TRANSMITTAL MESSAGE

Course 06th April,2009 Aseefa Huda, MGT-425, Manpower Planning & Forcasting Brac University Subject: Letter of Transmittal. Dear Madam,

Instructor,

With great pleasure we submit our report on the Manpower Planning & Forcasting that you have assigned to us as an important requirement of MGT 425 course. We have found this study to be very interesting, beneficial & insightful. We have tried our level best to prepare an effective & creditable report. The report contains a detail study on what are the strategies usually the HR managers of Reckitt Benckiser Bangladesh keep in mind during the planning & execution of the HR processes. Here we have gathered information through direct interview of Reckitt Benckiser officials & websites. We honestly hope that our analysis will help to give an idea of manpower planning & forecasting of a business institution in the real world. We hope you will find this report worth all the labor we have put in it. We will be glad to answer any of your quarries. Yours sincerely, Mothmainna Hossain Farhan Khan Imranul Kabir

Monira

ACKNOWLEDGEMENT

Let us begin our acknowledgement by thanking our course teacher Aseefa Huda for providing suggestions to make this Final Report. On the design of this report, we again want to thank our course teacher for providing the format and make us able to understand about it. And the most precious thing was the interview with the HR Maneger Mr. Tashfeen of Rcekitt Benckiser Bangladesh that we have taken on 10th March, 2009 at Gulshan 1 the head office of Rcekitt Benckiser Bangladesh. So warm thanks to him for supporting us & give us adequate amount of data. Group no. -

TABLE OF CONTENTSContents Page No.

Executive Summary Introduction Objectives Scope Methodology Limitation Overview of the company Findings Supply Chain Function Operation process of Rcekitt Benckiser Distribution Conclusion

Introduction:Objective of the report:Our objective is to present the HR strategies & recruitment process of Reckitt Benckiser Bangladesh which is now one of the top ranked transnational companies of Bangladesh.

Methodology:

We fixed an appointment with the HR Manager of RBB. Took interview. Gathered and jotted down necessary information.

Limitation:We found many obstacles while making this report. The HR Manager Mr. Tashfeen is a very busy person. It was very time consuming to get an appointment with him. It often clashes our class schedule. We had to gone through many formalities to get an appointment. In addition, we had to suffer to get appointment due to the present political instabilities. Besides, we were too much loaded with our study. We had to work on two more projects for our two other courses. In spite of these obstacles, we have tried our best to complete our project successfully.

Literature Review: Strategy & HRP Job Analysis

Recruitment

Human Resource Forecasting

O

VERVIEW OF THE COMPANY:

Reckitt Benckiser is a global company. At present it is the worlds no. one in household cleaning products. Its brands are available in more than 180 countries of the world. At present, it is operating in 60 countries; approx all the continents.. Its global net revenue in the year 2005 was GBP 4.18 billon & net income was GBP 669 million. The company operates in fabric care; surface care, dishwashing health & personal care & home care categories.

Brief History: If we look through the background of the establishment of Rcekitt Benckiser we found the names of 3 people Issac Reckitt, Jeremiah Colman, Johanne A. Benckiser. In the year 1938, Rcekitt & Sons merged their industry of household cleaning products with the flour & Mustard mills of J&J Colman to become Reckitt & Colman. It was a conglomerate merger because both the companies used to produce totally different products.

Again in 1999 it merged with Benckisers to become Reckitt Benckiser & concentrated on household cleaning products & toiletries. It was a forward vertical merger because Benckisers used to produce industrial chemicals, which is essential to produce household cleaning products.

In Bangladesh RB (Reckitt Benckiser) started its operations in1962. 45% of the shareholders of RBB (Reckitt Benckiser Bangladesh) are local entrepreneurs & rest of the 50% are foreigners.

Some of it Successful international & regional brands are Mortien, Dettol, Veet, Harpic, Disprin, Trix etc.

