Term paper on

Human Resource Management Practices of Bangladesh:

A Case Study on Orion Infusion Limited (OIL)

Date of submission: August 17, 2007

 SUBMITTED TO
Mr. Sheikh Abdur Rahim
Lecturer
Department of Management Studies
Faculty of Business Administration and Management

SUBMITTED BY
Group: 01(Warrior)

Human Resource Management

Course code: MST 224
 Group list

Name of the students Roll No.

Md. Kamruzzaman (L) 01

Shuvradeb Barai 09

Abu Zafour 21

Sahana Parveen 07

Nazmul Alam Siddiqui 25

 Letter of Transmittal

Date: August 17, 2007

Mr. Sheikh Abdur Rahim

Lecturer
Department of Management Studies
Faculty of Business Administration and Management
Patuakhali Science and Technology University

Subject: Submission Report on Human Resource Management

Dear Sir,

Here we are submitting our report on “Human Resource Management

Practices of Bangladesh: A Case Study on Orion Infusion Limited”
prescribed by you in your course Human Resource Management. For this
Purpose, we have gone through internet, different books, articles, journals,
interview of authorities and employees of the respective organizations and class
lecture sheets for the relevant information of the assigned topic.

Please call me for any further information at your convenient time and place.

Yours truly,

Group: 01(Warrior)
Level-II, Semester-II
Faculty of Business Administration and Management
Patuakhali Science and Technology University
 Letter of Authorization

Date: August 17, 2007

Mr. Sheikh Abdur Rahim

Lecturer
Department of Management Studies
Faculty of Business Administration and Management
Patuakhali Science and Technology University

Subject: Declaration regarding the validity of the research report.

Dear Sir,

This is our truthful declaration that the “Report on Human Resource

Management Practices of Bangladesh: A Case Study on Orion Infusion
Limited ” we have been prepared is not a copy of any research report previously
made by any other students.

We also express my honest confirmation in support of the fact that the said
“Report” has neither been used before to fulfill any other course related purpose
nor it will be submitted to any other person or authority in future.

Yours truly,

Group: 01(Warrior)
Level-II, Semester-II
Faculty of Business Administration and Management
Patuakhali Science and Technology University
 Acknowledgement

At first we desire to express our deepest sense of gratitude of almighty Allah.

With profound regard we gratefully acknowledge our respected course teacher

Mr. Sheikh Abdur Rahim Lecturer, Department of Management Studies, Faculty
of Business Administration and Management for his generous help and day to
day suggestion during the survey.

We like to give thanks especially to our friends and many individuals, for their
enthusiastic encouragements and helps during the preparation of this report us by
sharing ideas regarding this subject and for their assistance in typing and proof
reading this manuscript.
 Table of contents

Chapter–1
Page
1. Introduction
►1.01 Executive Summary ……………....…..…….…………………………07
►1.02 Scope and Objective of the Study…… …….………………………….08
►1.03 Methodology of the Study………... ……………………………...……09
►1.04 Limitation of the Study…...………………....……………………….....10

Chapter – 2

2. Description
►2.01 Company chronology ...…..…………………………………… … …..11
►2.02 Skilled People are There Asset ….……………….……… … …… ….12

►2.03 Company Organogram ……...…….………...………………… …. …13

►2.04 Human Resource Management …….………...………………… …. …14
►2.05 Human Resource Planning..………...…………………………….. .….14
►2.06 Recruitment and Selection ………………………... ……………...….. 14
►2.07 Job Analysis and Job Description …………………….…………...…...16
►2.08 Job Design ……………………………………………..………..……..16
►2.09 Job Evaluation ……………………………………………………….…17
►2.10 Training and Development …………….…………………….……...…
17
►2.11 Performance Appraisal ………….…….………….………….…..….…19

Chapter – 3

3.0. Findings and Analysis ………………………………………..……….…….……20

Chapter – 4

4.01. Conclusion…………………………………………………………..…….….…..21
4.02. Bibliography …………………………………………...………………..…..…...22
4.03. Appendix ……………………………….……….....…………..………….23
 Executive Summary

