Full Report Compilation

Introduction
For our course of International Human Resource Management, we were assigned to submit a
term paper on different companys Human Resource practices in real life or the training
effectiveness of real life scenario. We have chosen the country Switzerland , whos 5 MNCs
are to be compared to their local competitors in Bangladesh. Human resource is the most
important part of any multinational company. Therefore a human resource management
strategy gets a great importance in Multinational Companies in the world.
Almost all developed country uses many techniques and strategy for human resource
management. Human resource practice is being used to make human resource management
more effective and less time consuming. We go through book and try to incorporate that
knowledge with practical world. We find many similarities as well dissimilarity with the
book. We made an interview to a Human Resource manager of different MNCs in and around
Dhaka. The experiences and excitement that we gather was really worth mentioning. The
overall environment and absolute friendly behavior totally drew our attention and created
strive to work in this organization in future.
1.1.
Objective of the Study
A clear objective helps in preparation of well decorated report in which other take the right
type of decision. So, we identifying objectives are very much important. Our purpose of
preparing the report is:
Recruitment
Selection
Employee training & development
Compensation
Performance appraisal
Methodology
This report is based on both primary and secondary data. Interviewing the HR Executive of
the company collected primary data and secondary data were collected from companys
documents, web sites and books. Moreover, it becomes helpful to gather some more
information from the website of the company. Later on, the work progressed through some
1
depth interviews of good range professionals trying to heat some expected area of the study.
After that, an effective questionnaire is designed to collect likely data from the target group
of people. Then we analyze those data from many angles, in different aspect and present the
information in different segment according to their category, in compact way. We highlight
different important things, which we found during our survey.
Five local companies and five multinational companies were selected for the study. In
order to properly contrast findings, the researcher considered asseveration of research method
and research procedures at the data collection stage. The alleviate data collection for this
study, the researcher focused on primary data collection and secondary data collection. In
primary data collection, the research team collected data using methods such as structured
questionnaire and focus group discussion. In this research, a comprehensive structured
questionnaire related to the
HRM practices of local companies and MNCs in Bangladesh was developed.
1.2.
Limitation
We made our term paper on the topic Human Resource management Practice in local and
Swiss MNCs in Bangladesh. We suffered a lot to make appointment a Human Resource
manager in different organization. We spent more time to make an appointment. Some of the
time, the Human Resource Manager of company tried to say that we dont want to give the
data. When we incorporate data in our term paper then we need some additional data. If we
were provided with that additional data, we would have done a more structured term paper.
Literature Review
HRM is the prominent success factor of an organization. The five functional areas are
associated with effective HRM: staffing, human resource development, compensation and
benefits, safety and health, and employee and labor relations (Mondy and Noe 2005). Edgar
and Greare (2005) identified that HRM practices had a significant impact on employee
attitudes such as job satisfaction, organizational commitment and organizational fairness. Yu
and Egri (2005) found that HR practices had a significant impact on the affective
commitment of employees on Chinese firms. Aswathappa (2008) argued that the organization
should have better HR plans to motivate its employees. Sophisticated recruitment and
selection system can ensure a better fit between the individuals abilities and the
organizations requirement (Fernandez 1992). Katou and Budhwar (2007) discussed in a
2
study on Greek manufacturing firms that recruitment and selection was positively related to
all organizational performance variables such as effectiveness, efficiency, innovation, and
quality. The motivation and opportunity focused bundles of HR practices positively related to
affective commitment and negatively related to turnover (Gardner, Moynihanand & Wright
2007).
The best human resource practices areas are recruitment and selection, socialization, job
design, training, communication/participation, career development, performance
management, employee reward and job security (Huselid1995). HRM refers to the policies
and practices involved in carrying out the human resource aspects of a management position
including human resource planning, job analysis, recruitment, selection, orientation,
compensation, performance appraisal, training and development, and labor relations (Dessler
2007). Training and development has a significant positive impact on employees job
satisfaction (Garcia 2005). Thang and Buyens (2008) believed that training and development
lead to superior knowledge, skills, abilities, attitudes, and behavior of employees that
ultimately enhance excellent financial and nonfinancial performance of the organizations.
DeCenzo and Robbins (1996) suggested that employee training has become increasingly
important as job have become more sophisticated and influenced by technological changes.
Shaw et al. (1998) assert that involuntary turnover is affected by staffing practices
(recruitment and selection process) and employee monitoring (performance appraisal).
Bernardin and Russel (1993) opined that over the years, training has become increasingly
popular as HR tool for improving employee and managerial performance in organization.
Buck and Watson (2002) indicated nine important HRM practices such as decentralization,
compensation, participation, training and development, employment security, social
interactions, management style, communications, and performance appraisal. Klaus,
LeRouge& Blanton (2003) expressed that, through better job assignment or work design;
employees may display greater commitment, leading to better job performance.
The above literature review shows that there have been several studies on HRM practices and
job satisfaction.
In Bangladesh, however, there is a research gap in this area and so the study is undertaken.
To find out the impact of HRM practices on employees job satisfaction, the human resource
planning, working environment, training and development, compensation policy, recruitment
and selection, performance appraisal and industrial relations has considered as HRM aspects.
COMPANY
BACKGROUNDS
Background of the Ice Cream Industry in Bangladesh

