1.

1 Introduction: On the course training and development we were assigned to submit

a term paper on any company’s Human Resource practices in real life or the training
effectiveness of real life scenario. We have chosen Square Pharmaceuticals Limited
which is basically a Pharmaceuticals product producing company for our assigned
job.

Human resource is the most important part of any pharmaceuticals company. Therefore
human resource management gets a great importance in Pharmaceuticals Company in the
world. All most all developed country uses many techniques and strategy for human
resource management. Human resource practice is being used to make human resource
management more effective and less time consuming.

It is also a great opportunity for us to do a term paper on Square Pharmaceuticals

Limited that gave us a lot of knowledge about practical world. We go through book
and try to incorporate that knowledge with practical world. We find many
similarities as well dissimilarity with the book.

We made an interview to a Human Resource manager of Square Pharmaceuticals Limited.

The experiences and excitement that we gather was really worth mentioning. The
overall environment and absolute friendly behavior totally drew our attention and
created strive to work in this organization in future. Lastly the whole work gave a
clear concept about Square Pharmaceuticals Limited’s Human Resource management
Practice and enables us to prepare a clear and organized review for our project.

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1.2 Objective: Main objectives of our report are:  To know the training
effectiveness in real life which includes:

    
1.3 Methodology:

Recruitment Selection Employee training & development Compensation Performance

appraisal

To complete the paper both primary and secondary data were required. Interviewing
the HR Executive of the company collected primary data and secondary data were
collected from company’s documents, web sites and books.

1.4 Importance: Training and development is a important course for us. It is

necessary in this course to learn book as well as practical knowledge. It has to
realize the book’s implication in practical field. If any one do not know the real
experience about a company’s Human Resource Management Practice then the person do
not acquire the complete knowledge. To make this Term Paper is we have a
opportunity to learn many thing about training effectiveness in real life. That
clear our knowledge those already know us by book.

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1.5 Limitation: We made our term paper on the topic “Human Resource management
Practice in Square Pharmaceuticals limited”. We suffered a lot to make appointment
a Human Resource manager in Square Pharmaceuticals Limited. We spent more time to
make an appointment. Some of the time, the Human Resource Manager of Square try to
say that I don’t want to give the data. When we incorporate data in our term paper
then we need some additional data. If we found that additional data, it would very
helpful for us to make a term paper. But, Square did not give us appointment.

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2.1 Company History:

In Bangladesh Pharmaceutical sector is one of the most developed hi-tech sector

which is contributing in the country's economy. After the promulgation of Drug
Control Ordinance 1982, the development of this sector was accelerated. The
professional knowledge, thoughts and innovative ideas of the pharmacists working in
this sector are the key factors for this development. Due to recent development of
this sector it is exporting medicines to global market including European market.
This sector is also providing 95% of the total medicine requirement of the local
market. Leading Pharmaceutical Companies are expanding their business with the aim
to expand export market. Recently few new industries have been established with hi-
tech equipments and professionals which will enhance the strength of this sector.
The Rise of Pharmaceutical Sector of Bangladesh. Square today symbolizes a name – a
state of mind. But its journey to the growth and prosperity has been no bed of
roses. From the inception in 1958, it has today burgeoned into one of the top line
conglomerates in Bangladesh. Square Pharmaceutical Limited, the flagship company,
is holding the strong leadership position in the pharmaceutical industry of
Bangladesh since 1985 and is now on its way to becoming a high performance global
player.

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SQUARE is committed to ensure better life through quality medicine. Ensure strict
compliance with WHO cGMP standards and local regulatory norms in every phase of
sourcing & procuring quality materials, manufacturing, quality assurance and
delivery of medicines. Ensure all activities through documented Quality Management
System (QMS) complying International Standard requirements of ISO 9001 through
continuously developing Human Resources by regular training and participation.

Square is committed to undertake appropriate review, evaluation and performance

measurement of processes, business activities and Quality Management System for
continual improvement to ensure highest standard, customer satisfaction, developing
human resources and company's growth

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2.1.1 The Corporate History of Square Pharmaceuticals Limited:

CORPORATE HISTORY :
Year of Establishment (Initially as a Partnership) : 1958

Incorporated as a Private Limited Company

: 1964

Technical Collaboration Agreement with Janssen Pharmaceuticals of : 1975 Belgium (A

subsidiary of Johnson & Johnson International Ltd.) Technical Collaboration
Agreement with F.Hoffman-La Roche & Co. Ltd. Converted into Public Limited
Company : 1991 : 1984

Initially Public Offering (IPO)