This report is an assigned job as a partial fulfillment of course requirement

by honorable Course teacher Mr. Sheikh Abdur Rahim Lecturer,
Department of Management Studies, Faculty of Business Administration
and Management, Patuakhali Science and Technology University. It is the
optimum aggregated outcome of 5 pupils’ about “Human Resource
Management Practice Of Bangladesh A Case Study On Orion Infusion
Limited”. The goal of this report is to find out the Human Resource
Practices of Bangladesh, in case of Orion Infusion Limited. Orion Infusion
Limited committed to draw the most talented and dynamic professionals
from the available candidates. They consider their skilled people as asserts
for their organization. The main goal of Orion Infusion Limited is the
continuous development of the human resources (HR) through appropriate
training and motivation.

Their human resource department (HRD) trusts in team work and respect
each other. For managing the human resource OIL follow the different
steps. At first they plan their human resource for recruiting and selecting
the most talented and dynamic professionals from the available candidates.
OIL provides training and development activities to develop their
employee with future advancement and educate them in jobs kills. Taking
constructive steps they are trying to develop the skills of the human
resource pool.
 Scope and Objective of the Study

As a business expectative in future, we should have to gather experience

beside our survey. We should not concern our lesson only in classroom but
to implement it in practical life that will help us in our future life .A clear
objective help in preparation of well decorated report in which other take
the right type of decision .So, we identifying objectives is very much
important. Our purpose of preparing the report is:

• To know the human resource management (HRM) practice of Orion

Infusion Limited
• To identify the various avenues for improving the HRM policies of
Orion Infusion Limited
• To know about the management ability of Orion Infusion Limited
• Suggesting strategies to improve the HRM policies of Orion Infusion
Limited.

This study covers the HRM policies of Orion Infusion Limited along with some
recommendations to improve the HRM policies of Orion Infusion Limited.
 Methodology of the Study

This report is based on both primary and secondary data. Initially, the work is
started with data those were available at Company’s Annual Report and
company’s news letter. Moreover, it becomes helpful to gather some more
information from the website of the company.
Later on, the work progressed through some depth interviews of good range
professionals trying to heat some expected area of the study. After that, an
effective questionnaire is designed to collect likely data from the target group of
people.
Then we analyze those data from many angles, in different aspect and present
the information in different segment according to their category, in compact way.
We highlight different important things, which we found during our survey. After
doing all of those we submit the report to the proper authority.
 Limitations of the Study

As a student of faculty of Business Administration and Management, 4th

semester, this is our first initiative for making a report on “Human Resource
Management Practice of Bangladesh a Case Study on Orion Infusion Limited”
by meeting a survey. I was really unable to collect enough information from due
to their official restrictions. Many things were so confidential that I was not
entitled to access there. Beside this we have faced the following hindrances in
preparing this report:

► Lack of knowledge and experience

► Short of time
► Lack of computer facilities
► Lack of sufficient privileges
► Lack of communication facilities

The survey report focuses on Human Resource Management Practice of

Bangladesh a Case Study on Orion Infusion Limited The survey may not be
more comparable or more valid. Moreover, the report is emphasized on the
primary data such as interview of the human resource manager of Orion Infusion
Limited. Here we consider the information to prepare this report that we collect
from the annul report and our survey.
 Company Chronology

Founded in 1989 Orion Infusion Ltd. is a state-of-the-art Large Volume

Parenterals (LVP) manufacturing company. It is inception; the company was
named as Mala Chemical & Pharmaceuticals industries Ltd. which became a
public limited company in the year 1994. The company is devoted to producing
LVP products and other life saving IV fluids. Orion Infusion Ltd. (OIL) has
created a new vista in manufacturing large volume parenteral (LVP) products in
Bangladesh. Manufacturing excellence is one of the core strengths of Orion
Infusion Ltd. OIL is in the pursuit of using the state - of - the - art technology
and high level quality assurance in their production which ensuring products of
international standard. Through proper documentation and implementation of
quality management system through out the organization, OIL has achieved ISO
9001:2000 version certification from United Kingdom Accreditation Services
(UKAS) Quality Management System, UK.

