Report

Chapter-1: INTRODUCTION

Rationale for Selecting the Report

Background of the Organization

Objective of the Report

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1.1. Rationale for Selecting the Report

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

and maintenance of Human resources in an organization. It can also be defined as the

management of the workforce of a business organization to ensure sufficient staff levels with

the right skills, properly rewarded and motivated. Human Resource Management (HRM) is a

planned approach to managing people effectively for better performance. It aims to establish a

more open, flexible and caring management style so that staff will be motivated, developed and

managed in a way that they can give of their best to support departments’ missions. Good HRM

practices are instrumental in helping achieve departmental objectives and enhance productivity

of any fast growing organization. Organizational Commitment involves with an employee’s

loyalty to the organization, willingness to exert effort on behalf of the organization, degree of

goal and value congruency with the organization, and desire to maintain membership. When

employees believe that their organization intends to support them and expresses its

commitment to its employees through its HRM practices (training, rewards, equal employment

opportunity, etc.), it makes the employees more committed to the organization. Eisenberger et

al (1990) discuss that those employees who feel that they are cared for by their organization and

managers have not only higher levels of commitment, but also they are more conscious about

their responsibilities, have greater involvement in the organization, and are more innovative.

Internship has merged the theoretical and practical knowledge which is important in our future

life. For developing the practical knowledge I want to do internship. As our educational system

predominantly text based, inclusion practical orientation program, as an academic component is

an exception to the norm. As the parties; educational institution and the organization

substantially benefit from such a program, it seems a “win-win situation”. The process

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establishes networking contracts, which may help student to get a job, which means students

can train and prepare them for the job market. Internship experience gives professional

experience which practical orientation provides positive development in professional arena.

1.2. Background of the organization

Homeland life insurance Company limited (HOLICO) was formed in 1996. Today Homeland Life, with its Head Office in Dhaka operates in whole over Bangladesh. Homeland Life Insurance Company Limited offers a way to replace the loss of income that occurs when someone dies (usually the person who produces the majority of income in a family situation). It is a contract between you as insured person and HOLICO that is providing the insurance if you die while the contract is in force, the Homeland Life Insurance Company Limited pay a specified sum of money free of income tax “Cash benefits” to the person

or persons you name as beneficiaries or nominees. Our Life Insurance Plans do more that just replaces the loss of income that occurs if you die. It should also provide money to cover the new costs that arise after your death funeral expenses, taxes, probate costs, the need for housekeepers, child care, and so on. And those cash benefits should provide for your families future needs as well, including education for your children and part of all of your spouse's retirement needs. In almost all cases, your beneficiary can use the cash benefits in the way he or she sees fit, without restriction.

Homeland Life Insurance Company Limited is first time introduce Islami Life Insurance on basis

of Quran & Sunnah in Bangladesh.

Homeland Life Insurance Company's primary method of distribution around the country is the

agency network. HOLICO's agency offices, servicing centers and affiliates market a board range

of life insurance product through a network of some agents & development officers

countrywide. We emphasize professional Homeland Life Insurance Company's policy of

developing local talent to resource its operations has greatly contributed to its success in

understanding, meeting and responding quickly to changing customer needs and market

conditions. We are primarily staffed with local personnel who are constantly studying the needs

of individuals and developing innovative products to the specific requirements of each district of

Bangladesh. This long-standing approach is the foundation of our leadership, because we

understand local market needs and conditions. Local awareness typifies HOLICO's previous

history and continues to this day. skill development through continuous education and field

training.

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1.2.1. Mission

To be a strategic long-term partner with Homeland Life Insurance Company, providing quality products, legendary service and uncompromising marketing programs and distribution support that:

Meet the needs of Homeland Life Insurance Company Members, Strengthen the brand and enhance the value of Homeland Life Insurance Company

Membership Provide a competitive return to our owners and contribute meaningful revenue to

Homeland Life Create a positive environment for motivated associates to grow and contribute to

the success of Homeland Life Insurance Company.

1.2.2. Vision

To be the life insurance company of choice among Life Insurance Companies and their members

for quality life insurance solutions that help to ensure financial security and peace of mind..

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1.2.3. Corporate Information Profile

Address : Head Office: PMG (Ground Floor)R # 136, H # 31, Gulshan 1,Dhaka-1000.Tel: +88 02 9851921, 9851922Fax: +88 02 9851920

E-mail: [email protected]

Web site: www.pmgbd.comCompany Registration Date : May, 23, 2005Data of Registration by the Controller of Insurance

: September 15, 1996

Registered Office : Ellal Chamber (2nd Floor)11, Motijheel, C/A,Dhaka-1000, Bangladesh.