: 1994

Stock Exchange Listing (Dhaka & Chittagong)

: 1995

Agreement with M/s. Bovis Tanvec Ltd. of UK for implementation : 1996 of Dhaka
Plant Awarded ISO-9001 Cerificate : 1998

Awarded UK-MHRA Certificate

: 2007

Business Lines

: Manufacturing and Marketing of Pharmaceutical Finished Products, Basic Chemicals,

AgroVet Products and Pesticide Products

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Authorized Capital

: US$ 16.99 Million (Tk. 1,000 Million)

Paid-up Capital

: (Tk. 596.16 Million)

Number of Employees

: 3,001

Subsidiary Company

: Square Spinnings Ltd. Square Cephalosporins Ltd.

Associate Company

: Square Textiles Ltd. Squar Knit Fabrics Ltd. Square Fashions Ltd. Square
Hospitals Ltd.

2.2 Company Vision: Square Pharmaceutical Limited see business as a means to the
wellbeing of the investors, employees and the society at large, leading to
accretion of wealth through financial and moral gains as a part of the process of
the human civilization.

2.3 Company Mission: Square Pharmaceutical Limited mission is to provide quality &
innovative healthcare relief for people, maintain stringently ethical standard in
business operation also ensuring benefit to the shareholders and other stakeholders

2.4 Company Objectives: Square Pharmaceutical Limited objectives are to conduct

transparent business operations within the legal & social framework with aims to
attain the mission reflected by our vision.

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2.5 Company Strives For: Square Pharmaceutical Limited has extended her range of
services towards the highway of global market. She pioneered exports of medicines
from Bangladesh in 1987 and has been exporting antibiotics and other pharmaceutical
products. This extension in business and services has manifested the credibility of
Square Pharmaceuticals Limited.

We strive for At the very fast, they look for top quality health care products at
the least cost reaching the lowest rungs of the economic class of people in the
country. They value our social obligations.    They owe their shareholders and
strive for protection of their capital as well as ensure highest return and growth
of their assets. They strive for the best compensation to the all the employees who
constitute the back-bone of the management and operational strength of the company
through a pay-package composing salary/wages, allowances, bonuses, profit
participation, leave salary and superannuating & retirement benefits.  They strive
for the best co-operation of the creditors & debtors the banks and financial
institutions that provide financial support when we need them, the suppliers

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of raw materials & suppliers who offer them at the best prices at the opportune
moments.  They strive for fulfillment of our responsibility to the Government
through payment of entire range of due taxes, duties and claims by various public
agencies like municipalities etc.  They strive for practicing good-governance in
every sphere of activities covering inter alias not being limited to, disclosure &
reporting to shareholders, holding AGM in time, distribution of dividends and other
benefits to shareholders, reporting of price sensitive information, acquisition of
shares by insiders, recruitment & promotion of stuff etc.   They strive for
equality between sexes, races, religious and regions in all spheres of our
operation without any discriminatory treatment. They try hard for an environment
free from pollution and poisoning.

2.7 Corporate Focus:Our vision, our mission and our objectives are to emphasize on
the quality of product, process and services leading to growth of the company
imbibed with good governance. Top Management: Board of Directors As per provisions
of the Article of Association, Board of Directors holds periodic meetings to
resolve issue of policies and strategies, recording minutes/decisions for
implementation by the Executive Management.

Executive Management: The Executive Management is headed by the Managing Director,

the Chief Executive Officer (CEO) who has been delegated necessary and adequate
authority by the Board of Directors.

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The Executive Management operates through further delegations of authority at every
echelon of the line management. The Executive Management is responsible for
preparation of segment plans/sub-segment plans for every profit centers with
budgetary targets for every items of goods & services and are held accountable for
deficiencies with appreciation for exceptional performance. These operations are
carried out by the Executive Management through series of committees, sub-
committees, ad-hock committees, standing committees assisting the line management.

Company Hierarchy: MD-Managing Director, DMD-Deputy Managing Director, EDExecutive

Director, DIRECTOR, GM-General Manager, AGM-Assistant General Manager, MANAGER,
EXECUTIVE (Senior & Junior), OFFFICER, OFFICE ASSISTANT

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MD DMD ED DIRECTOR

GM AGM MANAGER

EXECUTIVE (SENIOR&JUNIOR) OFFICER OFFICE ASSISTANT

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2.8 Competitive Position: Square Pharmaceuticals Limited is the largest
pharmaceutical company in Bangladesh and it has been continuously in the 1st
position among all national and multinational companies since 1985. It was
established in 1958 and converted into a public limited company in 1991. The sales
turnover of SPL was more than Taka 5 Billion (US$ 90 million) with about 15% market
share (April 2003 – March 2004) having a growth rate of about 16%.

