1

DETERMINING THE MOTIVATING FACTORS OF THE

WORKERS OF INDUSTRIAL SECTOR IN BANGLADESH.
Submitted to:

…………………….
Lecturer
Department of Business Administration
Stamford University Bangladesh

Submitted by:

Md. Sahin Alam

ID: BBA 02506526
Batch:25th H&I
Campus: Siddeswari

STAMFORD UNIVERSITY, BANGLADESH

Submission Date: 10 February 2009
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LETTER OF TRANSMITTAL

25 February, 2009

………………………………
Lecturer
Department of Business Administration
Stamford University Bangladesh

Subject: Submission of internship report.

Madam,
I have the pleasure to submit an elaborate Internship Report after a successful three month
Internship attachment at the Tissue manufacture Company. The Internship Report concentrates on
the “HR Policy.”

Have concentrated my best effort to achieve the objectives of the report and hope that my
endeavor will serve the purpose. The practical knowledge and experience gathered during report
preparation will immeasurably help in my future professional life. I will be obliged if you kindly
approved this endeavor.

Sincerely

…………………
Md.Sahin Alam
ID: BBA 02506526
BBA 25th Batch
Department of Business Administration
Stamford University Bangladesh
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CERTIFICATE

This is to certify that Md. Sahin Alam, ID No. BBA 02506526, student of BBA Program,
Stamford University Bangladesh, has completed the internship report titled “HR Policy”
successfully under my supervision.

I wish him every success in life.

Supervisor

………………..
……………………………….
Lecturer
Department of Business Administration
Stamford University Bangladesh
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DECLARATION

I, Md. Sahin Alam, the student of Bachelor of Business Administration major in Human
Resources Management of Stamford University Bangladesh do hereby declare that the internship
report on “HR Policy.” has not submitted for any other degree before.

……………………..
Md. Sahin Alam
ID: BBA 02506526
BBA 25th Batch
(Major in HRM)
Department of Business Administration
Stamford University Bangladesh
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ACKNOWLEDGEMENT

First of all, I present my due rewards to all mighty, who have provided me the brilliant opportunity
to build & complete this study successfully with good health & sound mind.

I would like to express my feelings & great affections with my heartiest appreciation to the most
honorable supervisor M Z Hussain Arzu for his kind co-operation. Without his help it was
impossible for me to complete this report. His excellent method of Guiding helped me to
understand the critical topics easily. I also thanked him for kindly assigning such a nice &
significant report, which I always remember gratefully.

I would like to convey my best regards to the respondents who extended their kind assistance &
gave me information’s to carry out the report. I am very grateful that they helped me by giving
their valuable time, consultation and guidelines.

I desire & hope that this study will certainly help me to get a good experience, so that I can be
successful & build up career in a precise way.
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EXECUTIVE SUMMARY

Bashundhara Tissue Industries Ltd is already highly reputed for its export earnings, and with the
approaching phase out of the ISO certificate, the industry has secured its place in the limelight.
There are plenty of books, newspaper articles, and internet sources regarding the history, its
current situation, and the technical requirements that need to be made in order to survive the
widely phase out. However, these sources failed to provide me with the specifics that I needed to
prove my report. Internet articles were helpful in helping me understand the basics of a topic such
as labor condition in working place, terms and condition, wages and their bonus or incentives,
turnover, health and security, procedures for resolving dispute, grievances and relationship with
supervisor. I collected my information by several different types of questionnaires with four parts.
After completing the questionnaires, I tried hard to analyze the information by the HR basis
software and also other related materials.

Most daily labor are unaware of their rights. This doesn’t seem like much of a surprise with regard
to the adult literacy rate which was 40.6% as of 2001. Mats Samuelsson, the country representative
of H&M claimed that the minimum wages in Bangladesh to begin with, are rather low (personal
communication, 21 January, 2004). He also added that at times workers are denied the simple
human right of making a decision for themselves-they are forced to work overtime with threats of
losing their job (personal communication, 21 January, 2004). Workers are not granted a weekly
holiday and female workers are not allow recruitment among industry sectors , they respond by
stating that ‘the daily workers do not ask for any requirement’.

Finally, I can say from my research that if all the procedure are running according to HR rule than
Bashundhara Tissue Industry will be reach world wide position & must reach at the quality work
life & effectively most earning sector in Bangladesh.
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Table of Contents

Chapter No. Title Page No.

Chapter -01 Introduction 10-14

1.1 Objective of the Study 11
1.2 Background of the study 12
1.3 Methodology 13
1.4 Data Analysis 14
Chapter -02 2.1 Profile of Bashundhara Group 15-19
2.2 Human Resource Management 17
2.3 The Concept of HRM 18
2.4 Objective of HRM 19
Chapter -03 Function Of HMR 21-35
3.1 HR Planning 23
3.2 Recruitment & Selection of Employees 26
3.3 Training & Development 29
3.4 Promotion 32
3.5 Transfer 32
3.6 Demotion 33
3.6.1 Termination of Service 33
3.6.2 Resignation 34
3.6.3 Discipline 34
3.6.4 Penalties 34
3.6.5 Enquiry Procedure 35
Chapter -04 Remuneration 39-40
4.1 Salary 39
4.2 Overtime Payment Policy 39
4.3 Bonus 40
4.4 Right of Leave 40

Chapter -05 5.1 HRM & The Quality Improvement Effort 41-43
5.2 Performance Appraisal 42
5.3 Performance Feedback 43
Chapter -06 Compensation & Rewards 44-46
6.1 Intrinsic versus Extrinsic Reward 45
6.2 Financial versus Non Financial 45
6.3 Performance based versus Membership Reward 46
Chapter -07 7.1 Employee Relations 47
7.2 Employee Union 47
Chapter-08 8. Compensation 48-52
8.1 Develop a program outline 49
8.2Designing the compensation 49
8.3 Philosophy 49
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8.4 Job Analysis 50

8.5 Job Evaluate 50
8.6 Determine Grades 50
8.7 Pricing & Salary range 51
8.8 Salary Structure 51
8.9 Salary administration policy 51
8.10 Approval of the basic salary 51
8.11 Communicate the final program 52
8.12 Monitor the programs 52
Chapter-09 Other benefits & Services 53-55
9.1 Benefit Planning & Design 55
9.2 Employees Benefits 55
Chapter-10 Compensation Policy of BTIL 56-57
10.1 Regulation of pay 56
10.2 Retirement policy 57
Chapter-11 Retirement 59-62
11.1 Normal Retirement 59
11.2 Voluntary 60
11.3 Forced 60
11.4 Gratuity 60
11.5 Eligibility 60
11.6 Disqualification 61
11.7 Amount Payable 62

Chapter-12 Provident Fund 63-65

12.1 Name of the fund 63
12.2 Interpretation 63
12.3 Objective 64
12.4 Trustees 64
12.5 Rule of Investment 64
12.6 Payment 64
12.7 Negligence 65
12.8 Fraud 65
Chapter-13 Leave 66-72
13.1 Leave Procedure 71
13.2 Consideration for leave 72
Chapter-14 Conclusion 73-76
14.1 Recommendation 74
14.2 Bibliography 75
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Introduction
Internship program is the systematic gathering, recording and analyzing of data about the subject
that a student goes to learn on the program. The aim of this internship program is to connect
practical knowledge with theoretical knowledge. Now the world is a competitive world. So
everybody has to be expert in both practically and theoretically.

It is very important to have a practical application of the knowledge acquired from any academic
course of the study. Only a lot of theoretical knowledge will become fruitless if it is not applied in
the practical life. So I need proper application of our knowledge to get some benefit from our
theoretical knowledge to make it more fruitful. Such an application can be possible through
internship.

Generally the internship report title is related to business and management field, because of every
BBA student have to take the following core course, Financial Accounting, Business
Communication, Management, Marketing, Business Economics etc, so has to work logically,
technically and scientific way.

In the increasing scientific business environment, participating shaping their ability to make
effective and business decision and increase their sensitivity to the behavioral and environmental
facts, which effect that decision. The BBA program is giving the student theoretical and practical
knowledge about his interested area.

The BBA report should dominate the individual student’s capacity for some creative potential and
original approach to solving practical problem today’s business world.
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The internship program exercise a significant importance as it enables a student to familiar with
the practical business activities. The student work closing with the people of an organization and

learn about the function of that organization. This program enables a student to develop his
analytical skill and scholastic aptitude.

The Industry sector of Bangladesh and doing labor incentive job. This research has a very specific
discuss about the labor control among the Bashundhara Tissue Industry ltd.

During my internee, I have faced various obstacles but the grace of almighty Allah and by the help
of some related person; I have overcome those problems successfully.

Objectives of the Study

The main objective of the study is to gather practical knowledge regarding labor control policy of
the “Bashundhara Tissue Industry Ltd”. Theoretical classes of BBA provide us theories regarding
different subjects whereas practical orientation gives us the chance to view those system and their
operations. But this is not the main objective of the study; the following are the other objective of
the title of the term paper ---

 Human resource practices in Bashundhara Tissue Industry Ltd

 To find out appropriate picture of the labor law.
 To observe the working environment .
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 To apply theoretical knowledge in the practical field.

 To study the existing overall dealer or customer relation.
 To identify the problems, if any faced by the employees and to examine their views to
solve them.

Background of the study

Practical experience is treated as the vast earning in the field of business, without practical
experience business become difficult and now a day the whole world is moving because of
business relation. Business plays a very vital role in every economy growth and every side of
developing economy. So the in the business world the practical experience is very much necessary
for different reason.