To compare the HR practices in terms of the ice cream industry in Bangladesh, we
have chosen two firms, Mvenpick of Switzerland and Yoberries of Bangladesh.
Mvenpick Ice Cream is a brand of ice cream of Swiss origin produced by the Nestl
corporation. Mvenpick Ice Cream is sold in
more than 30 countries worldwide.
Products are sold through five different sales
channels: gastronomy, retailing, scooping
stations, impulse sales and a number of
"Mvenpick boutiques" located in large cities
across the globe. There are various flavors that
are available and it is one of the most popular
ice cream parlors of Bangladesh.
People across the Dhaka city often like to go to the many stores of this ice cream
parlor and despite charging them a lot of premiums; still they find it worth spending
more than that of the other ice cream parlors. People in Bangladesh, are fun loving
people and they are never fed up of having good times with their family members
and friends. Hence, the demand for such an international item in Bangladesh has
always been there and it is expected that the demand would stay forever as well.
The fact that the Bangladeshi

people are fun loving, this thing has
been an advantage for both the
international and domestic firms and
so did in the ice cream industry.
There have been many local ice
cream parlors emerging which have been performing quite well as well; like
Yoberries. Yoberries, the latest addition to Banani 11's ever burgeoning food fiesta,
is a self-serve frozen yogurt shop. Because of its positioning into the customers
minds and the uniqueness in terms of serving and charging the customers, people
of the capital of Bangladesh have accepted this ice cream parlor in a very short time.
It is one of the most popular hangout places in the entire Dhaka city now.
The interior of the store gives an extra incentive for the customers to enjoy the
frozen yogurts as the interior of this place is a little Teletubby-like though, very
colorful with nice cushy chairs. In short, the ice cream industry is a prolific industry in
Bangladesh and as long as good quality ice creams are served, people are going to
end up visiting the places with all their smiles on their faces.
Background Information: (Swiss Contact

vs. WARBE)
Swiss NGO
Local NGO
Name of the organization
Swiss Contact (SARO)
Warbe Development Foundation
Headquarters
Zurich, Switzerland
Dhaka, Bangladesh.
Founder/s
Dr. Anna Crole-Rees and Marina

de Senarclens
Md. Faruqe Ahmed
Head of HR in Bangladesh
Mr. Lawrence Boidya
Ms. JasiyaKhatoon
Current CEO or Chairperson
Samuel Bon
Syed SaifulHaque
Address in Bangladesh
House no.19, Road no.11,

Baridhara, Dhaka.
9/31-D, Eastern Plaza (8 Floor),

Sonargaon Road, Dhaka.
Type of organization
NGO
NGO
Established in which year?
1959
1996
Operation in which other

countries (MNC only)
Developing countries in South

Asia, South America, Africa and
may more.
Poverty alleviation by promoting
economic and social development.
N/A
Work for the rights of the migrant

workers.
No. of employees
100+
100-120
Avg. working hours (Full Time

Employees)
8Hours
8Hours
Website
www.swisscontact.org.bd
www.warbe.org
Organization Motive
th
Background Information: (Pran RFL vs Nestle)

local Company
Swiss company
Pran-Rfl
Nestle
Dhaka, Bangladesh
Vaud, Switzerland.

Headquarters
Founder/s
Maj Gen (Retd.) Amjad

Khan Chowdhury
Henri Nestle, Charles Page and

George Page
Mir ShamsulAlam
Faiyaz Khan Chowdhury
Maj Gen (Retd.) Amjad Khan

Chowdhury (CEO)
Paul Bulcke
PRAN-RFL Center, 105,

ProgotiSarani, Middle Badda,
Dhaka 1212, Bangladesh
Gulshan Tower (4th floor)

Holding No.31, Road 53,
Dhaka.
Food and Beverage company,

other consumer products.
Food and Beverage company.

