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1.1 Introduction:

On the course training and development we were assigned to submit a term paper on any

company’s Human Resource practices in real life or the training effectiveness of real life

scenario. We have chosen Square Pharmaceuticals Limited which is basically a

Pharmaceuticals product producing company for our assigned job.

Human resource is the most important part of any pharmaceuticals company. Therefore

human resource management gets a great importance in Pharmaceuticals Company in the

world. All most all developed country uses many techniques and strategy for human resource

management. Human resource practice is being used to make human resource management

more effective and less time consuming.

It is also a great opportunity for us to do a term paper on Square Pharmaceuticals Limited

that gave us a lot of knowledge about practical world. We go through book and try to

incorporate that knowledge with practical world. We find many similarities as well

dissimilarity with the book.

We made an interview to a Human Resource manager of Square Pharmaceuticals Limited.

The experiences and excitement that we gather was really worth mentioning. The overall

environment and absolute friendly behavior totally drew our attention and created strive to

work in this organization in future. Lastly the whole work gave a clear concept about Square

Pharmaceuticals Limited’s Human Resource management Practice and enables us to

prepare a clear and organized review for our project.

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1.2 Objective:

Main objectives of our report are:

To know the training effectiveness in real life which includes:

Recruitment

Selection

Employee training & development

Compensation

Performance appraisal

1.3 Methodology:

To complete the paper both primary and secondary data were required. Interviewing the HR

Executive of the company collected primary data and secondary data were collected from

company’s documents, web sites and books.

1.4 Importance:

Training and development is a important course for us. It is necessary in this course to learn

book as well as practical knowledge. It has to realize the book’s implication in practical field.

If any one do not know the real experience about a company’s Human Resource

Management Practice then the person do not acquire the complete knowledge. To make this

Term Paper is we have a opportunity to learn many thing about training effectiveness in real

life. That clear our knowledge those already know us by book.

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1.5 Limitation:

We made our term paper on the topic “Human Resource management Practice in Square

Pharmaceuticals limited”. We suffered a lot to make appointment a Human Resource

manager in Square Pharmaceuticals Limited. We spent more time to make an appointment.

Some of the time, the Human Resource Manager of Square try to say that I don’t want to

give the data. When we incorporate data in our term paper then we need some additional

data. If we found that additional data, it would very helpful for us to make a term paper. But,

Square did not give us appointment.

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2.1 Company History:

In Bangladesh Pharmaceutical sector is one of the most developed hi-tech sector which is

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 95% of the total medicine

requirement of the local market. Leading Pharmaceutical Companies are expanding their

business with the aim to expand export market. Recently few new industries have been

established with hi-tech equipments and professionals which will enhance the strength of this

sector. The Rise of Pharmaceutical Sector of Bangladesh.

Square today symbolizes a name – a state of mind. But its journey to the growth and

prosperity has been no bed of roses. From the inception in 1958, it has today burgeoned into

one of the top line conglomerates in Bangladesh. Square Pharmaceutical Limited, the

flagship company, is holding the strong leadership position in the pharmaceutical industry of

Bangladesh since 1985 and is now on its way to becoming a high performance global player.

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SQUARE is committed to ensure better life through quality medicine.

Ensure strict compliance with WHO cGMP standards and local regulatory norms in every

phase of sourcing & procuring quality materials, manufacturing, quality assurance and

delivery of medicines.

Ensure all activities through documented Quality Management System (QMS) complying

International Standard requirements of ISO 9001 through continuously developing Human

Resources by regular training and participation.

Square is committed to undertake appropriate review, evaluation and performance

measurement of processes, business activities and Quality Management System for

continual improvement to ensure highest standard, customer satisfaction, developing

human resources and company's growth

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2.1.1 The Corporate History of Square Pharmaceuticals Limited:

CORPORATE HISTORY :

Year of Establishment (Initially as a Partnership) : 1958

Incorporated as a Private Limited Company : 1964

Technical Collaboration Agreement with Janssen Pharmaceuticals of

Belgium

(A subsidiary of Johnson & Johnson International Ltd.)

: 1975

Technical Collaboration Agreement with F.Hoffman-La Roche &

Co. Ltd.

