Chapter-1: INTRODUCTION

Rationale for Selecting the Report

Background of the Organization

Objective of the Report

1.1. Rationale for Selecting the Report

Human Resource Management (HRM) is concerned with the acquisition,
development,

control

and

maintenance

of

Human

resources

in

an

organization. It can also be defined as the management of the workforce of a

business organization to ensure sufficient staff levels with the right skills,
properly rewarded and motivated. Human Resource Management (HRM) is a
planned approach to managing people effectively for better performance. It
aims to establish a more open, flexible and caring management style so that
staff will be motivated, developed and managed in a way that they can give
of their best to support departments missions. Good HRM practices are
instrumental in helping achieve departmental objectives and enhance
productivity of any fast growing organization. Organizational Commitment
involves with an employees loyalty to the organization, willingness to exert
effort on behalf of the organization, degree of goal and value congruency with
the organization, and desire to maintain membership. When employees
believe that their organization intends to support them and expresses its
commitment to its employees through its HRM practices (training, rewards,
equal employment opportunity, etc.), it makes the employees more
committed to the organization. Eisenberger et al (1990) discuss that those
employees who feel that they are cared for by their organization and
managers have not only higher levels of commitment, but also they are more
conscious about their responsibilities, have greater involvement in the
organization, and are more innovative.

Internship has merged the theoretical and practical knowledge which is

important in our future life. For developing the practical knowledge I want to
do internship. As our educational system predominantly text based, inclusion
practical orientation program, as an academic component is an exception to
the norm. As the parties; educational institution and the organization
substantially benefit from such a program, it seems a win-win situation. The
process establishes networking contracts, which may help student to get a
job, which means students can train and prepare them for the job market.
Internship

experience

gives

professional

experience

which

practical

orientation provides positive development in professional arena.

1.2. Background of the organization

Homeland life insurance Company limited (HOLICO) was formed in
1996. Today Homeland Life, with its Head Office in Dhaka operates in whole
over Bangladesh. Homeland Life Insurance Company Limited offers a way to
replace the loss of income that occurs when someone dies (usually the
person who produces the majority of income in a family situation). It is a
contract between you as insured person and HOLICO that is providing the
insurance if you die while the contract is in force, the Homeland Life
Insurance Company Limited pay a specified sum of money free of income tax
Cash benefits to the person
or persons you name as beneficiaries or nominees. Our Life Insurance Plans
do more that just replaces the loss of income that occurs if you die. It should
also provide money to cover the new costs that arise after your death funeral
expenses, taxes, probate costs, the need for housekeepers, child care, and so
on. And those cash benefits should provide for your families future needs as
well, including education for your children and part of all of your spouse's
retirement needs. In almost all cases, your beneficiary can use the cash
benefits in the way he or she sees fit, without restriction.
Homeland Life Insurance Company Limited is first time introduce Islami
Life

Insurance

on

basis

of Quran

&

Sunnah in

Bangladesh.

Homeland Life Insurance Company's primary method of distribution around

the country is the agency network. HOLICO's agency offices, servicing centers
and affiliates market a board range of life insurance product through a
network of some agents & development officers countrywide. We emphasize
professional Homeland Life Insurance Company's policy of developing
local talent to resource its operations has greatly contributed to its success in

understanding, meeting and responding quickly to changing customer needs

and market conditions. We are primarily staffed with local personnel who are
constantly studying the needs of individuals and developing innovative
products to the specific requirements of each district of Bangladesh. This
long-standing approach is the foundation of our leadership, because we
understand local market needs and conditions. Local awareness typifies
HOLICO's previous history and continues to this day. skill development
through continuous education and field training.

1.2.1. Mission
To be a strategic long-term partner with Homeland Life Insurance Company, providing
quality products, legendary service and uncompromising marketing programs and
distribution support that:
Meet the needs of Homeland Life Insurance Company Members,
Strengthen the brand and enhance the value of Homeland Life
Insurance Company Membership
Provide a competitive return to our owners and contribute
meaningful revenue to Homeland Life
Create a positive environment for motivated associates to grow and
contribute to the success of Homeland Life Insurance Company.

1.2.2. Vision
To be the life insurance company of choice among Life Insurance Companies
and their members for quality life insurance solutions that help to ensure
financial security and peace of mind..

1.2.3. Corporate Information Profile

Address

: Head Office: PMG (Ground Floor)

R # 136, H # 31, Gulshan 1,
Dhaka-1000.
Tel: +88 02 9851921, 9851922
Fax: +88 02 9851920
E-mail: sales@pmgbd.com
Web site: www.pmgbd.com

Company Registration Date

: May, 23, 2005

Data of Registration by the Controller of: September 15, 1996

Insurance
Registered Office

: Ellal
Chamber
(2nd
11,
Motijheel,
Dhaka-1000, Bangladesh.

