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Human Resource Management Practice

in
Opsonin Chemical Industries Ltd

Submitted by

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Chapter 1
Introduction

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1.1.Introduction

Human resource management (HRM) is the strategic and coherent approach


to the management of an organization most valued assets- the people
working there who individually and collectively contribute to the
achievement of the objectives of the business. The terms “human resource
management” and “human resources” (HR) have largely replace the term
`personnel management’ as descriptions the processes involved in managing
people in organizations. In simple sense, HRM means employing people,
developing their resources, utilizing, maintaining and compensating their
services in tune with the job and organizational requirement.

Human resource management in a modern term that emerges during 1970s.


Its use gradually spread, and in 1989, the American society for personnel &
Administration voted to change its name to the Society for Human Resource
Management. Since Human Resources are an organization’s most important
asset, All manger should be vitally conceded with human source
management.

The Human Resources Management (HRM) function includes a variety of


activities, and key among them is deciding what staffing needs you have and
whether to use independent contractors or hire employees to fill these needs,
recruiting and training the best employees, ensuring they are high
performers, dealing with performances issues, and ensuring your personnel
and management practices conform to various regulations. Activities also
include managing your approach to employee benefits and compensation,
employee records and personnel policies. These policies are often in the
form of employee manuals, which all employees have.

Human resource management is starting to make a leading role in the


industry or organization. Business leaders recognize the importance of their
employees to the future of their organizations. Compensation in world
markets is becoming based on the skills and abilities of people, not
machines, indeed, among major competitors; virtually every one has
essentially the same equipment. The difference is often what the people in
the organization do with the equipment.

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Society and economy have changed significantly during the twentieth
century. The trend has got significance and will impact on the labor force as
it enters the twenty first century. Corporations recognize the importance of
human resource. Firms can better utilize skills and talents of their
employees, resulting business benefit from better human resource
management. Therefore proper practice of HRM can create visionary
leadership for its top management positions.

1.2Background of the Study

International Islamic University Chittagong (IIUC) has decided that each


and every student of the MBA program has to prepare and submit a `Thesis
Report’.

It is expected from the students that besides theoretical knowledge, they


should have practical, hands on knowledge and field work, which will
enhance their learning by providing a great opportunity to achieve a very
comprehensive and complete learning.

Therefore, I have chosen to work on `Human Resource management


practice at OCIL Chemical Industries LTD. Hence, this study report is
the outcome of an academic need as well as practical knowledge. It has
been possible to complete this report with the much needed help and
guidance from my supervisor.

1.3 Objectives of the study

1. To attain practical knowledge of organizational HR system, HRM


areas and its management practices.
2. To get an overview of the human Resource Management system of
OCIL.
3. To evaluate and analyze the existing HRM system of OCIL.
4. To find out the recruitment and selection procedure and its practices in
OCIL.
5. To find out the training and development procedure in OCIL.
6. To find out the acceptability and reliability of the performance
appraisal system.

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7. Lastly to provide recommendation on some effective measures in
improving HR practices of OCIL.

1.4.Methodology of the study

Methodology can be defined as a body of practices, procedures, and rules


used by those who work in a discipline or engage in an inquiry; a set of
working methods. The methodology used in our study was exploratory in
nature. We used both primary and secondary sources of data. Among the
primary sources of data, the employee questionnaire served the most in our
analysis of the HRM department of OCIL. Most of our findings resulted
from the employee questionnaire and personal observation. Among the
secondary sources, different HRM textbooks, the internet and the OCIL
service rule book was used mostly. Below primary sources and secondary
sources of data are listed below:
Primary Sources of data:
1. Personal & depth interview
2. Through questionnaire
3. Practical deskwork
4. Observation in the organization
Secondary Sources of Data:
1. Service rule
2. Different reports & publications
3. HRM books
4. OCIL website
5. Performance records
6. Training records
7. Lectures Notes
1.5. Limitations of the Study
There was no major significant limitation to analyze and write the project
paper, but the resources were very limited. Because some of the
respondents were afraid of providing information freely and some
showed less interest on such assignment. Some data could not be
collected for confidentiality of OCIL. And as a OCIL is a biggest
company its policies are in the line with other subsidiaries located at
various companies. Since the company policies are highly confidential
that’s why all the information could not be included in this report.

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Chapter 2
Literature
Review

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2.1.1 Human Resource Management

Human Resource Management deals with the people dimension of


management. HRM can be viewed in one of two ways,
First, HRM is a staff, or support, function in the organization. Its role
is to provide assistance in HRM matters to line employees, or those
directly involved in producing the organization’s goods and services.
Second, HRM is a function of every manager’s job. Whether or not one
works in a formal HRM department, the fact remains that to
effectively manage employees requires all managers to handle
activities in a manner that yields the maximum benefit for the
organization.

2.1.2. Importance of HRM


1. Formulation of HR polices
2. Implementation of HR policies
3. Review of employee needs
4. Development of social welfare
5. Utilization of Human Resources
6. Development of Labor Management Relation
7. Overall development of organization

2.1.3 Objective of HRM

Following objectives are important which can fulfill the success the
HRM
1. To develop efficiency and skills of employees
2. To ensure effective performance of employees
3. To change the behavior of employees
4. To train up subordinates
5. To increase job satisfaction
6. To attract good people
7. To make effectiveness
8. With a view to produce good people
9. For proper use of Human Resources
10. Co-ordination among different sections of the organization
11. To develop working condition in the organization

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2.1.4 Environmental Influence

HRM take place within a complex and ever changing environmental


context. The important components of this context are:
A. The strategic importance of HRM Environmental context
B. The ideal environment
C. The social changes

2.1.5 Functions of HRM

According to Duecento and Robbins, in their text, “Human Resource


Management” 7th edition, Human Resource Management consists of four
basic functions:
1. Staffing,
2. Training and development
3. Motivation
4. Maintenance

2.2. Staffing Function

Activities in HRM conceded with sourcing and hiring qualified employees. The
staffing function includes:
 Human Resource planning
 Job Analysis
 Recruitment
 Selection & Interview

2.2.1 Human resource planning

Definition:
Human Resource Planning may be expressed as a process by which the
organization ensures the right number of people, right kind of people,
at the right place, at the right time doing the right things for the achievement
of goals to the organization.

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2.2.1 A. Manpower planning method:

The four methods generally used to determine the requirements of personnel-


1. annual estimate of vacancies
2. long range estimate of vacancies
3. fixed minimum man specification requirements
4. specific position estimations

2.2.1.B. Steps of Manpower Planning :

Step-1 : Determine the Forecasting Period & Manpower required


Step-2: Find out the Surplus in Manpower requirements
Step-3 : Decide the action on surplus or shortage

2.2.1. C. The planning process:

Step-1 Integration of manpower planning into the financial planning


Step-2 systematic Review of internal Resources
Step-3 Formulation of the Recruitment plan

2.2.2 Job analysis:

It includes
1. Job analysis & its different methods
2. Steps of job analysis
3. Purpose of job analysis

2.2.2.A. Job Analysis :

Job Analysis is system at exploration of the activities within a job. It is a


technical procedure used to define the duties, responsibilities and
accountabilities of a job. A job analysis indicates what activities and
accountabilities the job entails. There is no mystery of job analysis; it is just
an accurate recording of the activities involved.