: 1984

Converted into Public Limited Company : 1991

Initially Public Offering (IPO) : 1994

Stock Exchange Listing (Dhaka & Chittagong) : 1995

Agreement with M/s. Bovis Tanvec Ltd. of UK for implementation

of Dhaka Plant

: 1996

Awarded ISO-9001 Cerificate : 1998

Awarded UK-MHRA Certificate : 2007

Business Lines : Manufacturing and Marketing of

Pharmaceutical Finished Products,

Basic Chemicals, AgroVet Products

and Pesticide Products

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Authorized Capital : US$ 16.99 Million

(Tk. 1,000 Million)

Paid-up Capital : (Tk. 596.16 Million)

Number of Employees : 3,001

Subsidiary Company : Square Spinnings Ltd.

Square Cephalosporins Ltd.

Associate Company : Square Textiles Ltd.

Squar Knit Fabrics Ltd.

Square Fashions Ltd.

Square Hospitals Ltd.

2.2 Company Vision:

Square Pharmaceutical Limited see business as a means to the wellbeing of the investors,

employees and the society at large, leading to accretion of wealth through financial and

moral gains as a part of the process of the human civilization.

2.3 Company Mission:

Square Pharmaceutical Limited mission is to provide quality & innovative healthcare

relief for people, maintain stringently ethical standard in business operation also ensuring

benefit to the shareholders and other stakeholders

2.4 Company Objectives:

Square Pharmaceutical Limited objectives are to conduct transparent business operations

within the legal & social framework with aims to attain the mission reflected by our vision.

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2.5 Company Strives For:

Square Pharmaceutical Limited has extended her range of services towards the highway of

global market. She pioneered exports of medicines from Bangladesh in 1987 and has been

exporting antibiotics and other pharmaceutical products.

This extension in business and services has manifested the credibility of Square

Pharmaceuticals Limited.

We strive for-

At the very fast, they look for top quality health care products at the least cost

reaching the lowest rungs of the economic class of people in the country. They value

our social obligations.

They owe their shareholders and strive for protection of their capital as well as ensure

highest return and growth of their assets.

They strive for the best compensation to the all the employees who constitute the

back-bone of the management and operational strength of the company through a

pay-package composing salary/wages, allowances, bonuses, profit participation, leave

salary and superannuating & retirement benefits.

They strive for the best co-operation of the creditors & debtors the banks and

financial institutions that provide financial support when we need them, the suppliers

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of raw materials & suppliers who offer them at the best prices at the opportune

moments.

They strive for fulfillment of our responsibility to the Government through payment

of entire range of due taxes, duties and claims by various public agencies like

municipalities etc.

They strive for practicing good-governance in every sphere of activities covering

inter alias not being limited to, disclosure & reporting to shareholders, holding AGM

in time, distribution of dividends and other benefits to shareholders, reporting of price

sensitive information, acquisition of shares by insiders, recruitment & promotion of

stuff etc.

They strive for equality between sexes, races, religious and regions in all spheres of

our operation without any discriminatory treatment.

They try hard for an environment free from pollution and poisoning.

2.7 Corporate Focus:-

Our vision, our mission and our objectives are to emphasize on the quality of product,

process and services leading to growth of the company imbibed with good governance.

Top Management: Board of Directors

As per provisions of the Article of Association, Board of Directors holds periodic meetings

to resolve issue of policies and strategies, recording minutes/decisions for implementation by

the Executive Management.

Executive Management:

The Executive Management is headed by the Managing Director, the Chief Executive Officer

(CEO) who has been delegated necessary and adequate authority by the Board of Directors.

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The Executive Management operates through further delegations of authority at every

echelon of the line management. The Executive Management is responsible for preparation

of segment plans/sub-segment plans for every profit centers with budgetary targets for every

items of goods & services and are held accountable for deficiencies with appreciation for

exceptional performance. These operations are carried out by the Executive Management

through series of committees, sub-committees, ad-hock committees, standing committees

assisting the line management.

Company Hierarchy: MD-Managing Director, DMD-Deputy Managing Director, ED-

Executive Director, DIRECTOR, GM-General Manager, AGM-Assistant General Manager,

MANAGER, EXECUTIVE (Senior & Junior), OFFFICER, OFFICE ASSISTANT

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MD DMD ED

DIRECTOR

GM AGM

MANAGER

EXECUTIVE (SENIOR&JUNIOR) OFFICER

OFFICE ASSISTANT

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2.8 Competitive Position:

Square Pharmaceuticals Limited is the largest pharmaceutical company in Bangladesh and

it has been continuously in the 1st

position among all national and multinational companies

since 1985. It was established in 1958 and converted into a public limited company in 1991.

The sales turnover of SPL was more than Taka 5 Billion (US$ 90 million) with about 15%

market share (April 2003 – March 2004) having a growth rate of about 16%.

