Chapter -1 Introduction 1.1 Rationale for Selecting the Report The study was conducted to evaluate the “Compensation and Benefit Analysis” procedure by HR and Admin of Opsonin Pharma Ltd. As the chosen organization is the giant Pharmaceutical company in Bangladesh, I have decided to find out the whole process and procedure of “Compensation and Benefit Analysis” system and practices regarding employment which is used inside the organization and also implemented in the activities based on the previous information and records and their current practices, that I obtained from the organization. 1.2 About Opsonin Pharma Ltd. Pharmaceuticals sector is one of the most high growth and highly profitable industries in the country. At present, pharmaceutical industry is the second largest taxpayer to the countries exchequer. Most of the players of the industry enjoy high profit margin. One of the unique features of the industry is that import is restricted for products that are being produced by two local companies. The regulation encouraged local private investors in the sector. Advertisement being banned for drugs, more emphasis is given on sales force. Opsonin Pharma Ltd is committed to improve its position continuously as a Leading Pharmaceutical company in Bangladesh and strengthen its global presence. It creates value for its [1]
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Chapter -1 Introduction
1.1 Rationale for Selecting the Report
The study was conducted to evaluate the “Compensation and Benefit Analysis” procedure by HR
and Admin of Opsonin Pharma Ltd. As the chosen organization is the giant Pharmaceutical
company in Bangladesh, I have decided to find out the whole process and procedure of
“Compensation and Benefit Analysis” system and practices regarding employment which is used
inside the organization and also implemented in the activities based on the previous information
and records and their current practices, that I obtained from the organization.
1.2 About Opsonin Pharma Ltd.
Pharmaceuticals sector is one of the most high growth and highly profitable industries in the
country. At present, pharmaceutical industry is the second largest taxpayer to the countries
exchequer. Most of the players of the industry enjoy high profit margin. One of the unique
features of the industry is that import is restricted for products that are being produced by two
local companies. The regulation encouraged local private investors in the sector. Advertisement
being banned for drugs, more emphasis is given on sales force.
Opsonin Pharma Ltd is committed to improve its position continuously as a Leading
Pharmaceutical company in Bangladesh and strengthen its global presence. It creates value for its
customers and other stakeholders by providing highest quality health care solutions through
appropriate application and development of resources and processes.
1.3 Historical Background
The Opsonin Pharma Limited Started it business operation in 1956 as a partnership business
in the name “ Opsonin Chemical Limited”. In the year 1976 the legal status was subsequently
change & it got listed as private limited company. In 2005 the company was renamed as
“Opsonin Pharma Limited”.
1956-2003 Integrating the visionary imagination for basic industrial development in this country
by our Founder Chairman Late Abdul Khaleque Khan, the successors have already established a
[1]
number of innovative & import substitute industrial units mainly in the pharmaceuticals and
related sectors. The seed that was planted in the year 1956 now has become a tree. The way we
walked though was not a smooth and plain one. After a thousand miles walk the plant of distilled
water has now opened a new horizon in Bangladesh pharma industry. From the inception we
always believed in nation building activities. Our cherished dream is to serve the mankind and
the man behind the mankind. This dream has come into reality as a result of thousand miles
throbbing walk of thousand people.
1956- Partnership business started.
1962- Manufacturing of injectables
1976- Enlisted as private limited company
1980- Expanded nationwide marketing & distribution
1982- Manufacturing of antibiotic capsules
1985- Export of products to South East Asia and the Middle East
1996- Manufacturing of suppositories first time in Bangladesh
1997- Manufacturing of soft gelatin capsules
2000- ISO 9001 certification
2003-Site development and planning for new factory
2005-Company name has changed from 'Opsonin Chemical Industires Ltd.' to 'Opsonin Pharma
Ltd.'
Support Division consist of the following departments-
1. Operational: Deals with the processing activities of the business department.
2. Finance: Deals with the financial of organization and reporting.
3. Human Resource: Deals with People of the organization.
4. Administration: Ensure the smooth running of the organization by providing logistic
support etc.
5. Commercial: Commercial Department deals with purchase of raw materials.
6. Marketing: Deals with the marketing of our Production.
[2]
1.4 About Company Profile
Company Address:
Corporate Office:
Opsonin Building, 30 New Eskaton Road, Dhaka1000, Bangladesh
Opsonin Pharma Ltd is a manufacturer of the medicines & healthcare products in Bangladesh.