2.9 The Corporate Level Strategy: The main Vision of Square Pharmaceuticals Limited
is to view business as a means to the material and social well being of the
investors, employees, and the society at large, leading to accretion of wealth
through financial and moral gains as a

part of the process of the human civilization. And their mission is to produce and
provide quality and innovative healthcare relief for people, maintain stringently
ethical standard in business operation also ensuring benefit to the shareholders,
stakeholders and the society at large. Square Pharmaceuticals ltd. is a part of
Square Group. All we know that Square group is concerns with a lot of business such
as Chamival Division, Square Toiletries Limited, Square Spinning Ltd. etc.

2.10 Business Level Strategy: Square Pharmaceuticals Limited pursues a

differentiation strategy. The bases of differentiation are superior quality, brand
image, quick introduction of new drugs. It always remains one step ahead of the
competitors because early introduction of new medicines. It is the first company to
introduce Ampicilin, Metronidazole, Cotrimoxazole, Clofenac and many other generic
drugs just after the expiry of patent right of the innovators. As a result, the
company gains a first mover advantage and holds the leading position in the
Pharmaceutical industry.

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3.1 Human Resource Management Policy: Human resource management issue is now a
vital element for every company. It is especially obvious for the manufacturing
industries. Human resource policy of Square Pharmaceutical Limited will ensure to
retain the best and effective employees at all level of the hierarchy. Now in the
competitive global market human resource is the most welcomed resource than other
resources. So to motivate and up date the employees of Square Pharmaceutical
Limited it has developed. Its own compensation policy, training and development
policy, recruitment and selection policy, and career development policy and soon.
It is believed that through utilizing the human resource policy it will able to
attract and retain more employees to reach its target with a short period.

3.2 Mission of Human Resource Department: Square Pharmaceutical Limited intends to

attract the talented pool of personnel existing in the country. It does its utmost
to provide them with an excellent equal employment opportunity, which will benefit
for the organization fully and enhance the employees’ career to the future.
Outstandingly, the grounds of Square Pharmaceutical Limited will encourage the
cerebral resources of the organization and keep it as long run as possible with a
finest way.

3.3 Recruitment Policy: Recruitment follows HR planning and goes hand in hand with
the selection process by which organizations evaluate the suitability of candidates
for various jobs. Without accurate planning, organizations may recruit the wrong
number or type of employees. Without successful recruiting to create a sizable pool
of candidates, even the most accurate selection system is of little use. Recruiting
is a process by which organizations can locate and attract individuals to fill job,
recruit new employees to replace those who leave or are promoted, to acquire new
skills, and to permit organizational growth. Recruiting is an even more

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important activity when unemployment rates are low and economic growth is strong,
as firms compete to attract the qualified employees they need to succeed.
Recruiting can be quite expensive.

From Square Pharmaceutical Limited organizations point of view, recruitment takes

place the whole year whenever it is required or needed. It may be once in a year in
more than that. The company recruits people from external sources at all levels.
Square Pharmaceutical Limited consists of seven departments namely: Marketing
department, IT department, Quality Management department, Personal and
Administration department, Technical and Service department, Commercial department
and Accounts and Finance department. Every department has heads and executives.  
 

For executive positions, skilled, experienced and reputed employees are hired form
the outside. For marketing department, the company fills higher positions through
internal promotion only. Fresh graduates are recruited at the entry in the post of
medical promotion officer. The company does not seek any experience for recruiting
entry-level employees. Following preliminary interview, written test and final
interview; medical promotion officers are selected on a temporary basis. The
temporary selected applicants are then sent for six weeks induction training.

 

After the completion of training, the employees are appointed for six months as
probationary period. On completion of probationary period, the company undertakes
performance appraisal and selects the qualified employees permanently.

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3.4 Selection Process: Every organization wants to have the best employees. Because
a team of best employs can facilitates the organizations to get the quicker
success. Therefore, to select the best employee is a very important and crucial
factor for an organization.