Consumer Products.
17 March 1981
September, 1994 (Bangladesh)

South Asia, Africa,

North America, Europe, Middle
East more than the 82 countries
Operations in more than 86

countries.
EAT DELICIOUS. LIVE

HEALTHY. At PRAN, we
believe you should enjoy what
you eat and still live a healthy
life.
52,000
Good Food, Good life
Around 330 (inside the office)
8Hours
8Hours
www.pranfoods.net
www.nestle.com
Organization Motive
No. of employees (in

Bangldesh)
Employees)
Website
Logo
Background information: (Novartis vs

ESKAYEF BANGLADESH LTD)
Swiss Pharmaceutical
company
Local Pharmaceutical company
Novartis
ESKAYEF BANGLADESH LTD
Headquarters
Basel, Basel-Stadt,
Switzerland
Founder/s
Joerg Reinhardt
Tongi, Dhaka,
Bangladesh.
Shafayat Ahmed
Mr. Latifur Rahman,Transcom

Group
Mr. Mahbubur Rahman
Joseph Jimenez
Mr. Latifur Rahman
House 50, Road 2/A, Dhanmondi

R/A
Dhaka 1209, Bangladesh
Pharmaceuticals.
generic drugs, over-the-counter
drugs, vaccines, diagnostics,
contact lenses, animal health
Novartis was created in 1996
through the merger of Ciba-Geigy
and Sandoz.
Sell products in more than 150
countries, with their global
headquarters in Basel,
Switzerland.
Care and cure people. They want
to discover, develop and
successfully market innovative
products to prevent and cure
diseases, to ease suffering and to
enhance the quality of life.
Headquarters
Taneem Square (Level 2-3-4-6 &
7) 158. Kemal Ataturk Avenue,
Block-E, Banani, Dhaka-1213
Dhaka, Dhaka 1213 Bangladesh
Pharmaceutical

Organization Motive
By Transcom in 1990
N/A
Maintain people's health and

combat disease to enhance the
quality of human life so that
people may live longer, healthier
and more meaningful lives.
No. of employees
1028
2600

Employees)
Website
8 Hours
8 Hours
http://www.novartis.com.bd/
http://www.skfbd.com/
Logo
Background Information: (Holcim vs. Fresh

Cement)
Swiss Cement Company
Local Cement
Company
Holcim Cement
Fresh Cement
Headquarters
Jona, Switzerland
Gulshan 2, Dhaka, Bangladesh
Founder/s
Bernard Fontona
Mohammed Yasin Ahmed
Mrs. Sharmin Sultana
Saleh U. Ahmed
Rolf Soiron
Mohammed Yasin Ahmed
Ninakabbo, Level-7, 227/A,

BirUttam Road, Tejgaon, Dhaka.
House No.15, Rd-34, Gulshan

02, Dhaka.
Building Materials (Cement)
Building Materials (Cement)
1912
2010

Globally spreaded, like developing

countries in South Asia, South
America, Africa and may more.
Lets Build
N/A
Local Peoples belief
No. of employees (In

Bangladesh)
645
482

Employees)
8Hours
8Hours
Website
www.Holcim.com
www.meghnagroup.biz
Organization Motive
Logo
Human Resource
Practices of the 10
Companies
10
HRM Practices: (Movenpick vs Yoberries)

Firm Names
Criteria
Movenpick
Yoberries
Both formal and semiformal as they give job

advertisements in
various medias
They give job

advertisements in
various medias
Bdjobs.com is mostly
preferred
Only Bdjobs.com
Online Job Portals
Newspapers
Newspaper advertisements
are not preferred.
The Daily Star &

ProthomAlo
No.
Nil
Formal
Formal
Highly Formal as many

sort of questionnaires are
set for the applicants.
Nil
Well-structured format
being followed.
Interview
Highly Structured and very

strict.
Formal
Resume Interview
Taken
Taken
Fit Interview
Nil
Nil
Case Interview
Only exceptional cases.
No.
Quota for
Physically Challenged
No
No
Medical Test
Not Needed
Not Needed
Negotiation
Done under the salary

range. E.g.- Tk.35,000 to
Tk.40000
Both internal and external
references are considered.
Semi-Formal
Job
Advertisement
TV commercials
Screening
Written Test
Recruitment &
Selection
Process
IQ Test
Referral
11
Nil
Yes. Internal reference

is highly preferable.
Training and
Development
Promotion
System
Performance
Appraisal
System
Similar industry
Candidates
Highly preferred for the4

manufacturing field.
Not necessary
Criteria
Depends on the different

job needs.

job needs.
Venue
In house and
abroad
Only indoor and outdoor

is being considered for
the future.
Type
Mainly for the production .
Depts
requirement
Trainer
In house and Outsourced