The company is selling its product both in local & international market. Its main market across
the border of Africa, Oceania, Middle East & Eastern Asia. Opsonin Pharma Ltd has adopted the
World Health Organizations (WHO) guidelines on GMP in the quality Management system.
Quality Assurance Procedures ensure that the quality of the products is maintained by strict
compliance with international Pharmacopoeias specification on raw materials, packing materials
& finished products. Opsonin Pharma Ltd has more than 2100 employees which includes
diversified professional team like Pharmacist , Chemist, biochemist, chartered accountant , cost
& management accountant etc. The company has a large sales team of more than 425
professionally trained persons who are confirming the distribution of the products throughout the
country.
[3]
1.5 Vision & Mission and Value of Opsonin Pharma Ltd.
Vision of the Company
1. From the very beginning vision of Opsonin company is to produce & supply that type of
medicine which meets the demand of daily life of the people.
2. The prevent from new disease of Opsonin pharmaceutical committed to supply medicine
to the hard to reach area of the country.
3. Opsonin Company is always wants to develop the level of life expectancy of the people.
4. Vision of the Opsonin is established Opsonin permanently among the best innovative
branded generic companies.
Mission of the Company
To provide maximum value to companies’ customers, shareholders, colleagues and communities
where we live and work.
1. Determine market potentialities through research
2. Introducing new innovative sources and technology.
3. Ensuring quality product and services confirm to the international standard.
4. Exceeding customer satisfaction and gaining trust through quality product and services.
5. Expanding the business home and abroad.
Values of the Company
In order to achieve the aspired vision employees should subscribe to the following
For quality all employee do anything. Live up to own commitment Transparent and fair in all dealings Take initiative to exceed standard Believe in continuous improvement Believe in Change to bring in timely solution. Work as a team Recognizing achievements, celebrates results Socially responsible.
1.6 Company Organogram:
[4]
Overall Organogram
1.7 Objectives of the Study:
The main objective of the study is to finding out the present compensation and benefits of Opsonin Pharma. And also to fulfill the requirement of BBA program. The objective of the study may be viewed as:
To know the existing compensation structure of Opsonin Pharma,
To evaluate whether the existing compensation and benefit structure is working or not at Opsonin Pharma,
To give recommendation on compensation and benefit,
To submit the practical work as a paper work that I have learned in my three months internship of BBA program.
Chapter: 2 Activities Undertaken
[5]
2.0 Duties and responsibility as an Intern
As my report title is “Compensation and Benefit Analysis” Process of Opsonin Pharma Ltd.
and as I mention that I did my internship at Human Resource department so during my internship
I did a lot of work that assigned by my department supervisor. To do all the HR tasks I ha d to
involve in their whole HR activity. Works that have been performed by me are written below:
I did analysis the whole HR practice of OPL.
I analyses the Compensation and Benefit process of OPL.
I have visited the whole office for checking their operations.
I also analyses the employees opinion based on their demand of OPL.
I maintain the whole wages & salary policy which they followed in their activities.
2.1 Human Resource Management of Opsinin Pharma Ltd.
Human Resource Management (HRM) is the function within the OPL focuses on recruitment,
management, and providing direction for the people who work in the organization. Human
Resource Management can also be performed by line managers in OPL.
Human Resource Management is the organizational function that deals with issues related to
people such as compensation, hiring, performance management, organization development,
safety, wellness, benefits, employee motivation, communication, administration, and training.
In OPL HRM is also a strategic and comprehensive approach to managing people and the
workplace culture and environment. Effective HRM enables employees to contribute effectively
and productively to the overall company direction and the accomplishment of the organization's
goals and objectives.
OPL has more than 2,100 employees which includes diversified professional team like
pharmacist, chemist, biochemist, microbiologist, engineer, medical professional, IT professional,
chartered accountant, cost and management accountant business graduates etc. OPL is
committed to develop its human resources through continuous training and development. We
have a large sales team comprising of 425 professionally trained persons.
