The internship is and obligatory part of the MBA program under the faculty of Business Administration of, The report Includes practical Knowledge and information observed and obtained during the program. As an inter I have chosen ‘Opsonin Chemical Industries Limited’ as it is one of the leading private Chemical Industries Limited in Bangladesh.
The title of my thesis in ‘Human Resource Management Practice in Opsonin Chemical Industries Limited’ under the supervision of Mohammad Kaosar Ahmed. The main objective of the study was assessing the effectiveness of the existing Human Resource Management followed in OCIL.
However this study was targeted to examine the opining of a sample group comprising of some 8 /1o employees belonging to different levels of the organization. This report analyzes how satisfied employees are with the current Human Resource Management of OCIL and points out the areas of HRM system that need to be improved. It also provides insight into what areas of HRM is working and what is not working. Many employees feel that if the standards and guidelines are followed according to what is written in the manual of Human Resource Management, the existing Human Resource would be more effective. One positive aspect of the study was that most employees were satisfied working for OCIL and therefore, overall satisfaction and motivation of OCIL staff was relatively high.
Finally, some recommendations are suggested to improve the existing HRM system so that OCIL can retain its image as being one of leading private companies in Bangladesh. If OCIL keeps up with changing trends and demands of the training system and looks toward implementing visionary leadership in top management, it will definitely become more competitive in the long run.
Table of Contents
Chapter 1: Introduction……………………………………..page 8
1.2. Background of the Study
1.3. Objectives of the study
1.4. Methodology of the study
1.5. Limitations of the Study
Chapter 2: Literature Review…………………………………page 12
2.1.1. Human Resource Management
2.1.2. Importance of HRM
2.1.3. Objective of HRM
2.1.4. Environmental Influence
2.1.5. Functions of HRM
2.2. Staffing Function
2.2.1 Human resource planning
2.2.2. Job analysis
2.2.4 .Selection & Interview
Chapter 3: Institutional Background of OCIL……………………page 27
3.1. OCIL Brief history
3.2. Legal Aspect
3.3. Objective of OCIL
3.5. Quality assurance
Chapter 4: Human Resource Management Practice
In OCIL……………………………………………..page 31
4.1.2. Employment policy
4.1.3. Employment principle
4.1.4 Employment Status
4.1.5. Appointment Authority
4.2. Recruitment and selection
4.3. Training and Development
4.4. Remuneration and Benefit policy
4.5. Performance Management System and Appraisal
4.6. Disciplinary Action Procedures Policy
4.7. Leave Policy
Chapter 5: Data Analysis and Findings …………………………..page 49
5.1. Results from the questionnaire
5.2. Summary of findings
Chapter 6: Recommendation and Conclusion…………………….page 57
Chapter 7: Appendix………………………………………………..page 60
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.
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.
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.
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
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:
2. Training and development
2.2. Staffing Function
Activities in HRM conceded with sourcing and hiring qualified employees. The staffing function includes:
§ Human Resource planning
· Job Analysis
· Selection & Interview
2.2.1 Human resource planning
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.
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:
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:
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
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
b. Employment Agencies
c. Schools, collages, and Universities
d. Professional organizations
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
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:
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
– Try out
– Follow up
Essentials of learning
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 :
2. Assistant to position
3. Committee Assignment
4. Lecture Courses and Seminars
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:
d. Late career
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
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
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
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
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
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
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
It is to create a congenial environment and working condition where worker feel comfortable to work and mainteorking 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
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.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 :
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-
-Social security benefit
b. Voluntary security :
Two of the major security benefits programs used by employer’s are-
– 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 :
-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
5. Providing more information
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.
Financial, Social and Recreational Benefits:
Non financial benefits
Family friendly benefit
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.
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.
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.
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.
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, Antiseptic and Disinfectants, Cholagogues & Hepatic Protectors, Vitamins, Minerals & Haematinics, Anti-Parkinsonism Agent, Corticosteroids .