2.9 The Corporate Level Strategy:

The main Vision of Square Pharmaceuticals Limited is to view business as a means to the

material and social well being of the investors, employees, and the society at large, leading to

accretion of wealth through financial and moral gains as a

part of the process of the human civilization. And their mission is to produce and provide

quality and innovative healthcare relief for people, maintain stringently ethical standard in

business operation also ensuring benefit to the shareholders, stakeholders and the society at

large. Square Pharmaceuticals ltd. is a part of Square Group. All we know that Square group

is concerns with a lot of business such as Chamival Division, Square Toiletries Limited,

Square Spinning Ltd. etc.

2.10 Business Level Strategy:

Square Pharmaceuticals Limited pursues a differentiation strategy. The bases of

differentiation are superior quality, brand image, quick introduction of new drugs. It always

remains one step ahead of the competitors because early introduction of new medicines. It is

the first company to introduce Ampicilin, Metronidazole, Cotrimoxazole, Clofenac and many

other generic drugs just after the expiry of patent right of the innovators. As a result, the

company gains a first mover advantage and holds the leading position in the Pharmaceutical

industry.

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3.1 Human Resource Management Policy:

Human resource management issue is now a vital element for every company. It is especially

obvious for the manufacturing industries. Human resource policy of Square Pharmaceutical

Limited will ensure to retain the best and effective employees at all level of the hierarchy.

Now in the competitive global market human resource is the most welcomed resource than

other resources. So to motivate and up date the employees of Square Pharmaceutical

Limited it has developed.

Its own compensation policy, training and development policy, recruitment and selection

policy, and career development policy and soon. It is believed that through utilizing the

human resource policy it will able to attract and retain more employees to reach its target

with a short period.

3.2 Mission of Human Resource Department:

Square Pharmaceutical Limited intends to attract the talented pool of personnel existing in

the country. It does its utmost to provide them with an excellent equal employment

opportunity, which will benefit for the organization fully and enhance the employees’ career

to the future. Outstandingly, the grounds of Square Pharmaceutical Limited will encourage

the cerebral resources of the organization and keep it as long run as possible with a finest

way.

3.3 Recruitment Policy:

Recruitment follows HR planning and goes hand in hand with the selection process by which

organizations evaluate the suitability of candidates for various jobs. Without accurate

planning, organizations may recruit the wrong number or type of employees. Without

successful recruiting to create a sizable pool of candidates, even the most accurate selection

system is of little use. Recruiting is a process by which organizations can locate and attract

individuals to fill job, recruit new employees to replace those who leave or are promoted, to

acquire new skills, and to permit organizational growth. Recruiting is an even more

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important activity when unemployment rates are low and economic growth is strong, as firms

compete to attract the qualified employees they need to succeed. Recruiting can be quite

expensive.

From Square Pharmaceutical Limited organizations point of view, recruitment takes place

the whole year whenever it is required or needed. It may be once in a year in more than that.

The company recruits people from external sources at all levels. Square Pharmaceutical

Limited consists of seven departments namely: Marketing department, IT department,

Quality Management department, Personal and Administration department, Technical and

Service department, Commercial department and Accounts and Finance department. Every

department has heads and executives.

For executive positions, skilled, experienced and reputed employees are hired form

the outside.

For marketing department, the company fills higher positions through internal

promotion only.

Fresh graduates are recruited at the entry in the post of medical promotion officer.

The company does not seek any experience for recruiting entry-level employees.

Following preliminary interview, written test and final interview; medical promotion

officers are selected on a temporary basis. The temporary selected applicants are then

sent for six weeks induction training.

After the completion of training, the employees are appointed for six months as

probationary period.

On completion of probationary period, the company undertakes performance

appraisal and selects the qualified employees permanently.

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3.4 Selection Process:

Every organization wants to have the best employees. Because a team of best employs can

facilitates the organizations to get the quicker success. Therefore, to select the best employee

is a very important and crucial factor for an organization.

Selection occurs after the step of recruitment. There the organization decides who will be

hired. Among a huge number of employees, they short-listed the best ones. However, the

selection process varies from organization to organization. They can collect the application

blanks and conduct the brief and formal interviews. They can also take help from the tests,

interviews, assess me centers, background checks etc. However, the second step is the costly

process for selection.

Typically, firms follow these steps while selecting. These steps may vary to one firm to

another.