2.2.2. A1. Methods of job Analysis:


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The basic methods that HRM can use to determine job elements and the
essential knowledge, skills and abilities for successful performance include
the following
1. Observation Method
2. Individual interview method
3. Group interview method
4. Structured Questionnaire Method
5. Technical conference Method
6. Diary Method

2.2.2. B. Steps for conducting the job analysis:

1. Benchmark positions
2. Determine how you want to collect the job analysis information
3. Seek clarification, whether Necessary
4. Develop the first draft of the job description
5. Review draft with the job Supervisor

2.2.2.C. Purpose of job analysis :

1. Job descriptions
2. Job specifications
3. Job Evaluations

2.2.3. Recruitment:
Recruitment is the process of discovering potential candidates for actual or
anticipated organizational vacancies. Or, from another perspective, it is a
linking activity bringing together those with jobs to fill and those seeking
job.
2.2.3. A1. Sources of Recruiting:
A. The internal Search
B. The External Searches
a. Advertisements
b. Employment Agencies
c. Schools, collages, and Universities
d. Professional organizations

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e. cyberspace Recruiting
f. Unsolicited Applications
2.2.4 .Selection & Interview:
Definition of Selection:

Definition is a process of measurement, decision-making and


evaluation the goal of a personal selection system is to bring into
organization individuals who will perform well on the job A good selection
system must also be fair to minorities and other protected classes.

2.2.4.A. The selection process:

Selection activities typically follow a standard pattern, beginning with


an initial screening interview and concluding with the final employment
decision, the selection process typically consists of eight steps:
1. Initial screening interview
2. Completing the application form
3. Employment tests
4. Comprehensive interview
5. Background investigation
6. A conditional job offer
7. Medical or physical examination and
8. The permanent job offer

2.3. Development:
It includes Employee Training, Employee Development & Management
Development.

2.3.1. Definition of training & development


 Employee Training:
Training is a learning experience in that it seeks a relativity permanent
hanger in an individual that will improve the ability to perform on the job.
Training can involve the changing of skills, knowledge, attitudes or
behavior.
 Employee development:

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Generally focuses on future jobs in the organization.
 Management development:

Management development is more future oriented and more concerned


with education, than is employee training, or assisting a person to become a
better performance. Successful managers have analytical, human,
conceptual and specializes skills.

2.3.2. Theories of learning:

Four processes have been found to determine the influence a model will
have on an individual:
A. Attention processes
B. Retention processes
C. Motor reproduction processes
D. Reinforcement processes

2.3.3. Principles of learning:

1. Learning is enhanced when the learner is motivated


2. Learning requires feedback
3. Practice increases a learner’s performance
4. Learning begins rapidly, then plateaus
5. Learning must be transferable to the job
6. Determining training needs and priorities

2.3.4. Job Instruction Training:

Basics of instruction
- Prepare
- Present
- Try out
- Follow up
Essentials of learning
- Motivation
- Understanding
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- Participation
- Application

2.3.5. Methods of training &development for employees


A . Off- the- Job Training:

1. Classroom lectures
2. videos and films
3. Simulation exercises
4. Compute based training
5. Vestibule training
6. Programmed instruction

B. On- the- Job methods :

1.Job Rotation
2. Assistant to position
3. Committee Assignment
4. Lecture Courses and Seminars
5. Simulations
6. Outdoor Training

2.3.6. Career development


2.3.6.A . Definition:

A career is a sequence of positions occupied by person during the course


of lifetime. Therefore, we can say any work paid or unpaid, pursued over
an unexpended period of time, constitutes a career.

2.3.6.B. Elements of effective career development


a. Ensuring needs talent
b. Attraction and Retaining personnel
c. Ensuring growth opportunities for all employees
d. Reducing employee frustration
e. Enhances cultural diversity
f. Promotes organization goodwill

2.3.6.C. Career stages of an organization:


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a. exploration
b. Establishment
c. Mid-career
d. Late career
e. Decline

2.3.6.D. The career Development Techniques:

a. Challenging initial jobs


b. Dissemination of career option information
c. Job positions
d. Assessment center
e. Career counseling
f. Career development workshops
g. Continuing education and training
h. Periodic job changes
i. Sabbaticals

2.3.6.E. Steps in managing career

1. Select your first job judiciously


2. Do good work
3. Present the right image
4. Learn the power structure
5. Gain control of organizational resources
6. Stay visible
7. Do not stay too long in your first job
8. Find a mentor
9. Support your Boss
10. Stay mobile
11. Think laterally
12. Acquire and continue upgrading your skill
13. Develop a network

2.4. Motivation
2.4.1. Definition:

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Motivation is a psychological characteristic that contributes to a person’s
individual that urges him or her towards Goal oriented action.

2.4.2. Process of motivation:

The motivation process which begins with inner drives and needs that
motivate the individual to work towards certain goals which the individual
has chosen in the belief that chose goals will satisfy the inner drives and
needs. Employee motivation is of crucial concern to management, mainly
because of the role that employee motivation plays in performance.
Basically, performances determined by
- Ability
- Environment
-Motivation

2.4.3 Motivation Theories:

It may be stated that as the theory of motivation that addresses what


people need or require to live a life of fulfillment, particularly with regard
to work. According to need theory, a person is motivated when he or she
has not yet attain need certain levels of satisfaction with his or her wife. A
satisfied need is not a motivator. The most popular need theories of
motivation are:
1. Mallow’s Hierarchy of needs theory
2. McClelland’s Needs theory of motivation
3. Hertzberg’s Two- Factor theory of Motivation

2.4.4 .Means of motivation


Experience suggests that some specialized techniques to motivate can be
used as follows;

1. Management by objective
2. Participation management
3. Monetary incentives
Besides these following suggestions are also important:
1. Flexible working hours
2. Quality of working life
3. Effective criticism
4. Job enrichment
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5.
2.4.5. performance Appraisal
2.4.5A. Definition of performance appraisal:

Performance appraisal is a process of communication between supervisor


who assigns the job and the supervisee who performs the job held in a
specified period say six months or one year. By employee performance
evaluation, supervisors appraise to what extent the job tartest of the
supervisees are achieved, how far assigned duties and responsibilities are
accomplished, what about fulfilling performance expectations and what
should happen in future for employees betterment. During such exercise,
performance feedback is given in specific teems and improvement areas are
identified through mutual consensus and in an amicable manner so that the
appraise can better perform in future and contribute remarkably in the
achievement of organizational goals.

2.4.5.B. Objective of performance Management system (PMS)

The purpose of performance management system is to ensure and


employee’s contributions to the organization are recognized in a consistent
and effective manner.
The main objectives of PMS are three folds
Firstly, to determine target the beginning of the year
Secondly, to ensure a regular monitoring and guidance by the supervisors
and create a culture of face to face discussions between supervisor and
employees
Thirdly, to identify and document what has been achieved in the past in
accordance with the agreed target set earlier which should be basis for
employee’s growth and development so that he/she can better contribute in
future.