The overall management of Orion Infusion Ltd. is vested in a board of director

which is accountable to the shareholders and entrusted with the responsibility to
guide the company towards realizations of its objectives in order to maximize
shareholders’ wealth. A sound system of internal and financial control has been
established by OIL, which involves periodical reporting, continuous audit of
different segments of the business and budgetary control to ensure optimum
utilization of the company’s resources.

OIL is a highly professionally managed organization. A team of skilled

professionals has been dedicating their efforts in order to achieve the corporate
objectives.
 Skilled People are their Asset

They are committed to ensuring their business practices meet high standards and
that their employees behave ethical standards act responsibly and comply with
the law. Competitive advantages can only be achieved by building up highly
motivated and skilled employees at all levels that we enable organization to
compete in a fiercely competitive market scenario and to respond appropriately
to the market needs, with regard to quality products and services and
technological innovations.

Orion Infusion Ltd. puts maximum emphasis on tits vision to be regarded as

World Class Infusion Company and to be the best in the country, both in term of
turn over and profit. So the management of Orion has embarked upon on
arduous program for development of employee competence through continuous
training and counseling.

To augment all activities related to development of Human Resource, the

management has established a Human Resource Department and hired on
experienced manager for its operation.

The highly skilled professionals of OIL:

Skilled Professionals Numbers

Pharmacists 05
Chemists 14
Microbiologists 02
Engineers 08
Doctors 01
Graduates More then 300
 Human Resource Management

The term human resource refers to the people in an organization. Human

resource management is concerned with people dimensions in management.
When managers engaged in human resource activities as a part of their job, they
seek to facilitate the contribution; people make to achieve an organizations
strategies and plans.
Human resource management encompasses those activities designed to provide
for and co-ordinate the Human efforts, so that they can contribute to achieve the
goals of the organizations.
Human resource department of OIL follows the following steps for managing the
human resource.

1. Human Resource Planning Policies of Orion Infusion Limited

Human resource planning is the process of estimating human resource needs for
achieving human resource and organizational goals. It is the process through
which organizational goals are translated into objective. At Orion Infusion
Limited, they believe that their Human Resources give the company a significant
competitive edge in terms of knowledge and experiences.

Along the line up adopting new innovative and advanced technologies for its
high-tech manufacturing plant, the company continued to draw talented and
dynamic professionals of the industry, as well as, taking constructive steps in
developing the skills of the human resource pool.

The effective working days of this organization is 6 days per week and each
employee will work 8 hours per day.

If it is required to slot in them for overtime duties then the duty time will be
utmost 60 hours/ weeks.

For festival leave, usually they will get the vacation of 13 days.

Orion Infusion Limited usually paid their salaries to employees within 10 days
of the next month.

They try maintaining to continuous development of the human resource through

appropriate training and motivation.

2. Recruiting and Selection Policies of Orion Infusion Limited

Recruiting is the process of searching the potential job candidates in order to fill
up the vacant position of the organization and selection is the process of
choosing the best candidate among the available candidates. The candidates who
are successfully perform the job.

Orion Infusion Ltd. follows both the internal and external sources of recruitment.
In case of internal source they mainly follow – promotion, transfer and job
rotation and in case of external source they follow – advertisement, employment
agency.
In case of recruitment and selection Orion Infusion Limited considers the
following process:

Need assessment

Orion Infusion Limited take need assessment to identify in which sector, it is

needed to recruit the employee for achieving their target and goals. In their
assessment they have to realize that they need human resource (HR) in the
following situation- vacancy in existing post(s), market expansion, increase in
production capacity, launching new product, introducing new system.

Checking the recruiting options

Internal
Current employees are a major source of recruits the employees but entry-level
position. Internal source are included- promotion, transfer, job rotation, friends
and relatives of existing employees. In Orion Infusion Limited promotion and
transfer are typically directed by operating manager with little involvement by
the HRD.

External
When job opening can not be filled internally, the HRD must look outside
organization for expert employees. External source included- advertisement,
employment agencies, and campus recruiting. Usually Orion Infusion Limited
considers the advertisement for their external recruiting. They mainly provide
the notice of available job in both Bangla and English dailies.

Screening and Short-listing Applications

The responses to the advertisements are sorted and screened. The CVs as well as
the covering letters are judged. Experience, educational degree, computer
literacy, etc are the basis of judging the candidates application.