√ Initial Screening

√ Completion of Application Form

√ Employment test

√ Comprehensive Interview

√ Background test

√ Physical Examination

√ Final Employment Decision

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Square Pharmaceutical Limited selection process is a bit different from the above process.

They go through the following procedures to select candidates:

At first Square Pharmaceutical Limited collects applications from candidates those

have been dropped by them either unsolicited or solicited in the response of

advertisement that are published in national medias.

Once the pull of applicants applied for the vacant position, Square Pharmaceutical

Limited takes examination of them, which is a written examination.

Then among them who passed the written examination successfully are invited to

attend an oral test or viva, which is called the Managerial Viva. Here potential

candidates are interviewed by the Personnel Department Manager or by the Manager

of the department.

Those that get the green signal from the Managerial Viva then are asked to face a

Comprehensive Interview in front of the Board of Directors. This is called Directors

Viva. As all know that Square is a leading National company, it is run by a Board of

Directors consists of the owners and stockholders.

These members of the Board of Directors take the final decision about selecting

employees from the peoples.

This is the overall selection process of Square Pharmaceutical Limited.

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4.1 Training and Development Process:

Training involves employees acquiring knowledge and learning skills that they will be able

to use immediately and employee development involves learning that will aid the

organization and employee later in the employee’s career.

4.2 Training and Development Strategy of the Square Pharmaceuticals Limited:

Training and development is now a significant part for every organization to update and

make workforce competitive in the company to perform effectively and efficiently. Square

Pharmaceutical Limited would take training and development program for it is every level

of the workforce. It will conduct based on the performance and base on the situation. It will

highlight to update its workforce through external training center, as it has no internal

training institution. Here those who will receive training, have to maintain a permanent

contract, which will ensure retain of those upgraded workforce.

Square Pharmaceutical Limited provides training and development packages for it’

employees. They are-

The training programs Square Pharmaceutical Limited has are shown in the table

below-

Training Program Duration Level of Employee

Effective Office

Management

Minimum 03 Days Executive and above

Negotiation Skills Minimum 03 Days Executive

Office Communication Minimum 03 Days Non Executive

Introductory Training About 02 Months Field Workers

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Employees are provided both

(a) On the job training and

(b) Off the job training

Though Square Pharmaceutical Limited does not have any training institute yet they

train employees by

(a) Internal Trainers

(b) External or Professional Trainers

Sometimes the company allows employees to take some external institutional training to

contribute more to the company. Thus, they facilitate employees with financial support under

company provisions.

5.1 Compensation Policies:

Square Pharmaceutical Limited is concentrating on competitive compensation package for

its all level of employees to ensure to retain and motivates its employees. To gain

competitive advantage it has conducted salary survey. It is highly encourage performing its

employees the best because Square Pharmaceutical Limited will maintain performance

based compensation system. On the other hand, promotion and salary increment will

obviously depends on the performance of the employee in a fiscal year. Other allowances

will be provided based on the organizational hierarchy. The compensation packages of the

company is discussing below:

5.1.1 Promotion:

People are promoted form Medical Promotion Officer to Senior Medical Promotion Officer,

Territorial Manager, Regional Sales Manager and then Sales Manager. The more efficiently

employee woks, the more quickly promotion is awarded. To award promotion, the company

systematically evaluates performance for medical promotion officer, senior medical

promotion officer and executives following the set criteria.

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5.1.2 Basic Salary:

Basic Salary is the salary, which is paid by the company to the employees for work

performed. That means Basic salary is provided to the employees based on the individual

skills and knowledge.

5.1.3 Annual Bonus:

Employees are given two annual bonuses in the two Eid Festival, which is settled based on

their basic salary.

5.1.4 Increments:

An increment is defined as the increase in the salary according to the performance of the

employees. Square Pharmaceutical Limited would provide increment to the salary of the

employees according to the satisfactory performance.

5.1.5 House Rent:

House allowances are provided to the top-level management and mid level management.

5.1.6 Medical Allowances:

To ensure that every one with in the company fill secure about their health related issues and

to be motivated towards the work Square Pharmaceutical Limited will provide medical

Allowance for each month with their total salary. From the top to bottom, every level of

employees within the company will receive the same amount of medical allowance in every

month.

5.1.7 Profit Sharing:

Profit sharing is two types:

a. bonus share or dividends and

b. fixed percentage of the profit.

