RAK Pharmaceuticals Pvt.

Ltd

RAK Pharmaceuticals Pvt. Ltd

RAK Pharmaceuticals Pvt. Ltd

RAK Pharmaceuticals Pvt. Ltd

Assignment
On Human Resource management

Submitted By Maria Mostafizar Id: 1221565 Date: 05/12/2012

RAK Pharmaceuticals Pvt. Ltd

Table of Content
Topics Page no.
Executive Summary . i Chapter 1 Introduction 1 Industry Overview. 1-3 Chapter 2 i

RAK Pharmaceuticals Pvt. Ltd

Company background 4-5 HR department .. 6 Functions Of HRM 7 Chapter 3 HRM problems and issues..8-10 HR Approaches 10-12 Future challenges . 12-14 Conclusion ..15 Reference .16

Executive Summary
The modern HR practice is absent in the bank and the total HRM working is very much centralized in the head office.
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RAK Pharmaceuticals Pvt. Ltd This report explores the impact of HR practices in different dimensions. Globalization brings diversity and innovative way of working in Bangladesh.HR practices in Bangladesh has an impact as difference between headquarters and branches in aspect of culture, education, demographic which has considerable impact on global practices. It is unlikely standard practices will be successful regardless of geographic region. Human resource is a very important component to run an organization efficiently and effectively. The focused here is about their nationwide recruitment and selection process, one of the vital functions of Human Resource Management. In the first part deals with the introduction, which comprises the statement of the research problem, scope and objective of the study, methodology and limitations of the study? Part-2 describes Company overview which includes historical background, its mission and projects. Part-3 is Recruitment and Selection Process of RAK Ltd. which is the main part of this report. This part describes companys overall nationwide recruitment and selection process. We pointed out some specific findings and suggested them some recommendations. And last at all on the basis of overall perspective some recommendations are included in the report.

Chapter 1
Introduction In Bangladesh the pharmaceutical sector is one of the most developed and hi-tech
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RAK Pharmaceuticals Pvt. Ltd sectors which are contributing in the country's economy. After the promulgation of Drug Control Ordinance-1982, the development of this sector was accelerated. The professional knowledge, thoughts and innovative ideas of the pharmacists working in this sector are the key factors for this development. Due to recent development of this sector, it is exporting medicines to global market including European market. This sector is also providing 97% of the total medicine requirement of the local market. Leading pharmaceutical companies are expanding their business with the aim to expand export market. Recently few new industries have been established with high-tech equipment and professionals which will enhance the strength of this sector. The experience is always vast and diverse in the pharmaceuticals company in terms of gaining deeper knowledge of the Human Resource functions since all the Pharmaceuticals companies of Bangladesh practicing a standard Human Resource Policy.

Industry Overview: Historically, the Drug Control Ordinance of 1982, some of the local pharmaceutical companies improved range and quality of their products considerably. The national companies account for more than 65% of the pharmaceutical business in Bangladesh. However, among the top 20 companies of Bangladesh 6 are multinationals. Almost all the lifesaving imported products and new innovative molecules are channeled into and marketed in Bangladesh through these companies. Multinational and large national companies generally follow current good manufacturing practices (CGMP) including rigorous quality control of their products. The Drug Act of 1940 and its rules formed the basis of the country's drug legislation. Unani, Ayurvedic, Homeopathic and Biochemical medicines were exempted from control under the legislation. The pharmaceutical industry was dominated by the foreign companies at that time. Even in the Allopathic pharmacies. However, the pharmaceutical industry like all other sectors in Bangladesh was much
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market there were extemporaneous preparations dispensed from retail

RAK Pharmaceuticals Pvt. Ltd neglected during Pakistan regime. Most multinational companies had their production facilities in West Pakistan. With the emergence of Bangladesh in 1971, the country inherited a poor base of pharmaceutical industry. (Bangladesh Pharmaceutical Society) In 1981, there were 166 licensed pharmaceutical manufacturers in the country, but local production was dominated by eight multinational companies (MNCs) which manufactured about 75% of the products. There were 25 medium sized local companies which manufactured 15% of the products and the remaining 10% were produced by other 133 small local companies. All these companies were mainly engaged in formulation out of imported raw materials involving an expenditure of Tk 600 million in foreign exchange. In spite of having 166 local pharmaceutical production units, the country had to spend nearly Tk 300 million on importing finished medicinal products. A positive impact of the Drug Control Ordinance of 1982 was that the limited available foreign currency was exclusively utilized for import of pharmaceutical raw materials and finished drugs, which are not produced in the country. The value of locally produced medicines rose from Tk 1.1 billion in 1981 to Tk 16.9 billion in 1999. At present, 95% of the total demand of medicinal products is met by local production. Local companies (LCs) increased their share from 25% to 70% on total annual production between 1981 and 2000. (Banglapedia: Pharmaceuticals) In 2000, there were 210 licensed allopathic drug-manufacturing units in the country, out of this only 173 were on active production; others were either closed down on their own or suspended by the licensing authority for drugs due to non-compliance to GMP or drug laws. They manufactured about 5,600 brands of medicines in different dosage forms. There were 1,495 wholesale drug license holders and about 37,700 retail drug license holders in