Selection occurs after the step of recruitment. There the organization decides who
will be hired. Among a huge number of employees, they short-listed the best ones.
However, the selection process varies from organization to organization. They can
collect the application blanks and conduct the brief and formal interviews. They
can also take help from the tests, interviews, assess me centers, background checks
etc. However, the second step is the costly process for selection. Typically, firms
follow these steps while selecting. These steps may vary to one firm to another. √
Initial Screening √ Completion of Application Form √ Employment test √
Comprehensive Interview √ Background test √ Physical Examination √ Final Employment
Decision

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Square Pharmaceutical Limited selection process is a bit different from the above
process. They go through the following procedures to select candidates: 

At first Square Pharmaceutical Limited collects applications from candidates those

have been dropped by them either unsolicited or solicited in the response of
advertisement that are published in national medias.

Once the pull of applicants applied for the vacant position, Square Pharmaceutical
Limited takes examination of them, which is a written examination.

Then among them who passed the written examination successfully are invited to
attend an oral test or viva, which is called the Managerial Viva. Here potential
candidates are interviewed by the Personnel Department Manager or by the Manager of
the department.

Those that get the green signal from the Managerial Viva then are asked to face a
Comprehensive Interview in front of the Board of Directors. This is called
Directors Viva. As all know that Square is a leading National company, it is run by
a Board of Directors consists of the owners and stockholders.

These members of the Board of Directors take the final decision about selecting
employees from the peoples.

This is the overall selection process of Square Pharmaceutical Limited.

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4.1 Training and Development Process: Training involves employees acquiring
knowledge and learning skills that they will be able to use immediately and
employee development involves learning that will aid the organization and employee
later in the employee’s career.

4.2 Training and Development Strategy of the Square Pharmaceuticals Limited:

Training and development is now a significant part for every organization to update
and make workforce competitive in the company to perform effectively and
efficiently. Square Pharmaceutical Limited would take training and development
program for it is every level of the workforce. It will conduct based on the
performance and base on the situation. It will highlight to update its workforce
through external training center, as it has no internal training institution. Here
those who will receive training, have to maintain a permanent contract, which will
ensure retain of those upgraded workforce. Square Pharmaceutical Limited provides
training and development packages for it’ employees. They are

The training programs Square Pharmaceutical Limited has are shown in the table
below-

Training Program Effective Office Management Negotiation Skills Office

Communication Introductory Training

Duration Minimum 03 Days

Level of Employee Executive and above

Minimum 03 Days Minimum 03 Days About 02 Months

Executive Non Executive Field Workers

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

Employees are provided both

(a) On the job training and (b) Off the job training 

Though Square Pharmaceutical Limited does not have any training institute yet they
train employees by

(a) Internal Trainers (b) External or Professional Trainers Sometimes the company
allows employees to take some external institutional training to contribute more to
the company. Thus, they facilitate employees with financial support under company
provisions.

5.1 Compensation Policies: Square Pharmaceutical Limited is concentrating on

competitive compensation package for its all level of employees to ensure to retain
and motivates its employees. To gain competitive advantage it has conducted salary
survey. It is highly encourage performing its employees the best because Square
Pharmaceutical Limited will maintain performance based compensation system. On the
other hand, promotion and salary increment will obviously depends on the
performance of the employee in a fiscal year. Other allowances will be provided
based on the organizational hierarchy. The compensation packages of the company is
discussing below:

5.1.1 Promotion: People are promoted form Medical Promotion Officer to Senior
Medical Promotion Officer, Territorial Manager, Regional Sales Manager and then
Sales Manager. The more efficiently employee woks, the more quickly promotion is
awarded. To award promotion, the company systematically evaluates performance for
medical promotion officer, senior medical promotion officer and executives
following the set criteria.

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5.1.2 Basic Salary: Basic Salary is the salary, which is paid by the company to the
employees for work performed. That means Basic salary is provided to the employees
based on the individual skills and knowledge.

5.1.3 Annual Bonus: Employees are given two annual bonuses in the two Eid Festival,
which is settled based on their basic salary.

5.1.4 Increments: An increment is defined as the increase in the salary according

to the performance of the employees. Square Pharmaceutical Limited would provide
increment to the salary of the employees according to the satisfactory performance.

5.1.5 House Rent: House allowances are provided to the top-level management and mid
level management.

5.1.6 Medical Allowances: To ensure that every one with in the company fill secure
about their health related issues and to be motivated towards the work Square
Pharmaceutical Limited will provide medical Allowance for each month with their
total salary. From the top to bottom, every level of employees within the company
will receive the same amount of medical allowance in every month. 5.1.7 Profit
Sharing: Profit sharing is two types: a. bonus share or dividends and b. fixed
percentage of the profit.

