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R A K Pharmaceuticals Pvt. Ltd
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R A K Pharmaceuticals Pvt. Ltd
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R A K Pharmaceuticals Pvt. Ltd
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R A K Pharmaceuticals Pvt. Ltd
Assignment
On
Human Resource management
Submitted By
Maria Mostafizar
Id: 1221565
Date: 05/12/2012
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R A K Pharmaceuticals Pvt. Ltd
Table of Content
Topics Page no.
Executive Summary …………………………………………………………………………………………………. i
Chapter 1
Introduction……………………………………………………………………………………………………………1
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Industry Overview………………………………………………………………………………………………….1-3
Chapter 2
Company background………………………………………………………………………………………………4-5
HR department……………………………………………………………………………………………………….. 6
Functions Of HRM……………………………………………………………………………………………………… 7
Chapter 3
HRM problems and issues…………………………………………………………………………………..8-10
HR Approaches ……………………………………………………………………………………………………… 10-12
Future challenges……………………………………………………………………………………………………. 12-14
Conclusion…………………………………………………………………………………………………………………..15
Reference………………………………………………………………………………………………………………….16
Executive Summary
The modern HR practice is absent in the bank and the total HRM working is very much
centralized in the head office.
This report explores the impact of HR practices in different dimensions. Globalization
brings diversity and innovative way of working in Bangladesh.HR practices in Bangladesh
has an impact as difference between headquarters and branches in aspect of culture,
education, demographic which has considerable impact on global practices. It is unlikely
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R A K Pharmaceuticals Pvt. Ltd
standard practices will be successful regardless of geographic region. Human resource is a
very important component to run an organization efficiently and effectively.
The focused here is about their nationwide recruitment and selection process, one of
the vital functions of Human Resource Management. In the first part deals with the
introduction, which comprises the statement of the research problem, scope and
objective of the study, methodology and limitations of the study? Part-2 describes
Company overview which includes historical background, its mission and projects.
Part-3 is Recruitment and Selection Process of RAK Ltd. which is the main part of this
report. This part describes company’s overall nationwide recruitment and selection
process. We pointed out some specific findings and suggested them some
recommendations. And last at all on the basis of overall perspective some
recommendations are included in the report.
Chapter 1
Introduction
In Bangladesh the pharmaceutical sector is one of the most developed and hi-tech
sectors which are contributing in the country's economy. After the promulgation of
Drug Control Ordinance-1982, the development of this sector was accelerated.
The professional knowledge, thoughts and innovative ideas of the pharmacists
working in this sector are the key factors for this development. Due to recent
development of this sector, it is exporting medicines to global market including
European market. This sector is also providing 97% of the total medicine requirement
of the local market. Leading pharmaceutical companies are expanding their business
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with the aim to expand export market. Recently few new industries have been
established with high-tech equipment and professionals which will enhance the strength
of this sector. The experience is always vast and diverse in the pharmaceuticals
company in terms of gaining deeper knowledge of the Human Resource functions
since all the Pharmaceuticals companies of Bangladesh practicing a standard
Human Resource Policy.
Industry Overview:
Historically, the Drug Control Ordinance of 1982, some of the local pharmaceutical
companies improved range and quality of their products considerably. The national
companies account for more than 65% of the pharmaceutical business in
Bangladesh. However, among the top 20 companies of Bangladesh 6 are multinationals.
Almost all the lifesaving imported products and new innovative molecules are channeled
into and marketed in Bangladesh through these companies. Multinational and large
national companies generally follow current good manufacturing practices (CGMP)
including rigorous quality control of their products. The Drug Act of 1940 and its rules
formed the basis of the country's drug legislation. Unani, Ayurvedic, Homeopathic and
Biochemical medicines were exempted from control under the legislation. The
pharmaceutical industry was dominated by the foreign companies at that time. Even in
the Allopathic market there were extemporaneous preparations dispensed from retail
pharmacies.
