HRM 761

Compensation Policy
Quiz 01

Submitted To
Dr. M. Nazmul Amin Majumdar
BRAC Business School

Submitted By
Humayara Rownak Jahan
ID: 21264105
Section: 01
 Answer to the Question No 1
Lamia Chowdhury, Senior Vice President of Human Resources (HR) for Rose Paints Bangladesh
Limited, had undertaken some specific initiatives in the context of human resource management
(HRM) which are included here:

 Hiring a New Management Team:

Ms. Lamia had to address the challenge of hiring a new management team for Rose Paints
Bangladesh Limited. This involves talent acquisition, recruitment, and selection processes to
identify and bring in qualified individuals to fill key roles within the organization.

 Addressing Ethical Culture Issues:

Ms. Lamia needed to address the perceived culture of questionable ethics at the company. This
likely involved implementing measures to promote ethical behavior, such as creating a code of
conduct, providing ethics training, and fostering a culture of transparency and accountability
within the organization.

 Reforming Top Management Compensation Plan:

Ms. Lamia also had to address concerns related to the company's top management compensation
plan. This may have involved reviewing and revising the existing compensation structure to align
it with industry standards, performance metrics, and ensuring that it promotes fairness and
accountability.

 Revisiting Outdated Compensation Policy:

The initiative to revisit the company's outdated compensation policy indicates that Lamia
recognized the need for a comprehensive review and update of the organization's overall
compensation practices. This includes salary structures, benefits, and incentives to ensure they
are competitive, equitable, and aligned with the company's objectives.

Overall, Lamia Chowdhury's initiatives suggest a strategic and holistic approach to Human
Resource Management, encompassing talent acquisition, organizational culture, and
compensation practices to address the challenges facing Rose Paints Bangladesh Limited.
 Answer to the Question No 2
Lamia Chowdhury recognized the need for immediate action upon assuming the role of Senior
Vice President of Human Resources at Rose Paints Bangladesh Limited. Her acknowledgment of
issues such as the need for a new management team, addressing the perceived culture of
questionable ethics, and revisiting the outdated compensation policy suggests that she was
proactive in addressing the challenges facing the organization.

Reviewing and Updating Compensation Policy:

 Belief in the Requisite Actions:
It appears reasonable for Lamia to review and update the company's compensation policy,
considering the challenges and allegations surrounding the top management compensation plan.
This action aligns with best practices in human resource management and corporate governance,
demonstrating a commitment to fairness, transparency, and accountability.

 Advisability of Updating Compensation Policy:

Yes, it is advisable for Lamia to revisit and update the outdated compensation policy. An
obsolete compensation policy can lead to various issues, including employee dissatisfaction,
talent retention problems, and concerns about fairness. Regularly reviewing and updating
compensation policies ensures that they remain competitive, equitable, and aligned with the
company's goals.

 Reasons Against Considering This Option:

Without specific information to the contrary, there don't seem to be compelling reasons against
updating the compensation policy. However, potential challenges could include resistance from
existing top management, concerns about budget constraints, or the need to balance
competitiveness with fiscal responsibility.
Recommendations:
 Conduct a Comprehensive Review:
Lamia should conduct a thorough review of the existing compensation policy, taking into
account industry benchmarks, market conditions, and the company's financial health.

 Communicate Effectively:
Transparent communication about the need for policy updates and the rationale behind changes
is crucial. This helps build trust among employees and stakeholders.

 Align Compensation with Performance:

Ensure that the updated compensation policy is linked to performance metrics, promoting a
culture of meritocracy and accountability along with complies with legal and regulatory
requirements

In conclusion, Lamia Chowdhury's consideration of updating the compensation policy seems

appropriate, and it would be advisable for her to proceed with a thoughtful and comprehensive
review, involving key stakeholders and ensuring effective communication throughout the
process.