Authorized Capital : Ten Crore Taka.Paid up Capital : Three Crore TakaLife fund : Taka 153.22 CroreNumber of Director : 22 (Twenty Two)Auditor : A Haque & Co.

Chartered AccountantsActuary : Mr. Mohammad Sohrab Uddin, Ph.D,

AIAFlat # A-04, House # 65/A, Road # 15/ADhanmondi R/A, Dhaka-1209

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1.2.3. Organizational Organogram

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1.2.4. Hierarchy of the HR & Admin Department of Homeland Life

Insurance Co. Ltd

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1.2.5. Ownership structure

Organizational hierarchy of any organization represents the chain of command of the overall

organization. It is very difficult to maintain a systematic organizational hierarchy. While doing so,

many organizations can attain its concerned vision and mission. This chain of command is also

necessary for HOLICO. The organizational hierarchy of HOLICO is presented as follows:

1.2.6. Composition of the board

Chairman

Managing Director

Board of Directors

Advisors

General Manger/Chief Engineer & Equivalents

Deputy General Manager/Add. Chief Engineer

Assistant General Manger/Deputy Chief Engineer & Equivalents

Manger/Executive Engineer & Equivalents

Regional Sales Manager & Equivalents

Dy. Manager/Sr. Engineer & Equivalents

Asst Manger/Area Sales Manger/Engineer & Equivalents

Sr. Executive/Asst Engineer & Equivalents

Executive/Territory Sales Manger/ Sub-Ass. Engineer & Equivalents

Officer/Jr. Executive

Supervisor

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1.3. Objectives of the Report

1.3.1. Broad objectives

The general objective of this report is to complete the internship program and submit a report.

As per requirement of MBA program of AIUB, one student needs to work in a business

organization to acquire practical knowledge about actual Business operation. To understanding

and get hand on experience on General HR Practice on HOLICO (Bangladesh) Limited. So,

General objective is to relate between theories and practical knowledge. And want to know

about training section of Human Resource Department of HOLICO (Bangladesh) Limited.

1.3.2. Specific objectives

To understand and analyze the overall “General HR Practice on Homeland Life Insurance

Co. Limited”.

To fulfill the partial requirement of MBA program.

To understand the function of Human Resource Department of HOLICO

(Bangladesh) Limited .

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

To know in which basis they evaluate their performance appraisal.

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

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

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To describe HRM practices and Organizational commitment.

To examine the impact of HRM practices on employees organizational

commitment.

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

study.

Chapter-2: ACTIVITIES UNDERTAKEN

Work Related

Organization Wide

Other Relevant Activities

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2.1. Work-Related

I started my job program in Homeland Life Insurance Co. Ltd on 3 rd June 2012. My supervisor sir

was Mr. Golam Azom, Assistant Manager. I had plenty of opportunity to understand the sectors

of office environment.

2.1.1. HR Planning & Practice in HOLICO

Human resource management practice in Bangladesh is a new trend. Homeland Life Insurance

Co. Ltd always gives importance on HRD. This department performs the duty of recruiting,

selecting, training and development, motivating, job designing, performance appraisal and

rewarding and giving benefits etc.

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2.1.2. Human Resource Planning

HR planning includes job analysis, job description and job specification

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

perform them.

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

and why it is done.

Job specification is a statement of the minimum qualification.

HR-planning attempts to reconcile an organization’s need for human resources to achieve future

organizational objectives. The main reasons for formal HR planning are to achieve more satisfied

and more developed employees and more effective equal employment opportunity planning.

Homeland Life Insurance Co. Ltd has a separate HR department which is independent and

reports directly to the company. For the employees there is systematic in-house training in

home and abroad. To motivate employees along with salary and benefits; the company

provides various facilities like free transportation, free accommodation in factory employees,

free internet facility, production incentive, 24 hours free medical service , on site sports. Also

provides production and accommodation facilities include full time supply of safe drinking

water, adequate lighting and ventilation facilities.

Homeland Life Insurance Co. Ltd Bangladesh is an equal opportunity employer, as it makes good

business sense to recruit, select and appoint based on the skills, qualifications, experience and

competencies of candidates rather than personal factors. Equal opportunity ensures that the

best person is recruited and selected for the job regardless of the presence of some

“discriminating factors”. Homeland Life Insurance Co. Ltd, Bangladesh doesn’t consider the

following factors to gauge the qualifications of a candidate.