Written test
It is the mot important and effective tool for judging the candidates. The written
test includes IQ test, behavioral competencies, and communication skills.

Interview
The selection interview is a formal, in-depth conversation conducted to evaluate
an applicant’s acceptability. Trough interviews the interviewers of Orion
Infusion Limited seek to answer three broad questions:
1. Can the applicant do the job?
2. Will the applicant do the job?
3. How does the applicants compare with other who are being considered for
the job?
Selection interview are most widely used selection technique. They can be
adapted to unskilled, skilled, and managerial and staff employees. They also
allow two-way exchange information: interviewers learn about the applicant and
the applicants learn about the employer.

Reference checking
Reference and background check are important, which refers the process to
undertake of those application that appear to offer potential as employees.
Reference check is indented to verify that was state on the application from
correct and accurate information. Some question are arises through reference
checking. Those are:
1. Is the applicant a good, reliable worker?
2. Are the job accomplishments, titles, educational background, and other
facts of the Resume or application true?
3. What type of person is the applicant?
4. What information id relevant to match the applicant and the job?

Medical check-up
Normally, the evaluation consists of a health checklist and asked the applicant to
indicate the health and accident information. The medical evaluation may:
1. Entitle the employer to lower health or life insurance rates for company
pain insurance.
2. Be required by state or local health officials, particularly in food handling
operations where communicable diseases are a danger.
3. Be useful to evaluate where the applicant can handle the physical or
mental stress of a job.

Offer letter
When the candidates satisfy the Human Resource Recruiting Broad, then the
broad provide to the candidate offer letter.

Orientation /induction
Through orientation Orion Infusion Limited thy to introducing the new comers
or new employees with its work unit, rules and regulation, culture, norms, value,
believe and exposure to all important functions and locations of the company
and so forth.

Follow up
For make the employee more effective and efficient Human Resource
Department continuously interacts with the new entrants assisting to cope up
with the work environment, work culture, peer groups etc. In this stage the
management tries to help the employee to get settled her/his problems in the job,
work environment and workplace-culture.

3. Training Policies of Orion Infusion Limited

Training is a learning process that involves the acquisition of skills, concepts,

rules, and attitudes to increases the performances of the employees in the
organizations. On the other hand development is more future oriented, and more
concerned with education, than is employees training or assisting a person to
become a better performer. Orion Infusion Limited gives emphasis both for
internal and external training. Any new operations or product is marketed, they
gives training to the employees attached to the operations. Development helps
the individuals handle future responsibilities, with little concern for current job
duties.
In order to excel in a competitive marketing environment there is no alternative
to development knowledge and skilled level of people through training. Training
and development program of OIL include orientation activities that
► Inform employees of policies and procedure of OIL
► Educate them in job skills
► Develop them for future advancement
 Program
content Skills,
Actual knowledge,
Training & program ability of
Needs development workers
assessment objectives Learning
Principles

Evaluation
criteria
Evaluation

Figure: Preliminary steps involve in preparing a training and development program

The above figure shows the sequences that should be followed by OIL before
any training and development begin. Need assessment identify the current
problems and future challenges to be met through training and development.
Then they set different training and development objectives for the new comers/
employees. Actual training program are set from the available program
according to the performance of the employee. After the end of training period
their skills, knowledge, and ability of working are evaluated. In the year 2006,
the following training programs were conducted:

► MPO Recruitment training

► Team building and leadership
► Development of team building and leadership
► Development of managerial skills
4. Job Analysis and Job Evaluation Process of Orion Infusion Limited.
Job Analysis
Job evaluation is the process of appraising the different positions of employees
in the organization with a view to establish a well conceived for pay-structure.
For job analysis OIL consider several common uses such as- job definition, job
re-design, orientation, socialization, carrier counseling, employee safety,
performance appraisal and compensation. OIL follows the observational method
for job analysis. In this process they observe the individual or individuals
performing the job and pertinent notes describing the jobs or describing the
work.
This information includes such things as what was done, how it was done , how
long it do, what the job environment was like, and what equipment was used. In
this process information about jobs is systematically collected, evaluated, and
organized. This action are usually done by human resource specialized about
each job and every person in the organization. In the time of job analysis
following matters are need to be considered:

