Reckitt Benckiser HRM Case Solution

HRM480 GROUP E

Mr. Tarek is the Head of Marketing Department in Reckitt and Benckiser, Bangladesh. The nervous candidate in the interview board is now considered as the most efficient junior marketing officer of the organization. He has been working in the company for the last 10 years. He always liked the teamwork among the employees at RB. He saw his mentors and now it’s his turn to give full autonomy to its employees so that there is no bossing environment at RB. Watching the Football Final match was a plan that came out of his mind and he saw everyone enjoying the moments together even Rony the most junior among them was lying down in the Sofa and cheering his team who was shaking in the interview board while his interview was conducted and he was so nervous that he couldn’t even hold a glass of water but now things have certainly changed.

The company has been working for Bangladesh for a long time now although it had changed its name for quite sometime now. The following diagram depicts RB’s evolution of change.

Robinson and Company

Reckitt Benckiser

Reckitt and Colman

1942

1977

2001

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HRM480 GROUP E

Although the names of the company changes due to ownership, but the overall function of the company within Bangladesh remained the same with minor changes in the distribution of the product category. BR has always been in a very stable act of authority in regards to market penetration and financial resources. But during the year 2000 and 2001 the face of the company changed.

The company started to lose out its revenue due to the wrong strategic and management issues and it was on the verge of shutdown worldwide. It was at that time the Benckiser family came into the scene and tried to provide their help to the drowning company. During the downfall of the company the Bangladeshi employees along with the other employees around the world faced tremendous pressures in the workforce. The office spaces in Bangladesh were restricted and the empty spaces were given out to other companies on rents. This situation did not persist for a long time. With the merger, Benckiser advised the sinking company to shift their attention to the core products and develop their sales based on these core products. This decision was the turning point for the company in the market. The company was hence able to rectify its position and the availability of the cash inflows was noticed. These made the company very successful and popular in Bangladesh. The reason behind it is that the company chose the right set of products to launch in the country. Apart from these the company also participates in many social works in the country. Currently it is seen that the Reckitt Benckiser products are highly available in most of the hospitals and other service and health care centers. The availability of these products in such places prove the fact this multinational company is not in Bangladesh only to earn revenues, they are also here for the benefits of the general people. The company along with all these also participates in the free distribution of some of their products based on the occasion. For example in the Bengali New Year the company sent out its hand cleaning products in all the densely populated places in Dhaka City and in those places where there are chances for the general people to have some food. The purpose of this act was to instill the sense of safety among the general people even at times of festivals and occasions. By doing all these activities in Bangladesh and by having the connections in the hospitals and supplying them with the quality products of international standards the company has been able to gain an upper hand in the country and is still tailing many other companies behind it.

Mr. Tarek still remembers the mission statement of the company as he got preached by his mentors in the orientation program. The mission statement follows-

“Reckitt Benckiser mission is about passionately delivering better

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HRM480 GROUP E

The purpose of this Code of Business Conduct (‘the Code’) is to ensure that employees across the Group have a clear understanding of the principles and ethical values that the Company wants to uphold. It applies to all employees in all Reckitt Benckiser Group companies globally. Where the Company participates in joint ventures the Code’s standards should also be actively promoted. Compliance with the Code is an important factor in maintaining and building the reputation of Reckitt Benckiser as a responsible and trustworthy business partner, employer, supplier and corporate citizen. The Code forms the core element of Reckitt Benckiser’s Corporate Responsibility Framework; this comprises a set of policies and control arrangements that govern how we act as a Company and how we interact with our stakeholders in conducting the Company’s business.

Mr. Tarek is very flexible about his employees and the way of doing business but he never forgot the corporate culture of the organization. The stakeholders will thus include the following with whom the Code of Conduct should be maintained thoroughly.

“Reckitt Benckiser mission is about passionately delivering better

Employees Customers Consumers

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Shareholders

HRM480 GROUP E

Therefore, the Code is necessarily broad and general in nature and is not intended to replace more detailed policies and procedures. Nevertheless, these basic principles and ethical values should serve as a guide to each employee in his or her dealings with customers, suppliers, shareholders, colleagues and others with whom the company has relationships. Together with its Vision and Values Statement, and the other components of its Corporate Responsibility Framework, the Code outlines the way the Company wants to conduct business now and in the future.

Mr. Tarek and other members of the top management never forget to maintain the international standard of the organization. Reckitt Benckiser subscribes to a number of international standards and guidelines relevant to corporate responsibility and business conduct, including-

High standards of business conduct should be maintained by RB in its relationship with…

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Suppliers Governments Competitors Local Communities

The United Nations (UN) Declaration of Human Rights (www.un.org)

The United Nations (UN) Convention on the Rights of the Child (www.un.org)

HRM480 GROUP E

All employees at RB must accept responsibility for maintaining and enhancing the Company’s reputation for integrity and fairness in its business dealings. Employees of the Company should not undertake any other business or profession, be an employee or agent of any other company, or have any financial interest in any other business or profession. However, the following exceptions also apply-

Employees in possession of information on the basis of which an effect on the Company’s securities may reasonably be predicted, may not trade in any of the Company’s securities as long as they could take advantage of such sensitive information. Additional trading restrictions exist for senior executives during the two months prior to publication of the year-end results and for one month prior to the publication of quarterly results, and at other times indicated by the Executive

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Non-executive positions approved by the Company

Community / voluntary activities

Bona fide investment holdings of shares or other securities

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Committee when the Company may be deemed to be in receipt of insider information. Employees of the Company must ensure that they deal with customers, suppliers and other business relationships in a way that avoids their Independent Judgement on behalf of the Company being influenced by personal advantage, or any appearance that this may be the case.

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International Labor Organization (ILO)

EIGHT fundamental Conventions

No forced labor

No Child Labor Freedom of Association

No Discrimination

Organization for Economic Co-Operation

and Development (OECD’s)

Guidelines for MNC’s

Recruitment Access to Training and Promotion

Transfers Employment Termination

HRM480 GROUP E

The Company is committed to equal opportunities at work; employees should not engage in or support discrimination based on race, color, language, caste, national origin, indigenous status, religion, disability, gender, marital status, sexual orientation, union membership, political affiliation, or age. Working environment and occupational health & safety - the Company is committed to providing a safe and healthy working environment and to ensuring, so far as is reasonably practicable, the health, safety and welfare at work of its employees.

The Company’s Occupational Health & Safety (OHS) Policy and objectives are publicly available and a Group Occupational Health & Safety Management System (OHSMS) is in place to coordinate the management of occupational health & safety across the Company. Employees have a duty to take reasonable care for their own health & safety and that of others who may be affected by their acts or omissions. Employees must use all work items provided by the Company correctly; in accordance with their training and the instructions they received to use them safely. The Company is committed to providing timely and effective communication with its employees.

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Recruitment Access to Training and Promotion

Transfers Employment Termination

HRM480 GROUP E

This commitment is presently focused on direct suppliers involved in the manufacture, assembly or distribution of products on behalf of Reckitt Benckiser Group companies.On those suppliers / contractors who are actively engaged in work at Company facilities.

The Company’s Global Manufacturing Standard sets out minimum levels of performance and performance expectations in the areas of working conditions / human rights at work, occupational health & safety and environmental management, for all suppliers manufacturing, assembling or distributing products on behalf of Reckitt Benckiser Group companies. Reckitt Benckiser views corporate responsibility and sustainability as one and the same and is committed to moving its business towards greater sustainability across the economic, social and environmental dimensions of its activities. The Company's Environmental Policy and objectives are publicly available and a Group Environmental Management System (EMS) is in place to coordinate environmental management across the Company.

Employees of the Company are responsible for the proper use, the protection and the maintaining of company assets, including intellectual property (e.g. patents, trademarks and designs). Company assets may only be used in relation to the Company’s business. The Company has in place a Crisis Management Policy and Group Crisis Management Guidelines, supported by regional / local control arrangements and emergency response plans, to minimize the risks to the business, its customers, employees and shareholders in a crisis situation. Business Continuity Planning forms a key part of these arrangements.

The books and records of the Company must accurately reflect the nature of the underlying transactions and no undisclosed or unrecorded liabilities or assets shall be established or maintained. Books and records must be maintained in all respects

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according to law and the accounting principles, policies and procedures that the Company has adopted. The Company will not evade tax obligations and all taxable benefits which employees may receive will be listed and declared for tax purposes. Employees of the Company must ensure that confidential information is preserved and protected. Confidential information is that which is not generally known outside the organization and either gives or could give the Company a competitive advantage or disadvantage, or could lead to the loss of an existing competitive advantage, if it became known to others or became known in the public domain. This kind of information may not be revealed to anyone outside of the organization unless an appropriate confidentiality agreement is in place and such disclosure is necessary for business purposes.

The Company has in place:

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A Product Safety Policy, and comprehensive control arrangements including its Global Ingredients Guidelines, to fulfill our commitment to developing and marketing products that can be manufactured and

used safely as directed.

A Quality Policy, and Group / site-level Quality Management Systems (QMSs), to control the quality of its products.