TSP
In house
Basis
Productivity and
performance
Job vacancy,
performance,
capabilities, previous
experiences
Frequency
Not fixed. Varies from

year to year.
Depends from time to

time.
% of increment
Not fixed
N/A
Issued by
Department and Admin
Only HRM in charge of

it.
Frequency
Annually
Twice a year.
Criteria
KPI driven
Completely KPI driven
Perks
No
No
Status
Given
Recognition
As the organization is more

of a flat hence no status is
given.
Given
Award giving ceremony
Not held
Not held
Recreational activity
Annual picnic
Iftar parties, Picnics.
12
Given
Appraised by
Admin Head (Secretary

General)
Festival Bonus
Twice a year.
Twice a year.
% of Bonus
undefined
undefined
Additional bonus plans
Provided
No
Annual Leave
20 days
20 days
Sick Leave
10 days
Not defined
Casual Leave
Not given
10 days
Maternity Leave
16 weeks
6 months
Paternity Leave
2 weeks
15 days
Parental Leave
Not given
Not given
Pension Scheme/ Provident

Fund
Not given
Not given
Transportation
Not given
Official purposes for

staffs.
Office vehicle for
female employees.
Compensation for
work place injuries
Provided
Covered by health
insurance.
\Health Insurance
Yes
Yes
Life Insurance
No
No
Compensation
and Benefit plan
13
OSHA (
Occupational Safety
and Health
Administration)
Profit sharing
Not applicable
Not applicable
Work Environment
Fantastic. The office has all

the advanced facilities that
an employee might look
for.
Yes
Not bad but could ave

been better for an office
environment.
Emergency Information
Posting
Given
Given
Safety Drills
Given
No
Fire Prevention
Given
Not given
Emergency Exit
Yes and the office area

looked quite a safe place
for the employees.
No
Electrical System
No
No
Material storage
No
No
Ergonomics
( user friendly systems)
Yes
Yes
Walking / working surfaces
14
Yes
HRM Practices: (Swiss Contact vs WARBE)

Firm Names
Criteria
Swiss Contact (SARO)
Job
Advertisement
Warbe Development
Foundation
They give job

advertisements in
various medias
They give job

advertisements in
various medias
Bdjobs.com
Bdjobs.com
The Daily star
The Daily Star

ProthomAlo
In-process
Nil
Formal
Formal
Screening
Written Test
Highly Formal
Formal
IQ Test
Nil
Nil
Interview
Highly Formal
Highy Formal
Resume Interview
Taken
Taken
Fit Interview
Nil
Nil
Case Interview
Taken
Taken
Quota for
NO
Provided
Medical Test
Not Needed
Not Needed
Negotiation
Semi-Formal
Semi-Formal
Referral


Similar industry
Highly preferred
Not necessary
Online Job Portals
Newspapers
TV commercials
Recruitment &
Selection
Process
15
Candidates
Training and
Development
Promotion
System
Performance
Appraisal
System
Criteria
Job Need
Job Need
Venue
In house and
abroad
Type
Incumbents need
Grass-root level
in 11districts.
MISC programmes
(Migration Information
Support Centre)
Depts
requirement
Trainer

TSP
In house
Basis
Productivity and
performance
Performance
Frequency

year to year.

year to year.
% of increment
Not fixed
N/A
Issued by
E.C members
General Secretary
Frequency
Annually
Anually
Criteria
KPI driven
KPI driven
Perks
No
Given
Status
No
Given
Recognition
Given
Given
Not held
Not held
Annual picnic
Iftar parties, Picnics

Friendly football
matches..
16
Appraised by

General)
Festival Bonus
Once yearly
Once yearly
% of Bonus
undefined
undefined
Provided
No
Annual Leave
20 days
20 days
Sick Leave
10 days
Not defined
Casual Leave
Not given
10 days
Maternity Leave
16 weeks
6 months
Paternity Leave
2 weeks
15 days
Parental Leave
Not given
Not given

Fund
Not given
Not given
Transportation
Not given

staffs .
Office vehicle for
female employees.
Compensation for
work place injuries
Provided
Covered by health
insurance.
\Health Insurance
Yes
Yes
Life Insurance
No
No
Compensation
and Benefit plan
17
OSHA (
Occupational Safety
and Health
Administration)
Profit sharing
Not applicable
Not applicable
Work Environment
The office is situated in a

residential area; apart from
that the internal
environment is very good.
Yes
Homely environment,
despite being an office.
Posting
Given
Given
Safety Drills
Given
Given
Fire Prevention
Given
Not given
Emergency Exit

for the employees.
No
Electrical System
No
No
Material storage
No
No
Ergonomics
Yes
Yes
18
Yes
HRM Practices (PRAN RFL vs Nestle)