1. Identify the job to be analyzed.

2. Develop a job analysis questionnaire.
3. Collect appropriate job analysis information.

Job Evaluation
Orion Infusion Ltd. follows the Ranking and the Classification method for
evaluating the job. In case of ranking method a committee typically compared of
both management and employee to representative to arrange the job in a simple
rank order, from highest to the lowest rank. In case of classification method this
classification are created by identified some common denominators like – skills,
knowledge, responsibilities with the desired goals being the creations of a
number of distinct classes on grades of jobs.
5. Performance Appraisal System of Orion Infusion Limited

Performance appraisal information can provided needed input for determining

both individual and organizational training and development needs. Another
important use of performance appraisal is to encourage performance
improvement. In this regard Performance appraisals are used as means of
communicating to employees how they are doing and suggesting needed
changes in behavior, attitude, skill or knowledge.
For apprising the performance Orion Infusion Limited (OIL) consider the
different criteria of the employee, such as attendance, attitude, cooperation,
initiative, dependability, quality of work, overall output, honesty, personality,
ready to take challenge etc.
The process of evaluating the performance of the employee of Orion Infusion
Limited are shown in the following chart-

Employee’s name …………………………………………………………….

Department …………………………………………………………….
Rater’s name ……………………………………………………………
Date ……………………………………………………………
Excellent Good Acceptable Fair poor
1. Attendance
2. Attitude
3. Cooperation
4. Initiative
5. Dependability
6. Quality of work,
7. Ready to take challenge
8. Overall output
9. Honesty
10. Personality
Total
Total Score

Based on the above mentioned criteria the rater provides score to the employee
and according to the total score their performance is appraised.The human
resource department (HRD) of OIL usually designed and administers the above
performance appraisal systems. For evaluating the performance appraisal OIL
mostly follows the rating scale method.

6. Promotion Policies of Orion Infusion Limited

The movement of personnel within an organization- their promotion, transfer,
demotion, and separation is a major aspect of human resource management. The
actual decision about whom to promote, and whom to fire can also be among the
mot difficult, and important, a manager has to make. For every organization
promotion is extremely important, when the process based on merits and skills
of the employee. The employee of Orion Infusion Limited are gets both rewards
and punishment from their employer based on their performance. Usually money
transfer or other benefits are provided as rewards. On the other hand a major
problem of promotion is discrimination and favoritism.
7. Pay Policies of Orion Infusion Limited

Once the job evaluation is complete, the data generated become the nuclease for
the development of the organization’s pay structure. This means pay rates or
range will be established that are compactable with the ranges, classifications, or
point arrived at through job evaluation.

Pay structure
No information is given, as this is considered highly restricted information.

Provident Fund
In Orion Infusion Limited 12% of the basic salary goes to the provident fund
and the employee pays the same amount of their basic salary.

Medical Facilities
Doctors are arranged to visit each location of numbers of times a week to
provide necessary medical support to the employees. Moreover, the non-
management staffs enjoy medical treatment at Holy Family Hospital at company
arrangement.

Health Insurance Policy

No information is given by the authority of OIL.
 Findings and Analysis

a) Orion Infusion Ltd. beliefs, in present competitive and dynamic environment

human resource department are the most valuable department than the others.

b) They consider their skilled people as asserts for their organization.

c) OIL committed to draw the most talented and dynamic professionals from the
available candidates.

d) Orion Infusion Ltd. follows both the internal and external sources of
recruitment.

e) Training and development programs of OIL include orientations, and

socializations activities to inform employees about policies and procedures.

f) OIL try to develop their employee with future advancement and educate them
in jobs kills.

g) For job analysis OIL consider several common uses such as- job definition,
job re-design, orientation, socialization, carrier counseling, employee safety,
performance appraisal and compensation.

h) Orion Infusion Ltd., design their job in such way, which is the right person at
the right place at the right time to achieve their objectives and goals.

i) Orion Infusion Ltd. follows the Ranking and the Classification method for
evaluating the job.

j) For evaluating the performance appraisal OIL mostly follows the rating scale
method.