[6]
Figure: HR function
2.2 Compensation and Benefit of OPL
2.2.1 COMPENSATION:
In financial terms, the salary and wages you pay to your employees for the work they do. Other,
nonfinancial forms of compensation can also be offered to attract and retain staff.
Gary Dessler in his book Human Resource Management defines compensation in these words
"Employee compensation refers to all forms of pay going to employees and arising from their
employment." The phrase 'all forms of pay' in the definition does not include non-financial
benefits, but all the direct and indirect financial compensations.
Compensation must be defined in a plan for many purposes. Each plan component can use a
different definition of “compensation.” Therefore, a single plan may define compensation
several ways.
Compensation may be used to determine the amount of benefits accrued in a defined benefit plan
or the amount of contributions allocated to accounts for a defined contribution plan.
In addition to calculating the amount of benefits, compensation also places limits on the amount
of benefits or allocations. When a mandatory top heavy benefit arises, compensation is used to
[7]
determine the amount of the top heavy benefit. Compensation is also a factor when testing the
plan for non- discrimination.
Finally, compensation is used by the employer when figuring out the deduction limits.
Because the definition of compensation has so many plan applications, it is important to be able
to define and distinguish the requirements for compensation for various plan purposes.
Items which are always required to be excluded from compensation for purposes of are as
follows:
Contributions made by the employer to deferred compensation plans to the extent that the
contributions are not includible in the employee’s gross income.
Distributions from deferred compensation plans. However, any amounts received by an
employee pursuant to an unfunded non-qualified plan are permitted to be considered as
compensation for IRC Section 415 purposes in the year the amounts are includible in the
gross income of the employee.
Amounts realized from the exercise of nonqualified stock options
Amounts realized from the sale or exchange of stock acquired under a qualified stock
option.
Certain premiums for group-term life insurance.
Compensation is based on:
Market research about the worth of similar jobs in the marketplace,
Employee contributions and accomplishments,
The availability of employees with like skills in the marketplace,
The desire of the employer to attract and retain a particular employee for the value they
are perceived to add to the employment relationship, and
The profitability of the company or the funds available in a non-profit or public sector
setting, and thus, the ability of an employer to pay market-rate compensation.
2.2.2 BENEFITS:
Employees today are not willing to work only for the cash alone, they expect 'extra'. This extra is
known as employee benefits. Also known as fringe benefits, Employee benefits are non-financial
form of compensation offered in addition to cash salary to enrich workers’ lives.
[8]
Employee benefits are various non-wage compensations provided to employees in addition to
their normal wages or salaries. In instances where an employee exchanges (cash) wages for some
other form of benefit is generally referred to as a 'salary sacrifice' or 'salary exchange'
arrangement. In most countries, most kinds of employee benefits are taxable to at least some
degree.
Examples of these benefits include: housing (employer-provided or employer-paid), group
insurance (health, dental, life etc.), disability income protection, retirement benefits, daycare,
tuition reimbursement, sick leave, vacation (paid and non-paid), social security, profit sharing,
funding of education, and other specialized benefits.
The purpose of the benefits is to increase the economic security of employees.
Employee benefits are not performance-based, they are membership-based. Workers receive
benefits regardless of their performances. Employee benefits as a whole have no direct affect on
employee performance, however, inadequate benefits do contribute to low satisfaction level and
increase absenteeism and turnover in employees (De Cenzo and Robbins; 2007). So every
company would have to carefully design their benefit package. Company’s package may include
a cell phone to each worker, taking them to a training workshop or seminar, giving them a day or
two off every month and so on. While deciding on the benefits package, do consider the
associated costs.
Employees should be managed properly and motivated by providing best remuneration and
compensation as per the industry standards. It is an integral part of the management of his
organization. Compensation is a systematic approach to providing monetary value to employees
in exchange for work performed. It may achieve several purposes assisting in recruitment, job
performance, and job satisfaction. (Farhaan Panagar) . The lucrative compensation will also
serve the need for attracting and retaining the best employees. .
Compensation is the remuneration received by an employee in return for his/her contribution to
the organization. It is an organized practice that involves balancing the work-employee relation
by providing monetary and non-monetary benefits to employees.
Susan M. Heathfield has said that compensation is the total amount of the monetary and non-
monetary pay provided to an employee by an employer in return for work performed as required.