Firm Names
Criteria
Pran- RFL
Nestle
They give job

advertisements in
various medias.
Bdjob,Nokri.com,
Prothomalojobs.com
ProthomAlo, Bangladesh
protidin
They prefer internal

reference more than
outer advertisements.
Only Bdjobs.com
TV commercials
N/A
N/A
Screening
Formal
Formal
Written Test
Formal
Highly formal
IQ Test
N/A
Interview
Highly formal
Done through the oral

interview
Highly formal
Resume Interview
Take Resume interview
Yes.
Fit Interview
N/A
N/A
Case Interview
Takecase interview
Quota for
No quota for handicap

people but near future
they will introduce.
Medical Test
Medical test are needed
Previously yes, but not

now.
Based on the
qualifications, no
matter if challenged or
not.
Not required.
Negotiation
Semi-Formal
Not for the new

recruits.
Referral
Top
management jobs

Yes, it might add some
value to the resumes.
Job
Advertisement
Online Job Portals
Newspapers
Recruitment &
Selection
Process
Consider Similar
industry candidate
Similar industry
Candidates
19
They do not use

newspaper ads now.
Job Need
Job need.
Venue
In the organization.
Centralized training
Type
On the job training,

Daily Training
Trainer
They have Training

department for training
the employees
Basis
Performance base
promotion system
Every day the new

recruits are trained and
taught inside the office
area. (Both practical
and presentation)
On the job is done for
the practical
knowledge and
experience and
presentations for the
operations learnings.
Supervisors and
seniors. No trainee is
hired specifically for
this job.
Both performance and
seniority (combined).
Frequency
Not Fixed
Around twice a year.
% of increment

year to year.

year to year.
Issued by
Department and admin
HR & Administration
department
Frequency
3 time in a year
Not fixed, but done

quite frequently.
Criteria
Performance based
reward
Performance is the top

priority.
Perks
Gift hamper
Yes. Of many types.
Status
Yes. Eg- employee of the

month.
Yes. Eg- employee of

the month.
Recognition
Given
Yes.
Not Held
No.
Criteria
Training and
Development
Promotion
System
Performance
Appraisal
System
20
Compensation
and Benefit plan
Iftar party, Annual

picnic, factoryday
Sports day, annual

picnic.
Appraised by
HR & Administration
department
Festival Bonus
2 Eid bonus
2 Eid bonuses.
% of Bonus
Gross 15%
Varies from year to

year.
N/A
Annual Leave
36 days, Head office 28

days
Depends on the
employee productivity
and organization
performance as well.
Around 20 days a year.
Sick Leave
17 Days
12-14 days.
Casual Leave
10 Days
12 days.
Maternity Leave
16 Weeks
Around 18 weeks.
Paternity Leave
No paternity leave
2 weeks.
Parental Leave
N/A
No.
Pension Scheme/
Provident Fund
No pension System, they

have Welfare fund
There is no such option

for the employees.
Transportation
They provide the

transportation for their
employee
Car is there for only

Gulshan and Banani
employees.
Compensation for
work place injuries
provide compensation
for work place injuries
Yes both inside and

outside the workplace
(Outside only if the
employee was involved
in some sort of
organizational activity.
21
\Health Insurance
Provide the health

insurance
Yes.
Life Insurance
N/A

for the employees
Profit sharing
N/A
Only given to few of

the top employees.
Work Environment
The current situation is

pretty poor; the building
was under construction.
Yes
Homely environment
and quite congested.
Posting
They post Emergency

signal and information
Yes, it is there.
Safety Drills
They do not have safety

Drills
Fire Prevention
No fire prevention
Safety drills are

maintained but in a
limited way.
Fire extinguishers are
there.
Emergency Exit
They have Emergency

Exist
Not really.
Electrical System
No
No.
Material storage
They have material

storage section
Yes.
Ergonomics
Yes
Not really. The

building is quite old
and does not fit well
with the organizations
image.
Walking / working
surfaces
OSHA (
Occupational Safety
and Health
Administration)
22
Yes.
HRM Practices: (Novartis vs ESKAYEF Bangladesh