However, the pharmaceutical industry like all other sectors in Bangladesh was much
neglected during Pakistan regime. Most multinational companies had their production
facilities in West Pakistan. With the emergence of Bangladesh in 1971, the country
inherited a poor base of pharmaceutical industry. (Bangladesh Pharmaceutical Society)
In 1981, there were 166 licensed pharmaceutical manufacturers in the country, but
local production was dominated by eight multinational companies (MNCs) which
manufactured about 75% of the products. There were 25 medium sized local companies
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which manufactured 15% of the products and the remaining 10% were produced by other
133 small local companies. All these companies were mainly engaged in formulation out
of imported raw materials involving an expenditure of Tk 600 million in foreign
exchange. In spite of having 166 local pharmaceutical production units, the country had
to spend nearly Tk 300 million on importing finished medicinal products. A positive
impact of the Drug Control Ordinance of 1982 was that the limited available foreign
currency was exclusively utilized for import of pharmaceutical raw materials and finished
drugs, which are not produced in the country. The value of locally produced medicines
rose from Tk 1.1 billion in 1981 to Tk 16.9 billion in 1999. At present, 95% of the total
demand of medicinal products is met by local production. Local companies (LCs)
increased their share from 25% to 70% on total annual production between 1981 and
2000. (Banglapedia: Pharmaceuticals)
In 2000, there were 210 licensed allopathic drug-manufacturing units in the country,
out of this only 173 were on active production; others were either closed down on their
own or suspended by the licensing authority for drugs due to non-compliance to GMP or
drug laws. They manufactured about 5,600 brands of medicines in different dosage forms.
There were
1,495 wholesale drug license holders and about 37,700 retail drug license holders in
Bangladesh. (OPPAPERS)
In Bangladesh the physical distribution of pharmaceuticals has evolved in a unique
way. Pharmaceutical companies distribute their products from their own warehouses
located in different parts of the country, as no professional distribution house is
available. Wholesalers play a limited role in this regard since companies supply goods to
both retailers and wholesalers. Export of pharmaceutical products is still in an infant
stage, although a number of private pharmaceutical companies have already entered the
export market with their basic materials and finished products. They export their products
to Vietnam, Singapore, Myanmar, Bhutan, Nepal, Sri Lanka, Pakistan, Yemen, Oman,
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R A K Pharmaceuticals Pvt. Ltd
Thailand, and some countries of Central Asia and Africa. (Banglapedia:
Pharmaceuticals)
The primary responsibility for drug quality control lies with the manufacturers.
However, the government's drug testing laboratories (DTL) and the Directorate of Drug
Administration (DDA) have the monitoring and supervising role. There are two
government drug testing laboratories. DTL at Dhaka is in the Institute of Public Health
and the regional DTL at Chittagong is under DDA. Drug administration is responsible for
registration of drugs for marketing in Bangladesh and for inspection of premises and
licensing. (BPS)
In Bangladesh the annual per capital drug consumption is one of the lowest in the
world. However, the industry has been a key contributor to the Bangladesh
economy since independence. With the development of healthcare infrastructure and
increase of health awareness and the purchasing capacity of people, this industry is
expected to grow at a higher rate in future. Healthy growth is likely to encourage the
pharmaceutical companies to introduce newer drugs and newer research products, while
at the same time maintaining a healthy competitiveness in respect of the most
essential drugs. Moreover the sector consistently creates job opportunities for highly
qualified people. Many established entrepreneurs of today started with pharmaceutical
companies in the country.
Chapter 2
Company Background:
Ras AI Khaimah (RAK) is one of the seven emirates of United Arab Emirates and situated
in the northern part of the Arabian Peninsula. The visionary leader- His Highness the
Deputy Ruler & Crown Prince of Ras AI Khaimah, Sheikh Saud Bin Saqr AI Qasimi was
the beginning of the conglomerate- RAK Group. The name RAK derives from the
abbreviated form of the name of emirate itself. Dr. Khater Massaad, the group CEO played
key role in the successes of the group, took initiative for RAK Ceramic- the flagship
company of RAK Group, in 1989. By now the company firmly established itself as one of
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the world's leading producers of high quality Ceramic Wall & Floor Tiles, Gres
Porcellanato, and Sanitary Ware and operates in more than 135 countries.
RAK Pharmaceuticals Pvt. Ltd. is a subsidiary company of RAK Ceramics PSC, UAE
which has started its journey as a ceramic company & incorporated its business in
Bangladesh in November 1998. Within a very short time, RAK Ceramics (Bangladesh)
Ltd. has become as the top & largest producer of Ceramic Tiles and Sanitary Wares in the
country. At this moment RAK ceramic is the undisputed number one company of its kind
in Bangladesh and worldwide as well in terms of both value and quantity.
RAK Pharmaceuticals Pvt. Ltd. as a new venture of RAK Group comes into being in line
with the vision of diversifying its growth to serve the humanity in need of fighting back
diseases to restore healthy and productive life at an affordable price. The philosophy of
“excelling in all endeavors” which is the key to success of RAK group, the pharmaceutical
venture is being accomplished with state-of-the-art facilities in compliance with WHO and
other recognized & stringent guideline procedures. In terms of manufacturing quality
products- RAK is very confident to be standing out amongst all other companies operating
in Bangladesh.
