NORTH SOUTH UNIVERSITY
Course: MGT351 Section: 13 Group: C
Report on HR practices in context of Orion Pharmaceuticals
Quazi Tafsirul Islam
Department of Management
North South University
Abdullah Are Rafi 1610519030
Jarin Tasnim Tuba 1610878030
Tanzila Tanzin Raka 1320577030
Shyma Saha 15315136030
Nazia Nusrat Antora 1430559030
TABLE OF CONTENT
Company Background 4
Cultural of Interpersonal relationship……………………………………………………………..5
Recruitment Process of ORION PHARMA LTD. 3
Sources of ORION PHARMA LTD’s requirements 6-7
Selection Process of the ORION PHARMA LTD. 8-10
Training and Development process of ORION PHARMA LTD. 9-10
Appraisal process of Orion Pharma Ltd…………………………………………………..….10-12
Benefit Plans in Orion Pharma Ltd 12-13
Implication of Strategic Human Resource Management (SHRM)………………………………14
We decided to do our project on “ORION PHARMA LTD” which is a part of “ORION GROUP”. We have collected information about its human resource management activities and how it manages its employee’s recruitment, selection, training and development, performance appraisal all these procedures. We also took an interview of human resource manager Mr. Chowdhury Razzak Haider, in ORION PHARMA LTD for making our project more effective. After collecting information, we have prepared a group project on human resource management activities of ORION PHARMA LTD. In our introduction we briefly discussed about the organization, what it produces and how many employees it has. Next, we have given the methodology and company’s background. How we collected our data and information is present in the methodology and about its mission, vison, how it gives services to the customers is present in the company’s background.
In human resource management activities part, firstly we have discussed about company’s culture, where we talked about how their employees interact with each other. Secondly, we have discussed about the company’s recruitment process and sources from where it recruits employees. After that in third step we have discussed about the company’s selection and interview process as how it selects the employees and takes their interview. In the fourth step, we have discussed after the selection and interview process how the company gives training for developing their employees. After the training and development how, Orion evaluates its employee’s performances has discussed in our fifth step. We have also talked about Orion’s benefit offered to the employees. Then SHRM, where we talked about the company’s goal. Finally, we appreciated the company for their excellent job and some beneficial HRM activities which are exist in their work place. With appreciating, we gave Orion some suggestions in which part it should have done better. These all are present in our recommendation section.
Orion Pharmaceuticals limited is one of the finest pharmaceutical company in Bangladesh. It is known as the ”feather-in-the-hat” of Orion company. It started their business back in 1965. It is one of the most well-renowned pharmaceutical company in Bangladesh. The company was previously known as Orion laboratories and was a private company until it got public in 2013 and reformed as Orion Pharmaceuticals. It consists of a huge range of products varying from different brands.it has its own factory with all the modern technologies and machineries. It has more than 3000 employees from different educational institutes. The human resource department of Orion Pharma ltd is one of the core departments of the company. All the works in this department is monitored by the human resource manager.
With the one to serve along with humanity around the globe, Orion Pharma Ltd has run into one of the leading pharmaceutical companies in Bangladesh manufacturing and marketing general drugs. It has also established itself to the doctor’s community, other health care professionals, medicines and healthcare services through 115 brands and 250 presentations of various formulations complying good manufacturing practice and the guide lines of quality management system. Orion Pharma manufactures and markets a wide range of dimension forms including tablets, capsules, syrups, different therapeutic groups, anti-diabetics etc.
MISSION: “To improve people’s health and achieve stakeholders’ satisfaction by manufacturing and marketing pharmaceutical finished products.”
VISION: “To be regarded as a world-class pharmaceutical company in the field of generic finished products.”
For our research we collected information from two sources. One is primary and other is secondary sources. Considering primary sources, we interviewed Chowdhury Razzak Haider who is the head of Department of Human resource of Orion pharma ltd. He ensured all the necessary details of HR process of Orion pharma ; healthcare- such as, recruitment process, training ; development, performance appraisal, and strategic HRM.
For secondary sources, we gathered information from various online sources like journals and reports. Moreover, Orion’s website helped us an abundance to find out their company profile, annual report and charts.