Political belief Religious belief Race Sex / Gender Color Marital Status

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Impairment

2.1.3. HR Administration

We know that the word ‘Administration’ means controlling people. In Homeland Life Insurance

Co. Ltd, HR Administration is much more than just controlling. It includes motivating the

workforce, encouraging them to be more productive and innovative, leading or selecting or

providing an appropriate leader for a leaderless team.

Some smaller and simpler day-to-day functions are carried out by the Administration as well.

These includes employees’ leave balance monitoring and approving if they can avail leave, if

‘yes’ then planning and suggesting how many days, which days etc. Checking and approving

employees’ different loan (House Building, Personal, Car etc.) requests. Administration also

carries out quarterly ‘Reward and Recognition’ event which is called ‘The Town Hall Meeting’.

Here Homeland Life Insurance Co. Ltd employees get rewarded based on their quarterly

performance evaluation. Administration also has to undertake some harsh duties which are

Show Cause letter issue, Warning letter issue, issuing letter of Termination, issuing Dismissal

Order, Audit and Investigation etc. These are certain unavoidable and rare incidents caused

mostly by employees and their personal issues that directly violate HOLICO’s code of conduct.

The HR IMS Software specially designed for Homeland Life Insurance Co.Limited is used by the

Administration for employee record updating. Administration also carries out Confirmation,

Renewal of Contract and Promotion formalities.

The HR Administration covers the following tasks:

2.1.4. Leave System

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The policies followed for employee leaves management based on the types of leaves and their

criteria are given below:

Annual Leave: All officers will become eligible for annual leave of 24 working

days after completion of one-calendar year. Of these 24 days 15 days must be taken as

consecutive leave each year. Any pending leave may be carried forward to the next year.

Annual leave encashment facilities may be allowed to the person for a maximum of 90

days at the time of Employee’s leaving the SCBL. Any leave taken in advance to be

adjusted during the final settlement period.

Casual/Sick Leave: Sick leave up to 14 calendar days can be granted per year to

an employee who may be unable to attend duty due to sudden illness or urgent private

affairs. Casual leave up to 10 calendar days can be granted per year. Not more than 2

days casual leave can be taken at a time in a month. Casual Leave more than 3 days will

be considered as sick leave and has to be supported by medical reports. In case of

prolonged illness the Managing Director may grant medical leave in excess of sick/casual

leave with full pay and allowances for a period up to one month.

Maternity Leave: Female (confirmed) employees will enjoy 4 months maternity

leave. One employee will be entitled to avail this leave for 2 times in her entire service

period.

Study Leave: Study leave of maximum 2 years can only be granted to an

employee without pay and allowances provided he/she has put in at least three years of

service. This Leave is only granted to those employees who have achieved a minimum of

3 years of service record with the HOLICO and also to those who are due to retire within

5 years of the date on which he/she is likely to return from the study leave. This leave

shall, however be allowed in the entire period of service.

Leave without Pay: Leave without pay may be granted to an employee in special

circumstances where no other leave is admissible under these rules. In case of Leave

without Pay, the period does not exceed 60 days.

Leave during Probation Period: For sick leave in the probation period, the leave

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has to be specially mentioned by the department. Casual leave will be granted to

probationary employees after completion of 6 months. Any leave taken prior to

completion of 6 months will be adjusted against the casual leave.

Encashment Facilities of Annual Leave: Annual leave encashment facilities

may be allowed to the employees for a maximum of 90 days (based on last basic) at the

time of employee’s leaving the HOLICO.

2.1.5. Probation and Confirmation

The terms of probation are as follows:

A person selected for appointment with less than 3 years job experience will be on

probation period of 6 months.

An employee with job experience of 3 years or more will be on probation for 3 months.

In the event of the probationer’s failure to show satisfactory progress and acquire required

efficiency during employee’s probationary period, the appointing authority may, at its

discretion, extend his probationary period by a maximum of additional 3 (three) months, or

dispense with his service by giving one month’s notice or by paying a sum equal to one month’s

pay without assigning any reason. An officer shall become eligible for confirmation in the

specified post subject to employee’s successful completion of the period of probation. In the

case of nine months, if the person fails to show satisfactory progress, employee’s appointment

will be terminated. The confirmation of service of all officers and employees in the services of

the HOLICO shall take effect on and from the date as will be specified in the order of

confirmation

After the probationary period of six months or one year the administration send the appraisal

form to the Department Heads. After completing the appraisal form send the form to the

administration. In the procedure the HRD head send this appraisal form with his approval

signature to the Deputy Managing Director of Homeland Life Insurance Co. Limited to approve

and forward it Managing Director of Homeland Life Insurance Co. Limited and after that it will be

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approved signed by the Managing Director. According to the comment and remark of appraisal

form the employee will get the confirmation with increment of salary or confirmation with

promotion or no confirmation.

