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Faculty of Business Studies

Premier University, Chittagong


Bangladesh

MB A P RO G RAM
“ H UMAN RES O URCE MANAG EMEN T”

Top i c
H u m a n R e s o u rc e M a n a g e m e n t p r a c t i c e s i n a l o c a l o r g a n i z a t i o n o f
Bangladesh

Course Coordinator:

Mr. A.F.M Aowrangajab


Professor,
University of Chittagong,
Chittagong.

Date of Submission: The 5th May, 2009

Submitted by:

Biswajit Kumar Ghosh

Student No: 0817230820


Semester: 2nd
Introduction
British American Tobacco Bangladesh is one of the oldest and largest multinational companies
operating in Bangladesh. The UK-based British American Tobacco Group holds 65.91% share
in the company. The Government of Bangladesh owns 28.7% through several of its agencies,
while 5.39% is owned by other shareholders.

British American Tobacco Bangladesh began its operations in the sub-continent in the year 1910
as Imperial Tobacco Company Ltd. Post 1947After independence, in 1972, Bangladesh Tobacco
Company (BTC) was formed with British American Tobacco holding majority of the shares. In
March 1998, Bangladesh Tobacco Company changed its corporate name into British American
Tobacco Bangladesh proclaiming its common identity with other operating companies in the
British American Tobacco Group.

At British American Tobacco Bangladesh, the key factor to their sustainable growth is human
resource. Therefore, they have always been committed to good employment practices and have
set out the framework of our Employment Principles on workplace practices, employee relations
and employee human rights.

The report includes the theoretical framework of various concepts of Human Resource
Management and also contains the practices of Human Resource management in British
American Tobacco Bangladesh for the purpose of relating the theoretical concepts with the
relevant areas of an established organization.

Objectives of the study


To enhance the knowledge about the Human resource activities practiced in an organization and
to relate them with the concepts of the texts of the course ‘Human Resource Management’.

Methodology of the study

Both primary and secondary data have been collected for the purpose of the study.

• Primary Data:
The primary data are collected by following ways:

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1. The primary data was collected by face to face interview by using a detailed
questionnaire.
2. Other informal ways.

• Secondary Data:
The secondary data are collected by following ways:
1. Web Sites
2. Group Instruction Manual & Business Instruction Manual

Scope of the study


By this case study we compare the knowledge with the sample company’s human resource
practices. .

Limitations of the study


• Due to inexperience and lack of proper planning & feedback in time it was really difficult
to understand what to do, how to do & when to do.
• Cost and time constraints did not allow for a more extensive data collection.
• Omission of some important information due to response biases and time constraints.

Brief description of British American Tobacco


British American Tobacco Bangladesh is one of the oldest and largest multinational companies
operating in Bangladesh. The UK-based British American Tobacco Group holds 65.91% share
in the company. The Government of Bangladesh owns 28.7% through several of its agencies,
while 5.39% is owned by other shareholders. British American Tobacco Bangladesh began its
operations in the sub-continent in the year 1910 as Imperial Tobacco Company Ltd. Post
1947After independence, in 1972, Bangladesh Tobacco Company (BTC) was formed with
British American Tobacco holding majority of the shares. In March 1998, Bangladesh Tobacco
Company changed its corporate name into British American Tobacco Bangladesh proclaiming
its common identity with other operating companies in the British American Tobacco Group.

At British American Tobacco Bangladesh, the key factor to their sustainable growth is human
resource. Therefore, they have always been committed to good employment practices and have

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set out the framework of our Employment Principles on workplace practices, employee relations
and employee human rights.

Employment Planning, Recruitment & Selection Policy Practiced By


British American Tobacco Bangladesh

Employment Planning

Every organization has employment planning. BAT has also its employment planning. They
usually forecast their personnel needs based on their mission, strategic goals & objectives &
technological and other changes resulting in increased productivity. Although there are several
methods to predict personnel needs, but they use managerial judgment because it gives the more
real world scenario for personnel needs. They think that the other methods can not give the
accurate situation of the personnel needs. These are basically graphical methods, which can not
measure the actual personnel needs. But managerial judgment method depends upon the change
in productivity, market conditions etc.

Recruitment Policy
British American Tobacco Bangladesh has been in e-resourcing since 2002. They focus on e-
based advertisement for more visibility and transparency beside the conventional print media.
All recruitment related notices are posted on the www.bdjobs.com website. Candidates are
required to fill up the blank resume format provided in the website. A well-structured and
systematic selection procedure is followed to get the most suitable candidate. Following the
selection procedure, pre-employment medical examination and reference checks are done.
They entertain application from recognised universities from home and abroad.
Applicant must be a citizen of Bangladesh.
They encourage students with good academic track record to apply.
They are not prejudiced against race, sex, religion, age etc. Positions will be offered to the
candidate on the basis of his/her ability and the requirement of the company.