MBA degree program plays a very significant role in then field of the business, because it has
designed for the people who want to be a future executive and future manager in the business field.
The one of the most important part of the MBA degree is gaining practical experience through
internship. The internship helps the student to gaining practical experience as well as theoretical
knowledge. Beside the internship every students have to do other type of practical work like term
paper, assignment etc. which help the student to gain practical experience.
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Methodology of the Study

Research methodology
The objective of research is to portray accurately the characteristics of a particular individual,
situation or a group.
Research refers to the systematic method consisting of enunciating the problem, formulating a
hypothesis and collecting the facts or data, analyzing the facts and reaching certain conclusions
either in the form of solution towards the concerned problem or in certain generalizations for some
theoretical formulation. Research is the process of gathering, recording and analyzing critical and
relevant facts about any problem in any branch of human activities. It refers to critical and searches
into study and investigation of problem, a proposed course of action a hypothesis or a theory.
Research refers to a search for knowledge. In facts research is and art of scientific investigation.
The research methodology comprises of all activity that carried on in connection with
compensation packages.
The purpose of research is to discover answer question through the application of scientific
procedures. The main aim of research is to find out the truth which is hidden and which has not
been discovered as yet.

In brief, the research process consists of five steps:

 Define the problem and research objectives;

 Developing the research plan;
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 Collecting the information;

 Analyzing the information;
 Presenting the finding.

Sources of Data
Collection of facts (raw facts) is known as data. There are two types of data are available based on
source. These are:

Primary sources of Data.

Secondary sources of Data.

Primary Data

The data collected for a purpose or when the researcher investigates particular problem at hand is
known as primary data.

Sources of primary data

Primary data for this study collected through direct observation and personal interview.

Secondary data
When an investigator uses data, which have already been collected by other for another purpose,
such data is called secondary data. This type of data is primary data for the agency who collected
them for the first time and become secondary data for someone else who uses these data for his/her
own purpose.

Sources of Secondary Data

The main data have been used in this study are basically are of primary data. Secondary data for
this study was collected from the organization and several reports.
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Bashundhara Group is one of the most prestigious and experienced commercial and industrial
conglomerates in Bangladesh today. The Group took off the incipient after establishment of East
West Property Development ( Pvt) Ltd, a real estate concern, popularly known as “Bashundhara”
which happened to be its first venture in this sector.

Keeping pace with rapid economical and technological changes followed by the policy of
Globalization, Bashundhara Group has outspread their business activities within a short period of
time and have been able to emerge as a promoter of international standard of business house and
industrial enterprises founded on the principles of engineering and financial integrity with a group
of highly capable technical personnel and professionals.

Since inception, Bashundhara Group has been actively contributing to the national as global
economy by way of effective utilization of resources, using raw materials, production and
marketing high quality products at the most competitive prices and creating employment
opportunities.

Bashundhara is now operating with fourteen vital enterprises of highly esteemed commercial and
technological superiority having profound degree of specialization in the field of real estate,
industrial ventures and commercial enterprises.
Current value of the total assets of the enterprises of Bashundhara Group would be about Tk.15000
million equivalent to approximately US$ 300 million. Total turnover of the business amounts to
around Tk.16000 million equivalent to US$ 325 million.

Presently 8100 people are employed in various enterprises of the group. Besides, through its
multidirectional economic activities, Bashundhara has created employment opportunities to over
30,000 people.

The linkages to employment and better standard of living are immediate. By providing
employment opportunities to a large number of people, Bashundhara helps in generation of income
witch, in turn, would assist in improvement of the quality of life of people in terms of nutrition,
literacy, standard of living and physical and social environment.
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Through forward and backward linkage, the enterprises of Bashundhara Group have encouraged
development of various industrial and commercial units in the country. With its expertise in
different fields and extensive human resources, Bashundhara has undertaken various projects.

Enterprises:

 Meghna Cement Mills Ltd.

 Bashundhara Paper Mills Ltd.
 Freyschmidt Tissue Limited.
 Shahjalal Newsprint Industries Ltd.
 Union Lp Gas Limited.
 Bsahundhara Steel Complex Ltd.
 Bashundhara Industrial Complex.
 East West Property Development.
 Bashundhara City Development.
 Crystal Property Development.
 Bashundhara Import Export Ltd.
 Bashundhara Trading Company Ltd.
 Bashundhara Cement Trading Ltd.
 Bashundhara Paper Trading.
 Bashundhara Steel Trading.
 Bashundhara Gas Distribution.
 Bashundhara Enterprise.

Chairman and Managing Director.

Ahmed Akbar Sobhan.
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Objective:-

The police and practice one needs to carry out the “People” or human resource of a management
position, including recruiting, screening, training, rewarding and appraising.

These include:
 Conducting job analyses
 Planning labor needs and recruiting job candidates
 Selecting job candidates.
 Orienting and training new employees
 Managing wages and salaries
 Providing incentives and benefits
 Appraising performance
 Communication
 Training and developing
 Building employee commitment.
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What exactly is 'human resource management'? Many people find HRM to be a vague and elusive
concept - not least because it seems to have a variety of meanings. This confusion reflects the
different interpretations found in articles and books about human resource management.

Human Resource Management in a Business Context includes a reasoned discussion on this topic.

Additional notes: Townley (1994) argues that much of the confusion over the role of human
resource managers is due to two factors:-

1. The conflict between the 'welfare' tradition of personnel management and the strategic
orientation of modern HRM
2. A gender divide between:
- 'female' or 'soft' personnel management (particularly in respect of the welfare tradition) at lower
management and administrative levels;
- 'male', hard-nosed human resource managers within upper management or corporate
headquarters.

Human resource management is the systematic control of a network of inter-related process

affecting & involving all members of an organization.
HRM is an approach based on four (4) fundamental principles:-
 Human resources are the most important assets effective management is the key to its
success.
 The success is most likely to be achieved if the personal policies & procedures of the
enterprise are closely liked with & make a major contribution.
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 The corporate values organizational climate & managerial behavior that emerged from the
culture will exert a major influence on the achievement excellence.
 HRM is concerned with integration getting all the members of the organization involved &
working together with a sense of common purpose.

OBJECTIVES OF HUMAN RESOURCES MANAGEMENT

(HRM)
Objectives are pre-determined goals to which individual or group activity in an organization is
directed. Objectives of personnel management are influenced by organizational objectives and
individual and social goals. Institutions are instituted to attain certain specific objectives. The
objectives of the economic institutions are mostly to earn profits, and of the educational
institutions are mostly to impart education and / or conduct research so on and so forth. However,
the fundamental objective of any organization is survival. Organizations are not just satisfied with
this goal. Further the goal of most of the organizations is growth and / or profits.

Institutions procure and manage various resources including human to attain the specified
objectives. Thus, human resources are managed to divert and utilize their resources towards and
for the accomplishment of organizational objectives. Therefore, basically the objectives of HRM
are drawn from and to contribute to the accomplishment of the organizational objectives. The other
objectives of HRM are to meet the needs, aspirations, values and dignity of individual employees
and having due concern for the socio-economic problems of the community and the country.

The objectives of HRM may be as follows:

 To create and utilize an able and motivated workforce, to accomplish the basic
organizational goals.
 To establish and maintain sound organizational structure and desirable working
relationships among all the members of the organization.
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 To secure the integration of individual or groups within the organization by co-ordination

of the individual and group goals with those of the organization.
 To create facilities and opportunities for individual or group development so as to match it
with the growth of the organization.
 To attain an effective utilization of human resources in the achievement of organizational
goals.

 To identify and satisfy individual and group needs by providing adequate and equitable
wages, incentives, employee benefits and social security and measures for challenging
work, prestige, recognition, security, status.
 To maintain high employees morale and sound human relations by sustaining and
improving the various conditions and facilities.
 To strengthen and appreciate the human assets continuously by providing training and
development programs.
 To consider and contribute to the minimization of socio-economic evils such as
unemployment, under-employment, inequalities in the distribution of income and wealth
and to improve the welfare of the society by providing employment opportunities to
women and disadvantaged sections of the society.
 To provide an opportunity for expression and voice management.
 To provide fair, acceptable and efficient leadership.
 To provide facilities and conditions of work and creation of favorable atmosphere for
maintaining stability of employment.

We are going to focus on the function of Human Resource Management- the staffing, personnel
management or the Human Resource Management (HRM) function.
Human resource management is the process of acquiring, training, appraising, and compensation
employees, and attending to their labor relations, health and safety, and fairness concerns. The
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topic we’ll discuss should therefore provide you with the concepts and techniques you need to
carry out the “people” or personnel aspects of your management job. These include:

 Conducting job analyses (determining the nature of each employee’s job)

 Planning labor needs and recruiting job candidates.
 Selecting job candidates.
 Orienting and training new employees.
 Managing wages and salaries (compensating employees).
 Providing incentives and benefits.
 Appraising performance.
 Communicating (interviewing, counseling, disciplining)
 Training and developing managers.
 Building employee commitment.
Human resources have at least two meanings depending on context. The original usage derives
from political economy and economics, where it was traditionally called labor, one of three factors
of production. The more common usage within corporations and businesses refers to the
individuals within the firm, and to the portion of the firm's organization that deals with hiring,
firing, training, and other personnel issues. This article addresses both definitions

Human resource management serves 5 key functions:

1) Hiring
2) Compensation
3) Evaluation and Management (of Performance)
4) Promotions
5) Managing Relations.
It is the responsibility of human resource managers to conduct these activities in an effective, legal,
fair, and consistent manner.
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The objective of Human Resources (HR's raison d'etre) is to maximize the return on investment
from the organization's human capital

"Human resource management aims to improve the productive contribution of individuals while
simultaneously attempting to attain other societal and individual employee objectives." Schwind,
Das & Wagner (2005)

In reality, human resources deals with two different worlds

 Non-Unionized - Where management has the control, and

 Unionized - Where there is shared control through a collective agreement - Management and a
union negotiates a collective agreement with respect to terms and conditions of employment.
The Union represents employees to management.