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.
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.
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.
Employment principle :
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.
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 permonth.
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.
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.
Recruitment and selection:
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.
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.
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 organization. Job description will be provided to the employees when he or she is appointed, transferred, promoted or newly assigned.
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
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.
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
The selection committee will discuss about each candidate among themselves and recommendation panel will put its recommendation / approval about the selection with signature.
Approval for appointment:
The selection and appointment of employees of management Grade must be endorsed / pproved by MD.
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.
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.
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.
Training and Development:
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?
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.
Remuneration and Benefit policy:
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 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.
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:
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).
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).
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 +).
The employee meets Job requirements. The employee has a well-balanced performance to an expected level and able to handle all aspects for job satisfactorily. In the performance Appraisal Form the Satisfactory Performance will be rated as (C).
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.
Unsatisfactory performance by a staff member is indicative of the following
-Wrong person in job
-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:
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.
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.
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.
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.
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
-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:
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.
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 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:
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.
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.
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.
Results from the questionnaire
5.1.1.Do you think OCIL practices a sound recruitment and selection process to attract qualified job applicants?
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?
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?
Interpretation: Here we find that 70 % answered positively and 30 % answered negatively in this regard.
5.1.4.How would you rate the performance appraisal system of OCIL on a scale of 1 to 5?
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?
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?
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?
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?
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?
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?
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?
Criteria job related
Management giving importance to PMS
Interpretation: In answering this question, 30% of the respondents thought that the performance appraisal system of 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?
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?
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
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 ?
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
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.
1. Training and Development needs to be improved and implemented. Without adequate training OCIL is not preparing its employees for the job at 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.
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.
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.
Questionnaire HR practices of OCIL
This survey provides feedback on the HR practices of OCIL . It is important that you provide honest, thoughtful and candid feedback. This survey is anonymous and your responses will behold in the strictest confidence.
Please answer all the questions and tick the appropriate box.
Length of service at OCIL:
1. Do you think OCIL practices a sound recruitment and selection process to attract qualified job applicants?
Yes_________ No ___________
2. Would you personally recommend qualified applicants to apply to OCIL?
Yes_________ No ___________
3. Does OCIL have a good training and development policy?
Yes_________ No ____________
4. How would you rate the performance Appraisal system off OCIL on a scale of 1 to 5?
5. Are the objectives and policies of performance appraisal system communicated to employees?
6. Does the performance appraisal system accurately measure employee performance?
Yes __________No ___________
7. How satisfied are you with the recruitment and selection policy of OCIL?
1. Very dissatisfied
4. Somewhat satisfied
5. Extremely satisfied
8. How satisfied are you with the pay scale of OCIL?
1. Very dissatisfied
4. Somewhat satisfied
5. Extremely satisfied
9. How satisfied are you with the training and development policy of OCIL?
1. Very dissatisfied
4. Somewhat satisfied
5. Extremely satisfied
10. How satisfied are you with the performance appraisal system of policy of OCIL?
1. Very dissatisfied
4. Somewhat satisfied
5. Extremely satisfied
11. What is the basis of evaluation performance appraisal system of the employees of OCIL?
a. criteria job related
b. very complicated procedure
c. Supervisor based.
d. Management giving importance to the performance appraisal system.
12. Is the performance appraisal system based on confidential reporting?
Yes__________ No __________
13. How satisfied are you with the promotion policy of OCIL?
1. Very dissatisfied
4. Somewhat satisfied
5. Extremely satisfied
14. Which area of Human resource of OCIL is most weak and needs to make major changes?
e. performance Appraisal system
f. Other Pleas specify _________
15. Overall how satisfied are you working In OCIL?
1. Very dissatisfied
3. Neither satisfied nor dissatisfied
4. Somewhat satisfied
5. Extremely satisfied
17. What would you recommend OCIL do to Improve their HR practices?