2.4.5.C. The steps to be allowed for effective appraisal program

1. Establish performance standard


2. Communicate performance expectation to employees
3. Measure actual performance
4. Compare actual performance with standards
5. Discuss the appraisal with the employee
6. Intimate corrective action
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2.4.5. D. Methods of performance appraisal

The different approaches exist for doing appraisal


a. Absolute standards
 The essay appraisal
 The critical incident appraisal
 The checklist
 The graphic rating scale
 Forced choice
 Behaviorally anchored rating scales
b. Relative standard
c. Objectives

2.4.5.E. Process of Effectively Evaluating Employees

Followings are the steps that can evaluate employees effectively;


1. Prepare for and schedule the appraisal in advance
2. Create a supportive environment to put employees at ease
3. Describe the purpose of the appraisal
4. Involve the employee in the appraisal discussion, including a self
evaluation
5. Focus discussion of work behaviors not on the employees
6. Support your evaluation with specific examples
7. Give both positive and negative feedback
8. Ensure employees understand what was discussed in the appraisal
9. Generate a development plan

2.4.5.F. The limitations of performance appraisal

1. Leniency Error
2. Halo Error
3. Similarity Error
4. Low Appraiser Motivation
5. Central Tendency
2.5.Maintenance :

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It is to create a congenial environment and working condition where worker
feel comfortable to work and maintenance continues commitment to the org
with satisfaction.
The main functions that require confirming Maintenance are:
a. Compensation Administration
b. Benefits
c. Employee discipline
d. Safe and Healthful working condition
e. Satisfactory employee/ Labor Relations
f. Collective bargaining.

2.5.1 Compensation administration


2.5.1. A. Definition of compensation

Employee’s exchange work for rewards. The goals of compensation


administration are to design the lowest-cost pay structure that will attract,
motivate and retain competent employees and that also will be perceived as
fair by these employees.

2.51.B. Types of employee rewards :

There are several ways to classy rewards. We have selected three of the
most typical dichotomies:
A. Intrinsic versus Extrinsic Rewards
B. Financial versus Non financial Rewards
C. Performance based versus Membership based Rewards

2.51. C. Job evaluation:

Job analysis as the process of describing the duties of a job, authority


relationships, skills required, conditions of work, and additional relevant
information. Job evaluation seeks to rank all the jobs in the organization and
place them in a hierarchy that will reflect the relative worth of each.

2.5.1. D. The methods of payment of wages:

There are four basic methods of job evaluation in use:


1. Ranking methods
2. Classification methods
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3. Factor Comparison
4. Point methods

2.5.1. E. Establishing the pay structure:

Once the job evaluations complete, its data generated become the nucleus
for the development of the organizational pay structure. This means pay
rates or ranges will be established that are compatible with the ranks,
classifications, or points arrived at through evaluation wage surveys, wage
curves, are used for generation the wage structure.

2.5.2. Benefits
2.5.2.A. Definition of employee benefits :
when an organization is designing its overall compensation program, one of
the critical areas concern is what benefits should be provided, Today’s
workers expect more than just an hourly wage or as alary from their
employer; they want additional considerations that will enrich their lives.
These considerations in an employment setting are called employee benefits.

2.5.2. B. Objective of employee benefits:

A. Societal Objectives :
-To urban nation of interdependent wage earners
- To help provide security
- Receive most benefits favorable tax treatment
B. Organizational objectives
 Reduce Fatigue
 Discourage labor unrest
 Satisfy employee objectives
 Aid recruitment
 Reduce turnover
 Minimize overtime costs
C. Employee objects :
The real advantages to employees of employer provided benefits are lower
costs and availability.
2.5.2.C Categories of benefits and services :

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Most companies today offer a wide variety of benefits, especially larger
companies. Some of the benefits are compulsory. For the composition of
benefit plans there are many major categories of benefit plans may be
offered. They are as follows

1. Required or mandatory security


2. Voluntary security
3. Retirement related security
4. Time of security
5. Health insurance
6. Financial service
7. Social & recreation service

a. Required /Mandatory Security:


Federal & state government requires that an employer provide a certain
limit of protection or a security floor for each employee. There are three
primary areas of compulsory securities-
-Workers compensation
-Unemployment compensation
-Social security benefit
b. Voluntary security :
Two of the major security benefits programs used by employer’s are-
-Voluntary severance
- Supplemental unemployment benefits
c. Retirement :
Over 90 percent of full-time workers at companies with more than 100
employees are covered by retirement plans, according to the employee
benefits Research institute.
d. Time -off related benefits :
-Holiday pay
-Vacation
-Leave of absence
e. Health and insurance related benefits :
A. Health benefits
1. Cost containment method
2. Employee co-payment
3. Employee payment of deductible
4.Wellness program
5. Providing more information
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B. Non- Medical insurance benefits
Besides health related insurance employees also provide can
others forms of insurance. According to a recent survey by the international
certified society of employee benefit specialists, more employee than any
other product offer line insurance.
f. Financial, Social and Recreational Benefits:
-Non financial benefits
-Stock benefits
-ESOP
-Educational benefits
-Child-care benefits
-Elder care
-Cafeteria plan
-Family friendly benefit

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Chapter 3
Institutional
Background
of OCIL
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3.1 OCIL Brief history

OCIL is one of the remanufactures of various medicines and health care


product in Bangladesh. OCIL is in pharmaceutical business since 1956 as a
manufacturer with the ultimate goal of serving the mankind and the man
behind the mankind.
OCIL has more than 2100 employees which includes diversified
professional team like pharmacist, chemist, botanist, microbiologist,
engineer, medical professional, IT professional, Chartered accountant,
cost and management accountant business graduates etc. OCIL is committed
to develop its human resources through continuous training and
development. They have a large sales team comprising of 425 professionally
trained persons.

3.2 Legal Aspect :

OCIL has adopted the world Health organization (WHO) Guidelines on


GMP in the quality management system. Quality Assurance (QA)
procedures ensure that the quality of the product are maintained by strict
compliance with international pharmacopoeias specifications on raw
materials, Packaging materials and finished product.
Experienced validations engineers qualifies these highly sophisticated
machines and these are being operated by highly skilled production and
engineering personnel. The process through which the products and made in
these machines are also validated, which guaranties that current good
Manufacturing Practices (CGMP) prevail while good are being produced.

3.3 Objective of OCIL :


The objective of the Human Resources policies of OCIL is to have best
possible staff and to retain them through continuous development. The
organization recognizes the policy of equal employment opportunity for its
employees who have the potential to enhance and utilize their skills and
knowledge. OCIL fully supports the philosophy and belief of non-
discrimination in employment. OCIL is committed to improve its position
continuously as a leading pharmaceuticals company in Bangladesh and
strength its global presence. OCIL creates value for its customers and others
stake holders by providing highest quality health care solutions through
appropriate application and development of resources and processes.
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3.4 Product :

Being a national company we have got some social commitments. A part


from the business, we want momentous and fruitful interaction in terms of
quality with our people. We have a fully dedicated Product Development
(PD) Laboratory for development of new products. All new products are
made in Pilot Batches in appropriately sized machinery before going into
commercial production. OCIL Product Development Laboratory is the only
fully equipped facility in the country dedicated for the purpose. Our sacred
vow is to ensure quality man, material, and machine for good manufacturing
practice. Our manufacturing facilities in Burial, a southern district of
Bangladesh carries out the manufacturing and packaging of all the products
sold by the company. The production units are equipped with sophisticated
machines made by world-renowned manufacturers. To name a few are
Tablet Compression Machine from Manistee of the U.K. Tablet Coating
Machine from GS Coater of Italy; Advanced formatting Technology (AFT)
Blister pack Machine from Horn Noah of Germany; Auto Cartooning
Machine from Aromatic of Italy and many more. Experienced validation
engineers qualifies these highly sophisticated machines and these are being
operated by highly skilled production and engineering personnel. The
process through which the products are made in these machines are also
validated, which guarantees that Current Good Manufacturing Practices
(CGMP) prevail while goods are being produced. OPL has adopted the
world Health Organization's (WHO) Guidelines on GMP in the Quality
Management System.

