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Compensation system of an Business organization of Bangladesh (A case study of sanofi-aventis Bangldesh limited)
By Md. Jawad Ahmed Roll -214 MBA -12th batch HRM-513: Compensation Management
Department of Management Studies University of Dhaka Dhaka, Bangladesh 2011
Table of Contents Particulars Background Product profile Employee structure Competitive status Organization structure Compensation system Components of monetary rewards Components of non-monetary rewards Impact of pay on performance SWAT analysis of Compensation system Possible measures to improve compensation system Concluding remarks Page number .
Fisons (Bangladesh) Limited and Hoechst Marion Roussel Limited. Projects like “My child matters” carried out in partnership with UICC (International Union against Cancer) to fight against child cancer is one of the numerous examples of the organization’s commitment to the society. a leading global pharmaceutical company. It is the one of world’s leading Pharmaceutical companies and the largest in Europe.it is a full member of the European Federation of Pharmaceutical Industries and Associations (EFPIA). Sanofi-aventis Bangladesh Limited Sanofi-aventis Bangladesh Limited is the entity that has been formed due to the amalgamation of three legal entities.Aventis Limited. France. Corporate Information’s at a Glance Name of the Organization Status Date of Incorporation : Sanofi-aventis Bangladesh Limited : Private Limited Company : 15 September 2004. oncology. December 11. but the firm also develops overthe-counter medication. develops and distributes therapeutic solutions to improve the lives of everyone. manufacturing and marketing of pharmaceutical products for sale principally in the prescription market. The legal integration process has taken few years after the global merger between sanofi-synthalebo and Aventis in 15 September 2004 and finally the existing three legal entities have amalgamated as sanofiaventis Bangladesh Limited on December 11. It engages in the research and development. Amalgamated as sanofi-aventis Bangladesh Ltd. discovers. internal medicine. thrombosis and vaccines . central nervous system. Present in more than 100 countries. 2007.000 scientists. Sanofi-aventis Bangladesh Limited is strongly committed as a socially responsible organization. diabetes. 2007 . The company covers 7 major therapeutic areas: cardiovascular. It changed its name to Sanofi in May 2011.000 employees working to improve health and wellbeing. Our Global headquarters are in Paris.Background of Sanofi-aventis: Sanofi-aventis. with around 11. we have around 100. The world's fourth-largest by prescription sales. The company was formed as Sanofi-Aventis in 2004 by the merger of Aventis and Sanofi-Synthélabo.
: Mr. : TK.350 crore. Md. : TK. Corporate Banking . :May 2011 : Mr. Lakiot Ullah. 3264 crore : More than 1200 in Bangladesh : 6/2/A Segun Bagicha Internet Banking Automated Teller Machine Tele Banking Hierarchy of Position Structure of EXIM Bank Chairman Advisor Board of Director Managing Director Deputy Managing Director Senior Executive Vice President Senior Vice President Vice President Senior Assistant Vice President Assistant Vice President Senior Principal Officer Principal Officer Executive Officer Management Trainee officer . Home Banking . Current.Changed its name to Sanofi Chairman Managing Director Authorized Capital Loan Number of Employees Corporate Office Dhaka 1000 Bangladesh Service of EXIM Bank: Accounts. Md. Nazrul Islam Mazumder. Deposit. PDS. FDR.
1932 crore as Investment to 10091 accounts as on 31st December 2005 through its 28 Branches.44% well above the industry average. The bank has successfully been marching ahead with its prime business objective by earning a pre-tax profit of Tk. It determines the wage earners buying power. No. is one of the most obvious. his standard and scale of living. 1908 crore deposit from depositors and and arranged disbursement of Tk. Compensation system of Exim Bank Compensation. 181 crore respectively during the period under review. Truly speaking. achievements were possible because of he service excellence of management the with support from a very resourceful and skilled workforce who are rendering efficient and specialized services. 64 crore registering an annual growth of 34.93% than that of the previous year. prestige and worth in the social system. 3. It has successfully mobilized Tk. 1. Class number of employees Executive 66 class 2. 264 crore and Tk. The total Income and expenditure of the Bank of the Bank were Tk. today. persistent and troublesome responsibilities of managers because it concerns everyone in the organization and in the economy. Officer Sub-staff (Casual) 1020 Total = Source: Annul report 2006 727 227 Performance of EXIM Bank Limited The year 2004 was remarkable year simultaneously for development and achievements of continuous growth rate in all the areas of banking operations.Assistant Officer Junior Officer Classifications of grade and number of employees of Exim Bank Sl. The return on assets (ROA) was 3. It is the single most significant tool in . scarcely any subject is as important as is compensation. his status.
individual performance. The provident fund is contributed on monthly basis and operated by separate Board of Trustee of the Bank. The optimum level of payment of EXIM Bank Grade Position I II III IV V VI VII Senior Executive Vice President Executive Vice President Senior Vice President First Vice President Vice President Senior Assistant Vice President First Assistant Vice President Payment (Taka) 195. operates. Perquisites: Allowed to executives company vehicle. The fund is recognized by the National Board of Revenue. furnished house. canteen.the hands of management to attract. paid holidays.000 155000 135000 98000 90000 115000 92000 . The organizational destine is never achieved without the help of satisfied workforce. club membership. The goal for the base salary component is to compensate executives at a level that approximates the median salaries of individuals in comparable positions and markets Fringe benefit: Provident fund. to retain and to stimulate human element which activates. gratuity. recreation. promotes and keeps going the organization. etc. which is a direct result of fair compensation. medical care. Annual Incentives: Annual cash incentives are provided to executives to promote the achievement of performance objectives Retirement Benefits The Bank operates a contributory provident fund for its eligible employees. level of experience. insurance coverage. comparisons to the salaries of executives in similar positions obtained from market surveys. stock option plan. internal comparisons. uniform. and competitive data obtained from consultants and staff research. Components of compensation Base Salary: Base salaries for executives are determined based upon job responsibilities. etc.