Technology has had a positive effect on internal operations for organization, but it also has
changed the way human resource manager’s work. They work and provide support in what have
become integrative communication centers. By linking, computers, telephones, fax machines,
copiers, printers and the like, they disseminate information quickly. Knowing the effect of
technology, helps managers better facilitate human resources plans, make decisions faster, more
clearly define jobs, and strengthen communications with both the external community and
employees.

Let look at some specific examples:

 HR Planning
 Recruiting and Employee selection
 Training & Development
 Performance Appraisal
 Motivating knowledge workers
 Compensation & Rewards
 Employee relations
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An organization is in the process of determining its human resource needs, it is engaged in a

process we call human resource planning. Human Resource planning is one of the most
important elements in a successful human resource management program, because it is a process
by which an organization ensure that it has the right number and kinds of people, at the right place,
at the right time, capable of effectively and efficiently completing those tasks that will help the
organization achieve its overall strategic objectives. Employment planning, then, ultimately
translates the organization’s overall goal into the number and types of workers needed to meet
those goals. Without clear-cut planning, and a direct linkage to the organization’s strategic
direction, estimations of an organization’s human resource needs are reduced to-mere guesswork.
This means that employment planning cannot exist in isolation. It must be linked to the
organization’s overall strategy.

The strategic planning process is an organization is both long and continuous. At the beginning of
the process, the organization’s main emphasis is to determine what business it is run. This is
commonly referred to as developing the mission statement. Defining the organization’s mission
forces key decision makes to identify the scope of its products or services carefully. Mission
statement is very important one because it’s the foundation on which every decision in the
organization should be made.
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After reaching agreement on what business the company is in and who its consumers are senior
management then begin to set strategic goals. During this management define the objectives for the
company for the next 5 to 20 years. These objectives are broad statements that establish targets the
organization will achieve. After the goals are set, the next step in the strategic planning process
begins- the corporate assessment. During this phase, a company begins to analyze its goals, its
current strategies, its external environment, its strengths and weaknesses, and its opportunities and
threats, in terms of whether they can be achieved with the current organizational resources.
Commonly referred to as a “gap or SWOT analysis”, the company begins to look at what skills,
knowledge and abilities are available internally, and where shortage in terms of people skills or
equipment may exist.

The starting point in attracting qualified human resources is planning. HR planning, in turn,
involves job analysis and forecasting the demand and supply of labor.
Job analysis is a systematic analysis of job within an organization. A job analysis is made up of
two parts. The job description lists the duties of a job; the job’s working condition; and the tools,
materials, and equipment used to perform it. The job specification lists the skills, abilities, and
other credentials needed to do the job.
After managers fully understand the jobs to be performed within the organization, they can start
planning for the organization’s future human resource needs. The following figure will
summarized the steps most often followed.
Human resource planning

Attracting human resources cannot be left to change if an organization expects to function at peak
efficiency. Human resource planning involves assessing trends, forecasting supply and demand of
labor, and then developing appropriate strategies for addressing any differences.
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Figure:
Assess trends in
External labor market
Current employees
Future organizational
plans
General economic trends
Predict demand

Forecasting internal Forecasting external

supply supply

Compare future
demand and internal
supply

Plan for dealing with

predicted shortfalls or
overstaffing

Matching Human Resource Supply and Demand

After comparing future demand and internal supply, managers can make plans to manage predicted
shortfalls or overstaffing. If a shortfalls is predicted, new employees can be haired, present
employees can be retrained and transferred into the understaffed area, individuals approaching
retirement can be convinced to stay on, or labor-saving or productivity-enhancing systems can be
installed.
 25

Recruitment of staff should be preceded by:

 An analysis of the job to be done (i.e. an analytical study of the tasks to be performed to
determine their essential factors) written into a job description so that the selectors know
what physical and mental characteristics applicants must possess, what qualities and
attitudes are desirable and what characteristics are a decided disadvantage;
 In the case of replacement staff a critical questioning of the need to recruit at all
(replacement should rarely be an automatic process).
 Effectively, selection is 'buying' an employee (the price being the wage or salary multiplied
by probable years of service) hence bad buys can be very expensive. For that reason some
firms (and some firms for particular jobs) use external expert consultants for recruitment
and selection.
 Equally some small organizations exist to 'head hunt', i.e. to attract staff with high
reputations from existing employers to the recruiting employer. However, the 'cost' of poor
selection is such that, even for the mundane day-to-day jobs, those who recruit and select
should be well trained to judge the suitability of applicants.
 The main sources of recruitment are:
 Internal promotion and internal introductions (at times desirable for morale purposes)
 Careers officers (and careers masters at schools)
 University appointment boards
 Agencies for the unemployed
 26

Advertising (often via agents for specialist posts) or the use of other local media (e.g. commercial
radio)

Where the organization does its own printed advertising it is useful if it has some identifying logo
as its trade mark for rapid attraction and it must take care not to offend the sex, race, etc.
antidiscrimination legislation either directly or indirectly. The form on which the applicant is to
apply (personal appearance, letter of application, completion of a form) will vary according to the
posts vacant and numbers to be recruited.

It is very desirable in many jobs that claim about experience and statements about qualifications
are thoroughly checked and that applicants unfailingly complete a health questionnaire (the latter is
not necessarily injurious to the applicants’ chance of being appointed as firms are required to
employ a percentage of disabled people).

Before letters of appointment are sent any doubts about medical fitness or capacity (in
employments where hygiene considerations are dominant) should be resolved by requiring
applicants to attend a medical examination. This is especially so where, as for example in the case
of apprentices, the recruitment is for a contractual period or involves the firm in training costs.

Interviewing can be carried out by individuals (e.g. supervisor or departmental manager), by

panels of interviewers or in the form of sequential interviews by different experts and can vary
from a five minute 'chat' to a process of several days. Ultimately personal skills in judgment are
probably the most important, but techniques to aid judgment include selection testing for:

 Aptitudes (particularly useful for school leavers)

 Attainments
 General intelligence
 27

(All of these need skilled testing and assessment.) In more senior posts other techniques are:

 Leaderless groups
 Command exercises
 Group problem solving

(These are some common techniques - professional selection organizations often use other
techniques to aid in selection.)

Training in interviewing and in appraising candidates is clearly essential to good recruitment.

Largely the former consists of teaching interviewers how to draw out the interviewee and the latter
how to xratex the candidates. For consistency (and as an aid to checking that) rating often consists
of scoring candidates for experience, knowledge, physical/mental capabilities, intellectual levels,
motivation, prospective potential, leadership abilities etc. (according to the needs of the post).
Application of the normal curve of distribution to scoring eliminates freak judgments.
 28

Training and Developing people is an important part of Human Resource Management. Training
usually refers to teaching operational or technical employees how to do the job for which they
were hired. Development refers to teaching managers and professionals the skills needed for both
present and future jobs.

Training and development can be initiated for a variety of reasons for an employee or group of
employees, e.g.:
 When a performance appraisal indicates performance improvement is needed
 To "benchmark" the status of improvement so far in a performance improvement
effort
 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
 To "pilot", or test, the operation of a new performance management system
 To train about a specific topic (see below)
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Typical Topics of Employee Training

 Communications: The increasing diversity of today's workforce brings a wide variety of

languages and customs.
 Computer skills: Computer skills are becoming a necessity for conducting administrative
and office tasks.
 Customer service: Increased competition in today's global marketplace makes it critical
that employees understand and meet the needs of customers.
 Diversity: Diversity training usually includes explanation about how people have different
perspectives and views, and includes techniques to value diversity
 Ethics: Today's society has increasing expectations about corporate social responsibility.
Also, today's diverse workforce brings a wide variety of values and morals to the
workplace.
 Human relations: The increased stresses of today's workplace can include
misunderstandings and conflict. Training can people to get along in the workplace.
 Quality initiatives: Initiatives such as Total Quality Management, Quality Circles,
benchmarking, etc., require basic training about quality concepts, guidelines and standards
for quality, etc.
 Safety: Safety training is critical where working with heavy equipment, hazardous
chemicals, repetitive activities, etc., but can also be useful with practical advice for
avoiding assaults, etc.
 Sexual harassment: Sexual harassment training usually includes careful description of the
organization's policies about sexual harassment, especially about what are inappropriate
behaviors.
 30

Assess trends in
• Who needs to be trained?
• What do they need to know?
• What do they already know?