3.5 Quality assurance :


Quality Assurance (QA) procedures ensure that the quality of the products
are maintained by strict compliance with international pharmacopoeias (BP,
USP and EP) specifications on raw materials, packaging materials and
finished products. OCIL manufactures a wide range of products covering the
following therapeutic classes: Analgesic, Antipyretic & Naiads, Ant emetics
& Gastroprokinetics, Cough expectorants & Suppressants, Antacids,
Antihaemorrhoidals, CNS agents, Anthelmintics, Antihistamines,
Digestive enzymes, Ant asthmatics, Antiprotozoals, Dermatological agents,
Antibacterial, Antiulcerants, Laxatives, Ant diabetics, Antispasmodics,
Muscle relaxants, Antidiarhoeals, Cardiovascular agents, Supertonics,

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Antiseptic and Disinfectants, Cholagogues & Hepatic Protectors, Vitamins,
Minerals & Haematinics, Anti-Parkinsonism Agent, Corticosteroids .

3.6 Export :

Overseas business has always been highest priorities of OCIL. After


flourishing and splendid pace in the home, we had extended our marketing
network to abroad since 1985. By ensuring the best utilization of knowledge
and skill in manufacturing technology OCIL is one of the pioneer
pharmaceutical manufacturers to export its products abroad. As of now, we
are having our overseas marketing network in a number of countries-
Myanmar, Hong Kong, Macau, Sri Lanka, Vietnam, Togo, Kenya, Nigeria,
Guatemala, U. A. E and Yemen. We are also in the process of exploring
our existing export opportunities in some other countries as well. Against an
international tender, we also supplied our products worth around USD. 1. 3
million to UNICEF. We have been putting our best efforts to keep this
process on.

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Chapter 4
Human Resource
Management
practice in OCIL

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4.1.1.Introduction:

OCIL is one of the leading companies in the growing area of Medicine.


The purpose of document is the define these rules to all employees, in
accordance with the requirement of employment of labor standing orders act,
1965 and approved disciplinary procedures of the company. It is the duty of
every employee to observe the following rules and to behave at all times in a
reasonable way.
OCIL recruitment, promotion, development and retention practices are based
primarily on merit, potential and performance and on diversity that reflects,
across the work force to achieve the mission. Policies and practices are
stated clearly and in writing and made available to all employees.
OCIL is committed to providing HR policies in line with the change
environment and need of the organization.
In the OCIL HRM service Ruler book and their Manual, all aspects of HRM
Functions are described which includes Employment, Recruitment and
selection, service and Efficiency rules, condition of employment. Promotion
policy, Leave policy, Remuneration and Benefit, Performance management
system and appraisal, Disciplinary procedures and others benefits.
Since this thesis only covers some practices of Human Resource
Management of OCIL, below only the rules and procedures regarding
Recruitment, Training, Promotion,
Leave policy, Remuneration and Benefit and performance appraisal are
discuss in detail.
4.1.2 Employment policy :
The goal of the Human Resources policies of OCIL is to have best possible
staff and to retain them through continuous development. The organization
recognizes the policy of equal employment opportunity for its employees
who have the potential to enhance and utilize their skills and knowledge.
OCIL fully support the philosophy and belief of non-discrimination in
employment.

4.1.3Employment principle :

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OCIL recognizes that each employee irrespective of gender is entitled to be
treated with courtesy and dignity. Each employee is entitled to fair wages,
job opportunities, in return for good job skills, cooperation, loyalty and best
efforts. The organization will demonstrate its commitment to protect the
employee's organizational rights so as to improve and increase employee's
motivation. OCIL is committed to develop its Human Resources to achieve
the organization's mission and goals.

4.1.4 Employment Status :


Classification of Employees

Regular : A regular employee is defined as- who is employed against a


permanent position in OCIL for open-ended period. All regular employees
will be appointed with probationary period of 6 months after which the
employee may be confirmed in his / her employment.

Contract: A contract person is defined as- who is granted a contract to


render service against a specific job assigned to him / her for specific period.
However, the period of contract may be renewed for maximum three terms
of two years each subject to mental and physical fitness of the person.
Unless otherwise stated in the contract, the contractual payment shall be a
consolidated amount per month.

Casual Status: Persons who are hired on daily basis for particular
assignment and the daily wage amount is fixed based on the person's skills
and abilities to perform the duties and the payment will be made as per his /
her request on daily, weekly or monthly basis.

4.1.4 Appointment Authority:

Appointment authority is defined as the Authority having right and


responsibility to make decisions with respect to hiring, placement, salaries,
evaluation, training, transfer, promotion, discipline and separation of the
staff according to the Human Resources policy of OCIL. The authority
includes the responsibility to issue and sign all relevant important
correspondences with employees.
4.2 Recruitment and selection:

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The Recruitment and selection is the major function of the human
resource department and recruitment process is the first step towards
creating the competitive strength and the recruitment strategic advantage for
the organization Recruitment process involves a systematic procedure from
sourcing the candidate to arranging and conducting the interviews and
requires many resource and time.
In today’s rapidly changing business environment, a well defined
recruitment policy is necessary for organizations. There fore, it is important
to have a clear and concise recruitment policy in place, which can be
executed effectively to recruit the best talent pool for the selection of the
right candidate at the right place quickly. A clear and concise recruitment
policy helps ensure a sound recruitment process.

4.2.1. General Policy:


OCIL is committed to selecting and employing the most suitable person(s)
for the available position(s) by the way of -
a) Effective and appropriate screening and selection
b) Selection standards are relevant to skills, training, experience,
education and knowledge necessary for successful job performance
c) The hiring procedures conform to the organization's requirements and
organization's policies and procedures
d) Under no circumstances a person employed with any other
organization is appointed as full time regular or on contract in OCIL. In
other words double employment will not acceptable in OCIL.
e) All regular appointments in OCIL shall conform to its existing
position and salary structure
No one who is below 18 years of age and does not have Secondary
School Certificate can be hired as an employee for OCIL either on
regular, contract, temporary or casual status.

4.2.2. Job Descriptions:

Job descriptions are the basis of recruitment placement, training,


assignment, Performance management system, performance appraisal,
salaries, promotion and other HR actions for the employees of OCIL. A
job description must state the functions, duties, and responsibilities of
employees, reporting line and relationship with others in the
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organization. Job description will be provided to the employees when he
or she is appointed, transferred, promoted or newly assigned.

4.2.3.Short listing of applications :

The concerned Department head and HR Head or a committee (as


deemed appropriate) will short list the CVs. Applications shall be short
listed upon a careful review based on the organizational need, applicants’
qualifications, experience and their suitability for the position. In the case
of in house candidates the employees’ personal file, performance record
and Line Manager’s comment / recommendation should be taken into
consideration
4.2.4. Test and Interview Process:

Short listed applicants may be called for interviews and suitable testing.
No candidate, in house or external, is guaranteed an interview.
OCIL may undertake some or, all of the following tests or adapt any
other appropriate devices in selection process.
– Written test
– Interview
– Practical operation / technical test
The HR department will contact the candidates by letter for appearing in
the test / interview. All travel expenses or loss due to appearing in the test
/ interview is the responsibility of the applicant.
The interview panel or selection committee will be comprised usually of
three to four members – which will include the Line Manager. For the
selection in senior positions the MD will also be in the panel in the final
interview. If deemed necessary an external person may be included in the
panel.
During the final interview panel members will make an assessment /
rating for each candidate

4.2.5. Selection:
The selection committee will discuss about each candidate among
themselves and recommendation panel will put its recommendation /
approval about the selection with signature.