2.1.6. Promotion Pattern

Promotion is a continuous process by which the employee motivates for batter work; get the

price for employee’s better work. In HOLICO there are two types of promotions-

Regular Promotion: Regular promotion is given according to the employee’s

regular performance. When the supervisor or department head of the employee evaluate

that his employee is become an asset for the HOLICO and deserve promotion then the

supervisor or the department head take a promotion appraisal form from HRD and

recommended the employee for promotion. In the procedure the HRD head forward it

Managing Director of Homeland Life Insurance Co. Ltd and after that it will be approved

signed by the Managing Director. According to the comment and remark of appraisal

form the employee will get the promotion with increment of salary.

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

individual employee of Homeland Life Insurance Co. Ltd. According to Performance

Matter ranking scale the employee can get promotion in the job grade of their own.

According to the policy any employee can’t get any promotion within a year after the

employee’s joining in the Homeland Life Insurance Co. Ltd. And on the other section the

employee can get promotion after six months of his previous promotion

2.1.7. Resignation

The following sections will display the policies of Homeland Life Insurance Co. Ltd regarding its

employees’ resignation and termination situations. This part will discuss about the policies and

procedures for resignation or termination in situations when:

A regular employee wishes to resign

A probationary or temporary employee wishes to resign

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When a regular employee is terminated

When a probationary or temporary employee is terminated

Resignation of Regular Employee: A confirmed employee may leave or

discontinue from the services of the HOLICO by giving one month notice, in writing or

pay to the HOLICO as compensation an amount equal to the employee’s total pay for one

month.

Resignation of Probationary or Temporary Employee: Probationary or any

temporary employee shall leave or discontinue employee’s service from the HOLICO by

giving 15 (fifteen) days prior notice in writing of employee’s intention to do so or pay to

the HOLICO as compensation an amount equal to employee’s total pay for fifteen (15)

days.

Note: Certificate will not be provided to staffs who were forced to resign, got “unsatisfactory”

rating in their Performance Matters or have integrity issue and non-confirmed staff.

2.1.8.Resignation Process

Resignation submitted to line manager

With the acceptance & recommendation line manager forwards it to departmental/ divisional Head

Resignation letter forwarded to HR

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2.1.9. Termination

Termination of Regular Employee: The competent authority may terminate the

services of a confirmed employee or call upon him/her to resign without assigning any

reason, by giving him/her one month notice in writing or on payment of one month

substantive pay in lieu of such notice and the employee shall not be entitled to any form

of compensation for termination of service.

Termination of Probationary or Temporary Employee: The service of a

probationer or a temporary employee shall be liable to be terminated by the competent

authority without assigning any reason without giving him or her any notice and the

HR will take final approval from Managing Director to start the process

Resigned staff will collect clearance form from HR which to be cleared by all concerned Dept.

The filled up clearance form will then sent to Finance for final settlement

After final settlement HR will take exit interview of the resigned staff

HR will prepare the release letter and a certificate

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probationer or the employee shall not be entitled to any form of compensation for

termination of service.

2.1.10. Resignation and Settlement Procedure

The official formalities for resignation and settlement cases administered by the concerned

department and HRD are sequentially shown below:

Serial Number Tasks

Working Days Required to

Complete the Task

1 Resignation letter must be forwarded to HRD by Proper signing. 2 Days

2

After Receiving Resignation/Termination/Dismissal Letter with handover and takeover documents HRD will due clearance from various

departments. 4 Days

3 HRD will do the final settlement work after having clearance. 4 Days

4 FAD will pay the final settled amount after having final Settlement

documents from HRD. 2 Days

5If separated staff has liabilities with the HOLICO then the

concerned department/owner of liabilities will take Initiatives. Reasonable Time

6HRD will send the personal file to “Organic” after Final settlement done

in normal case. Once in a month

7 In case of unsettled matter HRD will hold the files. Until settlement

Total Reasonable Time

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

2.1.11. Reward

Reward and Recognition is a way to express appreciation for another employee's hard work,

dedication and contribution to the Homeland Life Insurance Co. Ltd. There are many levels of

Reward and Recognition, to ensure both small contributions as well as the larger ones is

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recognized.

There are four levels of rewards and recognition:

LEVEL 1: Individual Contribution Award

LEVEL 2: Departmental Committee Award

LEVEL 3: Organizational Competence Award LEVEL

4: Chairman’s Excellence Award

Spot award: This is an award is given to employees on the spot recommended by

the customers or the employees very nicely handle any difficult client /situation.