Set training objectives

1. Specific 2. Measurable

Plan training evaluation Develop training program

• Did trainees like the training 1. Content 4. Location
• Can they meet the training objectives 2. Method 5. Trainers
• Do they perform better on the job? 3. Duration

Conduct training

Evaluate training

Modify training program based

on evaluation

General Benefits from Employee Training and Development

There are numerous sources of online information about training and development. Several of
these sites (they're listed later on in this library) suggest reasons for supervisors to conduct training
among employees. These reasons include:
 Increased job satisfaction and morale among employees
 Increased employee motivation
 Increased efficiencies in processes, resulting in financial gain
 Increased capacity to adopt new technologies and methods
 31

 Increased innovation in strategies and products

 Reduced employee turnover
 Enhanced company image, e.g., conducting ethics training (not a good reason for
ethicstraining!)
 Risk management, e.g., training about sexual harassment, diversity training

Promotion. One employment decision is a promotion. A promotions is a movement by a person

into a position with higher pay and greater responsibilities. Promotion reward competence and
ambition. They act as incentives to perform above the average in ones present job and to expand
ones abilities, aptitudes and knowledge thorough additional training. Promotions decisions, even
though they should be rewards for performance, often are influenced by other factors, federal and
state laws affect the ways in which promotions can be made. Affirmative action programs may
dictate who or what king of person gets the promotion. Promotion of the best qualified and most
eligible may be blocked by seniority rules and the union agreement. Regardless, promotion should
be based as much as possible on performance.

Transfer. A second employment decision is a transfer. A transfer is a lateral move from one
position to another that has similar pay and responsibility levels. Usually the difference between
the hobs are minor. Management uses transfers most often to fill temporary vacancies. Sometimes
positions are created as a reward to allow a person to intern with or understudy another higher job.
These assistant to positions help the transferee to study the higher job up close.

Transfer may be used when management is preparing to replace a person who is about to move up
or out of the company. Transfers also are used to staff a new operation, department or division
with experienced workers.
 32

Demotion. Another employment decision is a demotion. A demotions is a movement from one

position to another that has less pay or responsibility attached to it. Demotion can be used for
punishment, but most organizations refuse it as option. Preferring instead to suspend the employee
or assess a financial penalty through the forfeiture of pay. The reason for this reluctance is that a
demotion staff a position with an embarrassed and often angry worker who is not likely to be
productive or any better behaved than he or she was in the former position.

Demotions have their place in staffing, however. When a demotion is made to keep an employee,
as a temporary measure it can be an important staffing solution. If a person’s job is being
eliminated he or she may be offered a position that represents a demotion. There is no shame or
embarrassment attached to such a move, only concern for the individual. The motive is to give the
person time to retrain to become qualified for a higher position.

a) Termination of service:

For termination of the service of a permanent/temporary employee by the employer, his

employer, his employer shall give 120 days written notice in the case of permanent employee and
60 days written notice in the case of Temporary Employee. Provided that pay for 120 days or 60
days as the case may be shall be pain in lieu of such notice provided further that the worker shoes
employment is so terminated, shall be paid compensation at he rate of one month’s pay for every
 33

completed year of service or any part thereof in excess of six month in addition to any other
benefits to which he may be entitled to under the terms of employment.

b. Resignation:

i. A permanent employee shall be required to give one month’s written notice in case of
resignation form the service of the company.
ii. An employee who resignation form the service of the company but fails to give the
required notice shall surrender pay lieu of such notice thereof.
iii. The employer shall accept the resignation if due notice is given or due payment in lieu of
notice is made pay is surrendered in lieu of such notice.
iv. Notwithstanding anything stated above no employee against whom a disciplinary
proceeding is pending shall resign from the service of the company unless 60 days have
elapsed from the drawing up of the departmental proceeding.
v. Provided that the employer may allow such employee to resign on such conditions as he
may deem fit.

c. Discipline & grievance procedure:

i. Where an employee of the company in the option of the employer is inefficient or

ii. Corrupt, or
iii. Guilty of misconduct under Bangladesh Labor & Industrial act, the employer may impose
one him/her or more of the penalties, if after enquiry. S/he is found guilty of nay of the
charge.

d. Penalties:

The following are the penalties which may be imposed by the employer upon an employee
 Censure;

 Stoppage of increment or promotion on grounds of inefficiency, irregular attendance and

misbehavior;
 34

 Recovery from the pay of the employee of the whole or part of a pay to defray any
pecuniary loss caused to the company/enterprise by negligence, default or breach of orders
or of contract on the part of employee;
 Reduction in rank;
 Dismissal from service.

No penalty Shall be imposed on any employee without disciplinary proceedings. If the employee
concerned remains under suspension during the period of the enquiry, he will be entitled to
subsistence allowance for the period of the enquire, he will be subsistence allowance for the period
of suspension equivalent to half of his average basic pay and full amount of house rent

e. Enquiry Procedure:

 When an employee is to be proceeded against for any offence, the employer shall:
 Frame a charge sheet specifying the charges brought against an employee and
communicate it to the employee concerned (hereinafter called the accused) on which it is
based;
 Require the accused to submit within three days from the day the charge has been
communicated to him, a written statement of his defense.
 The employer shall appoint an Enquiry officer/Committee to hold an enquiry.
 The employer may nominate any person/officer to present the case in support of the charge
sheet before the enquiry officer/Committee.

f. The inquiry officer/Committee shall follow the following course of

actions while conducting enquiry against any accused employee.

i. The enquiry officer/committee shall issue a notice asking the accused to appear before the
enquiry officer/committee at a particular palace stating the specified time of appearance
with all documentary evidence and witness if any with a copy to the nominee of the
employer/company who will present the case in support of the charge sheet before the
enquiry officer/committee.

ii. The accused shall be entitled to cross examine the witnesses of both side and shall obtain
signature of all the witness in their respective statements duly read over to them in the
language they understand. If the accused so agrees, his signature should be obtained in the
statements of all witness to keep a record that the evidence of all the witness was taken in
 35

his presence. If the accused refuses to sign the statement at the time of enquiry, this fact
should also be recorded and signed by other witnesses and the Enquiry officer/Committee.

g. If the accused person admits the charge against him the enquiry
officer/committee will record “please Guilty” and thereafter shall give
his/its findings.

h .if the accused pleased ‘not guilty’ then all witnesses in support of the charge sheet will be
examined individually in presence of the accused. No witness shall be allowed to be present during
the examination of another witness.

i. If the accused, after being duly informed absents from the enquiry without proper reason or
permission, the enquiry shall proceeds expert.
j. The enquiry shall be confined to the charge and no irrelevant evidence shall be admitted by the
enquiry officer/committee.
k. The enquiry officer/committee shall submit his/its report to the employer with his/its findings.
l. The employer, having regard to the findings on the charges, shall pass appropriate orders.
m .Suspension: An employee against whom a disciplinary pending action is proposed to be taken
may be placed under suspension pending enquiry into the charges.
Provided that the company may, instead of his suspension, require him to proceed on such leave as
may be due and admissible ot him form such dates as may be specified in that order.
n.. Grievance procedure – Any individual employee including a person who has been dismissed,
discharged, laid off or otherwise removed from employment and who has grievance in respect of
any matter covered by these instruction and intends to seek redress thereof shall observe the
following procedures-
o. .The employee concerned shall bring his grievance shall bring his grievance to the cause of such
grievance and the employer shall, within 15 days the employee concerned and opportunity of being
heard and communicate his decision, in writing, to the said employee.
p.If the employee fails to give a decision under clause (a) of if the employee is dissatisfied with
such decision, he may make a representation within 30 days from the last date of imposition of the
first penalty under para 17 (10), as the case may be.
 36

q.. On receipt of the said representation under clause (b) the Executive Chairman, may constitute a
Committee of Enquiry with one or more officer of the company not below the rank of deputy
General Manager or equivalent who will enquire into matter giving due hearing.

To the parties concerned and summit the report to the Managing Director or any other person
nominated by him
In deciding the matter the Managing Director or such designated officer may pass such orders as
he may deem just and proper.

(a) “Misconduct” means conduct prejudicial to good order or service discipline, unbecoming
of an employee or a gentleman & shall include:
i. Willful insubordination or disobedience, whether alone or in combination with others to any
lawful or reasonable order of a superior.
ii. Theft, fraud or dishonesty in connection with the business or property of the factory/enterprise.
iii. Causing damage to any property of the factory/enterprise.
iv. Taking or giving bribes bribes or any illegal gratification.
v. Habitual late attendance or habitual absence form duty without leave of without different cause.
Absence without leave for ten days in a year shall be regarded as habitual absence without leave.
Vi. Continuous absence for more than ten days without permission and without satisfactory cause
of absence.
vii. Habitual breach of any law, order, instruction application to him/her.
viii. Habitual neglect or negligence or work.
ix. Willful abstention or absence from works singly or with others.
x. Drunkenness, fighting & riotous, disorderly or indecent behavior.
xi. Taking part in or suspected or being engaged in subversive activities either alone or with others.
.
Smoking within the premises of the company or enterprise/factory where it is prohibited.
 Distribution or exhibition within the boundaries of the premises of the company/factory of
any handbill, pamphlets or poster without the previous permission of the competent
authority.
 37

 Holding meeting within the boundaries of the premises of the company/factory without
sanction of the employer.
 Gambling within the boundaries of the premises of the company/ factory.
 Habitual indiscipline.
 Leaving work without permission.
 Sleeping while on duty.
 Theft of any kind inside the premises of the factory/company or within the zone.
 Giving false information regarding name, age, qualifications, previous service etc.
 Carrying on money lending or any other private business, within the premises of the
factory/company.
Sabotage or wastage caused to materials & stores of the company/factory.
Malingering or slowing down works either alone or in collaboration with others.
Conviction in any court of law for any criminal offence.
 38

Salary:
 Bengal Indigo is an equal opportunity employer. It strives to achieve high motivation form
all its work force.
 Bengal Indigo strictly follows the guidelines of basic minimum wage for all categories of
work force (unskilled, skilled and highly skilled.) It adheres to all the working conditions
and salary and wage structure laid down by the Bangladesh factories and labor laws.
 Workers are entitled to enjoy all leaves as indicated by the company policy in concoction
with Bangladesh labor & industrial laws.