Floor)
C/A,

Authorized Capital

: Ten Crore Taka.

Paid up Capital

: Three Crore Taka

Life fund

: Taka 153.22 Crore

Number of Director

: 22 (Twenty Two)

Auditor

: A Haque & Co.

Chartered Accountants

Actuary

: Mr. Mohammad Sohrab Uddin, Ph.D,

AIA
Flat # A-04, House # 65/A, Road # 15/A
Dhanmondi R/A, Dhaka-1209

1.2.3. Organizational Organogram

1.2.4. Hierarchy of the HR & Admin Department of

Homeland Life Insurance Co. Ltd

1.2.5. Ownership structure

Organizational hierarchy of any organization represents the chain of
command of the overall organization. It is very difficult to maintain a
systematic organizational hierarchy. While doing so, many organizations can
attain its concerned vision and mission. This chain of command is also
necessary for HOLICO. The organizational hierarchy of HOLICO is presented
as follows:

1.2.6. Composition of the board

Chairman
Managing Director
Board of Directors
Advisors
General Manger/Chief Engineer & Equivalents
Deputy General Manager/Add. Chief Engineer
Assistant General Manger/Deputy Chief Engineer & Equivalents
Manger/Executive Engineer & Equivalents
Regional Sales Manager & Equivalents
Dy. Manager/Sr. Engineer & Equivalents
Asst Manger/Area Sales Manger/Engineer & Equivalents
Sr. Executive/Asst Engineer & Equivalents
Executive/Territory Sales Manger/ Sub-Ass. Engineer & Equivalents
Officer/Jr. Executive
Supervisor

1.3. Objectives of the Report

1.3.1. Broad objectives
The general objective of this report is to complete the internship program and
submit a report. As per requirement of MBA program of AIUB, one student
needs to work in a business organization to acquire practical knowledge
about actual Business operation. To understanding and get hand on
experience on General HR Practice on HOLICO (Bangladesh) Limited. So,
General objective is to relate between theories and practical knowledge. And
want to know about training section of Human Resource Department of
HOLICO (Bangladesh) Limited.

1.3.2. Specific objectives

To understand and analyze the overall General HR Practice on
Homeland Life Insurance Co. Limited.

To fulfill the partial requirement of MBA program.

To understand the function of Human Resource Department of HOLICO

(Bangladesh) Limited .

To know how they maintain a large number of workers in different departments.

To know in which basis they evaluate their performance appraisal.

To know what methods of training organize to prevent any kind of accident.

10

To know how they ensure health and safety issues for employees.

To describe HRM practices and Organizational commitment.

To examine the impact of HRM practices on employees organizational

commitment.

To make suggestion for policy implication in the light of findings of present study.

Chapter-2: ACTIVITIES UNDERTAKEN

Work Related

Organization Wide

Other Relevant Activities

11

2.1. Work-Related
I started my job program in Homeland Life Insurance Co. Ltd on 3 rd June 2012.
My supervisor sir was Mr. Golam Azom, Assistant Manager. I had plenty of
opportunity to understand the sectors of office environment.

2.1.1. HR Planning & Practice in HOLICO

Human resource management practice in Bangladesh is a new trend.

Homeland Life Insurance Co. Ltd always gives importance on HRD. This
department
development,

performs

the

motivating,

duty
job

of

recruiting,

designing,

selecting,

performance

training

and

appraisal

and

rewarding and giving benefits etc.

12

2.1.2. Human Resource Planning

HR planning includes job analysis, job description and job specification

Job analysis is an assessment that defines jobs and the behaviors necessary to
perform them.

Job description is a written statement of what a job holder does, how it is done
and why it is done.

Job specification is a statement of the minimum qualification.

HR-planning attempts to reconcile an organizations need for human

resources to achieve future organizational objectives. The main reasons for
formal HR planning are to achieve more satisfied and more developed
employees and more effective equal employment opportunity planning.
Homeland Life Insurance Co. Ltd has a separate HR department which is
independent and reports directly to the company. For the employees there is
systematic in-house training in home and abroad. To motivate

employees

along with salary and benefits; the company provides various facilities like
free transportation, free accommodation in factory employees, free internet
facility, production incentive, 24 hours free medical service , on site sports.
Also provides production and accommodation facilities include full time
supply of safe drinking water, adequate lighting and ventilation facilities.
Homeland Life Insurance Co. Ltd Bangladesh is an equal opportunity
employer, as it makes good business sense to recruit, select and appoint
based

on

the

skills,

qualifications,

experience

and

competencies

of

candidates rather than personal factors. Equal opportunity ensures that the
best person is recruited and selected for the job regardless of the presence of
some discriminating factors. Homeland Life Insurance Co. Ltd, Bangladesh
doesnt consider the following factors to gauge the qualifications of a
candidate.