4.2.6. Approval for appointment:


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The selection and appointment of employees of management Grade must
be endorsed / approved by MD.
4.2.7. Appointment:

The selected candidate(s) for regular positions will be offered


employment with OCIL under the signature of Head of HR on
probationary status as per policy. The Managing Director will sign the
appointment letter of General Manager Position
The selected candidates, after employment, may be asked for clearance
certificate from her / his last employer. Moreover, he/she will be
advised to produce fitness certificate from a Registered Physician, copies
of all academic certificates duly attested by a class-1
Gazette Officer, recommendation from the persons whom the candidate
mentioned as referees in his/her application.

4.2.8. Identify Card:

OCIL shall issue Identity card to all regular staff and contractual person.
The ID card will be issued (signed by Head of HR or his designate) and
controlled by HR department. The employees will provide a receipt for
the same.

4.2.9. Probationary Period and Confirmation:

All regular employees must satisfactorily complete 6 months'


probationary period from the date of his / her appointment. During this
period, the Line Manager will coach and observe performance of the
employee and his / her suitability for the position. At the end of the
probationary period the Line Manager will prepare performance appraisal
for confirmation of service with regard to the employee's performance and
suitability for the position send it to HR department for next course of
action.
If the performance of the employee has been found satisfactory the
HR Department will issue a confirmation letter to the employee at the end
of the probationary period.

4.3.Training and Development:


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4.3.1. Training:

Training is the responsibility of personal and human


resource division. Check list is given to guide organizing an orientation
to prepare a program for new employees during induction.
1. Orientation package with the Human Resource Management Manual.
2. Make sure that the new employee has a proper place to work.
3. Schedule training to teach skills necessary for the job.
4. Explain the goals and objectives of the organization and the lines of
authority.
5. Explain the rules, regulation and procedures of the company.
6. Set clear performance objective and tasks for the first month of the
work.
7. Which aims to improve specific knowledge or skills?
8. Which influences behaviour and improves work performance?

4.3.2. Development:

OCIL shall provide job orientation and inductions of all employees.


Purpose of inducts and orientation program is to help an employee to;
1. Have an understanding of the mission goals, objectives, values and
standard of the OCIL.
2. Get a clear idea of OCIL activities and his/her own responsibilities.
3. Develop loyalty towards the company its policies, management and
the employees.
4. Instill a team sprit and feelings of belongingness to the OCIL.

4.4. Remuneration and Benefit policy:

4.4.1 Salary & Allowances :

All regular employees will be compensated monthly for their


services rendered to OCIL corresponding to the Grade / Step and / or
position he / she holds as per approved Separate scale for Management staff,
field force members and workers. An employee shall be paid his / her salary
for any fractional period in the month of joining and ending employment of
a month on pro rata basis.
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4.4.2 Income Tax:

Income Tax of employees, whose salary falls within the taxation limit
according to the existing income tax rules by the Government, shall be borne
by OCIL. OCIL will submit full particulars in support of income tax
payment to GOB and copy of all relevant documents to the concerned
employees.

4.4.3 Provident Fund:

Provident fund is a separate entity under a separate body called Board of


Trustees. The board of trustees is the sole authority to maintain Provident
Fund. They are liable to the members for any matters related to Provident
fund. Provident Fund Management Board of Trustee will maintain a separate
provident fund account to which payment will be made every month.
A regular employee will be eligible for the organization's PF contribution
provided that he / she have worked with OCIL continuously for at least one
year.
4.4.4 Overtime and Compensatory Time off :
Overtime rate will be straight of the hours worked on any working day in
excess of the company’s approved working hours. Overtime rate will be
twice of the hours worked on any Friday and or OCIL approved holiday.
4.4.5 Increment:
Increment is awarded once a year for regular staff by moving him / her to the
next step of his / her grade, effective from 1st January for the members of the
Field Force and July of each year for others.
One-step increment is subject to satisfactory performance of the employee
throughout the year, and is not automatic.

4.4.6 No Increment:
An employee will not be eligible for annual increment if his / her
performance is found unsatisfactory in the appraisal. In such case the
concerned manager must state the reasons for not approving the increment
and the action are consented by the MD.

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4.4.7. Merit Performance Increment:
As a very special case OCIL may award a merit performance
increment to a staff by awarding more than one step increment of his / her
outstanding performance provided that the Line Manager recommend so
through the performance appraisal and the following criteria are met:
- Employee has demonstrated outstanding performance throughout
the year;
-Appraisal reflects quality performance of the employee
-Employee possesses strong personal attributes for successful
performance
- Employee has provided exemplary inputs and contributes to achieve
unit / department / program objective.

4.4.8. Special Increment on Confirmation:

Probationary staff will not be eligible for this increment. However, if a staff
is confirmed before three months of the due date for increment and his / her
performance is rated such outstanding, the management may consider the
merit performance increment for him / her effective form the date of
confirmation.

4.4.9 Festival Bonus:


All confirmed regular employees of OCIL are entitled to Festival Bonus at
the rate of 2 months basic salary per year. Persons who have year round
contract will have their bonus already included in the consolidated amount.
The bonus is paid to the regular staff 15 calendar days prior to their major
festival.

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4.4.10 Gratuity Benefit:
All regular employees are entitled to gratuity benefit from the date of regular
employment with OCIL. when she / he resigns or is terminated, retrenched,
or on is / her retirement or death after a minimum of seven year's continuous
service (without break of or loss of lien) with OCIL. Gratuity will be
calculated at the rate of one month basic salary.

4.4.11. Remuneration for Unused Annual Leave:

Remuneration for unused Annual Leave shall be paid to the outgoing


employees after his / her resignation, retrenchment, termination, dismissal,
retirement or death. The leave shall be accrued and calculated as of the
employee's last days of work.

4.5.1. Performance Management System and Appraisal:

The OCIL Performance Management System is a participatory system


and used as a framework in which an employee's performance can be
broadly and objectively planned, monitored coached and evaluated.
PMS is designed to focus on supporting and developing OCIL human
resources in a more effective way.
The overall objective of PMS is communication, not filling out forms,
more specifically the objectives are:
-To establish clear expectations consistent with both OCIL'S
mission and with personal and professional objectives,
-To provide a tool for managing employee performance
-To provide coaching and feedback necessary for high
performance of all employees; and
-To have specific information necessary for strategic decisions.

4.5.2.Procedures and time Frame of PMS:

The system is a year-round process for one Fiscal Year having several
inter-related and integrated components in it. The three phases of the system

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are objective setting, performance monitoring & coaching, and performance
evaluation.

-The first phase (objective setting) is to achieve mutual agreement


between employee and Line Manager about issues like job responsibilities
and performance standards. This should be completed in December for the
next Fiscal Year starting from January for each regular employee by using
the Annual Performance Planning & Evaluation (PP&E) Form through
arranging a formal meeting.