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Selection Process

• If the application is successful, They will be invited to a preliminary interview which


will be taken by a member from the function to which they have applied and a member
of the Human Resource team.

• As a final candidate, they will be invited to a specifically designed British American


Tobacco assessment centre. This will provide them opportunity to demonstrate their
skills and suitability through their performance in a number of participative and
individual exercises. They will also have the opportunity to meet managers and to gain
first hand experience of what it is like to work for British American Tobacco
Bangladesh. Regardless of the outcome, participants find it a unique opportunity to
demonstrate their strengths.

• If they get through the Assessment Centre, they will be recommended to the respective
Heads of Functions for a final Interview.

• They are committed to keep them informed of their progress through every step of the
selection process.

Employee Socialization, Training &Development, Performance appraisal

Socialization
Socialization is a process of adaption. Organization entry socialization refers to the adaption that
takes place when an individual passes from outside the organization to the role of an inside
member.
Socialization can be conceptualized as a process made up of three stages:
1. Pre-arrival stage: This stage explicitly recognizes that each individual arrives with a set
of organizational values, attitude, and expectations.
2. Encounter stage: Here the individuals confront the possible the dichotomy between their
expectations and reality.

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3. Metamorphosis stage: Finally, the new member must work out any problems discovered
during the encounter stage.
The organization gets higher productivity, greater employee commitment, and lower turnover
rates through socialization. Employees achieved reduced anxiety, increased awareness of what is
expected on the job, and an increased feeling of being accepted by their peers and bosses. When
socialization works, employees receive the confidence and satisfaction what comes from feeling
that they are members in good standing in the organization.

Training and Development

Training: A learning experience in that it seeks a relatively permanent change in an individual


that will improve his or her ability to perform on the job. To make training a success, a trainer
should take care of the following points:
 Make learning meaningful.
 Make skills transfer easy and
 Motivate the learner

Employee Training Method

On-the-job Training: It means having a person learn a job by actually doing it.

Advantages:
 Relatively inexpensive
 Trainees learn while producing
 No need off-site facilities
Drawbacks:
 Low productivity while the employees develop their skills
 The errors made by the trainees while they learn.

Apprenticeship Training: It traditionally involves having the learner study under the tutelage of
a master craftsperson.

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Informal Learning: This learning process is not determined or designed by the organization.
But the organization may ensure it by creating a learning environment in the organization.

Job Instruction Training: Listing each jobs basic task, along with key points, in order to
provide step-by-step training for employees.
Lectures: The most simple and quick way to provide knowledge to large groups of trainees.
Simulated Training: It places the trainee in an artificial environment that closely mirrors actual
working conditions.
Development- Any attempt to improve current or future management performance by imparting
knowledge, changing attitudes, or increasing skills.
Any effort toward developing employees must begin by looking at the organizations objectives.
The objectives tell us where were going and provide a framework from which our managerial
needs can be determined.

Employee Development Method

Managerial On-the-Job Training: The development of employee’s abilities can take place on
the job. It includes:
• Job Rotation: It involves moving a trainee from department to department to broaden
their understanding of all parts of the business and test their abilities.
• Coaching Approach: The trainee works directly with a senior manager or with the
person they are to replace.
• Action learning: Here the management trainees are allowed to work full-time analyzing
and solving problems in other departments.

Off-the-job Training: It includes:

• The Case Study Method: Here the manager is presented with a written description of an
organizational problem to solve in a discussion with other trainees.
• Management Game: The manager presented with a computerized decisions regarding
but simulated situations.

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• Outside Seminars: Many organizations now are using this popular method on various
aspects of business and management.
• Behavior Modeling: It involves the Modeling-Role playing-Social reinforcement-
Transfer of training.

Performance Appraisal

Evaluating an employee’s current and/or past performance relative to their performance


standards.

Importance:
 It does little good to translate the employer’s strategic goals into specific
employees’ goals
 It develop a plan for correcting any deficiencies he appraisal might have
unearthed
 It should serve a useful career planning exhibit strengths and weaknesses.
 It almost always effects the employer’s salary raise and promotional decisions.