Political belief

13

Religious belief
Race
Sex / Gender
Color
Marital Status
Impairment

2.1.3. HR Administration
We know that the word Administration means controlling people. In
Homeland Life Insurance Co. Ltd, HR Administration is much more than just
controlling. It includes motivating the workforce, encouraging them to be
more productive and innovative, leading or selecting or providing an
appropriate leader for a leaderless team.

Some smaller and simpler day-to-day functions are carried out by the
Administration as well. These includes employees leave balance monitoring
and approving if they can avail leave, if yes then planning and suggesting
how many days, which days etc. Checking and approving employees
different loan (House Building, Personal, Car etc.) requests. Administration
also carries out quarterly Reward and Recognition event which is called The
Town Hall Meeting. Here Homeland Life Insurance Co. Ltd employees get
rewarded based on their quarterly performance evaluation. Administration
also has to undertake some harsh duties which are Show Cause letter issue,
Warning letter issue, issuing letter of Termination, issuing Dismissal Order,
Audit and Investigation etc. These are certain unavoidable and rare incidents
caused mostly by employees and their personal issues that directly violate
HOLICOs code of conduct.

The HR IMS Software specially designed for Homeland Life Insurance

14

Co.Limited is used by the Administration for employee record updating.

Administration also carries out Confirmation, Renewal of Contract and
Promotion formalities.
The HR Administration covers the following tasks:

2.1.4. Leave System

The policies followed for employee leaves management based on the types of
leaves and their criteria are given below:

Annual Leave: All officers will become eligible for annual leave of 24 working days
after completion of one-calendar year. Of these 24 days 15 days must be taken as
consecutive leave each year. Any pending leave may be carried forward to the next year.
Annual leave encashment facilities may be allowed to the person for a maximum of 90
days at the time of Employees leaving the SCBL. Any leave taken in advance to be
adjusted during the final settlement period.
Casual/Sick Leave: Sick leave up to 14 calendar days can be granted per year to an
employee who may be unable to attend duty due to sudden illness or urgent private
affairs. Casual leave up to 10 calendar days can be granted per year. Not more than 2 days
casual leave can be taken at a time in a month. Casual Leave more than 3 days will be
considered as sick leave and has to be supported by medical reports. In case of prolonged
illness the Managing Director may grant medical leave in excess of sick/casual leave with
full pay and allowances for a period up to one month.
Maternity Leave: Female (confirmed) employees will enjoy 4 months maternity leave.
One employee will be entitled to avail this leave for 2 times in her entire service period.
Study Leave: Study leave of maximum 2 years can only be granted to an employee
without pay and allowances provided he/she has put in at least three years of service. This
Leave is only granted to those employees who have achieved a minimum of 3 years of

15

service record with the HOLICO and also to those who are due to retire within 5 years of
the date on which he/she is likely to return from the study leave. This leave shall,
however be allowed in the entire period of service.
Leave without Pay: Leave without pay may be granted to an employee in special
circumstances where no other leave is admissible under these rules. In case of Leave
without Pay, the period does not exceed 60 days.
Leave during Probation Period: For sick leave in the probation period, the leave has to
be specially mentioned by the department. Casual leave will be granted to probationary
employees after completion of 6 months. Any leave taken prior to completion of 6
months will be adjusted against the casual leave.

Encashment Facilities of Annual Leave: Annual leave encashment facilities may be

allowed to the employees for a maximum of 90 days (based on last basic) at the time of
employees leaving the HOLICO.

2.1.5. Probation and Confirmation

The terms of probation are as follows:

A person selected for appointment with less than 3 years job

experience will be on probation period of 6 months.
An employee with job experience of 3 years or more will be on
probation for 3 months.
In the event of the probationers failure to show satisfactory progress and
acquire required efficiency during employees probationary period, the
appointing authority may, at its discretion, extend his probationary period by
a maximum of additional 3 (three) months, or dispense with his service by
giving one months notice or by paying a sum equal to one months pay
without

assigning

confirmation

in

any

the

reason.

specified

An
post

officer

shall

become

subject

to

employees

eligible

for

successful

16

completion of the period of probation. In the case of nine months, if the

person fails to show satisfactory progress, employees appointment will be
terminated. The confirmation of service of all officers and employees in the
services of the HOLICO shall take effect on and from the date as will be
specified in the order of confirmation
After the probationary period of six months or one year the administration
send the appraisal form to the Department Heads. After completing the
appraisal form send the form to the administration. In the procedure the HRD
head send this appraisal form with his approval signature to the Deputy
Managing Director of Homeland Life Insurance Co. Limited to approve and
forward it Managing Director of Homeland Life Insurance Co. Limited and
after that it will be approved signed by the Managing Director. According to
the comment and remark of appraisal form the employee will get the
confirmation with increment of salary or confirmation with promotion or no
confirmation.