HRM480 GROUP E

The Company believes that human rights are an absolute and universal standard. The Company subscribes to the United Nations Universal Declaration of Human Rights and the Convention on the Rights of the Child. In countries where the Company is present, it will aim to support progress on human rights issues in accordance with what reasonably can be expected from a commercial organization. The Company is not a political organization. All employees are required to comply with this Code of Business Conduct and are personally responsible for doing so. It is the responsibility of the Board of Reckitt Benckiser to ensure, so far as is reasonably practicable, that the principles and ethical values embodied in this Code are communicated to all employees of the Company. Senior management is required to certify compliance with this Code for the operations for which they have responsibility on an annual basis by Internal Audit, and the Board monitors the findings of this certification. The Board of Reckitt Benckiser will not criticize management for any loss of business resulting from adherence to this Code. The Company undertakes that no employee will suffer as a consequence of bringing to the attention of the Board or senior management a breach or suspected breach of this Code. Reckitt Benckiser has in place a confidential “whistle blower” policy and process, communicated globally, to encourage the reporting of any non-compliance with this Code of Business Conduct. If in any doubt, employees can obtain full information on this process from their local Human Resources department.

Reckitt Benckiser (RB) is a manufacturer and marketer of consumer goods in the household cleaning and health care markets. Reckitt Benckiser is a local producer, an exporter of locally produced products, and also an importer of externally produced products. Reckitt Benckiser was formed with the merger of Britain’s Reckitt & Colman and Benckiser of the Netherlands in December 2001. The new Reckitt Benckiser is the world’s largest household, cleaning Products Company (excluding laundry detergents). Reckitt Benckiser sells its products in 180 countries and has operations in over 50 countries across all continents.

After the merger decision the growth of the company started to increase yearly. In 2004 the growth rate was 18%, in 2005 it became 32% and finally in 2006 it became 50%. Moreover on each product they are making huge profit, it is because in the maximum segments of the products they are number one. As a result the financial resources of the company is boosting up and they are saving the resources for their

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HRM480 GROUP E

future investment in the other product line which needs to be emphasized more for future growth. It is rule for the company that from every subsidiary 4.5% of money of each product category sold has to be given to the parent company. But from the Bangladesh government perspective only 3% of the money can be given to the parent company. In that respect the company is saving 1.5% which is becoming a huge amount for them to invest in other sector near future. The strong financial resources will help RB to invest the money in a new segment. It will also help the company to give emphasize in other products which are not number one in Bangladesh.

The results will then be the following-

However the following Problems started arising in RB which led to the ultimate management dilemma-

Reckitt Benckiser is not actually a manufacturing company in Bangladesh since most of their products are come by imports. But some of their products are locally produced in Bangladesh. They use the local raw materials and their own technology to

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Huge market growth will increase their brand image

Shareholders will be interested to buy their share

No. 1 Less Control over the production unit

HRM480 GROUP E

produce the products. From production level they actually do outsourcing. In the production level they authorize one or two manufacturing firms to manufacture their products on behalf of them. They provide their technology to the manufacturing firms and thus get the products without employing any factory workers.

The advantages from this include:

They can offset any sort of environmental issues by claiming that they are not producing the products of their own so no environmental allegations can be raised against them.

They do not need to handle the factory level workers and to give them the salary.

However there are also disadvantages from this-

In Bangladesh for many reasons they manufacturing companies that they authorize to manufacture their products can not meet the deadlines. So sometimes they can not launch their product when they needed the product.

When they are providing their own technology to the manufacturing firms they are always in a risk to leak the technology to the competitors or the firm may start producing the products with their own brand.

It has a huge problem in the HR level. It reduces their control over their production and thus it can back fire in any given time.

Reckitt Benckiser has a very précised and organized way of recruitment. They have designed the whole process according to their international standard. The employees have to have the competencies to be a part of their family. They do have different levels in their recruitment process. Till now it was okay for them. But there are some flaws in the whole process also. That is why; it can cause the company a great loss in near future. In most of the cases, for the recruitment they make a recruitment board. In

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No. 2 Recruitment Process causing a great Loss to the Company

HRM480 GROUP E

the board they actually keep the department head or supervisor who will supervise the incumbent and also the members from the HR department. The incumbent has to go through written and interview level for the recruitment. But after a very strict recruitment followed by high quality training, employees are leaving the jobs. Whereas Reckitt Benckiser is offering very lucrative packages for the employees. The turn over rate actually increased in the recent days. The company could not find the reasons yet. But one thing is clear that most of the employees who left the company are because of their peer behavior towards them. they could not work as a team member with them. Whereas most of the job is done under group work in Reckitt Benckiser. They see incumbents competencies and experience about the job. But what they forget is to check their team work. However the following steps can be taken to rectify the problem-

They could include the team members in the recruitment board. It will give the team members to select their own colleagues and to judge the mentality of the new incumbent. It can prevent the turn over rate initially.

They can also provide training for group working and working with the strangers.

Reckitt Benckiser’s view is that by hiring local people they will be able to able gain advantage from the government as well as to increase the market image that they have. It is not restricted in the company that they are going to hire only the local people, employees from the other countries are also brought into the country. But the main focus of the company is to have the people working in Bangladesh come from the local country. Hiring locally however is not a piece of cake. The company needs to understand the local labor market see the potential candidates’ capabilities and willingness to work and share their local policies with that of the foreign companies. Bangladesh is a country where the number of the multinational companies is in very minimum number and also along with it the students who come out from the universities in search of good jobs do not have the practical exposure to work directly for these big companies. As a result when the companies hire the local people the companies suffer from many problems and ultimately a bad impression of the company and the employees start up.

Decentralization includes the following advantages-

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No. 3 Excessive Flexible working environment

HRM480 GROUP E

Startup costs are relatively low.Tailoring and scaling the system to individual needs is also possible. Thus, local processing is enabled.Increased autonomy.Organizational flexibility and responsiveness.Increased accountability.Motivation and management responsiveness.Decision-makers are brought closer to customers.Customers provide the information to make important decisions.

However, Decentralization is also backed up with disadvantages-

Conflicting ideas arise and clashes in policy leading to delays and inefficiency arises as a result.There also is a high degree of duplication of resources, effort and expertise, which wastes time and causes cost increases.

Mr. Tarek’s 12 years experience was his strong marketing background and industry knowledge that he served at RB for so many long years. Now his strategic decisions are very important to make RB turn around. He is the Department head and he decided to have a new focus on new products and make RB reach a responsive position again. If RB’s financial performance did not improve then it will result in a further turmoil and this will jeopardize the company’s ability to be in the leadership position in the market again.

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HRM480 GROUP E

Reckitt and Benckiser (RB) is the world’s largest household, cleaning Products Company. It sells its products in 180 countries and has operations in over 50 countries across all continents. However, Reckitt and Benckiser is not a manufacturing company in Bangladesh, therefore most of the time the manufacturing companies that they authorize to manufacture their products cannot meet the deadlines and hence RB cannot launch their products when needed. RB providing their own technology to the manufacturing firms increases the risk of technology leakage to competitors. There is also a huge problem in HR level which leads to less production control by RB. There is also a flaw in RB’s recruitment process since there is no provision of testing the incumbent’s team work which results in high turnover of employees. In addition, when the company hires local people in their companies with inadequate experience and skills like fresh graduates, company’s goodwill in the market suffers. Also the fact that RB has a decentralized management system leads to conflict of interest and clashes in policies leading to delays and inefficiency among the different functional areas of the company. There is also high degree of resource duplication, effort and expertise which wastes time and increases cost for RB.

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HRM480 GROUP E

How can Reckitt and Benckiser continue its proactive approach of addressing its new focus on new products and set RB on the better responsive position again by a better recruitment process which will include team members in the recruitment board and hence meet deadlines more effectively, reduce the risk of technology transfer and facilitate a decentralized management system with a centralized control and ensure its leadership position in the market undermining turmoil within the company and the investment community?

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Strengths:

Strong teamwork among the employees

HRM480 GROUP E

Below the diagram summarizes in a tabular format the HRP Model. The Oval bullet Points outlines the existence of the Consideration and/or Techniques of Forecasting Demand or Forecasting Supply as per the case.

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HR planning model

FORECASTING DEMAND

FORECASTING DEMAND

Considerations Product/service demand Technology Financial resources Absenteeism/turnover Organizational growth Management philosophy

Considerations Product/service demand Technology Financial resources Absenteeism/turnover Organizational growth Management philosophy

Techniques Trend analysis Managerial estimates Delphi technique

Techniques Trend analysis Managerial estimates Delphi technique

Techniques Staffing tables Markov analysis Skills inventories Management inventories Replacement charts Succession Planning

Techniques Staffing tables Markov analysis Skills inventories Management inventories Replacement charts Succession Planning

External Considerations

Demographic changes Education of the workforce Labor Mobility Government policies Unemployment rate

External Considerations

Demographic changes Education of the workforce Labor Mobility Government policies Unemployment rate

FORECASTING SUPPLY

FORECASTING SUPPLY

BALANCING SUPPLY AND

DEMAND

BALANCING SUPPLY AND

DEMAND

(Shortage) Recruitment Full-time Part-time Recalls

(Shortage) Recruitment Full-time Part-time Recalls

(Surplus) Reductions

Layoffs Terminations Demotions Retirements

(Surplus) Reductions

Layoffs Terminations Demotions Retirements

HRM480 GROUP E

The employees at Reckitt Benckiser enjoy strong teamwork among themselves. As evidence they were watching the football finals together, starting from the Head of the Marketing Department and its executives. Another evidence is that Rony, a junior marketing officer is the most efficient among the team due to the fact he got strong help from the team for his work.

Strong teamwork is necessary if a company is to prosper in the market. Teamwork helps to create harmony among the employees or members, so that each of them knows what the other wants. For a large dynamic company like Reckitt Benckiser teamwork is a must so that dynamic and strategies can be made and implemented to tackle other strong competitors in the business. It’s never enough for a single head to make a strong plan. Rather a group of heads does the trick.