Overtime payment Policy:

Employees are paid for their overtime work at double the rate of their basic wage per hour. Basic
wage per hour is the monthly basic wage divided by 208 hours.
 Overtime payment is disbursed along with the payment of salary & wages.

Bonus:
Festival Bonus
 39

 The company may pay two full festival bonus to each employee equally divided before the
Eid festivals.
 An employee is entitled to such bonus only if he/she has completed 6 continues months
employment with the company before the specific festival day.

Right to leave etc:

 Leave is a privilege and cannot be claimed as a matter of right. The manager or the person
empowered to grant leave should have the discretion to refuse or revoke the leave of any
description when the emergencies of his services so require.
 Leave entitlement shall be calculated on the basis of the English calendar year.
 For the purpose or these instruction, the expression “Service” means-
1. Actual days of work;
2. Period of leave with pay;
3. Compulsory “off” days’
4. Period of probation ot he employee who is confirmed on permanent post of the expiry of
the probation period and
5. The period of leave without pay not exceeding ten days.

 An employee shall be deemed to have completed a year’s service notwithstanding any

interruption in service during the year on account of authorized absence.

 An employee who remains absent rot any perod in excess of the period leave originally
sanctioned or subsequently extended shall be liable to disciplinary c. c. action unless he is
able to explain his overstay in a satisfactory manner to his Manager. Such absence shall be
treated, as “Misconduct” and the employee shall be liable to such punishment as may be
specified herein.

 Friday of Holding falling in between the first & the last days of any leave period shall count
as part of the leave.
 A “day or days off” which an employee becomes entitled to by virtue of having worked on
Friday or on a Holiday notified by the Management shall be allowed to be affixed or
prefixed to privilege leave.
 40

 If the application for leave is on medical ground, the employee shall submit with his a
application a certificate form the Doctor of the Company at Stations where such Doctor is
available or from qualified registered Medical Practitioner at places where his employer’s
Doctor in not available stating the probable period for which leave is required.

After organizations have attracted and developed an effective workforce, they must also make
every effort to maintain that workforce. To do so requires effective compensation and benefits as
well as career planning.
Compensation is the financial remuneration given by the organization to its employees in
exchange for their work. There are three basic forms of compensation. Wages are the hourly
compensation paid to operating employees. The current federal minimum hourly wages is TK
1600. Salary refers to compensation paid for total contributions, as opposed to being based on
hours worked. For example, managers earn an annual salary, usually paid monthly. They receive
the salary regardless of the number of hours they work. Some firms have started paying all their
employees a salary instead of hourly wages. For example all employees at Chaparral Steel
Company earn a salary, starting at $20,000 a year for entry-level operating employees. Finally
incentives represent special compensation opportunities that are usually tied to performance. Sales
commissions and bonuses are among the most common incentives.
Compensation is an important and complex part of the organization-employee relationship. Basic
compensation is necessary to provide employees with the means to maintain a reasonable standard
of living. Beyond this point, however, compensation also provides a tangible measure of the value
of the individual to the organization. If employees do not earn enough to meet their basic economic
goals, they will seek employment elsewhere. Likewise, if they believe that their contributions are
undervalued by the organization, they may leave or exhibit poor work habits, low morale, and little
 41

commitment to the organization. Thus, designing an effective compensation system is clearly in

the organization’s best interests.
The most obvious reward employees receive from work is pay. However rewards also include
promotions, desirable work assignment and a host of other less obvious payoffs- a smile, peer
acceptance, work freedom, or a kind word of recognition. We’ll spend the majority addressing pay
as a reward as well as how organization establishes compensation programs.

 Make sure all teams work within a policy-deployment process to ensure their efforts are
consistent with the firms goals.
 Don’t institute quality improvement teams as separate, parallel organization structures.
Simply trying to superimpose such teams outside the normal chain or command elicited
resistance from supervisors, many of whom made comments like “I don’t know what these
people are doing-there’re not helping me do my job”. The teams should, to the greatest
extent possible, be composed of natural work. Units.
 Do not treat the quality improvement program as if it has and end. It is important to
emphasize that it is really a systematic

When employees are trained and settled into their jobs, one of management’s next concerns is
performance appraisal. Performance appraisal is a formal assessment of how well employees are
doing their job. Employees’ performance should be evaluated regularly for many reasons. One
reason is that performance appraisal may be necessary for validating selection devices or assessing
the impact of training programs. A second reason is administrative- to aid in making decisions
 42

about pay raises, promotions, and training. Still another reason is to provide feedback to employees
to help them improve their present performance and plan future careers.

Because performance evaluation often helps determine wages and promotions, they must be fair
and nondiscriminatory. In the case of appraisals, content validation is used to show that the
appraisal system accurately measures performance on important job elements and does not
measure traits or behavior that are irrelevant to job performance.

Common Appraisal Methods:

Two basic categories of appraisal methods commonly used in organization are objective methods
and judgmental methods. Objective measures of performance include actual output (that is,
number of units produced), scrap rate, dollar volume of scale, and number of claims processed.
Objective performance measures may be contaminated by “opportunity bias” if some persons have
a better chance to perform than others. For example, a sales representative selling snow blowers in
Michigan has a greater opportunity than does a colleague selling the same product in Arkansas.
Fortunately, adjusting raw performance figures for the effect of opportunity bias and thereby
arriving at figures that accurately represent each individual’s performance is often possible.

Another type of objective measure, the special performance test, is a method in which each
employee is assessed under standardized condition. This kind of appraisal also eliminates
opportunity bias. For example, GTE southeast Inc. has a series of prerecorded calls that operators
in a test booth answer. The operators are graded on speed, accuracy, and courtesy in handling the
calls. Performance tests measure ability but do not measure the extent to which one is motivated to
use that ability on a daily basis. Special performance tests must therefore be supplemented by other
appraisal methods to provide a complete picture of performance.

ERRORS IN PERFORMANCE APPRAISAL

Errors or biases can occur in any kind of rating or ranking system. One common problem is
regency error-the tendency to base judgments on the subordinate’s most recent performance
because it is most easily recalled. Often a rating or ranking is intended to evaluate performance
 43

over an entire time period, such as six months or a year, so the recency error does introduce error
into the judgment. Other errors include overuse of one part of the scale-being too lenient, being too
severe, or giving everyone a rating of “average.”

PERFORMANCE FEEDBACK

The last step in most performance appraisal system is giving feedback to subordinates about their
performance. This step is usually done in a private meeting between the person being evaluated
and his or her boss. The discussion should generally be focused on the facts-the assessed level of
performance, how and why that assessment was made, and how it can be improved in the future.
Feedback interviews are not easy to conduct. Many managers are uncomfortable with the task,
especially if feedback is negative and subordinates are disappointed by what they hear. These
points are amplified in the cartoon. Properly training managers, however, can help them conduct
more effective feedback interviews.

Different types of compensation include:

 Base Pay
 Commissions
 Overtime Pay
 Bonuses, Profit Sharing, Merit Pay
 44

 Stock Options
 Travel/Meal/Housing Allowance
 Benefits including: dental, insurance, medical, vacation, leaves, retirement,
taxes...

Compensation Plans

Develop a program outline.

 Set an objective for the program.
 Establish target dates for implementation and completion.
 Determine a budget.

Designate an individual to oversee designing the compensation program.

 Determine whether this position will be permanent or temporary.
 Determine who will oversee the program once it is established.
 Determine the cost of going outside versus looking inside.
 Determine the cost of a consultant's review.

Develop a compensation philosophy.

 Form a compensation committee (presumably consisting of officers or at least including
one officer of the company).
 Decide what, if any, differences should exist in pay structures for executives, professional
employees, sales employees, and so on (e.g., hourly versus salaried rates, incentive-based
versus no contingent pay).
 Determine whether the company should set salaries at, above, or below market.
 Decide the extent to which employee benefits should replace or supplement cash
compensation.
 45

Conduct a job analysis of all positions.

 Conduct a general task analysis by major departments. What tasks must be accomplished
by whom?
 Get input from senior vice presidents of marketing, finance, sales, administration,
production, and other appropriate departments to determine the organizational structure and
primary functions of each.
 Interview department managers and key employees, as necessary, to determine their
specific job functions.
 Decide which job classifications should be exempt and which should be nonexempt.
 Develop model job descriptions for exempt and nonexempt positions and distribute the
models to incumbents for review and comment; adjust job descriptions if necessary.
 Develop a final draft of job descriptions.
 Meet with department managers, as necessary, to review job descriptions.
 Finalize and document all job descriptions.

Evaluate jobs.
 Rank the jobs within each Executive Director and project head , and then rank jobs
between and among project.
 Verify ranking by comparing it to industry market data concerning the ranking, and adjust
if necessary.
 Prepare a matrix organizational review.
 On the basis of required tasks and forecasted business plans, develop a matrix of jobs
crossing lines and departments.
 Compare the matrix with data from both the company structure and the industry wide
market.
 46

 Prepare flow charts of all ranks for each department for ease of interpretation and
assessment.
 Present data and charts to the compensation committee for review and adjustment.