2.2. Organization Wide

2.2.1. Functional/Departmental Strategy or HRD

Homeland life insurance Company limited (HOLICO) was formed in 1996. Today Homeland Life, with its Head Office in Dhaka operates in whole over Bangladesh. Homeland Life Insurance Company Limited offers a way to replace the loss of income that occurs when someone dies (usually the person who produces the majority of income in a family situation). It is a contract between you as insured person and HOLICO that is providing the insurance if you die while the contract is in force, the Homeland Life Insurance Company Limited pay a specified sum of money free of income tax “Cash benefits” to the person

or persons you name as beneficiaries or nominees. Our Life Insurance Plans do more that just replace the loss of income that occurs if you die. It should also provide money to cover the new costs that arise after your death funeral expenses, taxes, probate costs, the need for housekeepers, child care, and so on. And those cash benefits should provide for your families future needs as well, including education for your children and part of all of your spouse's retirement needs. In almost all cases, your beneficiary can use the cash benefits in the way he or she sees fit, without restriction.

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2.2.2. Linking Departmental Strategy with Corporate Strategy

How the Corporate Strategy has been linked with the Departmental Strategy of HRD is discussed

in this section. HRD also made the promise that the Department will do everything possible to

realize Homeland Life Insurance Co. Ltd’s ambition to become the largest Insurance Co. of

Bangladesh by the end of Year 2010. In an interview with Mr. Kazi Ahsanul Alam Ansari Head of

HR & Administration, it has been confirmed that HRD of Homeland Life Insurance Co. Ltd is fully

in line with their Corporate Strategy. Heavy recruitment is first choice of the HRD now. Without

recruitment it will not be possible to cover all the expansions in different districts done by the

Business Teams. For example, it has been seen that the newly opened Mongla’s Factory was not

yet fully decorated and furnished due to bad weather but all the employees assigned to that

Factory were reporting for duty on the tentative day of opening.

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

is compulsory. Employees must show satisfactory performance at least on average within their

respective departments.

But to perform well and being target oriented, employees must be communicated the message

of the organization, the corporate strategy. The message of Breaking Barriers 2010 is conveyed

in every scope possible, through market gimmicks, in speeches, department meetings,

MANCOM meetings, through internal mails, in Town Hall Meetings, even at lunch. The message

must be communicated; the strategy must be incorporated in every department. The Head of

HR as well as all the staff in HRD is now fully aware of this short term plan and they are all trying

to give output at their peak performance level.

2.2.3. HR Practices in HOLICO

HRM practices of HOLICO have been reviewed on some individual HRM practices as follows.

These HRM practices have significant role in influencing employee’s organizational commitment.

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a. Recruitment and Selection

b. Training and development.

c. Performance appraisal

d. Promotion

e. Incentives

f. Benefits

g. Working Condition

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

seeks applicants for potential employment. Selection refers to the process by which it attempts

to identify applicants with the necessary knowledge, skills, abilities and other characteristics that

will help the company achieve its goals, companies engaging in different strategies need

different types and numbers of employees. The strategy a company is pursuing will have a direct

impact on the types of employees that it seeks to recruit and select.

HOLICO follows comprehensive and extensive selection procedures in their search for the most

ideal and competent professionals. The testing methods are effectively designed in order to

accurately evaluate the required competence and skill for particular jobs. SCBL follows both the

internal and external sources of recruitment. In case of internal source they mainly follow

promotion, transfer and job rotation and in case of external source they follow advertisement,

employment agency.

In case of recruitment and selection HOLICO considers the following process:

Need assessment: HOLICO take need assessment to identify in which sector, it is

needed to recruit the employee for achieving their target and goals. Generally

departmental heads submit an “Employee Requisition Form” which is considered as

formal requirement of recruitment from concern department. Based on approval from

management; HR-department proceeds for recruiting new employee

Checking the recruiting options

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Internal: Current employees are a major source of recruits the employees but entry-level

position. Internal source are included- promotion, transfer, job rotation, friends and relatives of

existing employees. In HOLICO promotion and transfer are typically directed by MD/GM as per

proposal of respective departmental heads. Here involvement of HR department is not

significant.

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

expert employees as follows:

Collect CVs from Job Fairs.

Advertise in daily newspapers.

Advertise in bdjobs.com or other career management sites.

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

Accept on-line application in their office.

Usually HOLICO considers the advertisement for their external recruiting. They mainly provide

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

Screening and Short-listing Applications: The responses to the advertisements

are sorted and screened. The CVs as well as the covering letters are judged. Experience,

educational degree, computer literacy, etc are the basis of judging the candidates

application.