Total area of the premises of the manufacturing plant of RAK Pharmaceuticals Pvt.
Limited is around 5.4 acres and is situated in Sreepur, Gazipur- only 42 km away from its
head office at RAK Tower, Uttara, and Dhaka. Following strict cGMP & EU guideline,
RAK has set up two separate & isolated manufacturing plants for cephalosporin & non-
cephalosporin products which reflect both its commitment to the quality of the products
and care for the health of individuals. The shaded area of plant consists of production
floor, QC/QA laboratories, RM/Finished Product warehouse and utilities of around
140,000 sf. for both plants.
Vision:
RAK Pharmaceuticals Pvt. Ltd., a new venture of RAK Group comes into being in line
with the vision of “Diversifying its growth to serve the humanity in need of fighting back
diseases to restore healthy and productive life.”
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Mission Statement:
Excellence is a way of life at RAK Pharmaceuticals Pvt. Limited and it drives with an
insatiable appetite for quality product & process, best technology and customer
satisfaction.
Core Values:
R.A.K Pharmaceuticals Pvt. Ltd. is committed to understated core values:
Excellence through quality approaches to the process, products & services to
provide absolute satisfaction to the customer.
Excellence in the use of the best technology to reach continuously changing
quality norms.
Excellence in our role and responsibility, by creating in every employee the skills
and the will, the passion to excel by benchmarking to still higher levels of performance.
Slogan
TOWARDS BETTER LIFE
HR Department
RAK Pharmaceuticals Pvt. Limited follows a very modern and structured Human Resource
Policy. It has designed it HR policies the organizational needs and operation. The HR
department implements those policies in combination of corporate office, factory, depots
and zonal office. The perimeter of HR department of the organization is consisted with-
-Recruitment and Selection: Includes recruitment, selection, offer letter, appointment letter,
joining report, employee orientation, training, job confirmation, employee hand book etc.
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-Employee Services: Includes general condition of employment, employee record, transfer
policy, travel expenses, dress code, meeting expense etc. It also covers the organization &
manpower development and occupational safety & health.
-Salary and Wage Administration: The salary and wage administration covers the payroll
administration including leave, pay structure, benefits schemes such as medical,
insurance, gratuity, provident fund, increments, companies profit, festival bonus, leave
encashment, financial assistant, incase. It also covers Approving Authorization includes
letter, memo, notice, leave application, requisition, various forms etc.
-General Administration and Separation: The general administration and separation covers
the cessation of service which includes disciplinary measures as per Bangladesh
Labor Act 2006.
-Industrial Relation: The Industrial relation is maintained mainly for the factory workers
who are working in the factory. It includes factory discipline, trade union, labor association
and employee demands etc.
Functions of human resource management:
HRD performs all kind of administrative and personnel related matters
1. Control the administration of human resources R.A.K pharmaceutical Ltd.
2. Access and collect compatible personnel for the company.
3. Prepare all formalities regarding appointment and joining of the successful candidates.
4. Deal with the transfer, promotion and leave of the employees.
5. Conduct Training & Development program and implement for developing human
resources.
6. Promotion and appraising skill of officer and stuff and also properly placement of
manpower.i
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7. To make service rules, correction, expansion administration rules sub rules, orders notice
for collecting stuff.
8. Maintain relationship with government and other institution.
9. Termination and retrenchment of the employees.
10. Keeping records and personal file of every employee of the RAK.
11. Arranges trainings for employee & executives.
12. Access and grant retirement facilities at the time of retirement.
13. Developing relationship with administration proper implementation of labor law to give
medical facilities to the staff.
14. Maintain and grant leaves.
15. Prepare and implementation policy about human resources and related
activities.
16. Takes care of all other activities having direct or indirect relation to Human Resource
which may have effect on the company goal .
Chapter 3
Qus 1: What are the HRM problems and issues facing your selected company/institution?
There are some problems and issues HR departments’ needs to concentrate on. The
problems are discussed below:
Problem 1:
The aggressive recruitment in the sales department in comparison with limited
product line brought lower retention rate of sales employees, increased administrative cost
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and caused burden on the Human Resource Department to complete employee separation
formalities.
