Introduction HRM is the process of managing people in organizations in a structured and thorough manner. HRM encompasses the management of people in organizations from a macro perspective. The most important tasks of the Human Resource department are to make sure that the people working in an organization 1) feel happy 2) are in the right job, and 3) get the opportunity to upgrade their skills when necessary. Therefore employee/labor relation is a very important factor of Human Resource Management. This report is made focused on the Employee – Employer relationship of Square Pharmaceutical Limited Bangladesh. . 1 Methodology This report is created on basis of face to face personal interview with HR Manager of Square pharmaceutical and gathered information from questionnaire. The interview was an open ended discussion. Some of the data and information was found on the official website of Square Pharmaceutical Ltd. Bangladesh. 1. 2 Scope of the report Industrial relations are the relationships between employees and employers within the organizational settings. The field of industrial relations looks at the relationship between management and workers, particularly groups of workers represented by a union.
Industrial relations are basically the interactions between employers, employees and the government, and the institutions and associations through which such interactions are mediated. The relationships which arise at and out of the workplace generally include the relationships between individual workers, the relationships between workers and their employer, the relationships between employers, the relationships employers and workers have with the organizations formed to promote their respective interests, and the relations between those organizations, at all levels.
Through this report we tried to know about the nature of employee employer relationship of SQUARE Pharmaceutical Ltd Bangladesh. 2. Company Profile 2. 1 Apex Pharma Ltd. Apex Pharma Ltd. (APL) is the pharmaceutical unit of the highly reputed Bangladeshi business conglomerate. APL is moving fast towards attaining its operational vision of becoming a global centre of excellence for pharmaceutical manufacturing. The company is intending to partner with multinational companies to ensure access to the latest manufacturing technologies and newest products.
Apex Pharma’s performance vision is to become one of the top 10 pharmaceutical manufacturers in Bangladesh within the shortest possible time. 2. 2 Pharmadesh Ltd. Established| July, 1960| Registration No| 1416 (July 10, 1960)| Mfg. Licence No| 20 (Biological), 74 (Non-biological)| Status| Private Limited Company| Address| 334, Segun Bagicha, Dhaka-1000| 2. 3 SQUARE Pharmaceuticals Limited (SPL) SQUARE Pharmaceuticals Limited (SPL) is the largest pharmaceutical company in Bangladesh and is leading the Pharmaceuticals sector from the very beginning.
It has been continuously in the 1st position among all national and multinational companies since 1985. Established | 1958| Founded by | Samson H Chowdhury| Converted in to Public limited in| 1991| Holding leadership position since| 1985| Company Operation emphasize on | Quality product| Existing Products| Tablets, Capsules, Suppositories, Injections, Liquids, Spray, Drops, Ointment, Cream and Powder| Export product Since| 1995| Market Share| 16. 92%| Growth Rate| 23. 17%| Award – Enterprise of the year| 2009| SQUARE today symbolizes a name – a state of mind.
But its journey to the growth and prosperity has been no bed of roses. From the inception in 1958, it has today burgeoned into one of the top line conglomerates in Bangladesh. Square Pharmaceuticals Ltd. , the flagship company, is holding the strong leadership position in the pharmaceutical industry of Bangladesh since 1985and is now on its way to becoming a high performance global player. We have gathered all information about these three pharmaceuticals and found the Square Pharmaceutical best one leading on our existing market. Rather than other two Square follow most of the HR policy.