2.1.6. Promotion Pattern

Promotion is a continuous process by which the employee motivates for
batter work; get the price for employees better work. In HOLICO there are
two types of promotions

Regular Promotion: Regular promotion is given according to the employees regular

performance. When the supervisor or department head of the employee evaluate that his
employee is become an asset for the HOLICO and deserve promotion then the supervisor
or the department head take a promotion appraisal form from HRD and recommended the
employee for promotion. In the procedure the HRD head forward it Managing Director of
Homeland Life Insurance Co. Ltd and after that it will be approved signed by the
Managing Director. According to the comment and remark of appraisal form the
employee will get the promotion with increment of salary.

PM Promotion: Performance Matter (PM) is the annual performance report of individual

employee of Homeland Life Insurance Co. Ltd. According to Performance Matter
ranking scale the employee can get promotion in the job grade of their own. According to
17

the policy any employee cant get any promotion within a year after the employees
joining in the Homeland Life Insurance Co. Ltd. And on the other section the employee
can get promotion after six months of his previous promotion

2.1.7. Resignation
The following sections will display the policies of Homeland Life Insurance Co.
Ltd regarding its employees resignation and termination situations. This part
will discuss about the policies and procedures for resignation or termination
in situations when:
A regular employee wishes to resign

A probationary or temporary employee wishes to resign

When a regular employee is terminated

When a probationary or temporary employee is terminated

Resignation of Regular Employee: A confirmed employee may leave or discontinue

from the services of the HOLICO by giving one month notice, in writing or pay to the
HOLICO as compensation an amount equal to the employees total pay for one month.

Resignation of Probationary or Temporary Employee: Probationary or any temporary

employee shall leave or discontinue employees service from the HOLICO by giving 15
(fifteen) days prior notice in writing of employees intention to do so or pay to the
HOLICO as compensation an amount equal to employees total pay for fifteen (15) days.
Note: Certificate will not be provided to staffs who were forced to resign, got
unsatisfactory rating in their Performance Matters or have integrity issue
and non-confirmed staff.

2.1.8.Resignation Process
18

Resignation submitted to line manager

With the acceptance & recommendation line

manager forwards it to departmental/
divisional Head

Resignation letter forwarded to HR

HR will take final approval from Managing

Director to start the process

Resigned staff will collect clearance form

from HR which to be cleared by all
concerned Dept.

The filled up clearance form will then

sent to Finance for final settlement

After final settlement HR will

take exit interview of the
resigned staff

HR will prepare the release letter

and a certificate

19

2.1.9. Termination

Termination of Regular Employee: The competent authority may terminate the services
of a confirmed employee or call upon him/her to resign without assigning any reason, by
giving him/her one month notice in writing or on payment of one month substantive pay
in lieu of such notice and the employee shall not be entitled to any form of compensation
for termination of service.

Termination of Probationary or Temporary Employee: The service of a probationer or

a temporary employee shall be liable to be terminated by the competent authority without
assigning any reason without giving him or her any notice and the probationer or the
employee shall not be entitled to any form of compensation for termination of service.

2.1.10. Resignation and Settlement Procedure

The official formalities for resignation and settlement cases administered by
the concerned department and HRD are sequentially shown below:

Serial
Numbe
r

Tasks

Working Days
Required to
Complete the
Task

Resignation letter must be forwarded to HRD by Proper

signing.

2 Days

After Receiving Resignation/Termination/Dismissal Letter

with handover and takeover documents HRD will due
clearance from various departments.

4 Days

HRD will do the final settlement work after having

clearance.

4 Days

FAD will pay the final settled amount after having final
Settlement documents from HRD.

2 Days

If separated staff has liabilities with the HOLICO then

the concerned department/owner of liabilities will take
Initiatives.

Reasonable Time

20

HRD will send the personal file to Organic after Final

settlement done in normal case.

Once in a month

In case of unsettled matter HRD will hold the files.