Culture of Interpersonal relationship/Team leadership
Interpersonal relationship is a strong and close connection between two or more people. For any particular company, interpersonal relationship is important for working environment. In an organization interpersonal relationship refers to strong and close association between two employees of the company.
The culture of interpersonal relationship in Orion Pharma is very friendly and they are very open minded to their colleagues. The leadership style in Orion Pharma is participative leadership. In this leadership model employees take part in decision-making process to find out what needs to be done and how it should be done. Orion pharma allows their employees to take part in the decision making process. Employees shares their ideas about a specific topic and Top level management collect those ideas and analyze those ideas. In Orion pharma top level management interacts with the employees and makes them motivated.
In terms of the team tasks the company managers first make sure the team members know each other very well, this practice enhances the performance in the teams. Apart from that –
• Every day all departments take lunch together.
• Every year they go to picnic together.
• The employees celebrate, if someone gets a promotion.
• Celebrate employees’ birthday.
Recruitment Process of ORION PHARMA LTD.
ORION PHARMA LTD. recruits the employees by their job specification and job description.
Job Specification: Job specification includes duties and responsibilities which an employee need to perform the job.
• Academic Qualification: Applicants should be graduated from any discipline university with at least CGPA 3.25 or first-class candidates and a good score in high school.
• They have to have good accent in Bengali and English.
• Age bellow 30 years.
• Willing to work anywhere in Bangladesh.
Job Description: It includes qualification and skills an employee need to perform the job.
• Promote products to the medical professionals.
• Generate prescription to achieve sales target.
Sources of ORION PHARMA LTD’s requirements
ORION PHARMA LTD requites the employees in two ways. They are:
• Internal Requirement and
• External Requirement
ORION PHARMA LTD sometimes recruits employees internally. In internal requirement it mainly focuses in two components,
? Job posting and
? Succession planning.
Job posting: In here, Orion pharma posts their job with relevant information like employee’s qualification, pay rates, attributes in their own web sites
Succession planning: For filling its top positions ORION apply succession planning in its internal requirement. In this component ORION do three steps.
o At first ORION identify the key needs, what is needed for its top position candidates.
o Secondly, they develop those needs inside the candidates. Most probably here it trains those candidates properly according the needs.
o Lastly, ORION chooses and recruits the candidates for the top positions.
External Sources: HR department of ORION PHARMA LTD uses several external sources when recruiting externally. It recruits employees via internet. It also uses Linked-in, some job sites like BDjobs.com, BDcareer.com etc. By posting advertisement it recruits people from there.
Selection Process of the ORION PHARMA LTD.
Orion starts it selection process of the employees based on their ability and qualification. At first it does a competitive written test where general subjects like English, Mathematics, General Knowledge, and Critical thinking related questions are included. Economics, Marketing, Finance and Accounting and HR related questions are also included based on the job. The exam paper are prepared and checked by the experts. To be compatible for the interview the candidate has to earn at least 55% mark in the written test. After the written test Orion takes reliability and validity test for checking the consistency of scores obtained by the candidate or not. After the reliability and validity test Orion takes the candidate’s personality and psychological test for checking whether the candidate is perfect and capable of maintaining the company’s organizational ethics.
After these all selection processes the candidates who have chosen by the board of committee are called for the interview. For the interview session Orion focuses on the mass and panel interview.
1. Mass interview: In mass interview Orion sets a group discussion by asking job related questions with a group of candidates. Orion selects the candidates by comparing each other in the interview session. The candidates who can survive this interview session are nominated for the panel interview.
2. Panel interview: In panel interview session a group of interviewers about 3 to 5 members take the interview of the candidates. Along with the job knowledge, the interviewers also focus on some other factors of the candidates like their attitude, body language, dress up, communication and language skills, confidence, creativity, situational knowledge etc.
After the interview the candidates have to go to the medical test in Somorita Hospital which is controlled by the organization approved doctors for ensuring their physical and mental status. After the medical test the references are checked. Finally, if any candidate passes all the sections then he/she will be hired.
Training and Development process of ORION PHARMA LTD.