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

to evaluate an applicant’s acceptability. Trough interviews the interviewers of SRC seek

to answer three broad questions:

1. Can the applicant do the job?

2. Will the applicant do the job?

3. How does the applicants compare with other who are being considered for the job?

Selection interview are most widely used selection technique. They can be adapted to unskilled,

skilled, and managerial and staff employees.

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Medical check-up: Normally, the evaluation consists of a health checklist and

asked the applicant to indicate the health and accident information. The medical

evaluation may 1. Entitle the employer to lower health or life insurance rates for

company pain insurance, 2. Be required by state or local health officials, particularly in

food handling operations where communicable diseases are a danger, 3. Be useful to

evaluate where the applicant can handle the physical or mental stress of a job.

Offer letter: When the candidates satisfy the Human Resource Recruiting Broad,

then the broad provide to the candidate offer letter.

Orientation/induction: Through orientation HOLICO introduces the new comers

or new employees with its work unit, rules and regulation, culture, norms, value, believe

and exposure to all important functions and locations of the company and so forth. HR

department also circulates an email to all concerns about joining of new employee at

SRC, Bangladesh.

b. Training and Development program: Training is a process of learning a sequence of

programmed behavior and it is application of knowledge. It gives people an awareness of the

rules procedures to guide their behavior. It attempts to improve their performance on the

current job or prepare them for an intended job. Development is a related process. It helps

individuals to the progress towards maturity and actualization of their potential capacities so

that they become not only good employees but better men and women. In organizational terms,

it is intended to equip person to earn promotion and hold greater responsibility.

C. Performance Management: Performance appraisal is the process of assessing employee’s

past performance, primarily for reward, promotion and staff development purposes.

‘Performance appraisal (is) a process that identifies, evaluates and develops employee

performance to meet employee and organizational goals. Performance appraisals are now more

clarified and they concentrate on developing organizational strengths and employee

performance.

Purpose of Performance Appraisal

To review past performance

To audit the skills within an organization

To value employees contribution

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To set targets for future performance

To identify potential for promotion

To provide legal & formal justification for employment decision

To diagnose the hidden problems of an organization

d. Promotion: The movement of personnel within an organization- their promotion, transfer,

demotion, and separation is a major aspect of human resource management. The actual

decision about whom to promote and whom to fire can also be the most difficult and important

task for a manager. For every organization promotion is extremely important, when the process

based on merits and skills of the employee. The employee of HOLICO, Bangladesh are gets both

rewards and punishment from their employer based on their performance. Usually Homeland

Life Insurance Co. Ltd’s employees get promotion if they successfully complete 3-years in same

position. An employee of Homeland Life Insurance Co. Ltd can stay 10 years in the same

position. In some cases major problem of promotion is discrimination and favoritism.

e. Incentives: HOLICO, Bangladesh has an approved “Production incentive bonus scheme” which

is based on monthly target production. The bonus is distributed among all employees working in

HOLICO. It motivates employees and increases their working efficiency. Also it controls costs

because the employee is being paid for his/her extra effort for the benefits brought to the

organization.

f. Benefits: Benefits and rewards package are same in HOLICO for all employees. All

officers/workers get 2 Bonuses in a year, can Encash earn leave (the amount depends upon job

grade of the employee and company policy). Each year the salary increases 10%~12% of total

salary depending upon money inflation and job market. An interest free loan facility is also there

for different grades like car loan, home loan, household loans etc. In each three years after all

most all management staffs are upgraded. All employees also get provident fund (PF), gratuity,

and welfare-fund as per company policy. PF is a contributory fund where the rate of

contribution of both employee and company is 10% of basic. An employee becomes eligible for

the entitlement of Company’s contribution after three years of uninterrupted service.

Entitlement limit for the company’s contribution is 1. After three years of uninterrupted

services- 25%, 2. After four years of uninterrupted services- 50%, 3. After five years of

uninterrupted services- 75%, 4. After six years of uninterrupted services- 100%. An associate

must complete 5(five) years of uninterrupted services with the company to become eligible for

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gratuity benefits. Gratuity is calculated on the basis of last drawn basic salary/wage for every

completed years of service. HOLICO, Bangladesh provides monetary support for employees

during marriage ceremony and other ethical cases.

g. Working condition: HOLICO provides good and safe working condition for all employees

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

2.2.4. Organizational Commitment

Figure 1. Conceptual Model

2.3. Other relevant activities

Training

Performanc

e Appraisal

Staffing

Rewards

Benefits

Organizational

Commitment

Working

Condition

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Air Ticket Purchasing on online