Until settlement

Total

Reasonable
Time

Orogenic is a company which helps HOLICO to archive their personal files.

2.1.11. Reward

Reward and Recognition is a way to express appreciation for another

employee's hard work, dedication and contribution to the Homeland Life
Insurance Co. Ltd. There are many levels of Reward and Recognition, to
ensure both small contributions as well as the larger ones is recognized.
There are four levels of rewards and recognition:
LEVEL 1: Individual Contribution Award
LEVEL 2: Departmental Committee Award
LEVEL 3: Organizational Competence
Award LEVEL 4: Chairmans Excellence
Award

Spot award: This is an award is given to employees on the spot recommended by the
customers or the employees very nicely handle any difficult client /situation.

2.2. Organization Wide

2.2.1. Functional/Departmental Strategy or HRD

21

Homeland life insurance Company limited (HOLICO) was formed in

1996. Today Homeland Life, with its Head Office in Dhaka operates in whole
over Bangladesh. Homeland Life Insurance Company Limited offers a way to
replace the loss of income that occurs when someone dies (usually the
person who produces the majority of income in a family situation). It is a
contract between you as insured person and HOLICO that is providing the
insurance if you die while the contract is in force, the Homeland Life
Insurance Company Limited pay a specified sum of money free of income tax
Cash benefits to the person
or persons you name as beneficiaries or nominees. Our Life Insurance Plans
do more that just replace the loss of income that occurs if you die. It should
also provide money to cover the new costs that arise after your death funeral
expenses, taxes, probate costs, the need for housekeepers, child care, and so
on. And those cash benefits should provide for your families future needs as
well, including education for your children and part of all of your spouse's
retirement needs. In almost all cases, your beneficiary can use the cash
benefits in the way he or she sees fit, without restriction.

2.2.2. Linking Departmental Strategy with Corporate

Strategy
How the Corporate Strategy has been linked with the Departmental Strategy
of HRD is discussed in this section. HRD also made the promise that the
Department will do everything possible to realize Homeland Life Insurance
Co. Ltds ambition to become the largest Insurance Co. of Bangladesh by the
end of Year 2010. In an interview with Mr. Kazi Ahsanul Alam Ansari Head of
HR & Administration, it has been confirmed that HRD of Homeland Life
Insurance Co. Ltd is fully in line with their Corporate Strategy. Heavy
recruitment is first choice of the HRD now. Without recruitment it will not be
possible to cover all the expansions in different districts done by the Business
Teams. For example, it has been seen that the newly opened Monglas
Factory was not yet fully decorated and furnished due to bad weather but all
the employees assigned to that Factory were reporting for duty on the
tentative day of opening.

22

The Head of HR also mentioned with utmost importance that rigorous training
and

development

is

compulsory.

Employees

must

show

satisfactory

performance at least on average within their respective departments.

But to perform well and being target oriented, employees must be
communicated the message of the organization, the corporate strategy. The
message of Breaking Barriers 2010 is conveyed in every scope possible,
through market gimmicks, in speeches, department meetings, MANCOM
meetings, through internal mails, in Town Hall Meetings, even at lunch. The
message must be communicated; the strategy must be incorporated in every
department. The Head of HR as well as all the staff in HRD is now fully aware
of this short term plan and they are all trying to give output at their peak
performance level.

2.2.3. HR Practices in HOLICO

HRM practices of HOLICO have been reviewed on some individual HRM

practices as follows. These HRM practices have significant role in influencing
employees organizational commitment.
a. Recruitment and Selection
b. Training and development.
c. Performance appraisal
d. Promotion
e. Incentives
f.

Benefits

g. Working Condition

a. Recruitment and Selection process: Recruitment is the process trough

which the organization seeks applicants for potential employment. Selection
refers to the process by which it attempts to identify applicants with the
necessary knowledge, skills, abilities and other characteristics that will help
the company achieve its goals, companies engaging in different strategies
need different types and numbers of employees. The strategy a company is

23

pursuing will have a direct impact on the types of employees that it seeks to
recruit and select.
HOLICO follows comprehensive and extensive selection procedures in their
search for the most ideal and competent professionals. The testing methods
are effectively designed in order to accurately evaluate the required
competence and skill for particular jobs. SCBL 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 HOLICO considers the following process:

Need assessment: HOLICO take need assessment to identify in which sector, it is needed
to recruit the employee for achieving their target and goals. Generally departmental heads
submit an Employee Requisition Form which is considered as formal requirement of
recruitment from concern department. Based on approval from management; HRdepartment proceeds for recruiting new employee

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 HOLICO promotion
and transfer are typically directed by MD/GM as per proposal of respective
departmental heads. Here involvement of HR department is not significant.