Integration with the HRP Model:

This relates to the area of HRP model where they show Organizational Growth under Forecasting Demand- Consideration.

Justification of Integration:

This area is related to the model because in RB it has been mentioned in the case that most of the job is done under group work. Therefore facilitating a strong teamwork among the employees will ensure organizational growth for Reckitt and Benckiser. The competency and experience of employees will further increase RB’s success in the market. In addition it is vital to identify teamwork talents among the incumbents so that a proper HRP planning is conducted balancing the company’s demand of incumbents with teamwork skills with the supply of incumbents available in the recruitment board.

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The employees enjoy full autonomy

HRM480 GROUP E

The employees at Reckitt Benckiser enjoy full autonomy that is they enjoy the utmost freedom of taking their own decisions regarding their line of work. In other words it can be also called empowerment The evidence is that Rony, a junior marketing officer who was pretty shaky at the beginning of his job is now the most efficient as he was given the space to use his own thinking for his work.

It is a common logic that any decisions regarding a line of work can be best taken only by the person performing it. This is because he/she knows the ins and outs of the task for repetitive performances. Providing autonomy allows an employee to be confident by using his own critical thinking and skills regarding issues and strategies.


This relates to the area of HRP model where they show Management Philosophy under Forecasting Demand- Consideration.


This area is related to the model because according to the Company Reckitt and Benckiser all employees should have a clear understanding of the principles and ethical values that the company wants to uphold. Therefore, compliance with the Code is an important factor in maintaining and building the reputation of RB as a responsible and trustworthy business partner in the market. Therefore, since the management philosophy is uprooted so strongly in each and every employee of RB globally they believe that employees deserve that autonomy and flexibility in the decision making process. In addition the fact that most of the work at RB is conducted via groups it is important that employees are free to communicate their viewpoints and decisions openly not just with the top management but also within their peers in the organization. This is to ensure that with shortage a round of recruitment can be done for incumbents and with surplus reductions can be done to balance the supply and demand of incumbents in the HRP model.

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Reckitt Benckiser is saving 1.5% which is becoming a huge amount for them for investment

HRM480 GROUP E

It is rule for the company that from every subsidiary 4.5% of money of each product category sold has to be given to the parent company. But from Bangladesh perspective only 3% of the money can be given to the parent company. In that respect the company is saving 1.5% which is becoming a huge amount for them for investment.

Sending a portion of revenue to parent company always leaves the subsidiary in the host country in a bit of financial trouble. Therefore the rule from Bangladesh perspective is actually helping Reckitt Benckiser to use the saved in further investment in the near future.


This relates to the area of HRP model where they show Product/ Service Demand under Forecasting Demand- Consideration.


This area is related to the model because after the merger decision the growth of the company started to increase yearly. As a result the financial resources of the company are boosting up and RB is saving the resources for future investment in the other product line which needs to be emphasized more for future growth. It is a rule that from every subsidiary 4.5% of money from each product needs to be given to the parent company. However, in Bangladesh only 3% needs to be given which makes RB save 1.5%. This hence ensures that there is a considerable amount of investments made for each Product line at RB which is not in the market leader position yet. This way through cross subsidization RB ensures that all of its Product line in the Bangladeshi Market has a considerable Product demand. The chain is maintained by employing deserving incumbents for the Marketing Department like Mr. Tarek who is the current department head, therefore such potentials gets recruited at RB who is able to balance RB’s Product Line well balancing the demand and supply of employees and hence satisfying the HRP model.

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Excessive flexibility at the working environment and at the decision making level

Weaknesses:

HRM480 GROUP E

Reckitt Benckiser allows their employees an excessive flexibility in the working environment and in the decision making level. It is to some extent is good for the employees but it can backfire when there will be any sort of conflict among the employees. Not only that; one wrong decision of an employee can cause great loss to the company.

The employees with full autonomy power might just abuse it. They will take decisions in favor of them but not in favor of the company. They will think of themselves equivalent to the top management and taking decisions on their will which will create conflicts. Too much flexibility will put them at ease and might prompt them to take their tasks as an easy sailing.


This relates to the area of HRP model where they show Management Philosophy and Absenteeism/ Turnover under Forecasting Demand- Consideration.


This area is related to the model because in most cases much of the flexibility is in the recruitment process. In the recruitment board RB usually has the department head or supervisor who will supervise the incumbent and members from the HR Department. But due to this management philosophy of having the decision making process of recruitment with the top management led to increased absenteeism and turnover in the recent days. Although lucrative packages were offered to the employees but still the situation just worsened every month. The reason being most of the work at RB is conducted via team work therefore it is important that there are also team members present to make the final incumbent decision since peer behavior and inefficiency to work with a team made few employees quit their jobs. Therefore this management philosophy of having to work as a team and then not having members of the team at the recruitment board led to increased turnover rates which negatively affected the supply and demand balance of the HRP model for RB.

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Tendency towards wrong strategic and management issues

HRM480 GROUP E

Due to the wrong strategic and management issues the company started to lose out its revenues and was on the verge of closing down its operations worldwide. Another downturn in Reckitt Benckiser’s financial performance would not only result in further turmoil within the company and investment community but also jeopardize the company’s ability to be in the leadership position in the market.

Appropriate strategic and management issues are necessary in order to run a company in a stable position. Wrong strategies would push the company in deep financial turmoil. Weak management would give rise to conflicts and unethical behaviors taking place within the company.




This area is related to the model because RB usually hires local people which mostly include fresh graduates who do not have the practical exposure to work directly for these big companies. Ultimately RB suffers from many problems and has bad company impression which then affects its product line in the market. The graduates are unable to show relevant and efficient product line management which then reduces RB’s profit margin from each product. Hence the Product demand suffers in the market. Addressing wrong strategic and management issues leads to supply and demand imbalance and ultimately it needs to be dealt with soon enough by RB in order to have a proper HRP Planning.

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Inappropriate persons in the recruitment board

HRM480 GROUP E

In most cases, for the recruitment they make a recruitment board. In the board they actually keep the department head or supervisor who will supervise the incumbent and also the members from the HR department. What they actually check is the competency and experience regarding the job rather than team work.

Due to the above factor when the recruits go to the real working environment they have to work with total strangers in a group from different culture and background. So if the chemistry does not click among them, the peer behavior will be negative as a result one or two employees have to quit. In a dynamic company like Reckitt Benckiser most of the job is done under group work. But if the above situation continues the work process will surely be hampered in Reckitt Benckiser.


This relates to the area of HRP model where they show Absenteeism/Turnover under Forecasting Demand- Consideration.


This area is related to the model because in the Recruitment Board RB usually has the department head or supervisor who will supervise the incumbent and also the members from the HR Department. But although lucrative packages are offered to the employees’ turnover rate at RB is still increasing in the recent days. Most of the employees left because of their Peer Behavior towards them. Since work at RB is usually through teamwork so it’s important that the incumbents have skills to work as a team. But since team members are not included in the recruitment board at RB there is Absenteeism/ Turnover. The team members are not given a chance to select their own colleagues and judge his/her mentality which leads to imbalance of the supply and demand of the incumbents in the company. Therefore, team members should be included to have a proper HRP planning which will reduce the turnover rates at RB.

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The merger between Reckitt & Colman and Benckiser proves to be successful that helped the company to trace new opportunities

Opportunities:

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It will help Reckitt Benckiser to increase capacity and give a strong financial strength to increase their resources to bring the great ideas that they have to the market. If there is any risk of doing business they can face it with the parent company. Reckitt Benckiser will have access to specialized staff & technology.

After the merger it was evident that the company was making profit and started to grow at a faster rate. The advanced staffs and technologies will help Reckitt Benckiser help grasp the new opportunities that awaits them in the market. Moreover Reckitt Benckiser is saving 1.5% from their remaining profits after sending the rest to the parent company. This is becoming a huge amount for them for investment in the future.


The aforementioned opportunity can be integrated with the model’s Demographic Changes under Forecasting Supply- Consideration.


This area is related to the model because after the merger RB had increased capacity and this gave the company a strong financial position in the market. They could increase their resources to bring new ideas into the market. RB also had access to specialized staff and technology. This came about since it was necessary for RB to merge and acquire new companies due to the market pressure and increased demand from the consumers to bring forward new products in the market. In addition there was also competitive and other demographic pressures which made RB merge with Benckiser. Hence they had undergone this transformation to correctly balance their supply and demand of incumbents who could deal with the new change and therefore achieve a proper HR Planning.

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The continuous growth of the company in the market is helping it to boost up financial resources as well as to invest in new segment

HRM480 GROUP E

After the merger, growth of the company started to increase early. In 2004, 2005 and 2006 the growth rates were 18%, 32% and 50% respectively. Moreover in each product they are making huge profit because in the maximum segments of the products they are number one. As a result the financial resources are of the company is boosting up and they are saving the resources for their future investment in other product line which needs to be emphasized more future growth.

The strong financial resources will help Reckitt Benckiser to invest in new segment. It will also help the company to give emphasis in other products which are not number one in Bangladesh. Huge market growth will increase their brand image. Shareholders will be interested to buy their share.


This relates to the area of HRP model where they show Financial Resources and Organizational Growth under Forecasting Demand- Consideration.


This area is related to the model because RB is making a huge profit on each of its products, this is because in maximum segments of the products they are number one. As a result, the financial resources of the company are boosting up and they are saving the resources for future investments. In addition the company is saving 1.5% of the money in Bangladesh which is becoming a huge amount for them to invest in other sectors in the near future and in a new segment. All this signifies that through their increased financial resources they will be able to achieve Organizational growth which in turn will help RB balance its supply and demand of human resources in its organization and therefore facilitate proper HRP.

