and develop their skill sets. Also, job rotation is good for the employees too because
that will expand their knowledge and would require them to think beyond what their regular jobs
had required them to do.

Evaluation and motivation: The organization should run different types of test on the employees
to evaluate where they stand in terms of their skills. And if required, the department should
provide different training programs for the employees who are lacking. For those who are doing
well in the company, the department should praise them through compensation or incentives
which will motivate the employees and will increase their loyalty towards the organization.

Conclusion

Therefore, a structured, effective and efficient Human Resource Department is important and
necessary for a company to reach their objectives and develop a competitive advantage with the
competitors in today’s highly competitive market. Jamuna Group is one of the largest Bagladeshi
industrial conglomerates so for a big organization like this a structured Human Resource
Department is extremely crucial to retain their success. And by the information they we have
collected through interview, we have found out that Jamuna Group does have an effective HRM
department which recruits the best of candidates and provides friendly and safe environment for
employees with several benefits and incentives which brings out the best in the employees. Their

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vision, mission, objectives and goals are getting nearer with the right decisions that the qualified
employees make which makes it one of the most successful conglomerates in Bangladesh.

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References

En.m.wikipedia.org. (2017). Jamuna Group. [online] Available at:

https://en.m.wikipedia.org/wiki/Jamuna_Group [Accessed 9 Dec. 2017].
Industries. (2017). Jamuna Group Of Industries., Ka-244, Kuril, Progoti Sh.... [online]
Bd.kompass.com. Available at: https://bd.kompass.com/c/jamuna-group-of-industries/bd00391/
[Accessed 9 Dec. 2017].
(Industries., 2017)
Jamunagroup.com.bd. (2017). Company Profile | Jamuna Group. [online] Available at:
http://jamunagroup.com.bd/company-profile/ [Accessed 9 Dec. 2017].
Scribd. (2017). Body of Jamuna Group | Balance Sheet | Revenue. [online] Available at:
https://www.scribd.com/document/354337624/Body-of-Jamuna-Group [Accessed 9 Dec. 2017].

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