-The second phase supports employees in achieving expectations


define in phase I, which is a year-round process. This will be done through
on-going monitoring, coaching (at least 2 formal), providing feedback and
regular review discussions. One Mid-term performance review will also be
done in June using the Mid-Term Review Form.

-The third phase is the year-end assessment phase, which should be


done in December to assess employee accomplishments in relation to
defined objectives and to provide information necessary for developing a set
of objectives for the next year. Performance Summary for each section will
be determined both by the employee and the Line Manager and rating will
be provided on mutual understanding.

4.5.3 Supervisor's Responsibilities of PMS:

-Ensure the most recent Job Description available for each


employee
-Inform employee(s) of the performance planning, review and final
assessment meetings well ahead of time.
-Communicate expectations clearly
-Permit latitude and freedom in PMS methods
-Encourage employees to request for help
-Encourage discussion of disagreements
-Plan, supervise, coach, mentor and assess each individual
employee performance
-Follow the procedures and time frame of PMS properly
-Ensure individual employees development needs are assessed sand
addressed properly
-All plans and assessment are made on mutual agreement with the
employee.
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4.5.4 Employee's Responsibilities:

-Always get well prepared for each meeting


-Review expectations and ask questions if they are not clear in
planning and Mid-Term review sessions
-Raise questions and discuss problems
-Follow through on decisions in the Performance Appraisal Form.

4.5.5.Performance Rating Definition:

Outstanding:

The employee consistently exceeds job performance requirements.


Initiative and outputs are over and above the stated requirements. This rating
should be reserved for truly outstanding and exemplary performance, which
results in exceptional contribution to organizational growth and / or
effectiveness. In the performance Appraisal Form the Outstanding
Performance will be rated as (A).

Very Good:

The employee consistently meets job performance requirements and


sometimes exceeds job requirements. In the performance Appraisal Form the
Very Good Performance will be rated as (B).

Good:

The employee meets job performance requirements in many areas and fails
to perform in some small areas. In the performance Appraisal Form the
Good Performance will be rated as (C +).

Satisfactory:

The employee meets Job requirements. The employee has a well-


balanced performance to an expected level and able to handle all aspects for

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job satisfactorily. In the performance Appraisal Form the Satisfactory
Performance will be rated as (C).

Unsatisfactory:

The employee does not meet job requirements. Initiative, outputs, and work
quality do not always meet requirements. Employee needs improvement in
one or more aspects, which are critical to the position. . In the performance
Appraisal Form the Unsatisfactory Performance will be rated as (C-).

4.5.6 Performance Appraisal:


Performance appraisal system is a participatory process and used as a
framework in which an employee's performance can be broadly and
objectively assessed.
A performance appraisal is an integral part of the performance management
process and serves to:
- Review of job description: whether it is helping in the process of
meeting the organization's objectives
-Help to clarify mutual expectations
-Recognize accomplishments and encourage self development
-Identify weakness / deficiencies in employee and suggest / guide for
improvement
-Identify employee development and training needs
-Provide a basis of determining individual increments, promotion or other
actions
-Provide impute for management planning
Annual appraisals will formally be held once a year. The discussions at the
performance appraisal meeting should not came a surprise to any of the
parties given that the Line Managers are encouraged and expected to have
had regular "one – to – one" meetings with their staff over the period.

4.5.7.Unsatisfactory performance:

Unsatisfactory performance by a staff member is indicative of the


following
-Wrong person in job

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-Lack of interest in job (seen only as a regular sources of
income)
-Lack of motivation by superiors
-Lack of clarity of organization's aims and objectives.

4.5.8.Procedures Recommendation and Approval:

The concerned Line Manager (s) will make recommendation in the


Performance Appraisal form consistent to the year-end assessment through
PMS. The appraisal form must be properly filled in and completed
OCIL may award a promotion of an deserving staff (at the time of annual
appraisal or at any time of the year) on the basis of recommendation of Line
Manager (s) through performance appraisal provided that the following
criteria are met
-Employee is rated outstanding in all areas of assessment
-Employee has demonstrated capabilities to perform additional
responsibilities
-Employee has provided / contributed substantially to achieve
organizational objectives
-Employee possesses high potential, and capable to undertake higher
responsibilities
-Employee possesses qualification, knowledge and skills required for
proposed position.
-Vacancy is available
-MD approves the promotion
-An interview or examination may also be arranged for a promotion if
deemed necessary.

4.6. Disciplinary Action Procedures Policy:

4.6.1 Objective:

The objective of the disciplinary action should be to motivate the staff to


improve performance and not to alienate him / her from the organization.
Any act of misconduct or violation of organizational Code of Conduct shall
be dealt with the disciplinary guidelines. Head of HR or MD depending on
their jurisdiction, responsibility and authority level shall decide course of
disciplinary action depending upon the gravity of offence. All employees of
OCIL must follow the code of Conduct.
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Employees must at all times observe the laws, Rules and Regulations of the
territorial jurisdiction of the country to which they are assigned.

4.6.2 Minor Offence:

For minor offence, a meeting may be held between the concerned employee
and her / his Line Manager to resolve the problem as soon as possible after it
occurs. Head of HR may issue a letter of caution to concerned employee for
her / his minor offence.

4.6.3 Misconduct:

An employee may be dismissed if she / he are found guilty on


misconduct; list of misconduct is given below
-Willful insubordination or disobedience to any lawful or reasonable
order of a supervisor
-Theft, fraud or dishonesty with the employer's activity or property
-Taking or giving bribes or any illegal gratification in connection with
her / his employment under the employer.
-Habitual absence without leave or absence without authorized leave for
more that 10 day
-Habitual late attendance
-Habitual breach of office rules & regulations.

4.6.4 Minor Misconduct:

After found guilty of minor misconduct but not deemed fit for dismissal, the
employee shall be subject to following actions
-In first offence, a warning letter will be issued describing the offence
and / or that performance should improve over a specified period;
-On any further offence, or in the lack of improvement over specified
period of time, employee shall be issued a final warning letter;
-Any occurrence of offence after final warning letter may result in the
dismissal of the employee after the disciplinary procedures is followed.

4.6.5 Investigation:
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Any allegation against an employee shall be informed in writing to the
HR Department. The Head of HR if deemed necessary will designate a
person to investigate into the matter and to submit a written report on his /
her findings.

4.6.6 Show Cause / Explanation:

If an employee is convicted for an offence or is considered guilty of


misconduct, the Head of HR shall issue a show cause notice to the
concerned employee mentioning the charge and giving seven days time for
submission of written explanation to the authority as to why disciplinary
action should not be taken against her / him for misconduct.

4.6.7.Suspension pending Inquiry:

An employee charged for misconduct may be suspended pending inquiry


into the charge against her / him and unless the matter is pending before any
court, the period of such suspension shall not be more than 60 days.
Employees who are suspended shall be paid subsistence allowances
equivalent to half of her / his basic salary.

4.6.8 Actions:

Upon receipt of the report from the enquiry committee, the MD in


consultation with the HR In-charge shall award punishment to the employee
or make him / her release from the charge depending on the gravity of the
misconduct, previous records etc.
The nature of the punishment may be any of the following
-Verbal Warning
-Written Warning
-Dismissal from service
-If an employee, who has been on suspension pending enquiry, is
found guilty of any charges brought against him and punished to dismissal
the employee shall not be entitled to any wages except the subsistence
allowance
-No dismissal or suspension order can be issued retroactively.