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The ability of the maintenance of the existing facilities will prove to be beneficial for the company for many of the coming years in Bangladesh

HRM480 GROUP E

Currently it is seen that the Reckitt Benckiser products are highly available in most of the hospitals and other service and health care centers. The availability of these products in such places proves the fact that this multinational company is not Bangladesh only to earn revenues. They are for the benefits of the general people as well.

By doing all these activities in Bangladesh and by having the connections in the hospitals and supplying them with the quality products of international standards the company has been able to gain an upper hand in the country and is still tailing many other companies behind it. The ability of the maintenance of the existing facilities will prove to be beneficial for the company for many of the coming years in Bangladesh.


This relates to the area of HRP model where they show Organizational Growth under Forecasting Demand- Consideration.


This area is related to the model because RB’s employees are responsible for the proper use, the protection and the maintenance of the company assets, including intellectual property (e.g. patents, trademarks and designs). Company assets can only be used in relation to the Company’s business. In addition, the company has in place a Crisis Management Policy and Group Crisis Management Guidelines, supported by regional/local control arrangements and emergency response plans to minimize the risks to business, its customers and various other stakeholders in crisis situation. Therefore, RB is being able to exploit its distinctive advantages in its existing Technology and facilities and also ensures the correct protection of its assets. This will take RB a long way, achieving Organizational Growth and hence balance its supply and demand of HR properly in its HR Planning.

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Less control over the production units

Threats:

HRM480 GROUP E

From the production level they actually do outsourcing. In the production level they authorize one or two manufacturing firms to manufacture their products on behalf of them. They provide their technology to the manufacturing firms and thus get the products without employing any factory workers.

In Bangladesh for many reasons the authorized manufacturing companies cannot meet their deadlines. So sometimes they cannot launch their product when they needed the product. Even they do not have control over the production level. So in that case, there is always a chance that the firm may market the products with some other name.




This area is related to the model because Reckitt Benckiser is not actually a manufacturing company in Bangladesh. From production level they actually do outsourcing. In the production level they authorize one or two manufacturing firms to manufacture their products on behalf of them. They provide their technology to the manufacturing firms and thus get the products without employing any factory workers. In Bangladesh for many reasons the manufacturing companies that they authorize to manufacture their products can not meet the deadlines. So sometimes they can not launch their products when needed. On the other hand, when they are providing their own technology to the manufacturing firms they are always in a risk to leak the technology to the competitors, because the firms are not under their control fully. So when they will get their technology they can leak it to their competitors or the firm may start producing the products with their own brand reducing RB’s Product Demand and Sales in the market. It reduces their control over their production and thus it can back fire in any given time. Therefore, RB will need to reexamine and balance their supply and demand of human resources and hence conduct a proper HRP to avoid these risks in the future.

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Technology leakage to the competitors

HRM480 GROUP E

From the production level Reckitt Benckiser actually do outsourcing. In the production level it authorizes one or two manufacturing firms to manufacture its products on behalf of Reckitt Benckiser. It provides their technology to the manufacturing firms.

When Reckitt Benckiser is providing its own technology to the manufacturing firms they are always in a risk to leak the technology to the competitors. Because the firms are not under control fully, they will leak the technology to the competitors or the firms may start producing the products with their own brand.


This relates to the area of HRP model where they show Technology and Organizational Growth under Forecasting Demand- Consideration.


This area is related to the model because when RB is providing its Technology to the manufacturing firms they are always in a risk to leak the Technology to the Competitors. This will make RB have reduced control over its production since it will no longer have a distinctive edge in the market. This will also make RB have reduced Organizational Growth since the product will then have little consumer value added in the market which will also make RB have reduced profit margins. All this will make the market very stagnant imposing another round of competitive pressures on RB which the company cannot handle any further. Therefore, RB will need to retrace its potential supply and demand of human resources in its company so that its production can be handled internally by employees reducing the risk of leakage and hence a proper HRP is a must at this frame in time for RB.

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Increased employee turnover rate: Blessing for competitors; curse for Reckitt Benckiser

HRM480 GROUP E

The incumbents have to go through written and interview level for the recruitment. But after a very strict recruitment followed by high quality training, employees are leaving the jobs despite the fact that Reckitt Benckiser is offering very lucrative packages for the employees.

Now the employees who are leaving the company are definitely getting jobs in other companies. Or in other words they will be finding their work in the competitors’’ of Reckitt Benckiser. This will allow it to lose its tricks and trade to the competitors because the employees might use those strategies to perform their task in those companies. If this increased turnover rate continues, then Reckitt Benckiser will be losing most of its skilled staffs and as a whole losing the whole market share to its competitors.


This relates to the area of HRP model where they show Absenteeism/Turnover under Forecasting Demand- Consideration.


This area is related to the model because it has been mentioned in the case that due to inaccurate members in the recruitment board the company is facing increased turnover rates in the recent days. Since most of the jobs at RB are done with a team, a potential incumbent should have the team working skills in order to be recruited in the company. With the increased absenteeism/ turnover at RB it should be noted that RB’s operations will be suffering in the near future, therefore it is high time that team members be also included in the recruitment board, so that they can evaluate the incumbents themselves who can be their colleagues and hence reduce the turnover rates for employees at RB and properly balance the supply and demand of the incumbents for a proper HR Planning at RB.

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Below we have diagrammatically summarized Reckitt Benckiser’s SWOT Analysis in a nutshell for a quick overview.

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“Employees of the Company must ensure that they deal with customers, suppliers and other business relationships in a way that avoids their independent judgment”.

Employees in possession of information on the basis of which an effect on the Company’s securities may reasonably be predicted, may not trade in any of the Company’s securities as long as they could take advantage of such sensitive information. Employees of the Company must ensure that they deal with customers, suppliers and other business relationships in a way that avoids their independent judgment on behalf of the Company being influenced by personal advantage, or any appearance that this may be the case. So in this way employees are always bound to follow the process that the organization has set for them. They have no scope to show their internal ability while making relationship with the suppliers or dealers. So the HR department should take a look in this sector by giving the employees fair chances to make their decisions as if the employees are de-motivated while making deals, this will hamper the output of the organization.

“The company neither supports political parties nor contributes to the funds of groups whose activities are calculated to promote party interests”.

The Company believes that human rights are an absolute and universal standard. The Company subscribes to the United Nations Universal Declaration of Human Rights and the Convention on the Rights of the Child. In countries where the Company is present, it will aim to support progress on human rights issues in accordance with what reasonably can be expected from a commercial organization. The Company is not a political organization. It neither supports political parties nor contributes to the funds of groups whose activities are calculated to promote party interests. But in a country like Bangladesh, which is a politically dominated country, the organization should have a good PR with the all political parties. It will not only help the organization but also will support the organization for any kind of growth in the near future.

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“Reckitt Benckiser has in place a confidential “whistle blower” policy and process, communicated globally, to encourage the reporting of any non-compliance with this Code of Business Conduct”.

All employees are required to comply with the Code of Business Conduct and are personally responsible for doing so. It is the responsibility of the Board of Reckitt Benckiser to ensure, so far as is reasonably practicable, that the principles and ethical values embodied in this Code are communicated to all employees of the Company. The Board of Reckitt Benckiser will not criticize management for any loss of business resulting from adherence to this Code. The Company undertakes that no employee will suffer as a consequence of bringing to the attention of the Board or senior management a breach or suspected breach of this Code. Reckitt Benckiser has in place a confidential “whistle blower” policy and process, communicated globally, to encourage the reporting of any non-compliance with this Code of Business Conduct. If in any doubt, employees can obtain full information on this process from their local Human Resources department.

But it has a big drawback. The employees may disclose some internal information to the other organizations which might become harmful. So the HR department should be careful while giving the opportunity whistle blowing to the employees.

“Less Control over the production unit”

Reckitt Benckiser is not actually a manufacturing company in Bangladesh. Because most of their products are here by imports. But some of their products are locally produced in Bangladesh. They use the local raw materials and their own technology to produce the products. From production level they actually do outsourcing. In the production level they authorize one or two manufacturing firms to manufacture their products on behalf of them. They provide their technology to the manufacturing firms and thus get the products without employing any factory workers. It has some disadvantages too in their business. In Bangladesh for many reasons they manufacturing companies that they authorize to manufacture their products cannot meet the deadlines. So sometimes they cannot launch their product when they needed the product. Even they do not have control over the production level. So the HR department should recruit some qualified employees for the production department who will takecare all the necessary orders and also will maintain a good relationship with the buyers.

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“Recruitment process can cause the company a great loss”

Reckitt Benckiser has a very précised and organized way of recruitment. They have designed the whole process according to their international standard. The employees have to have the competencies to be a part of their family. They do have different levels in their recruitment process. In most of the cases, for the recruitment they make a recruitment board. In the board they actually keep the department head or supervisor who will supervise the incumbent and also the members from the HR department. The incumbent has to go through written and interview level for the recruitment. But after a very strict recruitment followed by high quality training, employees are leaving the jobs.

So the HR department should apply a new recruitment policy which will help the organization to attract a pool of qualified and talented employees and through which the organization can have such employees who will last longer.

“The turnover rate actually increased in the recent days”.