External: When job opening cannot be filled internally, the HRD look outside
organization for expert employees as follows:

Collect CVs from Job Fairs.

Advertise in daily newspapers.

Advertise in bdjobs.com or other career management sites.

24

Accept hard-copy submission of CV s in their office.

Accept on-line application in their office.

Usually HOLICO considers the advertisement for their external recruiting.

They mainly provide the notice of available job in both Bangla & English
dailies and Internet.

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.

Interview: The selection interview is a formal, in-depth conversation conducted to

evaluate an applicants acceptability. Trough interviews the interviewers of SRC 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.

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 HOLICO introduces 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. HR

25

department also circulates an email to all concerns about joining of new employee at
SRC, Bangladesh.
b. Training and Development program: Training is a process of learning a
sequence of programmed behavior and it is application of knowledge. It gives
people an awareness of the rules procedures to guide their behavior. It
attempts to improve their performance on the current job or prepare them for
an intended job. Development is a related process. It helps individuals to the
progress towards maturity and actualization of their potential capacities so
that they become not only good employees but better men and women. In
organizational terms, it is intended to equip person to earn promotion and
hold greater responsibility.
C. Performance Management: Performance appraisal is the process of
assessing employees past performance, primarily for reward, promotion and
staff development purposes. Performance appraisal (is) a process that
identifies, evaluates and develops employee performance to meet employee
and organizational goals. Performance appraisals are now more clarified and
they concentrate on developing organizational strengths and employee
performance.

Purpose of Performance Appraisal

To review past performance

To audit the skills within an organization

To value employees contribution

To set targets for future performance

To identify potential for promotion

To provide legal & formal justification for employment decision

To diagnose the hidden problems of an organization

d. Promotion: 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 the most difficult and important task for a manager.
For every organization promotion is extremely important, when the process

26

based on merits and skills of the employee. The employee of HOLICO,

Bangladesh are gets both rewards and punishment from their employer
based on their performance. Usually Homeland Life Insurance Co. Ltds
employees get promotion if they successfully complete 3-years in same
position. An employee of Homeland Life Insurance Co. Ltd can stay 10 years
in the same position. In some cases major problem of promotion is
discrimination and favoritism.
e. Incentives: HOLICO, Bangladesh has an approved Production incentive
bonus scheme which is based on monthly target production. The bonus is
distributed among all employees working in HOLICO. It motivates employees
and increases their working efficiency. Also it controls costs because the
employee is being paid for his/her extra effort for the benefits brought to the
organization.
f. Benefits: Benefits and rewards package are same in HOLICO for all
employees. All officers/workers get 2 Bonuses in a year, can Encash earn
leave (the amount depends upon job grade of the employee and company
policy). Each year the salary increases 10%~12% of total salary depending
upon money inflation and job market. An interest free loan facility is also
there for different grades like car loan, home loan, household loans etc. In
each three years after all most all management staffs are upgraded. All
employees also get provident fund (PF), gratuity, and welfare-fund as per
company policy. PF is a contributory fund where the rate of contribution of
both employee and company is 10% of basic. An employee becomes eligible
for

the

entitlement

of

Companys

contribution

after

three

years

of

uninterrupted service. Entitlement limit for the companys contribution is 1.

After three years of uninterrupted services- 25%, 2. After four years of
uninterrupted services- 50%, 3. After five years of uninterrupted services75%, 4. After six years of uninterrupted services- 100%. An associate must
complete 5(five) years of uninterrupted services with the company to become
eligible for gratuity benefits. Gratuity is calculated on the basis of last drawn
basic salary/wage for every completed years of service. HOLICO, Bangladesh
provides monetary support for employees during marriage ceremony and
other ethical cases.

27

g. Working condition: HOLICO provides good and safe working condition

for all employees (Appendix A) HR department is responsible for ensuring
good and safe working condition.

2.2.4. Organizational Commitment

Training

Performan

Staffing
Organization
al
Rewards

Benefits

Working
Figure 1. Conceptual Model

2.3. Other relevant activities

Air Ticket Purchasing on online
Hotel Booking

28

 Vehicle Maintenance & Distribution

File Maintenance
Office Management

Chapter-3: CHALLENGES AND

PROPOSED COURSE OF ACTION FOR
IMPROVEMENT
Problems of The Organization

29

 Proposed Course of Action

Challenges Faced in the Internship

3.1 Problems of the organization

It has a large portfolio with huge asset to meet up its liabilities and the management of this
organization is accomplished with the experts and managers in all level of management
and with a little knowledge about responsibility, it is not an easy job to find out the
difficulties of the organization Rather than recommending I would like to give my opinion
to improve in the organization and make the employees more satisfied. The following
issues that I have observed during my working experience in Homeland Life Insurance Co.
Ltd.
As per analysis on Homeland Life Insurance Co. Ltd. it is found HRM practices
will be positively related to employees commitment. A significant link is
found between HRM practices and organizational commitment. The findings

30

suggest that greater use of HRM practices would make the employees more
committed to the organization.