Therefore we decided to work on focusing Square Pharmaceutical. 3. 4 Mission ;amp; Vision of Square Pharmaceutical Limited VISION We view business as a means to the material and social wellbeing of the investors, employees and the society at large, leading to accretion of wealth through financial and moral gains as a part of the process of the human civilization. MISSION Our Mission is to produce and provide quality ;amp; innovative healthcare relief for people, maintain stringently ethical standard in business operation also ensuring benefit to the shareholders, stakeholders and the society at large. . 5 Organizational Chart Group Chairman Vice Chairman Managing Director Executive Director Operation Divisional Directors General Manager Assistant General Manager Senior Manager Manager Chief Accountant Marketing ;amp; Sales Manager Plan Manager Engineering Manager Quality Assurance Manager Quality Control Manager Workers Supervisor Production Manager 3. HR Practice ;amp; Management Strategy 3. 1 Areas of HR practice in SQUARE Pharmaceutical Ltd. 1) Recruitment and selection Process 2) Confirmation 3) Promotion 4) Transfer 5) Dismissal 6) Termination ) Leave Management 8) Salary Management 9) Increment 10) Performance appraisal 11) Resignation 12) Retirement 3. 2 Company Policy The company policy of SQUARE towards employees’ facilities is an outstanding one. Square maintains a smooth and friendly relations with its employees. All the employees get the transport facilities. There are a lot of attractive facilities existing at SQUARE that the official would not want to reveal because they believe that the competitor might get advantage if these facilities are expressed publicly. 3. 3 Management Strategy
Management strategy of SQUARE Pharmaceutical is aligned with HR strategy. Square follow proactive management style. Proactive management focuses on breaking down systems and processes to find flaws and control problems before they become out of control . The proactive management foundation is an open, engaging type of management that includes gathering information from all departments or managers before making decisions. Being proactive also creates a strong learning environment for employees. Therefore the company is following OBM (Open Book Management). . Major Concern of Management 4. 1 Safety ;amp; Environment Issues Power ;amp; Generator Safety: proper power input to all equipment commissioned. Routine maintenance and regular data collection on ups and downs in power factor level is an important task. In case deviation is power factors, the data reader must report it to the Plan manager for corrective action. There is a regular-by Gas power generator installed in the factory area. This generator is being operated all the time and DESCO (Dhaka Electric Supplier Company Ltd. electricity are using when fails to supply electricity by the Gas Generator to the factory. The engine of the plant is brought under routine maintenance program. Lubricants must be changed at prefixed interval. Responsible person always checks whether the cooling system of engine is working properly or not. Power Generator is installed under a shaded room so that it remains safe from rainwater. Firefighting equipment: Special attention is given by the authority to take preventive measure attaints any types of fire hazards within the factory.
Depending on the factory area proper numbers of firefighting equipment have been installed in selected places. Caption boards containing caption “Fire extinguisher” are hanged on those selected places. The date of installation of all equipment’s are noted down and as per instruction laid down in the operating manual of the equipment new ones must replace old refills. Emergency Exit: Provision for emergency exit has been made in the factory of SQUARE Pharmaceutical. The staircase used for this purpose is wide and it can be reached all time in case of emergency and forever by (IPS) instant power supply.
Environment: All the equipment of SQUARE Pharmaceutical factory is eco friendly. The company makes sure that after production wastage should not be thrown anywhere. SQUARE train their employee to keep clean the environment through practicing use wastage box. 4. 2 Code of Conduct There are almost one hundred and fifty codes of conducts at SQUARE. Here only the labor and management related issues of code of conducts are given: * The age of any labor must exceed 18. No labor below 18 is allowed at SQUARE. * Employees working at other organizations are not eligible to work at SQUARE. Employees should be mentally and physically fit. The fitness will be approved after checking by SQUARE itself. * The minimum educational qualification that the labors should have is S. S. C. * The labors are divided into root level, contractual and permanent classes on the basis of written test and interview. SQUARE Pharmaceutical Ltd follows progressive disciplinary action for its employees ;amp; workers. Disciplinary action without punishment is usually followed for top level management of SQUARE. 4. 3 Grievance
SQUARE Pharmaceutical follows employee grievance to resolve if any problem arise that is related to work. In this process whenever an employee is confronted with a grievance, he presents his problem to his immediate supervisor. If the employee is not satisfied with superior’s decision, then he discusses his grievance with the departmental head. The departmental head discusses the problem with joint grievance committees to find a solution. However, if the committee also fails to redress the grievance, then it may be referred to Managing Director.
If Managing Director also fails to redress the grievance, then such a grievance is referred to voluntary arbitration (as per our existing labor law) where the award of arbitrator is binding on both the parties. 4. 4 Placement SQUARE Pharmaceutical LTd has two factories. One is situated in Pabna and the other one at Kaliakoir. During recruitment in the factory usually the company tries to give preference of employees about their placement. 5. Employee- Employer relationship dynamics Relationship dynamics basically talks about the trustworthiness between the employer and employee.