Bangladesh. (OPPAPERS)

In Bangladesh the physical distribution of pharmaceuticals has evolved in a unique way. Pharmaceutical companies distribute their products from their own warehouses located in different parts of the country, as no professional distribution house is
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RAK Pharmaceuticals Pvt. Ltd available. Wholesalers play a limited role in this regard since companies supply goods to both retailers and wholesalers. Export of pharmaceutical products is still in an infant stage, although a number of private pharmaceutical companies have already entered the export market with their basic materials and finished products. They export their products to Vietnam, Singapore, Myanmar, Bhutan, Nepal, Sri Lanka, Pakistan, Yemen, Oman, Thailand, and some countries of Central Asia and Africa. ( Banglapedia: Pharmaceuticals) The primary responsibility for drug quality control lies with the manufacturers. However, the government's drug testing laboratories (DTL) and the Directorate of Drug Administration (DDA) have the monitoring and supervising role. There are two government drug testing laboratories. DTL at Dhaka is in the Institute of Public Health and the regional DTL at Chittagong is under DDA. Drug administration is responsible for registration of drugs for marketing in Bangladesh and for inspection of premises and licensing. (BPS) In Bangladesh the annual per capital drug consumption is one of the lowest in the world. However, the industry has been a key contributor to the Bangladesh economy since independence. With the development of healthcare infrastructure and increase of health awareness and the purchasing capacity of people, this industry is expected to grow at a higher rate in future. Healthy growth is likely to encourage the pharmaceutical companies to introduce newer drugs and newer research products, while at the same time maintaining a healthy competitiveness in respect of the most essential drugs. Moreover the sector consistently creates job opportunities for highly qualified people. Many established entrepreneurs of today started with pharmaceutical companies in the country.

Chapter 2
Company Background: Ras AI Khaimah (RAK) is one of the seven emirates of United Arab Emirates and situated in the northern part of the Arabian Peninsula. The visionary leader- His Highness the Deputy Ruler & Crown Prince of Ras AI Khaimah, Sheikh Saud Bin Saqr AI Qasimi was
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RAK Pharmaceuticals Pvt. Ltd the beginning of the conglomerate- RAK Group. The name RAK derives from the abbreviated form of the name of emirate itself. Dr. Khater Massaad, the group CEO played key role in the successes of the group, took initiative for RAK Ceramic- the flagship company of RAK Group, in 1989. By now the company firmly established itself as one of the world's leading producers of high quality Ceramic Wall & Floor Tiles, Gres Porcellanato, and Sanitary Ware and operates in more than 135 countries. RAK Pharmaceuticals Pvt. Ltd. is a subsidiary company of RAK Ceramics PSC, UAE which has started its journey as a ceramic company & incorporated its business in Bangladesh in November 1998. Within a very short time, RAK Ceramics (Bangladesh) Ltd. has become as the top & largest producer of Ceramic Tiles and Sanitary Wares in the country. At this moment RAK ceramic is the undisputed number one company of its kind in Bangladesh and worldwide as well in terms of both value and quantity. RAK Pharmaceuticals Pvt. Ltd. as a new venture of RAK Group comes into being in line with the vision of diversifying its growth to serve the humanity in need of fighting back diseases to restore healthy and productive life at an affordable price. The philosophy of excelling in all endeavors which is the key to success of RAK group, the pharmaceutical venture is being accomplished with state-of-the-art facilities in compliance with WHO and other recognized & stringent guideline procedures. In terms of manufacturing quality products- RAK is very confident to be standing out amongst all other companies operating in Bangladesh. Total area of the premises of the manufacturing plant of RAK Pharmaceuticals Pvt. Limited is around 5.4 acres and is situated in Sreepur, Gazipur- only 42 km away from its head office at RAK Tower, Uttara, and Dhaka. Following strict cGMP & EU guideline, RAK has set up two separate & isolated manufacturing plants for cephalosporin & noncephalosporin products which reflect both its commitment to the quality of the products and care for the health of individuals. The shaded area of plant consists of production floor, QC/QA laboratories, RM/Finished Product warehouse and utilities of around 140,000 sf. for both plants.