Before the training and development program Orion sets an orientation program for the selected candidates in the Orion House which is located at Tejgoan, Dhaka. Here the new employees are informed about their job objectives, job goals, job responsibilities, job hours, the rules and regulations to follow. They also inform about immediate actions for the violation of the rules.
After the orientation the candidates of different departments have to ready for their training and development program. In training and development process Orion focuses both on-the-job and off-the-job training program.
1. On-the-job training:
In on-the-job training program the candidates learn the job in actual job environment. Orion trains the candidates with on-the-job training by,
o Job Instruction Training: In this program Orion trains the candidates step by step the major points of the job. The trainer suggests and explains them their work step by step.
o Job Rotation: In this program Orion moves the candidates from department to department for broaden their experience and identify their strong and weak points. For an example, if anyone is working for marketing department the organization is moving he/she to the another department say management for gathering knowledge and experience.
o Coaching approach: Hardly Orion uses this method for training the candidates.
2. Off-the-job training: In off-the-job training program the candidates learn the job outside the actual job environment inside the organization. Orion trains the candidates with off-the-job training by,
o Effective lecture: In this program Orion trains, the candidates by some experts of the higher position employers. They give relevant lecture to the candidates in a class setting room inside the organization.
o Outside seminars: In this program Orion organizes training program on the outside with a lot of managers, expatriates of high level of training skills for train the candidates.
o Behavior mode: In this program an employee of Orion who plays as a model and shows the trainees the right way of doing their job. After that the trainees are asked to practice their job and the trainer who has played the modeling role gives them feedback of their performance.
o Internship: Every year Orion recruits’ students from well-known universities in Bangladesh who are further hoping to land permanent position in the company. After internship period, students are offered jobs based on their performance.
Appraisal process of ORION PHARMA LTD.
Orion pharma ltd. reviews the performance of it personnel almost every month but mainly twice a year formally. The ratings usually follow the combination of a graphic rating scale and computerized and web-based performance appraisal system where the performance matrix is extensively defined and the performance scale span between poor performance to beyond expectations and outstanding performance. The performance dimensions include work quality, knowledge, co-operation and similar issues. The performance review aims to check the competency of the workers on three levels; ‘Leading Myself’, ‘Leading Others’, and ‘Leading the Organization’.
o Leading Myself: The first level deals with individual performance standard, goal attainment, and quality of work. Usually the supervisor and the individuals rate and self-rate themselves, against some pre-set performance standard levels.
o Leading Others: The second level deals with the analysis of the performance of the individual as a team player.
o Leading the organization: The final level analyses how well the individual worked alongside their team to achieve the organizational goals.
Apart from Graphic rating scale the business practices Management by Objectives (MBO), to appraise the performance as well. (MBO) appraisal methods include
? By target setting-
The Corporate Department sets strategic mission and goals. These mission and goals are broken down into departmental goals or individual project goals. Each individual in the projects are informed of the project deadlines and standards and are informed of their personal performance standard and deadline.
? By Monitoring –
The department supervisors review the progress of the projects routinely and frequently.
? By Discussion and feedback-
Instead of waiting for a formal meeting to discuss any lag in the performance feedback are provided informally and as early as possible. Formal meeting is also held to discuss the issues however the frequency of these meetings depends on the department and issues. Dire issues would result in arranging for formal meetings weekly.
? By Implementation-
After the meeting the employees implement the recommended changes.
The supervisors evaluate the effectiveness of the recommendation and consequent improvement of the performance and goal achievement.
The performance appraisals of employees are carried out majorly through the supervisor. Which are provided with a target performance standard rubric, where they rate the performance standard, the notable failures, and ask how the standard could be better. However, the results of the ratings are allowed to be accessed by every individual.
? Performance management: Evidence of performance management can be found in the business’s performance appraisal practices. It was evident in the direction sharing and goal alignment through MBO, the three-month performance reviews and the monthly meetings where employees are given feedback, the training support and internal recruitment for recognition program.