It basically indicates about how much open minded they are to each other. Balance of Power: In the Pabna plant there exists a labor union but none at Kaliakoir. Almost about one-third of the total employees are associated with the labor union. The power is well balanced in the union. No one enjoys power more than other not even a little bit. The only role of power here is to solve any problem without any chaos and fairly. The process of settlement can be pointed out as follows: * They fairly handle the issue. * No pressure is created to bias the issue. Through a long lasting discussion the final outcome of the issue is expressed. Role of Power: Power is prevalent in both parties that are employers and the employees. Employers have lockouts, no work no pay policy whereas employees go on strike or boycott the company. All these tactics are harmful for the production process and improvement of the company as well as for the two parties involved. Square therefore use to limit role of power try to avoid strike, lockout so that production process goes smoothly. Trade Union ;amp; Collective Bargaining
There is a broad scope of collective bargaining in SQUARE Pharmaceutical Ltd as they have trade union in Pabna. Answering our question why they do not have TU at Kaliakoire HR Manager ABDULLAH AL MAMUN said the workers of Kaliakoire are not that much concern about having trade union and there is no necessity of having another TU as we already have a existing Trade Union in Pabna. Workers of Kaliakoire get the same benefits ;amp; salary as workers get in Pabna. 6. Employee Satisfaction factors Wage Structure The wage structure at SQUARE Pharmaceutical is 2 types depending on the employee level.
These are: * Management level * Labor level For management level the range of wage starts from minimum 25000. The maximum amount cannot be expressed due to confidential issue. For labor level the range of wage starts from minimum 4500 and the maximum amount is around 6000. The range also varies due to a variety of labor level. These are: * Root level labor * Contractual labor * Permanent labor * Daily labor Others Facilities ;amp; Incentives SQUARE provides attractive compensation and incentives plan in comparison to its competitors.
Except remuneration the compensation includes: * House rent facility * Transport facility * Provident fund facility * Group insurance * Medical insurance * Death insurance The incentives are completely based on performance. This includes: * Bonus is given five times a year. * The company provides 5% of its total to each employee as an incentive every year. * Remuneration of the employees is adjusted according to the inflation of that moment. SQUARE cares its employees very much. So it increases its employee’s remuneration according to the change in inflation.
Labor Law 2006 (Not followed in SQUARE Pharmaceutical Ltd) SQUARE does not follow the labor law 2006. According to SQUARE, labor law 2006 is such an old and vague idea. It was formulated in the then previous time for the well being of the labor. But the world has changed drastically from then in every aspect. That’s why SQUARE follows a better a structure rather than labor law 2006 which attracts the labor. For example at SQUARE the minimum wage of labor is about 80% higher than the existing labor law 2006. All other facilities are also quite high standard in comparison with the labor law 2006.
The HR department is responsible for dealing with the labor relation issues and they do it very carefully. Promotion Promotion depends on employees performance which is usually done through Performance appraisal method 2 times in a year. Worker’s promotion is very rare but it is very usual in managerial level. 7. Reasons behind popularity of SQUARE Pharmaceutical Ltd Bangladesh With its quality-assured products, SQUARE can and will expand its footing in existing markets. The reach can be expanded further to newer countries. Most important is the export of generic drugs to regulated markets such as the U.
S. and EU countries. SQUARE pharmaceuticals have already put in place pharmaceutical manufacturing facilities to comply with U. S. FDA and U. K. MHRA standards. Recruitment Process To recruit the employees for different departments SQUARE Pharmaceutical Ltd. goes through several steps, these are performed by the HR department: Orientation Training Issue Appointment letter Inform Selected candidates Candidates verification Compile interview results Short listing the potential applicants Schedule ;amp; arrange the interview Conduct Interview
Collecting ;amp; Screening StaffJob Advertisement Staff Requisition Check ;amp; verify organizational chart Decision to recruitment sources Figure: Recruitment Process of SQUARE Pharmaceutical Ltd Turnover Rate SWOT Analysis / Findings of SQUARE Pharmaceutical Ltd. Strength: A few top-level companies are going beyond WHO GMP guidelines, aiming to get into regulated markets like the U. S. and EU countries etc. , putting up manufacturing facilities of U. S. FDA and U. K. MHRA standards. Among them are Square Pharmaceuticals, the leader of the industry.
After catering to the country’s needs, pharmaceuticals from Bangladesh are now being exported to 68 countries in Asia, Africa and Europe. At Present SQUARE is leading in export. Weakness: Restrictions on manufacturing under license have reduced the availability of products in Bangladesh from multinationals that do not have a direct presence in the country. The undeveloped road facility is also causing serious problems in the business of SQUARE pharmaceuticals. But the transport facility of SQUARE is an excellent one. Opportunities: As an LDC, Bangladesh can continue with patented products up to 2015.