RAK Pharmaceuticals Pvt. Ltd Vision: RAK Pharmaceuticals Pvt. Ltd., a new venture of RAK Group comes into being in line with the vision of Diversifying its growth to serve the humanity in need of fighting back diseases to restore healthy and productive life. Mission Statement: Excellence is a way of life at RAK Pharmaceuticals Pvt. Limited and it drives with an insatiable appetite for quality product & process, best technology and customer satisfaction. Core Values: R.A.K Pharmaceuticals Pvt. Ltd. is committed to understated core values: Slogan TOWARDS BETTER LIFE Excellence through quality approaches to the process, products & services to Excellence in the use of the best technology to reach continuously changing

provide absolute satisfaction to the customer. quality norms. Excellence in our role and responsibility, by creating in every employee the skills

and the will, the passion to excel by benchmarking to still higher levels of performance.

HR Department RAK Pharmaceuticals Pvt. Limited follows a very modern and structured Human Resource Policy. It has designed it HR policies the organizational needs and operation. The HR department implements those policies in combination of corporate office, factory, depots and zonal office. The perimeter of HR department of the organization is consisted withi

RAK Pharmaceuticals Pvt. Ltd

-Recruitment and Selection: Includes recruitment, selection, offer letter, appointment letter, joining report, employee orientation, training, job confirmation, employee hand book etc. -Employee Services: Includes general condition of employment, employee record, transfer policy, travel expenses, dress code, meeting expense etc. It also covers the organization & manpower development and occupational safety & health. -Salary and Wage Administration: The salary and wage administration covers the payroll administration including leave, pay structure, benefits schemes such as medical, insurance, gratuity, provident fund, increments, companies profit, festival bonus, leave encashment, financial assistant, incase. It also covers Approving Authorization includes letter, memo, notice, leave application, requisition, various forms etc. -General Administration and Separation: The general administration and separation covers the cessation of service which includes disciplinary measures as per Bangladesh Labor Act 2006. -Industrial Relation: The Industrial relation is maintained mainly for the factory workers who are working in the factory. It includes factory discipline, trade union, labor association and employee demands etc.

Functions of human resource management:

HRD performs all kind of administrative and personnel related matters

1. Control the administration of human resources R.A.K pharmaceutical Ltd. 2. Access and collect compatible personnel for the company. 3. Prepare all formalities regarding appointment and joining of the successful candidates. 4. Deal with the transfer, promotion and leave of the employees.
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RAK Pharmaceuticals Pvt. Ltd 5. Conduct Training & Development program and implement for developing human resources. 6. Promotion and appraising skill of officer and stuff and also properly placement of manpower. 7. To make service rules, correction, expansion administration rules sub rules, orders notice for collecting stuff. 8. Maintain relationship with government and other institution. 9. Termination and retrenchment of the employees. 10. Keeping records and personal file of every employee of the RAK. 11. Arranges trainings for employee & executives. 12. Access and grant retirement facilities at the time of retirement. 13. Developing relationship with administration proper implementation of labor law to give medical facilities to the staff. 14. Maintain and grant leaves. 15. Prepare and implementation policy about human resources and related activities. 16. Takes care of all other activities having direct or indirect relation to Human Resource which may have effect on the company goal .

Chapter 3
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RAK Pharmaceuticals Pvt. Ltd

Qus 1: What are the HRM problems and issues facing your selected company/institution?