Business-highlights: Sales at tk. 891.1M as against tk. 664.3M in the previous year showed a strong growth of 34%. The growth was driven by strong performance in Pest control, Lavatory Care and Antiseptic Categories in the Household and Toiletries segment. This growth was attributable primarily to the innovations introduced like Mortein Hexagonal Colis and Dettol Skin Care Soaps, Focused marketing investment behind companys key brands and significantly improved distribution network. As a result of the strong growth achieved, our market leadership positions have been further consolidated in the Pest Control and Lavatory Care segments while market share further increased in the Soaps segment. The improved results and the focus on Net Working Capital management have led to further strengthening of the cash position to tk. 265.9M at the end of 2005 as against tk. 160M at end 2004. Trading profit improved by 75% to tk. 98.7M driven by high sales growth coupled with effective cost control. Profit Before Tax also increased significantly to tk. 101.3M However the Gross Profit ratio

decline to 38.4% from 39.7% due to the devaluation of Taka and the impact of impairment loss recognized by the company on old redundant fixed assets in accordance with Bangladesh Accounting standard 36. Due to better cash flows, interest income earned was tk. 18.8M this year as against tk. 11M earned in the previous year. As a combination of the above factors, Net Profit after taxation increased by 85% over the previous year to tk. 70.9M. According to BCG Matrix developed by Boston Cons Group, RB is in Star category.According to this, the growth rate of RB is very high & it also possesses high market shares. This business is in a fastgrowing market & it holds a dominant amount of share in the market. There contribution cash flow depends on their need for resources.

F

INDINGS:

Producer of the Rcekitt Benckiser is the worlds no 1 household cleaning products. As our presentation is based on manpower planning & forecasting which is a very significant & active department of Rcekitt Benckiser Bangladesg, so all our information has to be very much practical field based. Thats why we all had to gather our data from Rcekitt Benckiser BD LTD. Office & the sight as well. So there are all primary data. First of all here is the organ gram of different functions related to end other.

MD

Finance

Market

Sales

Supply Chain

Human Resource

Here is the organ gram of the company. The MD managing director is the head of all departments. Each department is said to be a function of the company. Among these various functions our area of study is the Human Resource Department of RBB (Reckitt Benckiser Bangladesh).

A.

S

trategy & HRP:

1. Staffing strategies (cover all 7) taken by the organization Lag Or Lead System:

When the organizations staffing systems develop in response to organization & HR strategy its called a Lag system. On the other hand when the staffing considerations serve as key inputs to organization & HR strategies is known as a Lead system. Reckitt Benckiser is a transnational company. So its organization & HR strategies are carefully followed in case of developing their staffing systems. So they follow a Lag system in terms of staffing. External or Internal Hiring:

External recruitment is when the recruitment is done from the external labor market to fill a job vacancy, whereas recruitment from internal labor market is Internal recruitment. RB does most of the external recruitments in cases of entry level jobs & executives. For higher job vacancies internal recruitment is the first priority. If by any chance there is a job-person mismatch in case of internal recruitment then only they go for an external recruitment. Active or Passive Pursuit of Diversity:

Workplace diversity refers to the variety of differences between people in an organization. That sounds simple, but diversity encompasses race, gender, ethnic group, age, personality, cognitive style, tenure, organizational function, education, background and more.

An organization may actively seek for diversity in their organizational workforce or may pursue a passive approach. In RBB other than the posts of receptionists, no active diversification is practiced in the recruitment of any department. Acquire or Develop talent:

Acquiring talents means taking already skilled employees from the job market. Developing talents means taking just anybody who can be trained according to the need of the organization after hiring. RBB usually follows acquiring strategy considering the cost of training; they only take developing strategy for hiring workers. Specific or General Competencies:

Specific competency means asking for competencies which are very much close to a particular job. General competency means asking for competencies which are more general rather than related to a particular job. RBB looks for specific competencies only for hiring in the finance division (business graduates with finance major); for other divisions, they prefer general competencies (mostly a general business degree will do). Exception or Acceptable Workforce Quality:

Exception means hiring the brightest possible workforce. Acceptable means hiring workforce with a minimum qualification. RBB usually follows Exception strategy; they prefer hiring IBA or NSU graduates or graduates with a CGPA of 3.5 or higher. Core or Flexible Workforce:

RBB has both core and flexible workforce as any other organization. For flexible workforce, their security system is taken from Group 4 Falc. 2. Initial decisions (try to cover all 5) taken by the organization before starting HRP

B.

J

ob Analysis Concurrent or Sequential? Method(s) of job analysis used by the organization. ecruitment Alternatives to recruitment (if used) Internal recruitment process-Planning phase issues (Only organizational issues), strategy taken and methods used for communicating messages External recruitment process-Planning phase issues (Only organizational issues), strategy taken , sources & methods mostly used for external recruitment.

C.

R

D.

H

uman Resource Forecasting Methods used for demand forecasting Methods used for demand forecasting Action taken if there is gap between demand and supply

R

ecommendation

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