Analysis: RAK Pharmaceuticals Pvt. Ltd is comparatively new company in the Industry
and still in production of very limited products than the other pharmaceuticals
companies. Thought, the sales department adopted a strategy to increase its sales network
through the nation which has required aggressive recruitment of sales employees. But,
sales employees’ couldn’t achieve their target sales due to the less brand image and limited
product line. At the end of the day, significant no. of employees switched their job to
different company. Now, RAK Pharmaceuticals Pvt. Ltd. is bearing the increased
administrative cost brought by the lower retention rate and Human Resource Dept. is under
pressure of settlement work for those employees.
Problem 2:
Due to the absence of integrated HR Information system, there is complexity in
maintaining Attendance log, Leave records and Expense records of employees which
ultimately hampers the salary calculation of employees and cause miscommunication with
the Finance & Accounts Department.
Analysis: The functional departments of RAK Pharmaceuticals Pvt. Ltd. Maintain their
activities with different software to manage their departmental information which is based
on their own requirement. As the Human Resource Department of RAK Pharmaceuticals
Pvt. Ltd. use the software called „Pixcel the time curator‟ to maintain attendance log, leave
records and all other related information. This software works in combination with the
manual system existing at the company. Sometimes, the combination of manual system
and automated system brings complexity for the accurate calculation of the attendance,
leave and expense of the employees which ultimately hamper the salary calculation of the
employees that is taken care by the Finance and Accounts Department. This type of
complexity creates inter departmental chaos and make a barrier between HR
Department and Finance & Accounts Department for their efficient performance.
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Problem 3:
The HR Department involvement on the training and development is least. The functional
department of the employee takes care of the training and development.
Analysis: Manpower development is one of the main priorities for the every organization
to bring efficiency in their operation. No organization can survive in the industry without
making their employees well fitted for the competitive market. In RAK Pharmaceuticals,
the training and development of the employees has gone in control to the functional dept.
of the employee. There is no system developed to track whether the employees went under
regular training program or not. Sales Dept. is the biggest department in terms of
employees. But the MPO‟s get to attend ten days (10) of training program organized by
the Product Management Dept.(PMD) which is sometimes not well monitored by the HR
& Admin Dept.
Problem 4:
Weak Inter Department collaboration and co-operation in the RAK Pharmaceuticals Pvt.
Ltd.
Analysis: As a new company in the industry, RAK Pharmaceuticals Pvt. Ltd. is still
disorganized in terms of management. Miscommunication is common scenario caused by
different facts. Realizing these facts, it is required for all functional departments to work
together for the betterment of the organization which is absent.
Problem 5:
The settlement of employee account follows a very bureaucratic procedure which is time
consuming for completing separation formalities and puts pressure on the regular
activities of the Human Resource Department.
Analysis: Employee account settlement is the part of the „General Administration and
Separation‟ activities. To settle an account of the employee who is absconded, resigned or
intending to resign, it requires clearance from each functional department of the company.
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As RAK Pharmaceuticals Pvt. Ltd. has no integrated management information system, it
creates lots of hustle to find out all the department related information of the employee and
giving clearance from each department. This bureaucratic system caused a significant no.
of accounts on pending to be settled. Finally, Human Resource Department is under all
pressure to complete the separation formalities and employees of the pending accounts are
dissatisfied with the company. This also caused bad reputation to company as the former
employees are the sufferer and they are working in different company of the same
Industry.
Qus2: What sort of HRM approaches do you think need to be taken to ensure ongoing strategic
competitive advantages?
1. The recruitment and selection activities of RAK Pharmaceuticals Pvt. Ltd. have to be
based on the demand & supply pool analysis. Effective HR planning will not only save
valuable time but also prevent the company from shortage of manpower.
2. RAK Pharma needs to adopt integrated Human Resource Information System (HRIS)
for the department to maintain all the Human Resource information accurately.
3. The inter-department activities of the company have to be designed in a synchronized
way to ensure efficiency in the organization.
4. It is required for Human Resource department to involve more effectively in the training
and development activities of RAK Pharma. Specially, Training focused on the
Leadership, Management and Team work can increase inter-department trust and
collaboration.
5. To reduce bureaucratic procedure, RAK Pharmaceuticals Pvt. Ltd needs to go for
integrated Management Information System (MIS) which will ensure the profit of the
organization in a long run.
6. To survive in the highly competitive industry, RAK Pharmaceuticals Pvt. Ltd. should
implement internal branding strategy that will increase the organizational knowledge of the
employees and the employees will get to align their personal goal with the organization
goal.