The turnover rate actually increased in the recent days. The company could not find the reasons yet. But one thing is clear that most of the employees who left the company are because of their peer behavior towards them. They could not work as a team member with them. Whereas most of the job is done under group work in Reckitt Benckiser. It happens because when they recruit the employees they keep their supervisors in the board. They see their competencies and experience about the job. But what they forget is to check their team works whether they can fit in the team or not. So when they go to the real working environment they have to work with total strangers in a group from different culture and background. So if the chemistry does not click among them one or two employees have to quit from there.

Bangladesh is a country where the number of the multinational companies is in very minimum number and also along with it the students who come out from the universities in search of good jobs do not have the practical exposure to work directly for these big companies. As a result when the companies hire the local people the companies suffer from many problems and ultimately a bad impression of the company and the employees start up. And as a result they quit the job.

They could include the team members in the recruitment board. It will give the team members to select their own colleagues and to judge the mentality of the new incumbent. It can prevent the turnover rate initially. They can also provide training for group working and working with the strangers.

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ALTERNATIVE 1: DO NOTHING

Reckitt Benckiser can continue its operation in the same way it has been doing all these years i.e. by focusing their attention on the core products and develop their sales based on these products. Having strong connections with hospitals, health care centers have allowed Reckitt Benckiser to provide high quality products of international standard which are readily available in the hospitals, health care centers. In addition, Reckitt Benckiser has participated in free distribution of their products based on occasions to capture market and promote brand awareness through increased customer loyalty. For example, in Bengali New Year, the company distributed its hand cleaning products in all densely populated areas of Dhaka city and in those places where there were chances of general people to have some food. This was done to instill the sense of safety of general people during occasions. Moreover, the employees are given full autonomy to participate in decision making as well as maintaining business and ethical code of conduct in order to achieve goals that allowed Reckitt Benckiser to gain upper hand in the country.

Pros of Alternative 1: Do Nothing

Saves Money:

Reckitt Benckiser can continue its existing operations by focusing on its core products and their sales without incurring any further costs. This helps Reckitt Benckiser to save money that can be invested in the future for growth or paid to its shareholder as dividends.

Saves Time:

By following the alternative of “Do Nothing” Reckitt Benckiser can focus on its existing operation maintaining its operations efficiency, workflow. This will allow Reckitt Benckiser to save time.

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Saves Effort

Making changes in an existing organization requires a lot of effort so that the people in the organization can adapt to the change and improve their performance. Some people show resistance to changes and become dissatisfied. If Reckitt Benckiser follows the strategy of Do Nothing, it does not have to put in extra effort and still can maintain its operations’ efficiency and effectiveness by following its business code of conduct, ethical code of conduct, management policies and maintaining its relationship with its stakeholders.

Cons of Alternative 1: Do Nothing

Reckitt Benckiser has less control over production unit:

In Bangladesh, Reckitt Benckiser is not a manufacturing company. They import most of their products whereas only some are produced locally. Reckitt Benckiser uses their own raw materials and technology but outsources the production to one or two authorized manufacturing firms in Bangladesh. However, outsourcing has certain problems. Reckitt Benckiser cannot control its production unit and the firm that is authorized to manufacture the products cannot meet its deadline. As a result, Reckitt Benckiser cannot launch their product in the market when needed. Moreover, there are chances of leakage of technology to competitors due to outsourcing or the authorized local manufacturing firms can use the technology may start producing the products with their own brands.

Recruitment process can cause the company a great loss:

Reckitt Benckiser’s existing recruitment process follows the international standards and consists of recruitment board composed of department head or supervisor. Employees have to undergo through written and interview level in recruitment process that allows Reckitt Benckiser to check incumbent for competencies and experience regarding the job. But the existing recruitment process fails to check the incumbents’ mentality to work efficiently and effectively as a team and fails to take into account of the fact whether potential candidate in the local market have the potential capabilities and willingness to work and share their local policies with foreign firm. As a result, new employees fail to work efficiently and effectively in groups that disturbs the workflow at Reckitt Benckiser which lowers employees’ morale, thus increasing voluntary turnover rates, which increases costs and negatively impact the company’s brand image if nothing is yet done.

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Conflicts of interest of employees due to excessive flexible working

environment is detrimental to Reckitt Benckiser:

Reckitt Benckiser allows their employees excessive flexibility in working environment and decision making level. This can be seriously detrimental for Reckitt Benckiser’s success in long run if nothing is yet done. There are high chances of conflicts between employees that will hamper the harmony in working environment and cause disturbances in workflow. Moreover, employees can take wrong decisions that can cause great loss to company in terms of money, market share and loyal customers. Furthermore in Bangladesh where there is high level of corruption and nepotism, there is a possibility that decision always favors the employees more rather than the entire organization.

Management’s dilemma will affect proper, accurate, effective and efficient

decision making that will jeopardize company’s ability to be the market leader of Bangladesh in near future:

Mr. Hasan Tarek is in a dilemma whether he has correctly assessed the cause of past performance problems and effectively and efficiently solved them. If he somehow failed to solve the root cause of past problems and if nothing is done to clear the dilemma, then it might result in a downturn in financial performance that would not only result in further turmoil within the company and investment community but will jeopardize the company’s ability to be market leader. Further, if the dilemma is not cleared, then Mr. Tarek will fail to focus in the long term strategic planning and decision making and fail to take advantage of opportunities to expand that will threaten the company’s existence in near future.

Lack of proper training and development will increase turnover rate and employees might not stick to Reckitt Benckiser’s ways of maintaining relationship with its stakeholders, maintain ethical code of conduct and fail to work effectively as a team.

Reckitt Benckiser’s existing training and development program focuses on skills, competencies regarding the job. But most of the job at Reckitt Benckaiser is team based. The existing training and development program fails to provide team based training and training about cultural awareness regarding Reckitt Benckaiser’s business ethics and codes. If nothing is done, employees will be demoralized as they will fail to perform effectively in teams, thus lowering their productivity, satisfaction, increasing absenteeism, turnover that will eventually result in loss of revenues and market share.

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ALTERNATIVE 2: RECRUITMENT PROCESS AT RECKITT BENCKISER MUST BE REDESIGNED TO PLACE RIGHT PEOPLE WITH RIGHT SKILLS, COMPETENCIES AT RIGHT POSITION IN RIGHT TIME BACKED BY PROPER T AND D PLAN TO ALLOW THE NEW EMPLOYEES TO ACQUIRE NEW SKILLS AND WORK IN GROUPS WITH THEIR PEERS

The Recruitment and selection process must be restructured in such a way that it not only maintains the international standards but also takes into account the factors that affect the local labor market in Bangladesh. The recruitment process must include the existing written and interview level to check for skill competencies and experience regarding jobs but changes must be made in the recruitment board. The Recruitment board must be composed of department heads, supervisors as well as team members. The team members must ask question to assess the mentality of new incumbent in order to check whether they have the qualities to work effectively and efficiently in a group. Moreover, the HR department must conduct analysis regarding the local labor market and factors that might negatively impact foreign companies. HR department will then redesign the recruitment process in such a way that attracts potential local candidates that have capabilities and willingness to work and share local policies with foreign firms. The HR department will then design effective training and development program by focusing on the new recruits. The training and development program will help the new recruits to acquire skills, knowledge and abilities regarding job, team based training to work in groups with peers, diversity training to work in harmony with strangers and provide cultural awareness program that ensures the new employees maintain Reckitt Benckiser’s business code of conducts, ethics and policies. Moreover, the training and development program must be designed in such a way to give the new employees practical exposure to their jobs.

Pros of Alternative 2: Recruitment process at Reckitt Benckiser must be redesigned to place the right people with right skills, competencies at right position in right time backed by proper T & D plan to allow new employees acquire ne skills and work in groups with their peers

Right people with right skills are selected that results in talented workforce:

Effective recruitment and selection process that follows international standards and take into account of local labor markets will allow equal employment opportunities

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and help to choose the right people with right skills in right position at right time which results in a diversified talented workforce who will be capable and willing to share local policies with foreign firm helping Reckitt Benckiser to gain competitive advantage as local people are properly aware of their culture and gain market share.

The new recruits will get practical exposure through effective T and D:

The new recruits especially those who are fresh graduates from universities will gain practical exposure through the effective training and development program that will allow them to acquire the skills, knowledge and capabilities regarding the job, increasing their morale, job productivity, satisfaction, organization commitment, thus lowering absenteeism, voluntary turnover that will help maintain workflow and increase profits. In addition, new recruits will work effectively and efficiently in team as well as with strangers that will maintain the workflow and operation efficiency.

Turnover rates will decrease:

Effective and efficient recruitment process backed by proper training and development program helps to lift employees’ morale, increasing their job productivity, satisfaction, organization’s commitment, lowering turnover rates. This will also help to promote Reckitt Benckaiser as a favorable company to work for, thus making it the first choice for people in search for jobs, helping Reckitt Benckiser to attract and select the best employees and helping them gain competitive advantage through talented, diversified, workforce.

Employees will be motivated and effectively maintain RB’s ethical code, business code and proper relationship with other stakeholders i.e. customers, suppliers :

Proper training and development program will motivate employees to perform better and training and development program regarding cultural awareness, business ethics and codes will help employees understand the principles and ethical values and thus work in such a way to maintain the management policies. Moreover, clear understanding of the policies will eliminate employees’ chances of misusing insider trading information for personal gains and allow employees to act as whistle blowers against wrong doings in the organization and maintain an overall good relationship with all stakeholders of the company. This will in turn allow Reckitt Benckiser to build a reputation as a responsible and trust worthy business partner, employer, supplier and corporate citizen.