Ltd.)
Firm Names
Criteria
Novartis
ESKAYEF
BANGLADESH
LTD
They give job

advertisements in
various medias.
Bdjob,
Prothomalojobs.com
ProthomAlo, Bangladesh
protidin
They prefer internal

reference more than
outer advertisements.
Only Bdjobs.com
TV commercials
N/A
N/A
Screening
Formal
Formal
Written Test
Formal
Highly formal
IQ Test
N/A
Interview
Highly formal
Done through the oral

interview
Highly formal
Resume Interview
Take Resume interview
Yes.
Fit Interview
N/A
N/A
Case Interview
Take case interview
Quota for
No quota for handicap

people but near future
they will introduce.
Medical Test
Medical test are strongly

needed. 21 medical test.
Previously yes, but not

now.
Based on the
qualifications, no
matter if challenged or
not.
Medical test are
strongly needed
Negotiation
Semi-Formal
Not for the new

recruits.
Referral
Top
management jobs

Job
Advertisement
Online Job Portals
Newspapers
Recruitment &
Selection
Process
23
They do not use

newspaper ads now.
Consider Similar
industry candidate
Yes, it might add some

value to the resumes.
Job Need
Job need.
Venue
In the organization.
Centralized training
Type
On the job training,

Daily Training
Trainer
They have Training

department for training
the employees
Every day the new

recruits are trained and
taught inside the office
area. (Both practical
and presentation)
On the job is done for
the practical
knowledge and
experience and
presentations for the
operations learnings.
Supervisors and
seniors. No trainee is
hired specifically for
this job.
Basis
Performance base
promotion system
Both performance and

seniority (combined).
Frequency
Not Fixed
Around twice a year.
% of increment

year to year.

year to year.
Issued by
HR and admin
HR & Administration
department
Frequency
Annually
Not fixed, but done

quite frequently.
Criteria
Performance based
reward KPI driven
Performance is the top

priority.
Perks
Gift hamper
Yes. Of many types.
Status
Yes. Eg- employee of the

month.
Yes. Eg- employee of

the month.
Recognition
Given
Yes.
Not Held
No.
Similar industry
Candidates
Criteria
Training and
Development
Promotion
System
Performance
Appraisal
System
24
Compensation
and Benefit plan
Iftar party, Annual picnic
Sports day, annual

picnic.
Appraised by
HR and admin
HR & Administration
department
Festival Bonus
2 Eid bonus
2 Eid bonuses.
% of Bonus
Gross 15%
Varies from year to

year.
N/A
Annual Leave
36 days, Head office 28

days
Depends on the
employee productivity
and organization
performance as well.
Around 20 days a year.
Sick Leave
17 Days
12-14 days.
Casual Leave
10 Days
12 days.
Maternity Leave
16 Weeks
Around 16 weeks.
Paternity Leave
No paternity leave
No paternity leave
Parental Leave
N/A
No.
Pension Scheme/
Provident Fund
No pension System, they

have Welfare fund

for the employees.
Transportation
They provide the

transportation for their
employee
Car is there for only

Gulshan and Banani
employees.
Compensation for
work place injuries
provide compensation
for work place injuries
Yes both inside and

outside the workplace
(Outside only if the
employee was involved
in some sort of
organizational activity.
25
\Health Insurance
Provide the health

insurance
Yes.
Life Insurance
N/A

for the employees
Profit sharing
N/A
Only given to few of

the top employees.
Work Environment
The current situation is

pretty poor; the building
was under construction.
Yes
Homely environment
and quite congested.
Posting
They post Emergency

signal and information
Yes, it is there.
Safety Drills
They do not have safety

Drills
Fire Prevention
No fire prevention
Safety drills are

maintained but in a
limited way.
Fire extinguishers are
there.
Emergency Exit
They have Emergency

Exist
Not really.
Electrical System
No
No.
Material storage
They have material

storage section
Yes.
Ergonomics
Yes
Not really. The

building is quite old
and does not fit well
with the organizations
image.
Walking / working
surfaces
OSHA ( Occupational
Safety and Health
Administration)
26
Yes.
HRM Practices: (Holcim vs. Fresh)

Firm Names
Criteria
Holcim Cement
Fresh Cement
Both formal and semiformal as they give job

advertisements in
various medias
They give job

advertisements in
various medias
Bdjobs.com is mostly
preferred
Only Bdjobs.com
Online Job Portals
Newspapers
Newspaper advertisements
are not preferred.
The Daily Star &

ProthomAlo
No.
Nil
Formal
Formal
Highly Formal as many

sort of questionnaires are
set for the applicants.
Nil
Well-structured format
being followed.
Interview
Highly Structured and very

strict.
Formal
Resume Interview
Taken
Taken
Fit Interview
Nil
Nil
Case Interview
Only exceptional cases.
No.
Quota for
No
No
Medical Test
Not Needed
Not Needed
Negotiation
Done under the salary

range. E.g.- Tk.35,000 to
Tk.40000
Semi-Formal
Job
Advertisement
TV commercials
Screening
Written Test
Recruitment &
Selection
Process
IQ Test
Referral
27
Nil