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In addition, it provides sales commission, transportation facility, provident fund, city

allowances, health insurance, refreshment and canteen facility, pharmaceutical and other

toiletries products of the company at a subsidized rate

Training & Employee Development in Square:

Our Training & Development enables our people to enhance their skills, keep them updated

with recent changes. We offer both on-the-job and off-the- job at both theoretical and

practical training opportunities through a range of Local, Regional and International Training

programs that include both functional and managerial levels on the basis of Training Need

Assessment. Training Need Analysis (TNA) is conducted by Department Heads and Human

Resource Department jointly on the basis of job analysis.

Management Development Training

Round the year, management development training is organized for managers & executives

at our Corporate Headquarters, Dhaka Unit & Pabna Unit. Our own and renowned resource

persons from home & abroad conduct the training sessions. We also send our employees to

renowned local training institutes for specialized training.

Overseas Training

We send our employee to abroad for training program depending on availability of

appropriate topics. Technical persons of our factories attend the Factory Assessment Test

(FAT) in various parts of the world for smooth operation of equipments.

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Field Forces Training & Development

Each year, a significant number of Field Forces complete their induction training program

and joined to their respective markets and appear at examination in every month for further

development.

Field Forces Refresher Course

For updating product knowledge and selling skills of field forces, Refresher Course is

organized in four different regions in every month.

Territory Manager Training

Twice in every year, mid-level managers of sales participate in the training program titled

“Sales Territory Management” at a regular basis.

Every year a number of Distribution Assistants (DA), Data Entry Operators (DEO) go under

induction training program immediately after initial recruitment.

Each month, Refresher course for DA, Driver and Packers is organized in two different

depots for updating their knowledge.

Other Activities:

Students of various universities are placed as Interns in different departments.

Significant number of students completed their In-Plant Training in our Plants.

Coordinating factory visit for different government and Institutions.

All newly joined executives go through a structured Orientation Program.

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We conduct health, Hygiene & different awareness program for our colleagues.

We conduct training on different compliance parameters for our factory colleagues

6.1 Conclusion:

Square Pharmaceutical Limited is a very well known national figure in Bangladesh. They

are the biggest organization in Bangladesh. Square Pharmaceutical Limited has a very well

reputation for this working environment. Usually they only recruit people for all-level jobs,

because they believe in the internal growth of their current employees. So it is easily

understandable that Square Pharmaceutical Limited prefers their current employees first.

That is why employees do not leave this organization. It is also true that Square

Pharmaceutical Limited has a number of good employees who are talented as well as

committed to the organization. They have very good communication skills. This is because

of Square Pharmaceutical Limited’s strong recruiting and selection process. Before taking

employees they analyze on those position. They find out what are the responsibilities they

should perform and what is the recruitment to perform those activities. Square

Pharmaceutical Limited has a structured planning for those processes. They conduct the

processes in different steps. For this reason they have to spend time but finally they are being

able to get the most prefect employees for their organization.

6.2 Recommendation:

As Square Pharmaceutical Limited is one of the leading national companies of Bangladesh

its human resource policies are much more competent and well organized than any other

organization of Bangladesh. Even many Multinational companies are falling behind in the

means of human resource practices than Square Pharmaceutical Limited those are

competing with the mentioned company. The training process of Square Pharmaceutical

Limited is very widely spread to fulfill employees need to be more competitive. Each level

of employees are facilitate with the training and development programs of Square.

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Employees are trained both on the job training along with off the Job Training. Both internal

and external trainers are available to train employees in the organization. The great feature of

its development process is that it provides allowances according to the company rules to the

employees when they are going for an external training. But the lacking of Square

Pharmaceutical Limied’s development system is that it does not have any Training Institute

of its own. Square Pharmaceutical Limited has the structural support to establish a training

institute to build its employees as it requires. In the selection process of Square it does not

have any physical examination of the selected employees. There is no specified process of

the Background Investigation of the selected employees. It is recommended that it should

adopt these steps also in the selection process which will help them to have more competent

employees in the organization. Compensations and benefit programs are standard enough in

Bangladesh to retain employees in the organization but as Square Pharmaceutical Limited

is a company which is competing with many global companies so it should develop a

compensation program which will be competitive enough to attract not only Bangladeshi

candidates but also the candidates those are globally competitive.

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References:

Class note and journal provided by course instructor Laila Zaman

HR Executive, Rashedul Hasan.

Guideline provided and assisted student teaching assistant Ferdoousi Rob

Personnel/Human Resource Management- David A. Decenzo/Stephen P. Robbins

Human Resource Management-Cynthia D. Fisher/Lyle F. Schoenfeldt/James B.

Shaw.

www.google.com

www.squarepharma.com.bd