4.6.8 Grievance Procedure:

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Grievance is a state of dissatisfaction, expressed or unexpressed, written
or unwritten, justified or unjustified having connection with employment
situation.
OCIL will ensure that:
-Employees understand the OCIL'S grievance procedure
-Employees are aware that no reprisals will be taken against them for
using the procedure.

4.6.9 Dismissal:

An employee may be dismissed without prior notice, after following the


procedures of Disciplinary actions as stated OCIL HR policy manual
When an employee is dismissed he / she shall be entitled to the following
benefits:
-Basic Salary, House allowance, Medical allowance and Conveyance
allowance up to the last days of work.
-Employee's own contribution to Provident Fund (if any)
-Remuneration for any unused Annual leave as per OCIL policy.

4.7. LEAVE POLICY:

4.7.1 Annual Leave:

Annual Leave is meant for rest and recreation for employees. Company will
grant 15(fifteen) days leave per year for each completed year of service.
-An employee shall be eligible to Annual Leave on completion of one-
year continuous service with the company.

-An eligible employee applies for leave as per roster but can not be
granted by the department due to exigencies of work, number of days of
applied leave (part or full) shall be credited to his account and be given
encashment at the end of year.

-All leave balance of each employee shall be en-cashed at the end


of an English calendar year. HR department immediately on completion
of the year shall arrange payment due to such encashment. .

-Any holiday (Weekly / Festival) falling in between the approved


leave period of an employee the number of day/s for such holiday shall

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be treated as leave for the purpose of counting the total number of days of
leave.

-In case of employees leaving the services of the Company


permanently, payment of Annual Leave due shall be made.

-Adjustment of Annual Leave may be allowed beyond 10 days


Casual leave and 14 days Sick leave as on very special consideration
based on reasonable circumstances.

4.7.2 Sick Leave:


Rules:

a) Application for sick leave exceeding 3 (three) days should be


supported by a Medical Certificate from a registered medical
practitioner.

b) The management may at its discretion have the employee


examined by any registered doctor and the advice of the doctor
shall be binding on the employee and the Company.

c) Such leave cannot be en-cashed.

4.7.3 Casual Leave:


A maximum of 10 (ten) days with pay in a calendar year will be allowed.
Rules:

a) Casual leave is meant to meet emergent and unforeseen


circumstance.

b) Prior approval of the management has to be obtained, for such


leave wherever possible, stating the reason for such leave.

c) This leave can be allowed to be taken at one time for a


maximum of 3 (three) days and cannot be prefixed and / or
suffixed with any festival, weekly and other holidays and
privilege leave.

d) Casual leave shall not be carried forward beyond a calendar


year, nor can it be en-cashed.
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4.7.4. Special Leave:
Company may consider leave for special purposes at its own discretion e.g.
treatment for self, treatment for the dependant family members outside the
country, appearing at the examination for obtaining higher degree,
performing Hajj etc
4.7.5 Holidays and Leave:
All full-time OCIL employees shall be entitled to avail the official holidays
with full pay unless the conditions of work or field assignment are set
otherwise. All OCIL offices shall treat Friday as full and Thursday as half
weekly holiday.
4.7.6. Sick Leave:
A regular or contract employee may apply for Sick leave only when he / she
is sick and unable to continue work or unable to attend work OCIL has the
provision of 14 days Sick leave in a year.
4.7.7. Maternity Leave:

A confirmed regular female employee is entitled to a total of 84 calendar


day’s maternity leave (before and after child birth, i.e. 42 days maternity
leave before delivery and 42 days after delivery). This duration is subject to
change to conform to the Country laws and regulations, if applicable for the
organization.

4.7.8. Leave without Pay:

Leave without pay may be granted to an employee in special circumstances


and when no other leave is available or admissible as entitlement.

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Chapter 5
Data Analysis and
Interpretation

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Results from the questionnaire
5.1.1.Do you think OCIL practices a sound recruitment and
selection process to attract qualified job applicants?

90
80
70

1 Yes 90 % 60
50
Series 1

2 No 10% 40
30
20
10
0
1 2

Interpretation: In answering this question, we find that 90 % of the


respondents answered positively and 10 % answered negatively.

5.1.2.Would you personally recommend qualified applicants to apply to


OCIL?

1 Yes 100% 1

2 No 0% 2

Interpretation: In answering this question, we find that 100 % of the


respondents answered positively.

5.1.3.Does OCIL have a good training and development policy?

1 Yes 70% 1

2 No 30%
2

Interpretation: Here we find that 70 % answered positively and 30 %


answered negatively in this regard.

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5.1.4.How would you rate the performance appraisal system of
OCIL on a scale of 1 to 5?
70

60

1 Good 65% 50

2 Neutr 20% 40
Series1
30
al 20

3 Bad 10% 10

4 Worst 5% 0
1 2 3 4

Interpretation: In answering this question, 65% of the respondents


thought that the performance appraisal system of OCIL was good,
meaning they gave 4 out of 5 on the inert scale. Among the rest of the
respondents, 20% were neutral and 10% said the performance appraisal
system was bad and 5% said it was worst.

5.1.5.Are the objectives and policies of performance appraisal


system communicated to employees?

1 Well 50 % 1
2

2 Bad 50 %

The answer to this question was a 50-50 split. 50% said objectives and
policies were well communicated, while the other 50% thought it was
not, so from this answer it can be noted that OCIL needs to communicate
their objectives and policies more clearly to their employees.

5.1.6 Does the performance appraisal system accurately measure


employee performance?
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80

70

60
1 Yes 76% 50

2 No 24% 40

30
Series1

20

10

0
1 2

Interpretation: Here we find that 76 % answered positively and 24 %


answered negatively in this regard.

5.1.7 How satisfied are you with the recruitment and selection policy
OCIL?

Extremely Satisfied 10%


Neutral 15%
1
2
3
Somewhat satisfied 75%

The answer to this question we find that 10 % of the respondent extremely


satisfied, 15 % of the respondent Neutral and 75 % are somewhat satisfied.

5.1.8 How satisfied are you with the pay scale Of OCIL?
40

Dissatisfied 28 % 35

30

Neutral 30 % 25

20
1
2

Somewhat satisfied 40 % 15
3
4

Very Dissatisfied 2%
10

0
1 2 3 4

Interpretation: Here we find that 28 % employee Dissatisfied, 30% employee


satisfaction Neutral, 40 % somewhat satisfied and 2 % only very dissatisfied.

5.1.9 How satisfied are you with the training and development policy of
OCIL?

Dissatisfied 46 % 49
Neutral 24 % www.AssignmentPoint.com
1
2

Somewhat satisfied 20 % 3
4

Very Dissatisfied 10 %
Interpretation: Here we find that 46 % employee Dissatisfied, 24 %
employee satisfaction level Neutral, 20 % Somewhat satisfied and 10 %
employee very Dissatisfied in the training and development policy of OCIL.