Training and
Development
Promotion
System
Performance
Appraisal
System
Similar industry
Candidates
Highly preferred for the4

manufacturing field.
Not necessary
Criteria

job needs.

job needs.
Venue
In house and
abroad
Only indoor and outdoor

is being considered for
the future.
Type
Mainly for the production .
Depts
requirement
Trainer

TSP
In house
Basis
Productivity and
performance
Job vacancy,
performance,
capabilities, previous
experiences
Frequency

year to year.
Depends from time to

time.
% of increment
Not fixed
N/A
Issued by
Only HRM in charge of

it.
Frequency
Annually
Twice a year.
Criteria
KPI driven
Completely KPI driven
Perks
No
No
Status
Given
Recognition
As the organization is more

of a flat hence no status is
given.
Given
Not held
Not held
Annual picnic
Iftar parties, Picnics.
28
Given
Appraised by

General)
Festival Bonus
Twice a year.
Twice a year.
% of Bonus
undefined
undefined
Provided
No
Annual Leave
20 days
20 days
Sick Leave
10 days
Not defined
Casual Leave
Not given
10 days
Maternity Leave
16 weeks
6 months
Paternity Leave
2 weeks
15 days
Parental Leave
Not given
Not given

Fund
Not given
Not given
Transportation
Not given

staffs.
Office vehicle for
female employees.
Compensation for
work place injuries
Provided
Covered by health
insurance.
\Health Insurance
Yes
Yes
Life Insurance
No
No
Compensation
and Benefit plan
29
OSHA (
Occupational Safety
and Health
Administration)
Profit sharing
Not applicable
Not applicable
Work Environment
Fantastic. The office has all

the advanced facilities that
an employee might look
for.
Yes
Not bad but could ave

been better for an office
environment.
Posting
Given
Given
Safety Drills
Given
No
Fire Prevention
Given
Not given
Emergency Exit

for the employees.
No
Electrical System
No
No
Material storage
No
No
Ergonomics
Yes
Yes
30
Yes
Comparison between
Local and Foreign
Firms
31
Comparison of the local and foreign ice-cream

providing companies (Movenpick vs.
Yoberries)
It is true that our expectation from the international firm, which is MovenPick in this
case, was higher than that of the domestic firms, in terms of the practice of HR in the
organisation. To start with, both the ice cream parlors follow quite similar procedures
for doing the recruiting and selection process and this was a good thing to know.
Both the firms follow structured ways of recruiting and selection processes and both
the firms allow external recruitment. Both the firms have very good working
conditions and the employees are quite happy in terms of compensation and benefit
system, performance appraisal and also with the promotion system. Yoberries'
employees do not know much about the OSHA but the employees are actually
following few of the safety and hygienic matters. For example, the employees do
wear a plastic cap while being inside the kitchen and the working condition is very
soothing for both the employees and the employees as well. The promotion
announcements are done by the in charge managers after being discussed with the
HR manager of the firm. The same procedure is followed in Movenpick as well. At
the end, it is safe to conclude with that, from the surveys that we have done so far,
we felt that the HR department is still new in the domestic firms but they are still
trying to cope up with the international standards of HR practices and the way the
HR practices are being done in Movenpick, seemed really very effective. Every firm
should understand the importance of HR issues and should act accordingly.
Comparison of the local and foreign consumer