Methods of Appraising Performance

Graphic Rating Scale Method: A scale that lists a number of traits and a range of performance
for each. The employee is then rated by identifying the score that best describes his or her level
of performance for each trait.
Alternation Ranking Method: Ranking employees from best to worst on a particular trait,
choosing highest, then lowest, until all are ranked.
Paired Comparison Method: Compare each employee with each other employee. It is a matter
of combination.
Forced Distribution Method: Similar to grading on a curve, predetermined percentages of rates
are placed in various categories.
Critical Incident Method: Keeping a record of uncommonly good or undesirable examples of
an employee’s work-related behavior and reviewing it with the employees as predetermined
times.
Narrative Forms: It is an essay type method.

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BAT’S Socialization Process

In BAT the Human Resource Manager make decisions about how they want to socialize their
new employees.
Employees begin with a relatively formal socialization to learn the pivotal standards of BAT.
Then they begin the formal socialization process on the job, where they learn the norms of their
work group.

Training System of BAT

Types of Training:

• Technical Training
• Management Training
• Safety Training
• Occupational Health
• General Training (Management, Accounts, Sale etc.)
• Social Skill Training
• Refresher Training
• Workers Education Training

On-the-job Training Process

• Identifying the training needs: What kind of training is needed for how many
people to what standard of performance the objectives of the training must be
determined.
• Analyzing the attitudes, skills & knowledge(ASK)of the job:
Designing what has to be learned.

Planning the training program & implementing it

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• The stages of the training
• Recording the results
• Providing the stuff and equipment

Evaluating the results

• Deciding whether the training objectives have been met


• Considering how they could have been met more effectively

Training Aids

The following training aids are generally used in training programs in BAT

• Multi media
• Overhead projector
• Flip chart
• White board etc.

BAT’S Performance Appraisal

Their remuneration policies are designed to be highly competitive and to ensure differentiation
amongst individuals and teams on the basis of performance. Their employees are rewarded
based on the challenge of their roles in their business, the career opportunities and positive team
relationships.

Employee Compensation

Employee compensation refers to all forms of pay or rewards going to employees and arising
from their employment. It has two min components:

1. Direct financial payments: Wages, salaries, incentives, commissions, and bonuses.


There are two ways to pay directly:

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• Time based pay: Daily, hourly, weekly, biweekly or monthly wages and salaries
• Performance based pay: Ties compensation directly to the amount of product
the worker generates.
2. Direct payments: Financial benefits like employer-paid insurance and vacations.

Factors influencing the design of compensation plan

• Legal considerations in compensation


• Union influences on compensation decisions
• Corporate policies and competitive strategy
• Policy issues affecting the plan of an organization

Establishing Pay Rates

Step-1
The Salary Survey: A survey aimed at determining prevailing wage rates. A good salary
survey provides specific wage rates for specific jobs. Formal written questionnaire
surveys are the most comprehensive, but telephone surveys and newspaper ads are also
sources of information.

Step-2
Job Evaluation: A systematic comparison done in order to determine the worth of one
job relative to another. Job Evaluation method includes:

1. Ranking: Involves ranking each job relative to all other jobs, usually based on overall
difficulty. There are several steps in this method:
• Obtain job information for each job
• Rank jobs by department or in clusters
• Select just one compensable factor
• Rank jobs

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• Combine ratings
2. Job Classification: Categorize jobs into groups
3. Point Method: A number of compensable factors are identified and then the degree to
which each of these factors is present on the job is determined.
4. Factor comparison: Ranking jobs according to a variety of skill and difficulty factors,
and then adding up these rankings to arrive at an overall numerical rating for each given
job.

Step-3
Group Similar Jobs into Pay Grades: A pay grade is comprised of jobs of
approximately equal difficulty.

Step-4
Price each Pay Grade-Wage Curves: This curve shows the relationship between the
value of the job and the average wage paid for this job.

Step-5
Fine-Tune Pay Rates: A series of steps or levels within as pay grade usually based upon
years of service.

Benefits

Indirect financial and non financial payments employees receive for continuing their
employment with the company.
There are several types of benefits:
 Supplemental Pay Benefits
 Insurance Benefits
 Vacations and Holidays
 Sick Leave
 Parental Leave and Family Leave
 Medical Leave

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 Retirement Benefits

Conclusion

British American Tobacco is one of the reputed multinational companies in Bangladesh. They
have continued their business with good reputation. As a leading company in cement industry
they always try to maintain the highest quality of their products. Their human resource
department is strong & treats their employees as an asset. BAT has already earned reputation as a
very potential Multinational Company of the country. This has been possible due to skilled
manpower, which has been developed by taking proper recruitment and selection strategies and
giving sufficient training and development opportunities and also retaining their employee
through providing adequate compensation and benefit .We write in no uncertain term that BAT is
functioning very well and we hope that it will continue its operations and will become the
trendsetter of the Human Resource Management practices of Bangladesh.

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