Hotel Booking

Vehicle Maintenance & Distribution

File Maintenance

Office Management

Chapter-3: CHALLENGES AND PROPOSED COURSE OF ACTION FOR IMPROVEMENT

Problems of The Organization

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Proposed Course of Action

Challenges Faced in the Internship

3.1 Problems of the organization

It has a large portfolio with huge asset to meet up its liabilities and the management of this

organization is accomplished with the experts and managers in all level of management

and with a little knowledge about responsibility, it is not an easy job to find out the

difficulties of the organization Rather than recommending I would like to give my opinion

to improve in the organization and make the employees more satisfied. The following

issues that I have observed during my working experience in Homeland Life Insurance Co.

Ltd.

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As per analysis on Homeland Life Insurance Co. Ltd. it is found HRM practices will be positively

related to employee’s commitment. A significant link is found between HRM practices and

organizational commitment. The findings suggest that greater use of HRM practices would make

the employees more committed to the organization.

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

practices and not a single HRM practice. These findings suggest that HRM practices are

important determinants of employees’ commitment. The findings are consistent with a study by

Edgar and Geare (2005) which suggests that it is the quality of practice that counts and not the

quantity. As suggested by Edgar and Geare (2005) HR managers need to conduct regular

attitudinal surveys to assess employee reactions to current HRM practices and try to find out

what is working and what is not. They have to introduce modern technology. Without using

modern technology no organization can even think of remaining in the business in near future.

So the organization must decide right now how it can equip with modern technology.

Information System should be developed. The management team hire employee for higher post

from other company instead of promoting the employees. This situation hampers the

motivation of employees of the company.

3.2. Proposed Course Of Action

Although company has problem, there must be some solution some solutions that help to

overcome the problem. Homeland Life Insurance Co. Ltd. should take the following steps to

overcome the problems:

Homeland Life Insurance Co. Ltd easily copy the product offering of this

company therefore, the company should try continuously trying for product

innovation to gain competitive advantage over its competitors.

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

service.

Internal computer network of Homeland Life Insurance Co. Ltd. is open ended.

So any employee from HR department can get all type of data any time. Even it is

also possible to delete any data from any computer without being noticed. So this

surely reduces safety to data. So there should some password system and

restriction in those shared file system.

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

CSR Activity.

It seems that individual employee has to handle different types of job. But that is

pushing a back for an employee.

HOLICO should increase a training program for the employees.

3.3. Challenges faced in the internship

I am not facing any challenge in my internship because I worked in here in 2 year. So every

information I got it as well as I have it. My colleagues of HR & Admin Department always help

me which information I didn’t get. But some confidential information I can’t disclosed in this

report. That is my main limitation.

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Chapter-4: LESSON LEARNED FROM MY INTERNSHIP PROGRAM

Implications to Organization

Implications to University’s Internship Programme

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4.1. Implications to organization

I started my Job at Homeland Life Insurance Co. Ltd. on the 3rd June 2012. Throughout the job I

had great opportunity to have practical experience on HR & Admin related service. In this period

of time, I have learnt to learn about employee handling and enhance my knowledge on

relationship with employees. From my job I learned some other things:

I learned how to speak with the people, how to write the Bill Number on Inward Bills register

book, how to write the bill. I learned the process & procedure of HR & Admin Department. I

learned how to scan. I learned how to be punctual, earned professional skill, how to maintain

organizational discipline, how to behave with people, how to manage people, how to

communicate with people. I have also learned about self-awareness and self–assurance.

4.2. Implications to university’s internship program

My supervisor of my university helps me a lot in internship program. From this internship

program I learned lot of things:

I learned how to follow supervisor instructions strictly.

I learned Human Resource Management from AIUB which helps me in my Job

I learned Labor Law Bangladesh from university which helps me while I have

work on the department.

I have learned how to work with people.

I have learned how to behave with employees and communicate with themselves.

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I learned to speak thoroughly in presentation in my university that helps me to

communicate with the employees.

I maintain strict discipline in my university that helps me my office discipline.

I learned difference between academic lesson and professional world.

I got one year experience about organizational life.

So, I am very thankful to my university AIUB and Homeland Life Insurance Co. Ltd. because

they gave me an opportunity to learned and earned professional knowledge and skills.

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Chapter-5: CONCLUDING STATEMENT

Recapitulation

Recommendations for Future Strategic Action

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5.1. Recapitulation

This study has investigated the impact of Human Resource Management (HRM) practices on

employees’ commitment. The fundamental objective of this report is to examine whether

existing HRM practices at HOLICO make their employees more committed to the organization.