Determine grades.
 Establish the number of levels – senior officer, officer, junior officer, assistant officer, - for
each job family and assign a grade to each level.
 Determine the number of pay grades, or monetary range of a position at a particular level,
within each department.

Establish grade pricing and salary range.

 Establish benchmark (key) jobs.
 Review the market price of benchmark jobs within the industry.
 Establish a trend line in accordance with company philosophy (i.e., where the company
wants to be in relation to salary ranges in the industry).

Determine an appropriate salary structure.

 Determine the difference between each salary step.
 Determine a minimum and a maximum percent spread.
 Slot the remaining jobs.
 Review job descriptions.
 Verify the purpose, necessity, or other reasons for maintaining a position.
 Meet with the compensation committee for review, adjustments, and approval.

Develop a salary administration policy.

 Develop and document the general company policy.

 Develop and document specific policies for selected groups.
 47

 Develop and document a strategy for merit raises and other pay increases, such as cost-of-
living adjustments, bonuses, annual reviews, and promotions.
 Develop and document procedures to justify the policy (e.g., performance appraisal forms, a
merit raise schedule).
 Meet with the compensation committee for review, adjustments, and approval.

Obtain top executives' approval of the basic salary program.

 Develop and present cost impact studies that project the expense of bringing the present
staff up to the proposed levels.
 Present data to the compensation committee for review, adjustment, and approval.
 Present data to the executive operating committee (senior managers and officers) for
review and approval.

Communicate the final program to employees and managers.

 Present the plan to the compensation committee for feedback, adjustments, review, and
approval.
 Make a presentation to executive staff managers for approval or change, and incorporate
necessary changes.
 Develop a plan for communicating the new program to employees, using slide shows or
movies, literature, handouts, etc.
 Make presentations to managers and employees. Implement the program.
 Design and develop detailed systems, procedures, and forms.
 Work with HR information systems staff to establish effective implementation procedures,
to develop appropriate data input forms, and to create effective monitoring reports for
senior managers.
 Have the necessary forms printed.
 Develop and determine format specifications for all reports.
 Execute test runs on the human resources information system.
 Execute the program.
 48

Monitor the program.

 Monitor feedback from managers.
 Make changes where necessary.
 Find flaws or problems in the program and adjust or modify where necessary.
 49

Among the several ways to classify rewards, we have selected three of the most typical
dichotomies: Intrinsic versus extrinsic reward, financial versus non-financial reward, and
performance-based versus membership-based rewards.

Intrinsic versus extrinsic reward

Intrinsic rewards: are the personal satisfactions one derives from doing the job. These are self-
initiated rewards: pride in one’s work, a sense of accomplishment, or enjoying being part of a work
team. Job enrichment, for instance, can offer employees intrinsic rewards by making work seem
more meaningful.

Extrinsic reward: on the other hand, includes money, promotions, and benefit. They are external
to the job and come from an outside source, mainly management. Consequently, if an employee
experiences a sense of achievement or personal growth from a job, we would label such rewards as
intrinsic. If the employee receives a salary increase or a write-up in the company magazine, we
would label these rewards as extrinsic.

Financial versus Non-financial

Rewards may or may not enhance the employee’s financial well-being. Those that do do so
directly- for instance wages, bonuses, or profit sharing- or indirectly, through employer-subsidized
benefits such as retirement plans, paid vacations, paid sick leaves, and purchase discounts.
Non financial rewards present a smorgasbord of desirable extras for organizations. These do not
directly increase the employee’s financial position, but rather add attraction to life on the job.
 50

Reward

Intrinsic Extrinsic
Participate in decision Financial Non Financial
making
Preferred
office
Greater job
Performance Implied Explicit furnishin
freedom and
discretion Based Membership based Membership based Preferred
lunch
More Cost of hours
Piecework Protection
responsibility living Preferred
increases program
parking
More interesting Commission spaces
Labor
work market Preferred
adjustme Pay for
Incentive work
time not
Opportunities plans assignment
Preferred worked
for personal Business
growth parking
spaces cards
Performance
bonuses Profit Services and Own
Diversity of
sharing perquisites secretary
activities
Merit pay
Impressive
plans
titles

Performance-Based versus Membership-Based Rewards

Performance-Based rewards use commissions, piecework pay plans, incentives systems, group
bonuses, merit pays, or other forms of pay for performance. Membership-Based Rewards, on other
hand, include cost of living increases, benefits, and salary increases attributable to labor market
conditions, seniority or time in rank, credentials, a specialized skills, or future potential.
 51

An employee relation is the process of dealing with employees when they are represented by a
union. Managing employee relations is an important part of HRM.

How employee forms Unions

For employees to form a new local union, several events must occur. First, employee must become
interested in having a union. Non-employees who are professional organizers employed by a
national union may generate interest by making speeches and distributing literature outside the
workplace. Inside, employees who want a union try to convince other workers of the benefits of a
union.
The second step is to collect employees’ signature on authorization cards. These cards state that
the signer wishes to vote to determine if the union will represent him or her. Thirty percent of the
employees in the potential bargaining until must sign these cards to show the National Labor
Relations Board that interest is sufficient to justify holding an election. Before an election can be
held, however, the bargaining unit must be defined. The bargaining unit consists of all employees
who will be eligible to vote in the election and to join and be represented by the union if one is
formed.
Organization usually prefers that employees not be unionized because unions limit management’s
freedom in many areas. Management may thus wage its own campaign to convince employees to
vote against the unions. Unfair labor practices are often committed at this point. For instance, it is
an unfair labor practices for management to promise to give employees a raise if the union is
defeated. Experts agree that the best way to avoid unionization is to practice good employee
relations all the time- not just when threatened by a union election. Providing absolutely fair
treatment with clear standards in the areas of pay, promotion, layoffs, and discipline; having a
complaint or appeal systems for persons who feel unfairly treated; and avoiding any kind of
favoritism will help make employees feel that a union is unnecessary.
 52

In many organization today, benefits account for approximately 40 percent of payroll cost for each
employee, and possible sometime early in the twenty-first century, they will reach 50 percent. In
fact, the 1995 chamber of commerce study of employee benefits noted that approximately 2
percent of survey participants spent less than 18 percent of total payroll on benefits, whereas about
2 percent of survey participants spent 60 percent or more of payroll on benefits. The amount of
benefits paid yearly per employee ranged from less than $ 3,500 to more than $ 24,000. When a
part of the compensation package reaches these proportions, it is no longer marginal. The fringe
benefits of yesterday have evolved into the employee benefits and services of today.

The rapid expansion of the benefits program over the past 5 decades has been attributed to five
causes.

 The imposition of wage ceiling during World War II forced organizations to offer more and
greater benefits in place of wage increases to attract new employees and to keep current
workers.
 With the increasing unacceptability of autocratic management and the decline of
paternalism, instead of using threats or a variety of protective procedures, organizations
have used benefits to gain employee compliance and loyalty, which has resulted in a more
acceptable form of paternalism.
 From the late 1940s into the 1970s, unions were able to gain a steady increase in wages for
their members. The increases reached such a high level that pressure for advancement in
pay declined. This, in turn, led to greater interest and bargaining for more and expended
benefits.
 53

 Income tax legislation has had and continues to have a critical influence on thedesign of the
benefits package. Employers are interested in benefit expenses that include pretax business
costs and employees want to receive the benefits without the cost being included as taxable
earnings. The federal government provides special tax treatment for benefits that are
specifically included within a group titled “welfare benefit plans”.
 More recent changes in public policy to shift the cost burden from the federal government
to private-sector employers regarding health care services and protection and continuing
public concern over the long term viability of social security and Medicare have placed
even greater pressure on employers to provide more protection in these already costly
areas.

In addition to paying employees fairly and adequately for their contributions in the performance of
their jobs, organizations assume a social obligation for the welfare of employees and their
dependents. Although these benefits are not directly related to product or service output, employers
expect that they will improve productivity – first, through increased job satisfaction leading to
improved quality and reduction in turnover and absenteeism, and second, by instilling in each
employee a sense of security.

Benefit and services become complicated quickly because of the number of available components,
the variety of optional features within a component, and their legal and financial interactions, thus
requiring the full-time efforts of specialists. It is however, the responsibility of the compensation
manager to call on these specialists, to be able to communicate with them, and to use their talents
for the benefit of all members of the organization. To communicate effectively, the compensation
specialist must know the components that comprise employee benefits and service, their
distinguishing features, and what they provide to employees.
 54

Employee benefits are those compensation components made available to employees that provide
(1) protection in case of health and accident-related problems and (2) income at some future date
or occasion. Employee services are compensation components that contribute to the welfare of the
employee by filling some kind of demand. These services usually unable the employee to enjoy a
better lifestyle or to meet social or personal obligations while minimizing employment-related
costs.

Benefit Planning and Design

By the early 1970s, some organizations began to recognize the importance of benefits planning and
design when they began developing cafeteria or flexible benefits plans. In the design stage, each
benefit must be carefully analyzed to determine its features. Design criteria include establishing
(1) minimum age or length of service requirements before becoming eligible for a benefit; (2)
possible employee contributions and vesting schedule for the pension plan; (3) coinsurance,
deductible, ceiling requirements, and dual coverage for medical insurance; (4) options to be
included in medical insurance. The
organization must decide if temporary and part-time employees will be included as well as regular
full-time members.