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In addition, it provides sales commission, transportation facility, provident fund,
city allowances, health insurance, refreshment and canteen facility, pharmaceutical
and other toiletries products of the company at a subsidized rate

Training & Employee Development in Square: Our Training & Development enables our
people to enhance their skills, keep them updated with recent changes. We offer
both on-the-job and off-the- job at both theoretical and practical training
opportunities through a range of Local, Regional and International Training
programs that include both functional and managerial levels on the basis of
Training Need Assessment. Training Need Analysis (TNA) is conducted by Department
Heads and Human Resource Department jointly on the basis of job analysis.
Management Development Training Round the year, management development training is
organized for managers & executives at our Corporate Headquarters, Dhaka Unit &
Pabna Unit. Our own and renowned resource persons from home & abroad conduct the
training sessions. We also send our employees to renowned local training institutes
for specialized training. Overseas Training We send our employee to abroad for
training program depending on availability of appropriate topics. Technical persons
of our factories attend the Factory Assessment Test (FAT) in various parts of the
world for smooth operation of equipments.

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Field Forces Training & Development

Each year, a significant number of Field Forces complete their induction training
program and joined to their respective markets and appear at examination in every
month for further development. Field Forces Refresher Course

For updating product knowledge and selling skills of field forces, Refresher Course
is organized in four different regions in every month. Territory Manager Training

Twice in every year, mid-level managers of sales participate in the training

program titled “Sales Territory Management” at a regular basis. Every year a number
of Distribution Assistants (DA), Data Entry Operators (DEO) go under induction
training program immediately after initial recruitment. Each month, Refresher
course for DA, Driver and Packers is organized in two different depots for updating
their knowledge. Other Activities:
   

Students of various universities are placed as Interns in different departments.

Significant number of students completed their In-Plant Training in our Plants.
Coordinating factory visit for different government and Institutions. All newly
joined executives go through a structured Orientation Program.

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

We conduct health, Hygiene & different awareness program for our colleagues.

We conduct training on different compliance parameters for our factory colleagues

6.1 Conclusion:
Square Pharmaceutical Limited is a very well known national figure in Bangladesh.
They are the biggest organization in Bangladesh. Square Pharmaceutical Limited has
a very well reputation for this working environment. Usually they only recruit
people for all-level jobs, because they believe in the internal growth of their
current employees. So it is easily understandable that Square Pharmaceutical
Limited prefers their current employees first. That is why employees do not leave
this organization. It is also true that Square Pharmaceutical Limited has a number
of good employees who are talented as well as committed to the organization. They
have very good communication skills. This is because of Square Pharmaceutical
Limited’s strong recruiting and selection process. Before taking employees they
analyze on those position. They find out what are the responsibilities they should
perform and what is the recruitment to perform those activities. Square
Pharmaceutical Limited has a structured planning for those processes. They conduct
the processes in different steps. For this reason they have to spend time but
finally they are being able to get the most prefect employees for their
organization. 6.2 Recommendation: As Square Pharmaceutical Limited is one of the
leading national companies of Bangladesh its human resource policies are much more
competent and well organized than any other organization of Bangladesh. Even many
Multinational companies are falling behind in the means of human resource practices
than Square Pharmaceutical Limited those are competing with the mentioned company.
The training process of Square Pharmaceutical Limited is very widely spread to
fulfill employees need to be more competitive. Each level of employees are
facilitate with the training and development programs of Square.
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Employees are trained both on the job training along with off the Job Training.
Both internal and external trainers are available to train employees in the
organization. The great feature of its development process is that it provides
allowances according to the company rules to the employees when they are going for
an external training. But the lacking of Square Pharmaceutical Limied’s development
system is that it does not have any Training Institute of its own. Square
Pharmaceutical Limited has the structural support to establish a training institute
to build its employees as it requires. In the selection process of Square it does
not have any physical examination of the selected employees. There is no specified
process of the Background Investigation of the selected employees. It is
recommended that it should adopt these steps also in the selection process which
will help them to have more competent employees in the organization. Compensations
and benefit programs are standard enough in Bangladesh to retain employees in the
organization but as Square Pharmaceutical Limited is a company which is competing
with many global companies so it should develop a compensation program which will
be competitive enough to attract not only Bangladeshi candidates but also the
candidates those are globally competitive.

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References:  Class note and journal provided by course instructor Laila Zaman  HR
Executive, Rashedul Hasan.  Guideline provided and assisted student teaching
assistant Ferdoousi Rob  Personnel/Human Resource Management- David A.
Decenzo/Stephen P. Robbins  Human Resource Management-Cynthia D. Fisher/Lyle F.
Schoenfeldt/James B. Shaw.  www.google.com  www.squarepharma.com.bd

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