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CONS of Alternative 2: Recruitment process at Reckitt Benckiser must be redesigned to place the right people with right skills, competencies at right position in right time backed by proper T & D plan to allow new employees acquire ne skills and work in groups with their peers

Will require time:

Restructuring the entire recruitment process and designing effective training and development program for skills, team based training, diversity training and cultural awareness training to maintain business code of conduct and ethics requires a lot of time because the HR department would have to conduct extensive research and take into account the factors affecting the local labor market and also deal with the negative factors in labor market that can impact the brand image of Reckitt Benckiser. Reckitt Benckiser will also have to forecast labor movements using the transitional matrix. Moreover, proper screening of employees to ensure that they possess adequate knowledge, skills, and abilities and has mentality to work in group requires time. Moreover, designing effective, efficient training and development program also requires proper planning which very time is consuming as well

Will be costly:

Restructuring the recruitment process requires conducting extensive research regarding local labor markets and mobility of labor force which is quite costly. Designing and then developing effective and efficient, separate training and development program for skills training, team based training, cultural awareness training, diversity training requires a lot of resources which adds additional costs. Sometime specialized trainers is quite expensive as well.

Needs a lot of effort:

Making changes in an existing organization requires a lot of effort. The HR department first has to identify the loop holes in its existing recruitment process and training program, then has take into account of the external and internal factors that affects the recruitment process and training program and then has to conduct extensive research to find ways to improve the recruitment and training programs and then finally put in a lot of effort in restructuring the recruitment and training program. Designing specific training program requires conducting job analysis, selecting appropriate training methods and then design and test it to ensure it is appropriate which requires a lot of effort.

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ALTERNATIVE 3: RECKITT BENCKISER CAN OWN PRODUCTION FACILITIES THROUGH ACQUISITION WHICH WILL ALLOW THEM TO CONTROL PRODUCTION PROCESS AND HELP THEM EXPAND BY LAUNCHING NEW PRODUCTS FOR NEW TARGETED MARKET SEGMENT AND MEET THE DEADLINES BY MOTIVATING EMPLOYEES THROUGH PROPER REINFORCEMENT I.E. SCANLON PLAN, PROPER T AND D PLAN AND PROPER RECRUITMENT PLAN.

From 2004 to 2006, Reckitt Benckiser in Bangladesh achieved steady growth from 18% to 50% as they were making huge profit on most of its products in the market. 4.5 % revenues from each product of the subsidiary are to be given to the parent company but in Bangladesh according to local government rule, only 3% of revenue from each product is given to parent company. Thus the company is saving 1.5% each year. The company can use this investment to own existing local manufacturing companies in Bangladesh through acquisition and establish its own production facilities in Bangladesh. This will help Reckitt Benckiser to control its production unit fully, lower the amount of imports as it can manufacture existing products by gaining access to local resources readily and controlling them, thus meeting deadlines effectively as well as efficiently and can use the production facility to launch new, innovative products for new targeted customer segments in Bangladesh in order to gain market share and expand. In order to succeed, Reckitt Benckiser will have to restructure its entire HR practices to ensure that effective recruitment process selects the potential candidates with proper skills, knowledge, competencies and ability to work as team and with no rebellious mentality. Moreover, HR practice regarding training and development program must be designed and properly implemented to ensure employees receives skill based, team based, diversity training and cultural awareness programs to ensure that factory workers acquire new skills, sharpen existing skills and retain them properly. In addition, Reckitt Benckiser that always offered lucrative compensation package to employees must include Scanlon plan that acts as reinforcement for factory workers to meet deadlines effectively, efficiently, maintaining workflow.

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Pros of Alternative 3: Reckitt Benckiser can own production facilities through acquisition which will allow them to control the production process and help them expand by launching new products for new targeted market segment and meet deadlines by motivating employees through proper reinforcement i.e. Scanlon plan, proper T & D plan and proper recruitment process:

Eliminates the problem caused by outsourcing and technology leakage to competitors:

Having their own production facilities allow Reckitt Benckiser to eliminate the chances of problem that can occur at HR level as Reckitt Benckiser has full control over its production process. This lowers the chances of technology leakage to competitors and minimizes the risks of the local manufacturing to start producing local product under different local brand name which is detrimental to Reckitt Benckiser’s success, to zero.

Allows Reckitt Benckiser to achieve growth :

By acquiring production facility and gaining control over production process will allow Reckitt Benckiser to tap into market niche and help for better market penetration through new, innovative products that are manufactured in their own production facility using their own technology based on their market research and help them achieve long term growth and increased revenues. Moreover, with the help of proper HR practices (recruitment process and proper training) and proper reinforcement such as Scanlon plan, the factory workers will be motivated to meet deadlines in a efficient and effective manner, increasing their job productivity, job satisfaction, organization’s commitment, lowering absenteeism, voluntary turnover which eventually will result in increased profits and greater market share, increased customer loyalty.

Increases customer loyalty:

Reviewing the entire service system for better scope of improvement and restricting it along with introduction of new kind of services will definitely increase customer loyalty as they will be delighted.

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Increases brand awareness:

By introducing new products and newly improved existing products with the help of their own production facility and access to cheap labor, resources will help Reckitt Benckiser gain first mover advantage in innovative, new products that meets the needs of untapped niche market, thus creating new base of customers and increased profits.

Increases new job opportunities for people of Bangladesh

By owing their own production facility will allow Reckitt Benckiser to create new job opportunities for people of Bangladesh that will help them gain advantage from government and will result in a favorable company’s brand image.

Cons of Alternative 3: Reckitt Benckiser can own production facilities through acquisition which will allow them to control the production process and help them expand by launching new products for new targeted market segment and meet deadlines by motivating employees through proper reinforcement i.e. Scanlon plan, proper T & D plan and proper recruitment process

Loses the benefits of outsourcing i.e. they can no longer offset any environmental issues:

Reckitt Benckiser can no longer offset any sort of environmental issues as they are now producing their own products which increases the chances of facing environmental allegations if something goes wrong. In addition, Reckitt Benckiser will have to handle the factory workers as well.

Requires a lot of effort:

It requires a lot of effort to find a proper production facility to acquire and one has to go through a lot of negotiation which requires a lot of effort to acquire a production facility at an economic price. Furthermore, it requires a lot of effort to train the employees so that they can change and adapt to Reckitt Benckiser’s work culture.

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Moreover, extensive research must be conducted by marketing department before they can come up with a new product idea, product design that meets customer’s demand and access to resources before they are manufactured properly in the production facility.

Requires a lot of time

Acquiring new production facility, coming up with new product and instilling the Reckitt Benckiser’s corporate culture at production unit among employees is time consuming.

Additional costs

Acquisition of local production facilities can be expensive. Moreover, hiring new employees and giving salaries to each factory workers can add extra costs. Hiring specialized trainers to train factory workers can be costly as well.

ALTERNATIVE 4: THE HR PRACTICES SHOULD BE RESTRUCTURED TO ELIMINATE PROBLEMS IN RECRUITMENT, T AND D, INTEGRATED WITH OTHER DEPARTMENT AND OPEN A SUB DEPARTMENT WHO WILL BE GIVEN AUTHORITY TO MONITOR EACH EMPLOYEES’ DECISION AND EVALUATE THEIR PERFORMANCE FROM TIME TO TIME TO ENSURE THAT EMPLOYEES DOES NOT TAKE ANY WRONG DECISION THAT IS DETRIMENTAL TO RECKITT BENCKISER, THUS LIMITING EMPLOYEES’ EXCESSIVE FLEXIBILITY.

The HR department would first conduct a rigorous analysis to find the loopholes regarding the HR practices, management policies and will then restructure the entire HR practice to eliminate the existing problems and modify the recruitment and selection process to ensure right people with right skills is chosen in right position at right time. The recruitment and selection process should not just only focus on education qualification, experience, and job skills competencies but also look at the psychological factors of incumbents to ensure that they have mentality to work as member of team and with strangers as well and does not have rebellious tendency. The recruitment process must be redesigned to ensure the person is fit for both job

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and organization. The training and development program must be redesigned to ensure that both new and existing employees acquire new skills, sharpen and retain existing skills regarding jobs. Furthermore, the training and development program must include team based training; diversity training, cultural awareness program so that they can work efficiently as team and individual and maintain Reckitt Benckiser’s business ethics and code of conducts. Apart from restructuring the HR practices, the HR department would be integrated with other department and should open a sub department who is accountable to top management and is given authority to monitor employees’ performances and decisions from time to time and provide them feedback to minimize the chances of any wrong decision taken by employees and hence limit excessive employees’ flexibility at Reckitt Benckiser.

Pros of Alternative 4: The HR practice should be restructured to eliminate problems in recruitment, T and D, integrated with other department and will open a sub department to monitor each employees’ decision and monitor their performance from time to time to ensure that employees does not take any wrong decision that is detrimental to Reckitt Benckiser, thus limiting their flexibility

Proper Recruitment ensures talented, diversified workforce:

Effective recruitment and selection process that follows international standards and take into account of local labor markets will allow equal employment opportunities and help to choose the right people with right skills in right position at right time which results in a diversified talented workforce who will be capable and willing to share local policies with foreign firm helping Reckitt Benckiser to gain competitive advantage as local people are properly aware of their culture and gain market share.