Employee Benefits

Most compensation components included within employee benefits are made available through
some type of insurance plan. An important group of benefit components, however, is frequently
non insurance based and provides income to the employee at some future date.

Employee benefits can be further classified under these seven major groups: (1) disability income
continuation, (2) loss-of-job income continuation, (3) deferred income, (4) spouse or family
income continuation, (5) health and accident protection, (6) property and liability protection, and
(7) a special group of benefits and services called perquisites. Each of these groups contains a
number of compensation components, which may have a variety of features that may be made
available only to certain employees or certain groups of employees.
 55

1. Regulation of Pay etc.

 The scales of pay and other allowance of officers and other employees of the Industry shall
be as determined by the Board from time to time.

 Subject to the provisions of sub-rule 1.1 the initial pay of an employee appointed by direct
recruitment to a post shall be the minimum of the scale of pay laid down for the post.

 Notwithstanding anything contained in sub rule 1.2 when a person with the required
minimum qualification and competence is not available for direct recruitment at the
minimum of the application scale, the competent authority may, after considering the
qualifications and experience and for reasons to be recorded in writing, grant higher initial
pay in the pay scale of the post. This will not give any claim in the matter of seniority.

 The initial pay of the employee promoted from a lower post to a higher post shall be fixed
at the minimum of the scale of the higher post and the pay so fixed shall be his/her
substantive pay.

 Provided that if his/her substantive pay in the lower post is equal to or higher than the
minimum in the scale of the higher post in which he/she is promoted, his/her pay in the
higher post shall be fixed at a stage next above his/her substantive pay in the lower post.

 An employee appointed on promotion shall begin to draw pay in accordance with the
provision of sub rule 1.4 from the date he/she joins the higher post.

 When an increment in pay falls due to an employee, his/her records shall be submitted to
the competent authority and where the service records are satisfactory, the competent
authority shall sanction the increment and, where the service records are not satisfactory,
 56

the competent authority may put the employee on special report for a period not exceeding
06(six) months.

 Annual increments of an employee will be due on joining anniversary or promotion

anniversary. However, approval of the increment depends on the competent authority based
on the performance for which performance appraisals must be completed. The competent
authority may also approve special increments in addition to the annual increments on
ground of extraordinary performance and recommendations.

2. Retirement Policy
o
 The rules may be called the “Bashundhara Tissue Industry Ltd” Employees Retirement
Policy.

 It shall come into force at once and shall be deemed to have taken effect from the date of
inception of that project.

 Interpretations: Unless there is anything repugnant in the subject or context.

 “The Tissue” means Bashundhara Tissue Industry Ltd.

 “Rules” means Bashundhara Tissue Industry Limited Employees Retirement and
Retirement Benefit Rules.
 “Board of Directors” means the Board of Directors of Bashundhara Tissue Industry
Limited.
 “Employees” means and includes every confirmed and permanent employees of the
industry in any grade appointed directly by the project and exclude a probationer, casual
worker and persons on contractual service.
 “Management” means the Management of Bashundhara Tissue Industry Limited.
 “Benefit” means the financial benefits payable to an employee and other privilege such as
house accommodation, transport facility, leave preparatory to retirement etc.
 “Gratuity Rules” means Employees Gratuity Rules of Bashundhara Tissue Industry
Limited.
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 “Provident Fund” means Bashundhara Tissue Industry Limited Employees Provident Fund.
 “Pay” means the amount drawn monthly by an employee as the pay which has been
sanctioned for the post held by him/her substantively or in an officiating capacity and
includes personal payment and any other remuneration classed as pay with the approval of
the Board of Directors.
 “Service” means and includes the period during which an employee is on duty, on
sanctioned leave and on deputation elsewhere with the expressed approval of the industry.
 “Family” means and includes wife or husband, children wholly dependent upon the
employee.
 “Re-employment” means employment on contract basis after normal retirement.
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The Retirement may be categorized in the following ways:

 Normal Retirement;
 Voluntary Retirement;
 Forced Retirement;

Retirement Benefits:

a) Normal Retirement:
An Employee who has retired at the age of 60(Sixty) years in usual course shall be entitled to
the following retirement benefits:

 Provident Fund with interest

 Gratuity as per rules
 Payment in lieu of due privileged leave
 Any other benefits as may be admissible under the rules of the Bank or specifically
approved by the Board.
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b) Voluntary Retirement:

An employee whose voluntary retirement has been accepted by the Bank shall also be entitled to
the above retirement benefits.

c) Forced Retirement:

An employee who has been put to forced retirement as a measure of punishment for committing
any misconduct or dismissed shall be entitled to his own contribution to the Provident Fund if
he/she is otherwise entitled to this as per existing Provident Fund Rules.

Gratuity: Rules and Regulation:

 This is a benefit scheme for the employees of the premier bank limited for their security
after
 they leave the institution on retirement or otherwise.

 These rules will be called “Premier Bank Employees Gratuity Rules-2002”.

 These rules shall come into force with effect from the first day of August 2002.

Eligibility:

A) All employees, who have been in the service of the Bank for a minimum period of 5(five)
years without break, shall be eligible to have the benefits under the Gratuity Scheme.

B) The lateral entrants, that is, employees serving the Bank coming from other
Banks/Financial Institutions/ other commercial organizations who have minimum 5(five)
years’ service with other Bank and who have been in the service of the Premier Bank
 60

Limited for a minimum period of 3(three) years’ either on regular employment or on

contract basis shall be eligible to have the benefits under the Gratuity Scheme.

c) Gratuity may also be granted to an employee who has not completed 5(five) years of
service as above in case:

 He dies while he/she is in the service of the Bank and leave behind his family that is his
/her wife/husband and children/ parents;

 He ceases to be in the employment of the bank owing to permanent mental and physical
incapability.

 He ceases to be in the employment of the Bank for the addition of his post or benefited
retrenchment.

 If the authority deems it appropriate for any reason whatsoever.

Disqualification:

The following categories of employees shall not be eligible for gratuity:

 Those who are dismissed or terminated from the service of the Industry; or

 Those who discontinue or leave their service without the permission of the Industry’s
authority; or

 Those who cease to be in the employment of the Industry owing to misconduct,

defalcation, breach of discipline, moral turpitude, serious negligence of duties or ant other
reasons which the authority of the Industry deems to be appropriate for the cessation of
their services from the Industry.
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Amount Payable:

 02(two) months basic pay for each completed year of service.

 The basic of calculation of gratuity shall be basic pay drawn last by the concerned employee
proceeding to his retirement or cessation of service.
Payment of Gratuity to self / nominee(s) / heirs(s):

1. The Gratuity shall be paid to the employees concerned in case he/she is alive at the time of
grant of gratuity.

2. In case the concerned employee dies before his/her retirement, the gratuity shall be payable
to ----

 The person(s) nominated by his/her as per ratio/ proportion mentioned by him/her before
his/her death.
 His/her legal heirs in the absence of any nomination.
Setting off Industry,s Claim Against Gratuity:

 In case any employee who is eligible to receive gratuity, according to rules and who owes
any money to the company , the Management shall be entitled, without being bound to do
so, to set off and appropriate the amount of gratuity against such dues, if any, to the project
or such portion hereof as may be sufficient to meet and satisfy the same. Nothing herein
contained shall prejudice or affect any other rights or remedies which the company may
have against the employee for or in respect dues or debts and the securities held by the
company there against.

 Income tax and super tax, if any, payable by the employee on the Gratuity granted to an
employee shall be borne by him.
 An employee may nominate any person(s) to receive the gratuity in the event of his death.
 The Board may amend / alter or modify any of the provision relating to Gratuity, as it may
deem fit and proper in the interest of the project.
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A provident fund is created to provide to long term benefit to the employees of the project as per
Deed of Trust executed between the company and the trustees of the provident fund, for the day to
day management of the provident fund, the rules are framed as hereunder:

1. Name of the fund:

The fund shall be called “Bashundhara Tissue Industry Limited Employees” provident fund.

2. Interpretation:
Unless there is something in the subject or context inconsistent therewith

2.3. “The Trustees” means:

The persons for the time being appointed as Trustees of the Fund or by whom or in whose names
the money of the fund shall be invested or held as Trustees of the fund.

2.4. “Board of Directors” means:

The Board of Directors of Bashundhara Tissue Industry Limited and Executive committee means
Executive Committee of the Management Board of Directors.
2.5. “Member” means:
Any person who is in the regular and confirmed service of the company and is also a subscriber to
the Fund
2.6. “Salary” means:
the monthly basic salary received by the member from the company and does not include any
allowance, Bonus, Gratuity Commission or other remuneration or profits whatsoever derived by
any means outside his basic salary.
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3. Object:
The object of the fund is to provide every member on retirement / released from the service of the
project, with certain benefit, which will be ascertained in accordance with these Rules.

4. Rules of Operation:
The Fund shall be governed by these Rules or by such other Rules as may be framed from time to
time. Every Member shall sign a declaration that he assent to the conditions and obligations
binding upon the Members of the Fund, provided nevertheless that the Rules of the Fund in force
or as framed from time to time shall be binding on every Member whether he has signed the same
or not.