There are some problems and issues HR departments needs to concentrate on. The problems are discussed below: Problem 1: The aggressive recruitment in the sales department in comparison with limited product line brought lower retention rate of sales employees, increased administrative cost and caused burden on the Human Resource Department to complete employee separation formalities. Analysis: RAK Pharmaceuticals Pvt. Ltd is comparatively new company in the Industry and still in production of very limited products than the other pharmaceuticals companies. Thought, the sales department adopted a strategy to increase its sales network through the nation which has required aggressive recruitment of sales employees. But, sales employees couldnt achieve their target sales due to the less brand image and limited product line. At the end of the day, significant no. of employees switched their job to different company. Now, RAK Pharmaceuticals Pvt. Ltd. is bearing the increased administrative cost brought by the lower retention rate and Human Resource Dept. is under pressure of settlement work for those employees. Problem 2: Due to the absence of integrated HR Information system, there is complexity in maintaining Attendance log, Leave records and Expense records of employees which ultimately hampers the salary calculation of employees and cause miscommunication with the Finance & Accounts Department. Analysis: The functional departments of RAK Pharmaceuticals Pvt. Ltd. Maintain their activities with different software to manage their departmental information which is based on their own requirement. As the Human Resource Department of RAK Pharmaceuticals Pvt. Ltd. use the software called Pixcel the time curator to maintain attendance log, leave
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RAK Pharmaceuticals Pvt. Ltd records and all other related information. This software works in combination with the manual system existing at the company. Sometimes, the combination of manual system and automated system brings complexity for the accurate calculation of the attendance, leave and expense of the employees which ultimately hamper the salary calculation of the employees that is taken care by the Finance and Accounts Department. This type of complexity creates inter departmental chaos and make a barrier between HR Department and Finance & Accounts Department for their efficient performance. Problem 3: The HR Department involvement on the training and development is least. The functional department of the employee takes care of the training and development. Analysis: Manpower development is one of the main priorities for the every organization to bring efficiency in their operation. No organization can survive in the industry without making their employees well fitted for the competitive market. In RAK Pharmaceuticals, the training and development of the employees has gone in control to the functional dept. of the employee. There is no system developed to track whether the employees went under regular training program or not. Sales Dept. is the biggest department in terms of employees. But the MPOs get to attend ten days (10) of training program organized by the Product Management Dept.(PMD) which is sometimes not well monitored by the HR & Admin Dept. Problem 4: Weak Inter Department collaboration and co-operation in the RAK Pharmaceuticals Pvt. Ltd. Analysis: As a new company in the industry, RAK Pharmaceuticals Pvt. Ltd. is still disorganized in terms of management. Miscommunication is common scenario caused by different facts. Realizing these facts, it is required for all functional departments to work together for the betterment of the organization which is absent. Problem 5:
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RAK Pharmaceuticals Pvt. Ltd The settlement of employee account follows a very bureaucratic procedure which is time consuming for completing separation formalities and puts pressure on the regular activities of the Human Resource Department. Analysis: Employee account settlement is the part of the General Administration and Separation activities. To settle an account of the employee who is absconded, resigned or intending to resign, it requires clearance from each functional department of the company. As RAK Pharmaceuticals Pvt. Ltd. has no integrated management information system, it creates lots of hustle to find out all the department related information of the employee and giving clearance from each department. This bureaucratic system caused a significant no. of accounts on pending to be settled. Finally, Human Resource Department is under all pressure to complete the separation formalities and employees of the pending accounts are dissatisfied with the company. This also caused bad reputation to company as the former employees are the sufferer and they are working in different company of the same Industry.

Qus2: What sort of HRM approaches do you think need to be taken to ensure ongoing strategic competitive advantages?

1. The recruitment and selection activities of RAK Pharmaceuticals Pvt. Ltd. have to be based on the demand & supply pool analysis. Effective HR planning will not only save valuable time but also prevent the company from shortage of manpower. 2. RAK Pharma needs to adopt integrated Human Resource Information System (HRIS) for the department to maintain all the Human Resource information accurately. 3. The inter-department activities of the company have to be designed in a synchronized way to ensure efficiency in the organization. 4. It is required for Human Resource department to involve more effectively in the training and development activities of RAK Pharma. Specially, Training focused on the Leadership, Management and Team work can increase inter-department trust and collaboration. 5. To reduce bureaucratic procedure, RAK Pharmaceuticals Pvt. Ltd needs to go for
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RAK Pharmaceuticals Pvt. Ltd integrated Management Information System (MIS) which will ensure the profit of the organization in a long run. 6. To survive in the highly competitive industry, RAK Pharmaceuticals Pvt. Ltd. should implement internal branding strategy that will increase the organizational knowledge of the employees and the employees will get to align their personal goal with the organization goal. Many of the practices that support performance positively impact job satisfaction, employee retention and loyalty. Recommended practices include: a. b. c. d. e. f. g. Delivering regular relevant job feedback. Setting and communicating clear performance expectations. Linking performance to compensation clearly. Identifying organizational career paths for employees. Evaluating performance and delivering incentives in a fair and consistent manner. Providing appropriate learning and development opportunities Recognizing and rewarding top performers