Proper T and D minimizes turnover rates

The new recruits especially those who are fresh graduates from universities will gain practical exposure through the effective training and development program that will allow them to acquire the skills, knowledge and capabilities regarding the job, increasing their morale, job productivity, satisfaction, organization commitment, thus lowering absenteeism, voluntary turnover that will help maintain workflow and increase profits. In addition, new recruits will work effectively and efficiently in team as well as with strangers that will maintain the workflow and operation efficiency. This will allow employees to adapt to organization’s culture, understand ethics, values, works effectively and efficiently as individual and team member even with strangers. Lower turnover rate will promote favorable brand image of Reckitt

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Benckiser and allow it to become first choice of employment among fresh graduates’ preferences.

The sub department with more authority minimizes employees’ chances of making mistakes, lowers employees’ chances to pursue own interest and minimize conflicts

The sub department of HR will monitor employees’ decision and evaluate performance from time to time and provide feedback and take necessary steps to prevent employees from taking any wrong decision that will threaten the organization’s survival. This limits employees’ excessive flexibility and minimizes the chances of conflicts that may arise in a decentralized system due to empowerment of employees. As a result, right decisions will be taken that will not benefit a particular employee but serve the interest of organization as a whole.

This will help to lower management’s dilemma

The sub department of HR can look into the cause of past performance problems and assess whether these problems still exists. The sub department can deal effectively with existing problems in the workplace and their root causes, thus reducing the management’s dilemma and hence allowing top executives like Mr. Tarek, head of marketing department to focus on long term planning and decision making and take advantage of upcoming opportunities which will enable Reckett Benckiser to become market leader.

Cons of Alternative 4: The HR practice should be restructured to eliminate problems in recruitment, T and D, integrated with other department and will open a sub department to monitor each employees’ decision and monitor their performance from time to time to ensure that employees does not take any wrong decision that is detrimental to Reckitt Benckiser, thus limiting their flexibility

It will be costly, time consuming and requires a lot of effort:

The existing HR practice must be reviewed thoroughly for loop holes at first and then modified which is costly, time consuming and takes in a lot of effort. The recruitment process that maintains international standards must take into account of factors that affect local labor markets in order to give equal employment opportunities, assess

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employees for skill based competencies required for job along with mentality to work as a member of a team and hire potential candidates that will be willing to share local policies with foreign companies. In addition to this, training and development program will not only include skill based training but team based training, diversity training and cultural awareness training. Moreover, opening a new sub department under HR department adds extra costs, is time consuming and requires effort as well.

The monitoring department can misuse their power due to biasedness:

The monitoring department who is given authority to monitor each employees’ decision, performance in order to limit employees’ excessive flexibility can misuse their power and influence employees’ decision to pursue interest of monitoring department that will threaten the organization’s existence in long run and the company would suffer losses.

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We recommend alternative 3 as a probable solution.

Our alternative 3 was: “Reckitt Benckiser can own production facilities through acquisition which will allow them to control the production process and help them expand by launching new products for new targeted market segment and meet deadlines by motivating employees through proper reinforcement i.e. Scanlon plan, proper T & D plan and proper recruitment process” Reckitt Benckiser subsidiary in Bangladesh only pass 3 % of revenues from each product category to parent company unlike other subsidiaries which gives 4.5%. The extra 1.5% revenues saved from each product category can be invested to own the best suitable production facility through acquisition at economic price. This will allow Reckitt Benckiser to control production process fully and allows Reckitt Benckiser to launch new products that meet the needs of untapped market niche, thus creating a new customer base and increase the profits. In order to ensure optimal output of production facility, the HR practice must be restructured through proper recruitment process, training and development process, proper compensation package to acquire and fully utilize the capacity of diversified, talented, motivated workforce.

The main reason we chose alternative 3 is because acquiring own production facility helps to gain incentive from government due to many job opportunities created and completely eliminates the risk of technology leakage to competitors and reduce the chances of local firms to launch products under their own brand names. This will help to maintain Reckitt Benckiser’s competitive advantage and will help Reckitt Benckiser to achieve growth, increase market shares, customers by launching new products, increase customer loyalty by improving existing products and ensure its availability to meet customer demand and hence create brand awareness.

The reason we did not choose alternative 1 is because bad HR practices of recruitment, lack of proper training and development can lead to increased turnover rates which in turn can create a bad impression about the company. Problems caused by outsourcing can lead to technology leakage to competitors and increased chances of local firm to produce their own product under different brand name which is detrimental to Reckitt Benckiser and can cause management dilemma.

Alternative 2 and 4 are not chosen because they are time consuming, expensive, require a lot of effort. Alternative 2 and 4 mostly focuses on solving existing problems in HR department but fails to take advantage of future growth opportunities. Moreover in case of alternative 4, there are chances that monitoring department might misuse their power to pursue self interest and might support decision of preferable employees over others.

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Now, after recommending the best alternative, it’s time for us to explore the implementation phase of this recommendation. No recommendation can be decided as fruitful until it has been implemented. Because, this is only through proper implementation, we can achieve the desired results. If the desired result is not achieved, then at least it will reveal the lapses which caused the problems so that these loopholes can be rectified in the future or we can go for the next alternative and go through the same process of implementation.

We will go through two phases of implementation for Reckitt Benckiser according to the following diagram:

The General Implementation in Phase1 will be the overall implementation process and Functional Implementation in Phase2 will consist of:

Marketing Implementation Financial Implementation Operational Implementation Human Resource Implementation

Phase1

General

Implementation

Phase 2

Functional Implementation.

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Reckitt Benckiser is very successful and popular in Bangladesh. The reason behind it is that the company chose the right set of products to launch in the country. Apart from these the company also participates in many social works in the country. Reckitt Benckiser products are highly available in most of the hospitals and other service and health care centers. The availability of these products in such places prove the fact this multinational company is not in Bangladesh only to earn revenues, they are also here for the benefits of the general people. By doing all these activities in Bangladesh and by having the connections in the hospitals and supplying them with the quality products of international standards the company has been able to gain an upper hand in the country and is still tailing many other companies behind it. Reckitt Benckiser mission is about passionately delivering better solutions in household cleaning and health & personal care to customers and consumers, wherever they may be, for the ultimate purpose of creating shareholder value. This vision defines both their purpose and their values as a Company.

So to reach their mission, Reckitt Benckiser can own production facilities through acquisition which will allow them to control production process and help them expand by launching new products for new targeted market segment and meet the deadlines by motivating employees through proper reinforcement i.e. Scanlon plan, proper T and D plan and proper recruitment plan. Having their own production facilities allow Reckitt Benckiser to eliminate the chances of problem that can occur at HR level as Reckitt Benckiser has full control over its production process. This lowers the chances of technology leakage to competitors and minimizes the risks of the local manufacturing to start producing local product under different local brand name which is detrimental to Reckitt Benckiser’s success, to zero.

Reckitt Benckiser is committed to responsible corporate behavior. This includes high standards of business conduct in its relationships with employees, customers, consumers, shareholders, suppliers, governments, competitors and the local communities in which it operate. The purpose of this Code of Business Conduct is to ensure that employees across the Group have a clear understanding of the principles and ethical values that the Company wants to uphold. It applies to all employees in all Reckitt Benckiser Group companies globally. The Code forms the core element of Reckitt Benckiser’s Corporate Responsibility Framework. This comprises a set of policies and control arrangements that govern how to act as a Company and how to interact with our stakeholders in conducting the Company’s business. This code of conduct should be maintained properly among all the employees and employers.

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Marketing Implementation

Reckitt Benckiser products are highly available in most of the hospitals and other service and health care centers. The availability of these products in such places prove the fact this multinational company is not in Bangladesh only to earn revenues, they are also here for the benefits of the general people. The company along with all these also participates in the free distribution of some of their products based on the occasion. For example in the Bengali New Year the company sent out its hand cleaning products in all the densely populated places in Dhaka City and in those places where there are chances for the general people to have some food. The purpose of this act was to instill the sense of safety among the general people even at times of festivals and occasions. With the shift in the focus on the core products the company was able to rectify its position and the availability of the cash inflows was noticed.

By doing all these activities in Bangladesh and by having the connections in the hospitals and supplying them with the quality products of international standards the company has been able to gain an upper hand in the country and is still tailing many other companies behind it. So to maintain this output level and to maintain the sense of safety among general people, they need to implement a good marketing policy. They need to come up with some new marketing strategy by hiring some fresher’s who are skilled and experienced. Fresh challenges require that apparel producers reduce the cost of production even further. By owning their own production facility will allow Reckitt Benckiser to create new job opportunities for people of Bangladesh that will help them gain advantage from government and will result in a favorable company’s brand image.

Develop Integrating Marketing Communication (IMC) Plan

To build an Integrated Marketing Communication (IMC) Plan Reckitt and Benckiser must follow the following development steps:

Review of marketing plan Analysis of promotional program Budget determination Develop integrated marketing communication program Implement marketing communication programs Monitor, evaluate and control the program

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The communication medium

The Company is committed to proactively encouraging its suppliers and contractors to demonstrate responsible business behavior and high standards of business conduct. This commitment is presently focused on direct suppliers involved in the manufacture, assembly or distribution of products on behalf of Reckitt Benckiser Group companies, and on those suppliers or contractors who are actively engaged in work at Company facilities. So they should start using some communication mediums like

Using consultants : In the selling and marketing products consultants always play a very vital role, so Reckitt Benckiser can use consultants to convince government personnel and international clients to win contracts and attract new market segments.

Bill boards: though it is an international business but again using billboards through which company can let others know about their products and also when the foreigners will visit they will also have their attention.

Public relation: These days pr does most of the marketing work in efficient manner. It is cost efficient and it is of high effectiveness.