The first goal of this study is to find whether employees consider HRM practices as support from

the organization and whether they believe that their employers express their commitment to

them through its HRM practices. Then to examine the relationship between HRM practices and

employees commitment to find that when employees believe that the organization intends to

support them and expresses its commitment to its employees through its HRM practices,

whether these employee beliefs makes the employees more committed to the organization.

First, a company uses a set of diverse HRM practices, and not a single HRM practice, and hence

HRM practices in organizations intend to be related. Therefore it is more important to study the

influence of several HRM practices rather than individually as has been the case in most

previous studies. Six HRM practices are included to study the influence of each HRM practices

on employee commitment; these are training, performance appraisal, staffing, benefits,

rewards, working condition. It is found that all HRM practices have a significant positive

relationship with employees’ commitment. Performance appraisal effectiveness is studied to

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find employees’ overall perception about the organization. Benefits are included because it is

influencing factors to reduce employee-employer conflicts. Rewards are included as

performance rewards like promotion, benefits and opportunities results in positive attitudes and

behavior.

5.2. RECOMMENDATIONS FOR FUTURE STRATEGIC ACTIONS

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

have gotten. These are –

Students get the chance to interact with the practical job market by pursuing

internship program. Most of the times students spend with their books, they feel

very uncomfortable during their internship program, that is why they should be

given more idea about corporate world idea.

Before starting the internship program, students should have an overview of the

organization.

During the internship program every student should learn clearly about their

activities.

During the internship program students should apply their academic knowledge as

a result their academic knowledge is revised.

Students will be doing the internship on bank must learn the basic terms used in

banking and computer knowledge is must requirement.

Students should be very punctual during their internship program.

Students should also learn about different documentation process

Students must review their academic knowledge relating with their major

subjects, so that they can compare what have learned in books and in practice.

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

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Sometimes students face difficulty in written communication since their course on

business communication is usually done in the forth semester. So a brief overview

should be given before starting the program.

Field trips or company visits can be arranged by the university so that students

become more outgoing.

The university can arrange a seminar on the difference between theoretical and

practical work environment.

On arranging internship for students, it should be seen that students are placed

according to the major.

The university should see if the student has got a placement according to the time.

If not, time extension must be made.

5.2.1. Other recommendations

On the basis of above study on Homeland Life Insurance Co. Ltd following

recommendations are suggested to enhance the organizational commitment to the

employees.

According to Organization Chart (Organ gram) of Homeland Life Insurance Co.

Ltd some Unit Heads are directly reporting to Managing Director, some are

reporting to General Manager (Cement Plant), some are reporting to Director

(Operation). As the Unit Head has overall authority to do the necessary steps for

the well being of his/her unit’s HR so, it is many times, creating interdepartmental

chaos as all the Units are in the same boundary. To avoid these problems, one

overall Unit Head is recommended.

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

more systematic. Internal recruitment (replacement) can be introduced in a large

scale as many employees are serving in this organization for the last 10 years.

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Though Homeland Life Insurance Co. Ltd has introduced many HRM practices but it is

found that the HR personnel are weak in cross cultural experience, and it is the weakest

point of this organization. HR department need to be more HR oriented.

Frequency of foreign training needs to be increased.

They focus on their labor conflict issues because it may create crisis for their

business growth.

Orientation should be performed effectively specially for the new employees.

Identification and evaluation of hazards should be done by expert team.

They have to focus on leadership training for mid-level managers.

HR department play an effective role for developing their strategic plan.

5.2.2. Recommendation for University

Faculties can share practical example in the context of our own economy.

Send student on field in different organization

Make student familiar with some business related software use and its implication.

Invite different corporate personal from HR & Admin sector to share their practical

knowledge which helps student a lot for their future course of preparation

Make student familiar with different practical documentation process.

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ReferencesBibliography

Books

1. Priyanko Guchait, August 2007, “Human Resource Management Practices and Organizational

commitment and Intention to leave: The mediating role of perceived organizational support and

psychological contracts”, The faculty of Graduate school, University of Missouri-Columbia, p1-

111.

2. Aurther, William, and Davis, Keith, “ Human Resource Management”, (9th edition), McGraw-

Hill Book Company, New York, 2005. p.35-60.

3. Organizational Behavior- Mc Shane

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Encyclopedia

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

Internet

www.homelandlife.com

www.bangladesh-bank.org

www.google.com

www.wikipedia.com

Others

For preparing my report I collect all information from website, guideline, and colleagues are

helping me a lot. For this, I am really thankful to those colleagues.

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Appendices

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