k) Taking constructive steps they are trying to develop the skills of the human
resource pool.

l) Their human resource department (HRD) trusts in team work and respect each
other.
 Conclusion

In present competitive and dynamic environment, human resource are

now being viewed as the most valuable mean for gaining advantages
over other. Competitive advantages can only be achieved by building
up highly motivated and skilled employees. To fulfill the vision,
mission, and core objectives of a company the management has needed
to established a effective and efficient human resource department and
hired the confident and most promising professionals.
 Recommendations

OIL is a highly professionally managed organization in where safety leads

improved productivity, so Orion Infusion Limited need to provide the
employee more quality work life as well as more attractive environment
for working. They should keep the work environment sound and healthy
for the employee to work in their own environment. Employee’s
satisfaction needs to be increased by maintaining the company policy
efficiently to get maximum productivity through employees’ satisfaction.
Though the company has loss in different sector, above all it makes profit
in the current year but it need to prevention of loss by adopting effective
technology and continuous development of human resource management.
OIL is a pharmaceutical company so for the responsibility of the society it
needs to completely obey the national law and order of the Government.
 Bibliography

DeCenzo David A. and Robbins Stephen P., “Personnel/Human Resource

Management,” Prentice-Hall of India Private Limited, 5 August (2005),
p.p. 148-227

“Annual Report,” Orion Infusion Ltd., Financial year 2005-2006, p.p. Al.

Karim Md. Ebadul, Chief Human Resource Officer, Orion Infusion Ltd.

Werther William B. and Davis Keith., “Human Resource and Personal

Management,” Mc Graw Hill Book Company, Boston, USA-1981,p.p.
181- 241.

Stoner James A.F. and Freeman R. Edward and Jr. Daniel Gilbert.,
“Management,” Prentice-Hall of India Private Limited (2003), Sixth
Edition,p.p.374-402

Human Resource Management Practices in Bangladesh: http// www.

hrmpb.com/ Retrieved date June 20, 2007.

Human Resource Management Practices in the 21st Century: http// www.

hrmp21.com/ Retrieved date May10, 2007.

Human Resource Management and Expatriate: http// www. hrmexp.com/

Retrieved date June 25, 2007.

Human Resource Management of BCCP, Bangladesh: http// www. hrm.

bccpba. com/ Retrieved date May 31,-2007.
 Questionnaire
on
Human Resource Management (HRM) Practices of
Bangladesh

Organization :……………………………………….
Designation :………………………………………..
Address :………………………………………..
………………………………………..
Age :………………………………………..
Sex :……………………………………….
Educational qualification:……………………………………….
Contract no. :………………………………………

1. In your organization which department is mainly practice?

HRM (Human Resource Management) PM (Personnel Management)

2. Who is the responsible person for planning the HRM/PM in your

organization?

…………………………………..…………………………………………
…………………………….………………….…………………
…............

……………………………………………………………………………..

3. In the recruitment process what kind of sources is used by your

organization?

External Internal

4. For recruitment the employee which things is followed by your

organization?

Advertisement Campus Recruiting

5. In case of selection: How your organizations select the best candidate
among the available candidate?
…………………………………………………………………………….
………………………………………………………………………….…
……………………………………………………………………………

6. How do you evaluate the working efficiency of the employees of your

organization?
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………...........................

7. For the job analysis of the employee which method is performed by your
organization?

Observational Interview Questionnaire Functional

8. In case of job analysis any time do you face any problem, if it is occur
which type of problem is faced?
……………………………………………………………………………
……………………………………………………………………………
………………………………………………………...................................

9. For developing the working efficiency of the employees do you provide

any training program?
……………………………………………………………………………

……………………………………………………………………………

10. If you arrange any training program for the employees, which type of
training programs are those?
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
11.For motivating the employee what sorts of activities is performed by your
organization?

Promotion Transfer Job Rotation Bonus

12.How much you give importance on organization and socialization?

……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………

13. What process is followed for appraising the performance of the

employee?

Formal appraisal Informal appraisal

14. According to your company the level of employee’s job satisfaction?

Very high High Low Very low

15.What are you thinking about the importance of HRM/PM?

……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………