5. Trustees:
a) There shall be at least 05(five) Trustees of the Fund who will be nominated by the Executive
Committee / Board, out of which 02(two) from the members of the Board and remaining 03(Three)
from the members of the Fund.

b) The Chairman of the Fund shall be elected by the Trustees from amongst the Trustees. The
Chairman shall preside over all meetings of the Trustees and in his absence, one of the Trustees
present shall be elected to the Chair. Three Trustees shall constitute a quorum of which one must
be Director.

6. Raising of Fund for Investment:

The Trustees may from time to time raise money for investment through withdrawing from the
fund or by selling of the investments or any part thereof acquired out of this fund.

7. Payment from Fund according to rules:

No member nor any person or persons claimed under or through him shall be entitled to payment
of any money out of the fund except as is by these rules expressly provided.
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8. Payment in case of negligence etc.:

Any member who is discharged, removed/ terminated from the service of the company may
however be allowed benefits under these rules.
9. Payment in case of Misconduct/ fraud/ corruption etc.:
Any member who is dismissed from the services of the company for insubordination, misconduct,
fraud or any other cause of like nature or inconsequence thereof shall be entitled benefit only of the
amount of his own contribution with the interest accrued thereon at the rate and in the manner
aforesaid.
 65

General policy:

1. Leave cannot be claimed as a matter of right. The competent authority may refuse leave, grant
leave for a shorter period than applied for, revoke leave of any description and recall an employee
before the expiry of his/her leave. Employees shall not remain absent from his duties or leave his
place of posting on any ground whatsoever without obtaining leave sanctioned by the competent
authority.

2. All applications for leave shall be addressed to the competent authority through proper channel
which must contain the full address during the period of leave applied for Approved leave
applications must be retained by the Human Resources Division.

3. Leave is earned by duty only the period spent on deputation and on official tour shall be counted
as on duty.

4. All employees shall resume duties on the expire of leave initially granted or as subsequently
curtailed or extended. Overstay of leave may entail punishment including dismissal from service.

5. Before proceeding on leave, an employee shall make over charge to another employee as
directed by the competent authority.

6. An Employee on leave of any description shall, unless instructed otherwise, report in writing his
return to duty to his immediate superior at the place wherefrom he proceeded on leave.

7.An employee who was granted leave on medical ground shall not return to duty without first
producing a certificate of fitness from a competent Medical Authority provided that requirement of
 66

such certificate may be waived by the competent authority if the leave was for a period of 07 days
or less.

8. Employees shall be encouraged to go on Privilege Leave maximum 15 days at a time in a year.

If an employee cannot be granted Privilege leave due to service exigencies. He may be allowed to
accumulate Privilege Leave up to 90 days with the approval of the competent authority.

Subject to fulfilling the necessary conditions the following types of leave may be available to an
employee:-

 Casual Privilege Leave

 Leave without pay
 Medical Leave
 Casual leave
 Earned leave
 Festival leave

Casual Privilege Leave:

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Every employee shall be entitled to Privilege Leave with full pay at a ratio of 30 days for each
calendar year. Casual Privilege Leave shall be credited to the employees leave account on the first
day of each English calendar year, that is, on the first January every year.
The maximum period of Privilege Leave with full pay which can be taken at one time by an
employee is 60 days. Every employee shall be encouraged to take maximum 15 days Privilege
Leave at a time during a year. At the beginning of the year a leave roster be prepared in such a
manner that the work of the Industry is not hampered.

Leave salary- salary during leave with full pay shall be equal to the pay which the employee was
drawing before proceeding on leave.

Leave with out pay:

Leave without pay may be granted to an employee in special circumstance where no other leave is
admissible under these rules. In cases of Leave Pay on payment will be made to the employee.
In cases of an employee who has not completed 05 years continuous service the duration of leave
with out pay at anyone time shall not exceed 03 months.
Notwithstanding any thing to the contrary the Board of Directors may commute the period of
absence without leave with or without pay.

Medical Leave

An employee will be entitled to sick leave with full pay and allowance for a total period of 14 days
in a calendar year, but the total accumulation of such leave shall not exceed 28 days at anyone
time. Every sick leave availed of buy an employee shall, if required by the bank have to be
recommended by a medical practitioner approved by the bank.

Casual Leave
 68

Casual leave means a leave of absence for a very short period granted to an employee who may be
unable to attend duty due to sudden illness or urgent private affairs.

Casual leave for not more than 10 days in a calendar year may be granted to an employee provided
that not more than 03 days casual leave can be taken at a time for this purpose.

Casual leave shall not be cumulative and may only be availed of during the calendar year to which
it relates. The unspent period of casual leave not availed of during a calendar year shall lapse on
the 31st December of the year.

Casual leave cannot be combined with any other leave. In case casual leave is extended and the
total period exceeds the period of which casual leave is due and admissible in one spell, the entire
period shall be converted into Privilege leave as may be due and into leave without pay, if no other
leave is due.

Earned Leave:

An employee shall be eligible for earned leave with pay for every completed year of service as
under:

One day for every twenty-two days of work performed by him during the previous period of 12
months.
If an employee does not, in any such period of 12 months service takes such leave to which he is
entitled under sub-para (a) either in whole or in part, any such leave not taken by him shall be
allowed to be added to the succeeding year provided that and employee shall case to earn any leave
when the earned leave due to him amounts to thirty days. If earned leave is refused in the interest
of the company employee shall have the option to encase the leave so refuse.

Festival leave:
 69

1. Every employee shall be allowed at least ten days festival holiday with pay in a calendar
year. The Management in such manner shall fix the day or days and the dates for such
festival as they deem fit but in keeping with the general consensus of the employees.
2. The day or days and dates of festival holiday shall be fixed and conspicuously notified in
the month of January i.e at the beginning of the year.
3. An employee may be required to work on any festival holiday but two days compensatory
holidays with pay shall be allowed to the employee within thirty days immediately after
that holiday.

If an employee so desires in writing, two days pay in lieu of compensatory holiday may be
granted.
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The leave account of an employee shall be maintained in such form as the competent authority
may specify.

Leave records should be maintained at each Branch and at Head Office (Human Resource
Division). Leave sanctioned by the competent authority should be recorded in the Leave Register
Managing Director, Deputy Managing Director, Divisional Head and senior officers at Head
Office and Branch Managers may sanction leave to various categories of employees of the bank
under the discretionary powers granted by the Board after ensuring with Human Resource Division
about the availability of leave to such an employee.

Every application for leave or for an extension of leave shall be sent to the authority competent to
sanction leave through the immediate superior. Leave which are required to be approved by
Managing Director/ Board should be sent to Human Resource Division at Head Office.

Before an employee is granted leave or extension of leave on medical grounds he/she must obtain
a certificate from the medical officer of the bank or any other registered medical practitioner
approved by the bank.
 71

Consideration for Granting Leave

In case where all application for leave cannot be granted in the interest of the bank, the
competent authority shall take into account the following consideration in deciding which
application should be granted.

(a) the date of receipt of leave application

(b) the employees who can be spared
(c) the maximum period of leave due to the applicants
(d) the nature of the service being rendered by each applicant and
(e) the importance of the reason for which leave is being requested
 72

As a personnel function recruiting can be viewed as a major human resource planning program
designed to attract the qualified work force required to meet future organizational needs.
Recruiting also provides a means of achieving affirmative action goals set by human resource
planners and policy maker. Recruiting also serves to attract workers to unexpected job vacancies
caused by turnover and to new positions created by sudden demands for goods and services of an
organization.

It is known to all the sound personal activities help an organization to function efficiently but to do
this a efficient personnel manager must be a person who has sound knowledge and experience in
personnel management. It is possible only through proper training and practice.

To eliminate the weakness of personnel activities some good measures are needed. In the chapter
the fact of the study were listed. I have tried to point out strength and weakness of the system.
With limitation of time and preoccupation of official work. I had to work on the study. I have tried
my best to collect all available data and other information regarding present development of
Human Resource Policy in Bashundhara Group at Bashundhara Tissue Industry Ltd. In fact my
experience in “HRM” is not up to my expectation as we studies in the program of BBA in “HRM”
of this University has given us theoretical knowledge and completion of theoretical coerce
preparation of this report has helped to wide range of our range knowledge in Human Resource
Management.
 73

Employee Recruitment:

 The recruitment process of the Industry is very lengthy and expensive. The Industry should
select the employee by restructuring the lengthy process.

 Recruitment advertisement may be published in both newspaper and website.

 There may be an option of application through online.

 Organization may be issue regrets letter to them who were not selected for the interview
and shall be reason of regret.

Working Environment:

 The organization may ensure a very good working environment. Thus the employee
turnover reduces.

Training Facilities:

 The organization may ensure training facilities for all employees so that they can serve
better service to the customer.

1. Industrial Relations.
Theory and practice
 74

 Written by Michac Salamon.

 Second Edition
 University of the West of England

2. Organizational Development.

 Written by Wendell L.Fraench. & Cecil H. Bell,Jr.

 Sixth Edition.
 University of Washington.

3. International Management.
A Pioneer in International Management Culture

 Written by Hodgetts ,Luthans,& Doh.

 University of Florida International, Nebraska &Villanova.
 Sixth Edition

4. Entrepreneurship
Small Business & Lives of Successful Entrepreneurs.

 Written by Dr. A R Khan

 University of Dhaka

5. Strategic Human Resources Planning.

 Written by Kenneth J. McBEY. & Monica Belcourt.

 York University
 Second Edition.

6.Managerial Work activities

7.Web sit .

www.google.com.
www.bashundhara group.com
www.laborlawbd.com
www.industrylawbd.com
75