The effect of HRM practices in a bundle is important because an organization

uses several HRM practices and not a single HRM practice. These findings
suggest that HRM practices are important determinants of employees
commitment. The findings are consistent with a study by Edgar and Geare
(2005) which suggests that it is the quality of practice that counts and not
the quantity. As suggested by Edgar and Geare (2005) HR managers need to
conduct regular attitudinal surveys to assess employee reactions to current
HRM practices and try to find out what is working and what is not. They have
to introduce modern technology. Without using modern technology no
organization can even think of remaining in the business in near future. So
the organization must decide right now how it can equip with modern
technology. Information System should be developed. The management team
hire employee for higher post from other company instead of promoting the
employees. This situation hampers the motivation of employees of the
company.

3.2. Proposed Course Of Action

Although company has problem, there must be some solution some solutions
that help to overcome the problem. Homeland Life Insurance Co. Ltd. should
take the following steps to overcome the problems:

Homeland Life Insurance Co. Ltd easily copy the product offering of this
company therefore, the company should try continuously trying for product
innovation to gain competitive advantage over its competitors.

31

Homeland Life Insurance Co. Ltd has to increase their man power for quick
service.

Internal computer network of Homeland Life Insurance Co. Ltd. is open ended.
So any employee from HR department can get all type of data any time. Even it is
also possible to delete any data from any computer without being noticed. So this
surely reduces safety to data. So there should some password system and
restriction in those shared file system.

Homeland Life Insurance Co. Ltd. should increase the advertisement as well as
CSR Activity.

It seems that individual employee has to handle different types of job. But that is
pushing a back for an employee.

HOLICO should increase a training program for the employees.

3.3. Challenges faced in the internship

I am not facing any challenge in my internship because I worked in here in 2
year. So every information I got it as well as I have it. My colleagues of HR &
Admin Department always help me which information I didnt get. But some
confidential information I cant disclosed in this report. That is my main
limitation.

32

Chapter-4: LESSON LEARNED FROM

MY INTERNSHIP PROGRAM
Implications to Organization

Implications to Universitys Internship Programme

33

4.1. Implications to organization

I started my Job at Homeland Life Insurance Co. Ltd. on the 3rd June 2012.
Throughout the job I had great opportunity to have practical experience on
HR & Admin related service. In this period of time, I have learnt to learn about
employee handling and enhance my knowledge on relationship with
employees. From my job I learned some other things:
I learned how to speak with the people, how to write the Bill Number on
Inward Bills register book, how to write the bill. I learned the process &
procedure of HR & Admin Department. I learned how to scan. I learned how to
be punctual, earned professional skill, how to maintain organizational
discipline, how to behave with people, how to manage people, how to
communicate with people. I have also learned about self-awareness and self
assurance.

4.2.

Implications

to

universitys

internship

program
My supervisor of my university helps me a lot in internship program. From
this internship program I learned lot of things:

I learned how to follow supervisor instructions strictly.

I learned Human Resource Management from AIUB which helps me in my Job
I learned Labor Law Bangladesh from university which helps me while I have
work on the department.

34

18

 I have learned how to work with people.

I have learned how to behave with employees and communicate with themselves.
I learned to speak thoroughly in presentation in my university that helps me to
communicate with the employees.
I maintain strict discipline in my university that helps me my office discipline.
I learned difference between academic lesson and professional world.
I got one year experience about organizational life.
So, I am very thankful to my university AIUB and Homeland Life Insurance
Co. Ltd. because they gave me an opportunity to learned and earned
professional knowledge and skills.

35

36

Chapter-5: CONCLUDING STATEMENT

Recapitulation

Recommendations for Future Strategic Action

37

5.1. Recapitulation
This study has investigated the impact of Human Resource Management
(HRM) practices on employees commitment. The fundamental objective of
this report is to examine whether existing HRM practices at HOLICO make
their employees more committed to the organization.