5.1.10 How satisfied are you with the performance Appraisal system of
OCIL?

Dissatisfied 30 %
Neutral 35 % 1
Somewhat satisfied 23 % 2

Very Dissatisfied 10 % 3
4

Extremely satisfied 2% 5

Interpretation: Here we find that 30 % employee Dissatisfied, 35 %


employee satisfaction level Neutral, 23 % Somewhat satisfied , 10 %
employee very Dissatisfied and 2 % employee extremely satisfied in this
regard.
5.1.11 what is the basis of evaluating performance appraisal system of
the employees of OCIL?
30

Criteria job related 30% 25

Interpretation: In 20
Complicated procedure 26 % answering this 15
Supervisor Based 20 % question, 30% of the Series1

16 % respondents thought
10
Management giving
importance to PMS that the performance 5

Others 8% appraisal system of 0


1 2 3 4 5
the employee
evaluating basis of criteria job related, 26 % respondents thought that the
performance appraisal system of the complicated procedure system, 20 % of
supervisor vased,16 % of management giving importance to PMS and 8 %
others category in this regard.
5.1.12 How satisfied with the promotion policy of OCIL?
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80

Dissatisfied 0% 70

Neutral 21 % 60
1
50
Somewhat satisfied 71 % 40
2
3
Very Dissatisfied 4% 30 4
5
Extremely satisfied 4% 20

10

0
1 2 3 4 5

Interpretation: Here we find that 0 % employee Dissatisfied, 21 % employee


satisfaction level Neutral, 71 % Somewhat satisfied , 4 % employee very
Dissatisfied and 4 % employee extremely satisfied in this regard

5.1.13 Is the performance appraisal system based on confidential


reporting?

1 Yes 35%
2 No 65%
1
2

5.1.14 Which area of Human resource of OCIL is most weak and needs
to make major changes?
In this question, there were 3 options for the respondents to answer from
and these were
A. Training
B. Promotion
C. Performance appraisal system
An overwhelming 100% of the respondents selected training as the area
most weak and needs to make changes to improve.

5.1.15 Overall how satisfied are you working in OCIL ?

100
80
60
40 1
20 51 2

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0
1
S1

2
Satisfied 85%
Dissatisfi 15%
ed

Interpretation: As for the overall satisfaction level 85% of the employees


mentioned they were somewhat satisfied working for OCIL and 15% said
they were neither satisfied nor dissatisfied.

5.1.16. What would you recommend OCIL do to improve their HR


practices?

In this open ended question, almost all employees said they thought training
and development needed to be improved they also suggested better
compensation packages for trainer who have excellent teacher rating.
promotion was another aspect that came up and many felt that the
promotions should be based on academic record, foreign experience,
working experience and credentials, publications etc, Some suggested that
the HR policies of OCIL should be updated and properly maintained
keeping in mind the changing global and domestic environment and the
competition of other private companies.

5.2. Summary of findings:


Based on my personal observation and the results from the questionnaire,
the findings are as follows

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1. OCIL has very little training and development policy for new recruits.
We find that 70 % answered positively and 30 % answered negatively in
this regard in paper they are supposed to give on the job training and job
orientation, but in reality this is not happening very often.

2. About 65 % of the employees were satisfied with the performance


appraisal system but almost 35 % thought that it lacked confidentiality
and they were not aware of the basis of the performance Appraisal
system. Among the employees 30% thought it was based on criteria job
related. OCIL needs to do a better job making employees understand the
basis of performance appraisal.

3. 71% of the employees were somewhat satisfied and 4% were very


satisfied with the promotion policy of OCIL. 21 % employee satisfaction
level Neutral. This indicates that OCIL HRM is doing a good job in this
aspect. However, some employees suggested that the promotion should
be based on performance and an employee’s recent up graded Knowledge
or new training or publication or new degree should be acknowledged for
the necessary promotion.

4. Form the survey findings, 75 % of employees were some satisfied and


10 % of the respondent extremely satisfied with the recruitment and
selection policies of OCIL. Very good news for OCIL is that 85 % of the
employees said OCIL practices a sound recruitment and selection policy.

5. Most employees felt pay scale needed to be improved and updated. only
40% were somewhat satisfied with the pay scale

6. From observation it seemed there is a lack of communication between


employees and management and between employees and employees.

7. OCIL is a reputed Company, But it is not doing very much to enhance its
image, some staff felt that OCIL can do more to enhance their image.

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Chapter 6
Recommendation
and Conclusion

6.1. Recommendation:

1. Training and Development needs to be improved and implemented.


Without adequate training OCIL is not preparing its employees for the job at
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hand. So it must give top priority to training and development. From the
survey finding 100% of the employees said training and development was
the weakest area of HRM. This should be a wake up call for the HRM
department of OCIL to take necessary steps to improve this area.

2.OCIL needs to make sure that their performance appraisal system is


confidential. 35 % of the employees questioned the confidentiality of the
performance appraisal system, this is a big percentage and OCIL should
take proper steps to prevent any breach of confidentiality. A Recognizes
performance management system (Date base) can be maintained to reduce
complications and errors.
3. OCIL should make sure that employees’ recent upgraded knowledge,
skills and training etc are included in the promotion policy to ensure that
sound promotion policy is practiced.
4. OCIL is doing a good job with their recruitment and selection policy and
should maintain such standards to maintain employee satisfaction.
5. A weak side of OCIL HRM was also their pay scale policy only 30 % of
the employees were satisfied with the pay scale. Although it might be hard
to increase pay scale of employees right away, a competitive salary
structure might be ensured for the battement of OCIL members in the long
run.
6. OCIL should try to minimize lack of communication between employees
and management by organizing monthly meeting between departments and
employees and management also hiring higher quality staff especially at mid
level management should reduce the problem to a great extent. Moreover,
OCIL needs to be aware and take proper steps to ensure that the employees
hired are right for the organization.

7. To enhance their organizational image, OCIL need’s to update and


increase their advertisement since any change starts at home, they should
communicate at all levels the philosophy and objectives of its founding
members and what values OCIL holds. In order to do this visionary
leadership at the top management level should be implemented.

6.2. Conclusion:
Human Resource management (HRM) is the part of the organization that is
conceded with the people dimension of management and its goal is to help
the administration to build up a strong, energetic and dedicated staff.

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HRM deals with human relations of an organization starting from
recruitment to labor relation But many CEOs of Bangladeshi firms &
institutions are now striving, because standing at the threshold of the twenty
first century, employees of our country have become ore conscious about
their rights and try to have a drastic change in their behavior of exploiting
the best possible opportunity.
In OCIL, personnel & Human Resource division is not a very new concept
in the administrative set up. The HRM department should strive to enhance
their training and development program. Make their salary and pay scale
more competitive.

During the induction and orientation of employees, the values and


philosophy of the Company needs to be communicated. With employees
being well aware of the morality, high ambition of the founding members
about providing high equability education along with morality, employees
will feel proud to be part of such an organization. They will be more
satisfied to achieve the goals of this company.

OCIL is doing well in areas like recruitment and selection and promotion
and they have been able to make employees satisfied with the workplace.
100% of the employees mentioned they would recommend OCIL to others
as a good place to work. It is clear that OCIL has been able to create a bond
between their employees and management. OCIL should strive to maintain
all these positive aspects and improve the quality of work environment for
all employees.

Now should focus on building an image and promotion their values through
more active advertisement, so they become a brand among private
companies. The strong reputation of OCIL can help in this aspect, some
funding in marketing and promotion can help a lot in this aspect and finally,
OCIL should focus on visionary leadership for its top management
positions. Because only the visionaries can create vision in others and make
their dream true.

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