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Many of the practices that support performance positively impact job satisfaction,
employee retention and loyalty. Recommended practices include:
a. Delivering regular relevant job feedback.
b. Setting and communicating clear performance expectations.
c. Linking performance to compensation clearly.
d. Identifying organizational career paths for employees.
e. Evaluating performance and delivering incentives in a fair and consistent manner.
f. Providing appropriate learning and development opportunities
g. Recognizing and rewarding top performers
HRM Strategic approach proactively gives competitive advantage via firm’s more
important asset (its HR). So, HRM function needs to be integrally involved in strategy
formulation to identify people-related business issues as HRM has profound impact on the
implementation by developing and aligning HRM practices ensuring the company has
motivated employees with necessary skills. Its Emerging strategic role requires HR
professionals in the future develop business, professional-technical, change management
and integration competencies: requires more than simply developing a valid selection
procedure or Performance management system (PMS).
The analysis and design of work is an important component to develop or maintain
competitive advantage as strategy implementation’s virtually impossible without attention
to work-flow, job analysis and design. Understanding of the work-flow process and
existing jobs, managers can redesign to ensure work unit is able to achieve its goals while
individuals within it benefit on the various work outcome dimensions as motivation,
satisfaction, safety, health and achievement; key to competitive advantage.
Qus3: What HRM challenges will face in the 21st century?
New sciences and technologies are producing new ‘industries’ which also require people
with scientific qualifications. Those same sciences and technologies are changing the sort i
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of skills that are needed, and how demographic and educational trends are driving would-
be employers to search further afield for the people they need.
Therefore HR department of RAK pharmaceutical Ltd must rise to the challenges of
retaining and building a talented workforce.
The scarcity of talent, the corresponding increase in the power of the most able individuals
and changing social mores will all contribute to a revolution in corporate perceptions of the
workforce. They will also create one of the biggest challenges facing Pharma HR functions
over the next few years. HR professionals will have to help put the right sort of managerial
structure with the right sort of flexibility in place – even if this means having to contend
with executives who have acquired power the old way and, having won it, are reluctant to
relinquish the reins.
Company will have to develop more flexible career paths and reward schemes for their
most valued workers. If the most able staff believes they are no longer on the fast track,
they will move elsewhere.
Recruitment Challenges
Recruiting a workforce that reflects today's reality is another challenge for human
resources departments. Recruitment strategies can include the use of minority recruiters,
targeting universities with high minority enrollment, and forging relationships with
minority organizations.
Training
HR faces the challenge of arranging training without disturbing the regular flow of
business. Poor training could result in higher employee turnover, meaning the HR
department will face more challenges in the future. Companies will have to train their
employees to cope with new challenges, including radical changes in the direction of the
business.
Needed more Human resources (HR) experts
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A large number of job aspirants want to build a career in Pharmaceutical industry as it
offers learning options as well as competitive pay packages. More wants to work in the top
level companies in the industry, so to hold the potential employees HR has to be expert to
implement right strategy.
The scarcity of resources
The scarcity of resources results in another big issue of high attrition rates. Because of the
huge gap in demand for good resources in this industry and supply, the mid level
companies like RAK need to compete against the giants to attract promising candidates.
So, it is difficult to design a retention policy where the industry is in an unfair race to take
away other's resources.
Changed Employee Expectations
Employees demand empowerment and expect equality with the management. Previous
notions on managerial authority are giving way to employee influence & involvement
along with mechanisms for upward communication and due process. They rewrite their
agenda to include quality and better customer service and are even accusing the
management of malpractices. So every time there is need to readme the profile of the
worker and discover new methods of training, hiring, remunerating and motivating
employees.
Some organizations will have to introduce much more flexible working practices to
accommodate part-time workers, older workers, people with childcare duties and those
simply seeking to improve their work- life balance.
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Conclusion:
the Human Resources Division as well as the top strategic level management should find
out underlying causes of weaknesses related to Human Resources of the RAK
pharmaceutical Ltd and to be more supportive to eradicate the problems for achieving the
highest position in this industry in the country at least. The HRM will have to manage their
employment costs much more carefully, as all these changes drive up the price of the best
‘human capital’. The ability to understand, and respond to, the needs of different
employees will be equally vital. Many senior managers assume that the only reason
someone might leave a company is for more money which is actually not the only reason.
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Reference
www.wikipedia.com
www.bangla pedia.c om
www.rakpha rma.com
Annual Reports of RAK Pharmaceuticals Pvt. Ltd. (2008)
HR Policy of RAK Pharmaceuticals Pvt. Ltd.
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