HRM Strategic approach proactively gives competitive advantage via firms more important asset (its HR). So, HRM function needs to be integrally involved in strategy formulation to identify people-related business issues as HRM has profound impact on the implementation by developing and aligning HRM practices ensuring the company has motivated employees with necessary skills. Its Emerging strategic role requires HR professionals in the future develop business, professional-technical, change management and integration competencies: requires more than simply developing a valid selection procedure or Performance management system (PMS).

The analysis and design of work is an important component to develop or maintain competitive advantage as strategy implementations virtually impossible without attention to work-flow, job analysis and design. Understanding of the work-flow process and existing jobs, managers can redesign to ensure work unit is able to achieve its goals while

RAK Pharmaceuticals Pvt. Ltd individuals within it benefit on the various work outcome dimensions as motivation, satisfaction, safety, health and achievement; key to competitive advantage. Qus3: What HRM challenges will face in the 21st century? New sciences and technologies are producing new industries which also require people with scientific qualifications. Those same sciences and technologies are changing the sort of skills that are needed, and how demographic and educational trends are driving wouldbe employers to search further afield for the people they need. Therefore HR department of RAK pharmaceutical Ltd must rise to the challenges of retaining and building a talented workforce. The scarcity of talent, the corresponding increase in the power of the most able individuals and changing social mores will all contribute to a revolution in corporate perceptions of the workforce. They will also create one of the biggest challenges facing Pharma HR functions over the next few years. HR professionals will have to help put the right sort of managerial structure with the right sort of flexibility in place even if this means having to contend with executives who have acquired power the old way and, having won it, are reluctant to relinquish the reins. Company will have to develop more flexible career paths and reward schemes for their most valued workers. If the most able staff believes they are no longer on the fast track, they will move elsewhere. Recruitment Challenges Recruiting a workforce that reflects today's reality is another challenge for human resources departments. Recruitment strategies can include the use of minority recruiters, targeting universities with high minority enrollment, and forging relationships with minority organizations. Training

RAK Pharmaceuticals Pvt. Ltd HR faces the challenge of arranging training without disturbing the regular flow of business. Poor training could result in higher employee turnover, meaning the HR department will face more challenges in the future. Companies will have to train their employees to cope with new challenges, including radical changes in the direction of the business. Needed more Human resources (HR) experts A large number of job aspirants want to build a career in Pharmaceutical industry as it offers learning options as well as competitive pay packages. More wants to work in the top level companies in the industry, so to hold the potential employees HR has to be expert to implement right strategy. The scarcity of resources The scarcity of resources results in another big issue of high attrition rates. Because of the huge gap in demand for good resources in this industry and supply, the mid level companies like RAK need to compete against the giants to attract promising candidates. So, it is difficult to design a retention policy where the industry is in an unfair race to take away other's resources. Changed Employee Expectations Employees demand empowerment and expect equality with the management. Previous notions on managerial authority are giving way to employee influence & involvement along with mechanisms for upward communication and due process. They rewrite their agenda to include quality and better customer service and are even accusing the management of malpractices. So every time there is need to readme the profile of the worker and discover new methods of training, hiring, remunerating and motivating employees.

RAK Pharmaceuticals Pvt. Ltd Some organizations will have to introduce much more flexible working practices to accommodate part-time workers, older workers, people with childcare duties and those simply seeking to improve their work- life balance.

Conclusion:
the Human Resources Division as well as the top strategic level management should find out underlying causes of weaknesses related to Human Resources of the RAK
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RAK Pharmaceuticals Pvt. Ltd pharmaceutical Ltd and to be more supportive to eradicate the problems for achieving the highest position in this industry in the country at least. The HRM will have to manage their employment costs much more carefully, as all these changes drive up the price of the best human capital. The ability to understand, and respond to, the needs of different employees will be equally vital. Many senior managers assume that the only reason someone might leave a company is for more money which is actually not the only reason.

Reference
www.wikipedia.com
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RAK Pharmaceuticals Pvt. Ltd www.banglapedia.com www.rakpharma.com Annual Reports of RAK Pharmaceuticals Pvt. Ltd. (2008) HR Policy of RAK Pharmaceuticals Pvt. Ltd.