Compensation in the EXIM Bank Bangladesh Limited Allowan ces Housing Allowanc es Study Leave Leave Others incentives Bonus Basic Salary Sick Leave Casual Leave Convey Allowan ce Task Allowan ce Heath Insuranc e Profit Sharing Award Basis/Foundation of compensation setting of EXIM Bank Internal Alignment: It means compassion among jobs and skills within organization .VIII IX X XI XII XIII XIV XV XVI XVII Assistant Vice President Senior Principal Officer Staff Officer Officer Grade I Probationary Officer Officer Grade II Cash/ Computer Officer Trainee Assistant officer Driver Security Staff 80000 70000 63000 50000 35000 25000 18000 13700 9000 8500 8000 XVIII Office Attendant Source: Revised Pay Structure of the Bank.
Strengths: Exim Bank Limited has already established a favorable reputation in the Banking industry of the country. The Human Resource Department and Research department of the bank proposes the compensation policy and system. Time to time training to equipped with the new situation and also with the new designation. By SWOT analysis an organization can also study their current position it can also be considered as an important tool for making changes in the strategic management of the organization. They emphasize on performance based payment and typical profit sharing is done is baking sector. weakness. Exim Bank established a competitive salary structure. exposure and potential in perspective of its strength. opportunity and threat.External Competitiveness: It refers to compensation relationship external to the organization. Employee contribution: Here emphasis is placed on employees contribution. It provides training package workshops to the employees and has own training institute to make employees competent and innovative. It is one of the leading private commercial Bank in Bangladesh. Management of the pay system: it means ensuring the right people get the right pay for achieving objective in the right way Exim Bank mainly follows the Traditional Pay: Job evaluation is done in every six month of the year. SWOT Analysis: SWOT analysis is the detailed study of an organizations. These methods used the organization to make their existing line of performance and also foresee the future to improve their performance in comparison to their competitors. Weaknesses: . It provides retirement benefits to the employee.
Compensation of employee is totally depend on authority. In Bangladesh Banking sector is very important sector. Compensation is the most effective process for attracting qualified personnel. but the productive effort of all employees is essential. Most of the qualified personnel mast to involve in the Banking sector because banking sector compensation is better than the other sectors the export import Bank of Bangladesh limited has already develop a high salary structure. the more highly paid workers might be more critical contributors. To stay in competition with competitive salary structure. From the among analysis I get many findings. Expansion of banking services into other different services through skilled manpower. the quality and quantity of organizational output depend directly on the skill. EXIM Bank compensation Package is competitive in the market. So I said that compensation package of private commercial Banks in Bangladesh is high than the other sector. To reduce the gap between the upper and middle level on the issue of promotion. Opportunities: • • • • Growth of global economy and Bangladesh's foreign trade in the coming years can provide huge growth opportunities. But 2011 these officer salary is Tk 35000. Certainly. interest and effort of employees. Exclusive compensation system can provides good opportunity for growth by skilled HR. only the qualified employees can provide the best services to the customers. Compensation system plays a vital role retrains qualified personnel. Threats : To keep the selected employees with the organization. These findings are as follows . Since bank is a service industry. The bank failed to provide a strong quality recruitment policy in the lower and some mid level position. Talent employees can create a strong competitive advantage. In 1995 probationary officer of private commercial Banks in Bangladesh salary is Tk 6000. Analysis From a strategic and tactical perspective. This structure is competitive in the market. Lack of incentives and rewards from the management section. In comparison between 1995 to 2011 compensation package in the Banking sector is satisfactory. Standard compensation system influence employees to do their activities effectively.
There are some levels.I. (2003) “Compensation Management In A Knowledge – Based World”. Just and fair representation of the lower levels in the compensation fund is an essentiality to the higher organizational productivity and effectiveness.Eximbd.Bd Ninth Edition. 7. Henderson R. where house rent and conveyance allowances are not at all motivating. But comparative benefits of lower level employees are not satisfactory. The increment policy of the bank also calls for change. This has led mid-level managers in particular to leave the organization. 6. though it is totally based on performance.Com Www. There is no equitable relation of payment and compensation system at different level of scales is not satisfactory 3. 5.Findings 1. Both of the amounts paid by the present salary structure are not at all fair. 2. A smooth hierarchical relationship should exist between and among different compensation grade. The bank is paying a very high salary and other fringe benefits to the executive class.Bangaldeshbank.Gov. . References Annual Report of EXIM Bank 2011 Prospectus of EXIM Bank Website of Bank Www. Pearson Education ) 6. Employees in this organization have to wait many years to arrive at a good salary range. 4.