Positioning

Although the names of the company changes due to the changes in the employers but the overall function of the company within Bangladesh remained the same with minor changes in the distribution of the product category. From the beginning of the operations the company was in a very stable act of authority in regards to the market penetration and the financial resources. Organizational growth narrates the organization’s position, which is changeable based on the situation.

Organization can reach its introduction, peak, trough, and declining consecutively. First organization pass through introduction face then comes the growth stage. Growth stage organization increases rapidly and it indicates that when it will reach to its maturity stage. When the growth is good then the organization will forecast that the demand will be higher in the future. If the growth is bad then the organization will be searching for new strategy. So in the components of positioning strategy we have also added the new attributes generated from the department by providing superior services to match the customer demand. This positioning strategy would also carry

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Reckitt Benckiser‘s expertise and knowledge in producing high quality products and create a clear image on the customers mind.

Branding

By introducing new products and newly improved existing products with the help of their own production facility and access to cheap labor, resources will help Reckitt Benckiser gain first mover advantage in innovative, new products that meets the needs of untapped niche market, thus creating new base of customers and increased profits.

Financial Implementation

The financial condition of a firm indicates how the firm is performing in the competitive market forces. The financial condition of the firm determines the external condition surrounding the firm. And the financial condition actually reflects the firms’ performance in the external environment and also its internal productivity. When Reckitt Benckiser merged it started its operation in a completely new way. Young team was recruited to give the company new identity and the company emphasized only on the core brands of Reckitt & Colman which was 80% contributor. The core brands started to grow and in 2004 it was going through a very difficult situation as it was overcoming from its losses. Finally in 2005 the company was making profit and started to grow in a very faster rate.

From 2004 to 2006, Reckitt Benckiser in Bangladesh achieved steady growth from 18% to 50% as they were making huge profit on most of its products in the market. 4.5 % revenues from each product of the subsidiary are to be given to the parent company but in Bangladesh according to local government rule, only 3% of revenue from each product is given to parent company. Thus the company is saving 1.5% each year. The company can use this investment to own existing local manufacturing companies in Bangladesh through acquisition and establish its own production facilities in Bangladesh. This will help Reckitt Benckiser to control its production unit fully, lower the amount of imports as it can manufacture existing products by gaining access to local resources readily and controlling them, thus meeting deadlines effectively as well as efficiently and can use the production facility to launch new, innovative products for new targeted customer segments in Bangladesh in order to gain market share and expand. The strong financial resources will help RB to invest the money in a new segment. It will also help the company to give emphasize in other products which are not number one in Bangladesh. Huge market growth will increase their brand image. Shareholders will be interested to buy their share.

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Operational Implementation

Employees of the Company are responsible for the proper use, the protection and the maintaining of company assets, including intellectual property like patents, trademarks and designs. Company assets may only be used in relation to the Company’s business. The Company has in place a Crisis Management Policy and Group Crisis Management Guidelines, supported by regional or local control arrangements and emergency response plans, to minimize the risks to the business, its customers, employees and shareholders in a crisis situation. Business Continuity Planning forms a key part of these arrangements.

The existence of an agreed authority’s structure is an essential requirement for establishing an effective financial and operational control environment. All business units are required to establish and maintain appropriate levels of authority to cover all items of asset value or expenditure and all transactions which need to be subject to management approval.

Human Resource Implementation

Strategic human resource management or SHRM is like the heart for the company since it is the department which would be searching and employing those skilled and qualified people who are going to make a company successful.

In the case of Reckitt Benckiser, the company also needs to give high attention on its SHRM. Because a successful entry is not the ultimate success of business, it is the sustainability of business that counts. So Reckitt Benckiser should carry out an effective Human Resource implementation system to bring out the desired result from the recommendation.

To bring about the desired result from the strategic human resource implementation, Reckitt Benckiser would be a shown a systematic building block which they can restructure the HR department. The diagrammatic representation on the following page summarizes the process blocks for the HR implementation for Reckitt Benckiser.

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Fig: Building blocks for HR implementation for Reckitt Benckiser

Now we will look at each of these building blocks of Human Resource implementation in detail.

In order to have a self controlled production system at its acquired production outlets, Reckitt Benckiser needs a dedicated and high qualified pool of workers. Through this they can achieve full control in their production departments and also keep up at a strong pace with the market demand and competition. This building blocked can be achieved through the following ways:

Job analysis:

It will identify the skills and expertise required to perform the work at Reckitt Benckiser’s own production units, which clarifies hiring standards. Training programs may be designed with job analysis data; jobs may be redesigned based on such data.

Job analysis procedures:

It will collect information about specific tasks or behaviors. It’s a very systematic process, where the job analyzer would do a thorough research on the assigned job, job area and job responsibilities. The job analysis process has a standard way of doing it. HR personnel would do the job analysis process.

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Obtain the required employees & workers

Compensation and benefit management

Evaluate performance

Improve skills & qualifications

Block 1: Obtain the required employees & workers

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Job descriptions:

It is the written summary of a job, including responsibilities, qualifications and relationships. This job description will provide a wide picture of the jobs that need to be performed at Reckitt Benckiser. A well constructed job description would help the manager of the production department to identify and understand which employee would be held responsible for a certain job, who is qualified for a certain job, which employees would fit in group activities, what qualifications the group would need, how much the group would need diversification, etc..

Steps to Develop Job Descriptions for the production outlets:

Gather the appropriate people for the task.Integrate with the job analysis results.Write the job description.Review the job description periodically.

Recruitment and selection

Construct an employment planning: This will be done through the following ways:

Needs of the three different departments

Supply of candidates from inside sources

Supply of candidates from outside sources

Build a pool of candidates: Done by the HR department through efficient and effective screening.

Initial screening: Done by the HR department creating a general understanding of the jobs’ responsibilities and requirements.

Use selection tools: Measuring the required experience, background check, interviews, general knowledge, skills regarding specific jobs and fitness test.

Select appropriate employees: At this step the HR department would come up with a list of candidates who are being proposed possible recruits for the production departments.

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The following diagrammatic representation generalizes the whole building block in a nutshell.

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Training

Training and development needs can be met in a variety of ways. One approach is for the employer to pay for employees to upgrade their skills. This may involve sending the employee to take courses or certificates or it may be accomplished through on-the-job training. As Reckitt Benckiser has planned to set up its own production outlet with its own labors and resources, the company needs to come up with an extensive training plan for the newly recruited employees.

Training program for improving the skills and qualification of employees and workers

Reckitt Benckiser should provide skill-based training to the employees. It would both benefit the organization by getting trained and skilled people and the employee to improve and work more efficiently. Employees would be provided training in many stages in different ways. The training options would be:

Off the job training: Reckitt Benckiser should focus on off the job training. This method would include conference, lecture, workshop etc.

Workshop – Reckitt Benckiser would arrange workshops for the production workers for better knowledge, sharing new ideas and make the company more compatible in the industry.

On the job training: Reckitt Benckiser would train its new hired employees through making them to work practically so that they can learn while actually working on it. It would be more like learning by doing.

Training under supervisors and expertise: The technology of producing would require Reckitt Benckiser’s employees and workers to learn the technique quickly.

Job instruction training (JIT): The employees and workers of the production department can be trained by this method. In this way they will be given a list of instructions, which they will follow while working in the production plant.

Simulation training: This will be for the huge number of employees who will be handling machineries in the production plant. In this method of training a trainer would show how to handle a machine then trainees would be asked to do the same thing.

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Block 2: Improve Skills & Qualifications

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A diagrammatic representation as follows should give a concise picture of the preceding details.

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Compensation and benefits Strategy

Reckitt Benckiser can come up with some measures to identify the actual amount of payment for the employees of production department. These possible measures are:

Do a survey for analyzing the situation Verify the data Constructing a market pay line Combine internal and external pay structure Develop pay grades

For compensation Reckitt Benckiser must follow a different strategy for the employees of production units. Here are the following strategies for compensation. It would comprise:

The common elements of the compensation and benefit plans are:

Variable pay Performance based pay Health insurance Short term disability pay

Extra activities:

Reckitt Benckiser should address the following things regarding compensation and benefit strategies:

o Taxation o Impact of currency fluctuation o Foreign government laws and HR practiceso Union’s impact on compensation plans

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Block 3: Compensation and Benefit management

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Career Planning

Reckitt Benckiser would help the new employees in career planning in the organization that would include:

Career counseling Career specific information Employment opportunities

The above details can be illustrated as follows:

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Evaluating:

HRM evaluation

Reckitt Benckiser can use the 360 degree approach for doing the evaluation of the employees. HR department can also rate them on the basis of implication of intelligence in the work along with other terms like effective & efficiency, department’s overall output, etc. The Performance Review Summary Form is designed to record the results of the employee's annual evaluation. During the performance review meeting with the employee, use the Performance Review Form to record an overall evaluation in:

Accomplishments Service and relationships Dependability Adaptability and flexibility And decision making or problem solving.

Performance appraisal

The most popular methods used in the performance appraisal process include the following:

Management by objectives 360-degree appraisal Behavioral observation scale Behaviorally anchored rating scales

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Block 4: Evaluate Performance

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After applying the methods of performance appraisal the HR department would come with:

A Plan which would specify the ways of judging an employee’s performance. Development phase where the ways of judging performance would be

determined and designed. Execution of the ways of judging performance of the employees and workers

of Reckitt Benckiser. Result of the judgment would be assessed and suggestions by the HR experts.

The above process can be illustrated as follows:

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Reckitt Benckiser HRM Case Solution

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