The first goal of this study is to find whether employees consider HRM
practices as support from the organization and whether they believe that
their employers express their commitment to them through its HRM
practices. Then to examine the relationship between HRM practices and
employees commitment to find that when employees believe that the
organization intends to support them and expresses its commitment to its
employees through its HRM practices, whether these employee beliefs makes
the employees more committed to the organization. First, a company uses a
set of diverse HRM practices, and not a single HRM practice, and hence HRM
practices in organizations intend to be related. Therefore it is more important
to study the influence of several HRM practices rather than individually as
has been the case in most previous studies. Six HRM practices are included to

38

study the influence of each HRM practices on employee commitment; these

are training, performance appraisal, staffing, benefits, rewards,
working condition. It is found that all HRM practices have a significant
positive relationship with employees commitment. Performance appraisal
effectiveness is studied to find employees overall perception about the
organization. Benefits are included because it is influencing factors to reduce
employee-employer conflicts. Rewards are included as performance rewards
like promotion, benefits and opportunities results in positive attitudes and
behavior.

5.2. RECOMMENDATIONS FOR FUTURE STRATEGIC ACTIONS

Although I got lot of opportunities, knowledge, ideas there are some recommendations I
20

have gotten. These are

Students get the chance to interact with the practical job market by pursuing
internship program. Most of the times students spend with their books, they feel
very uncomfortable during their internship program, that is why they should be
given more idea about corporate world idea.
Before starting the internship program, students should have an overview of the
organization.
During the internship program every student should learn clearly about their
activities.
During the internship program students should apply their academic knowledge as
a result their academic knowledge is revised.
Students will be doing the internship on bank must learn the basic terms used in
banking and computer knowledge is must requirement.
Students should be very punctual during their internship program.
Students should also learn about different documentation process

39

 Students must review their academic knowledge relating with their major
subjects, so that they can compare what have learned in books and in practice.
24

Before the internship, an orientation should be arranged by the organization.

Sometimes students face difficulty in written communication since their course on
business communication is usually done in the forth semester. So a brief overview
should be given before starting the program.
Field trips or company visits can be arranged by the university so that students
become more outgoing.
The university can arrange a seminar on the difference between theoretical and
practical work environment.
On arranging internship for students, it should be seen that students are placed
according to the major.
The university should see if the student has got a placement according to the time.
If not, time extension must be made.

5.2.1. Other recommendations

On the basis of above study on Homeland Life Insurance Co. Ltd following
recommendations are suggested to enhance the organizational commitment to the
employees.
According to Organization Chart (Organ gram) of Homeland Life Insurance Co.
Ltd some Unit Heads are directly reporting to Managing Director, some are
reporting to General Manager (Cement Plant), some are reporting to Director
(Operation). As the Unit Head has overall authority to do the necessary steps for
the well being of his/her units HR so, it is many times, creating interdepartmental
chaos as all the Units are in the same boundary. To avoid these problems, one
overall Unit Head is recommended.

40

 The recruitment of employees of Homeland Life Insurance Co. Ltd needs to be

more systematic. Internal recruitment (replacement) can be introduced in a large
scale as many employees are serving in this organization for the last 10 years.
Though Homeland Life Insurance Co. Ltd has introduced many HRM
practices but it is found that the HR personnel are weak in cross
cultural experience, and it is the weakest point of this organization. HR
department need to be more HR oriented.

Frequency of foreign training needs to be increased.

They focus on their labor conflict issues because it may create crisis for their
business growth.
Orientation should be performed effectively specially for the new employees.
Identification and evaluation of hazards should be done by expert team.
They have to focus on leadership training for mid-level managers.
HR department play an effective role for developing their strategic plan.

5.2.2. Recommendation for University

Faculties can share practical example in the context of our own
economy.
Send student on field in different organization
Make student familiar with some business related software use and its
implication.
Invite different corporate personal from HR & Admin sector to share
their practical knowledge which helps student a lot for their future
course of preparation
Make student familiar with different practical documentation process.

41

References
Bibliography
Books

42

1. Priyanko Guchait, August 2007, Human Resource Management Practices

and Organizational commitment and Intention to leave: The mediating role of
perceived organizational support and psychological contracts, The faculty of
Graduate school, University of Missouri-Columbia, p1-111.
2. Aurther, William, and Davis, Keith, Human Resource Management, (9th
edition), McGraw-Hill Book Company, New York, 2005. p.35-60.

3. Organizational Behavior- Mc Shane

Encyclopedia
1. Employee Service Guidelines, Volume-1, Human Resources, Homeland Life
Insurance Co. Ltd

Internet

www.homelandlife.com
www.bangladesh-bank.org

www.google.com

www.wikipedia.com

Others

For preparing my report I collect all information from website, guideline, and
colleagues are helping me a lot. For this, I am really thankful to those
colleagues.

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Appendices

44