Benefit Plans in ORION PHARMA LTD
Orion pharma provide these four benefits to employees:
1. Supplementary Benefit
2. Insurance Benefit
3. Retirement Benefit
4. Services Benefit
Supplementary Benefit is a kind of benefit employee get when they don’t work. Under Supplementary benefit employee of Orion group don’t get vacation ; holidays benefit. They get other benefit which are given below:
? Sick Leave:
It is when employee out of work because of sickness. In Orion pharma, employee can take sick leave up to 40 days.
? Parental Leave:
This granted for family purpose. In Orion pharma women workers can take parental leave during pregnancy. Furthermore, women ; men who are single-parent can enjoy parental leave.
? Severance Pay:
It is pay when organization want to terminate an employee. In Orion pharma, they pay advanced to an employee during terminating.
? Worker’s Compensation:
Orion Group provides medical & income benefit to employee in terms of work related accidents.
? Hospitalization, health and disability insurance:
It’s the most important benefit to employees. Employee of Orion group get compensation in “SOMORITA HOSPITAL” where they get discount ; treatment.
Retirement Benefit: Retirement benefits includes:
? Pension Plans:
It is a benefit plan employee get on their retirement. In pension plan Orion group follow “Qualified Plan” that meet requirement for tax benefit for employer contribution where it’s mandatory for employer to contribute according to company policy.
? Personal Services:
In Orion pharma employee have cafeteria facility but unfortunately, they don’t provide subsidized child care, sick child benefit and elder care facility.
? Provident Fund:
Special retirement saving plan which allows employee to save certain amount of basic income ; total savings will be given to employee after retirement. This plan is also sponsored by employer. They didn’t tell us exactly what percentage of basic income go to provident fund but that varies in terms of income & they provide it to employee after their retirement.
Strategic Human Resource Management (SHRM)
In Orion group recruitment and selection done both from internal and external sources. In case of internal recruitment, they go for job posting and succession planning process. Selection process of employees require candidates’ ability and qualification. Recruitment and selection process together ensures that Orion Pharma Ltd. have the efficient candidates for the organization. After selecting the candidates Orion group provide an orientation program. As a result, new employees know about their job objectives, job goals, responsibilities, the rules and regulations etc. from the first day. For making employees more efficient they provide both on-the-job training and off the job-training. Their rate employee performances on the basis of combine graphic rating scale and computerized and web-based performance appraisal system. Orion Pharma Ltd. Provides provident fund which is sponsored by employer. Employees get retirement benefit i.e. the organization have pension plans for employees. Their pension plan meet requirement for tax benefit for employer contribution where it’s mandatory for employer to contribute according to company policy. They also provide sick leave, parental leave, and severance pay benefits. Insurance benefit like workers compensation and, hospitalization benefit is also provided for the employees.
From above policies it can be said that Orion Pharma Ltd is formulating and executing human resource policies and practices that is producing employee competencies and behavior the company needs to achieve the strategic goals.
Orion Pharma Ltd should introduce programmed instruction (PI) off-the –job training Employees will receive immediate feedback through self-learning. It will reduce the risk of error. The main advantage of this program is that employees will learn to solve the problem logically.
They have many on-the –job training and off-the –job training programs. To evaluate their training program, they are using MBO appraisal tool. It is one of the best methods of evaluating training but MBO is very time consuming. They are also using graphic rating scale which may create halo effect, central tendency or biasness. Therefore, they should also introduce BARS method because it is very accurate and also have numerical value. It will help HR manager to evaluate employees well.
Orion Pharma Ltd should introduce leave cost reduction tactics because sometime the employees use these sick leave benefits in bad ways like often telling the manager that they are sick. But in reality, they are misusing the organization’s benefits.
No doubt Orion Pharma Ltd. is one of the premier pharmaceutical companies of Bangladesh. Throughout the report, we try to compile all the necessary roles of HR department of Orion Pharma Ltd. The management team of HR of this company has been doing a great job in terms of recruiting, selecting, providing training and benefits facilities to the employees, then making them feel comfortable in the workplace, where the employees can work comfortably and give their best performances. Now-a-days the role of HR department is very important for any organization and Orion Pharmaceuticals Ltd. HR department is trying its best to find new strategies, implement them and utilize the human force perfectly.
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