This has created a big opportunity to make available NCEs (new chemical entities) to the LDC’s until then. With about 45 years of experience in pharmaceutical formulation and marketing, Bangladesh is in a position to share with LDCs and developing countries where needed. Threats: Restrictions on dietary supplements and OTC products in mass media are quite common in advanced economies because of research findings but are not allowed in Bangladesh. This has created a major scope for illegal import of such drugs from neighboring countries and promoted on satellite channels.
Due to advances in science, combination drugs in vitamins and cardiovascular and dermatological treatment are common in advanced countries. Local regulatory authorities’ reluctance to allow multiple active drugs is depriving the country of recent advancements in pharmaceutical formulation. 8. Recommendation SQUARE is quite conscious about the problems of employees. There is hardly any shortage of benefits at SQUARE. Still I am proposing some recommendations that might help their strategy: * SQUARE Pharmaceuticals is in need of more segmentation tools in an ongoing effort to establish close and sustainable relationships with customers. As the Company has secured license under UK MHRA, it has created a tremendous opportunity for SQUARE to expand globally. Not only that, in nation after nation, regulations prohibiting foreign companies from entering domestic markets and establishing production facilities, or acquiring domestic companies, have been removed. As a result of these two developments, there has been a surge in both the volume of international trade and the value of foreign direct investment. So, SQUARE must grab this opportunity. * Today’s world is changing very rapidly, in every sphere.
Therefore, updating production plant alone is not enough to cope with the new environment. SQUARE has to have a keen eye if there is any change in HR development, transport, information technology, consumer relation management, medical science and so on. * SQUARE should have arrange recreational and amusing tours half yearly or may be yearly for the employees. It will remove the taste of monotonous daily life. * The Dhaka plant should have a labor union to easily communicate with the HR officials. 9. Conclusion Bangladesh is one of Asia Pacific’s most promising opportunities for drug makers with $700 million sector.
There are currently a total of 245 companies out of which 200 have operations in the country. The market is totally dominated by the local companies and there are only 5 multi-nationals currently operating. The total numbers of brands that are registered in Bangladesh are currently estimated to be 5,300, while the total number of dosage forms & strengths are 8,300 from 450 generics. SQUARE today symbolizes a name – a state of mind. From the inception in1958, it has today burgeoned into one of the top line conglomerates in Bangladesh. Square Pharmaceuticals Ltd. the flagship company, is holding the strong leadership position in the pharmaceutical industry of Bangladesh since 1985. At the end of 2007 as well, Square was the leading company with annual sales worth BDT 68. 9bn (USD 106. 5mn) and market share of 18%. Such is the dominance of Square that the closest competitor Beximco has only about half the market share and is now on its way to becoming a high performance global player. Appendix Questionnaire & Answers HR Executive 1. How much sympathetic is HR Department towards the labor? Ans. There are 2 physicians remain in the plant for 24 hours to take care of the labors. Tiffin, lunch and dinner is served to the labors for free. Transport facility is also free of cost. 2. Do the employees satisfied with the HR policies? Ans. : Analysis suggests that the employees are highly satisfied with the HR policies. The “Spill over Effect” also proves the fact. 3. Is there any quota reserved for the employees of SQUARE? Ans. : SQUARE handles the selection process very fairly. There is no single quota reserved for the employees of SQUARE. Only the qualified candidates get the chance to work at SQAURE. . Does the HR strictly follow the rules? Ans. : The HR department follows the rules strictly. For Example the presence time and leave time is strictly maintained. Even the M. D has to show causes for being one minute late. 5. As the company has both plant and office at different locations how does it keep track with that? Ans. : By a combined team work the HR department maintains the track smoothly. The HR officials both in plant and office share the same power. Here is the designation of the HR official who gave us this whole information: ABDULLAH AL MAMUN EXECUTIVE Human Resources Division bdullah. [email protected] com SQUARE Pharmaceuticals Limited Labor 1. What is the working time? Ans. : The working time is from 8. 00 am to 5. 00 pm. 2. Is there any discrimination among the labors? Ans. : There is no gender or other discrimination among the labors at SQUARE. 3. Does child labor exist? Ans. : No. It’s strictly prohibited here. 4. Are the labors satisfied with the benefits provided? Ans. : The labors are highly satisfied with the benefits. 5. Do they have a smooth relation with the officials? Ans. : Yes. They have a friendly relation with the officials.