goods producing companies ( Pran-RFL vs.
Nestle)
The concept of HR is very new in Bangladesh. Though most of the top level organizations
practice HR but some of them are still unknown to model. Most of the organizations have
acquired this as part of their organization and others are still lacking behind in gaining it. The
major function of an HR department is the followings: Recruitment and Selection Process,
Training and Development, Promotion System, Performance Appraisal System and
Compensation Benefits.
32
After conducting the survey on Pran-RFL and Nestle, in terms of their HR practices and
issues, what we came across is that, it is not always true that the local firms are always behind
the international ones in terms of following the HR practices in their workplaces. On the
other hand, in this case, both the firms had very poor HR results in few of the aspects. The
below discussions would show their HR results in terms of all the aspects that we have
surveyed for:
Recruitment & Selection Process: In this section, we tried to collect information of
Recruitment circulars, screening test, writing tests, interview, referral and priority to
uptake similar sector people. For recruitment circulars Pran-RFL used to circulate
formal circular. They give advertisements on Bdjobs.com and Daily Star for
recruiting people which is formal recruiting system. Formal screening test and formal
written test is observed in this NGO. Swiss firm, Nestle also gives advertisements for
recruitments but their ways are different from the ones from Pran-RFL. Their
screening test, interview and written test are highly formal. If we compare with the
Swiss one stated above, we found many similarities with local ones. They dont
demand any medical test. In case of negotiation both the firms are semiformal.
Similar industrys candidates are highly preferred in Nestle but it is not necessary for
Pran-RFL.
Training & Development: Training is the integral part for the development of the
employees which is carried out by both local and global firms though we found some
difference. Pran-RFL does in house training for the employees whereas Nestle
arranges abroad and out sourced training. Pran-RFL give trainings at grass- root level
in 11 districts. Nestles trainers are from Bangladesh but sometimes they call some
trainers from outside our country. But Pran-RFLs trainers are from our country they
dont demand for outsiders. Purpose of training varies from firms to firms. Local
NGO arrange training as per the department need on the other hand Swiss NGO
arrange as per incumbents need.
Performance Appraisal System: Pran-RFLs promotional system is based on
employees productivity and performance and it is issued by the department and the
admin. On the other hand Nestles promotional system is based only on performance
and issued by the E.C members and the General Secretary and the promotional
33
activities are done wholly depends on performance and it is referred by the

department heads and executed by the HR.
Compensation & Benefit: Both Pran-RFl and Nestle have almost similar policy. In
this section we mainly surveyed the satisfaction of employee on the salary they are
drawing, availability of health insurance, rent and transport expenses. We have found
that both the firms employees are satisfied with their salary. They both cover health
insurance for the job holders. But they dont give any life insurance. In case of
festival bonus, annual leave, sick leave, maternity leave and parental leave we found
almost same scenario. In case of transportation, only Nestle provide transportation to
their employees but only in Gulshan and Banani. But Pran-RFL doesnt provide any
transportation facilities.
Occupational Safety and Health Administration (OSHA): It is pleasant to hear that
most of the OSHA guidelines maintained by both the firms, and they have sufficient
walking space, safely drills, fire preventions, emergency exits. But electrical system
and material storage is absent. But on the other hand, the local firm, Pran-RFL, does
not really follow the OSHA according to the international standards. In fact, they
hardly follow any kind of safety measurements in the organization. They have
sufficient walking space, safely drills, fire preventions, emergency exits. But electrical
system and material storage is absent. They do not have any fire exits, no fire
extinguishers inside the organization workplace.
Comparison of the local and foreign NGOs

(WARBE vs. Swiss Contact)
Human Resource Management is the organizational function that deals with issues related to
people such as compensation, hiring, performance management, organization development,
safety, wellness, benefits, employee motivation, communication, administration, and training.
It is also a strategic and comprehensive approach to managing people and the workplace
34
culture and environment. Effective HRM enables employees to contribute effectively and
productively to the overall company direction and the accomplishment of the organization's
goals and objectives.
In this report we are going to sketch the current situation and culture of two NGOs. In
Bangladesh there are several local and global NGOs running their operations. We have
surveyed on a local NGO and on a Swiss NGO to compare their organizational policies.
Considered NGOs are as follows:
Swiss NGO: SwissContact (Saro)
Local NGO: WARBE Development Foundation
uptake similar sector people. For recruitment circulars WARBE used to circulate
formal circular. They give advertisements on Bdjobs.com and Daily Star for
recruiting people which is formal recruiting system. Formal screening test and formal
written test is observed in this NGO. Swiss NGO SARO also gives advertisements for
recruitments. Their screening test, interview and written test are highly formal. If we
compare with the Swiss one stated above, we found many similarities with local ones.
They dont demand any medical test. In case of negotiation both NGOs are semiformal. Similar industrys candidates are highly preferred in SARO but it is not
necessary for WARBE.
employees which is carried out by both local and global NGOs though we found some
difference. Local NGO do in house training for the employees whereas Swiss NGO
arrange abroad and out sourced training. WARBE give trainings at grass- root level in
11 districts. SAROs trainers are from Bangladesh but sometimes they call some
trainers from outside our country. But WARBEs trainers are from our country they
dont demand for outsiders. Purpose of training varies from NGO to NGO. Local
NGO arrange training as per the department need on the other hand Swiss NGO
arrange as per incumbents need.
35
Performance Appraisal System: SAROs promotional system is based on

admin. On the other hand WARBEs promotional system is based only on
performance and issued by the E.C members and the General Secretary. Both of the
NGOs frequency of promotion and criteria is same. But SARO gives status to their
employees but WARBE doesnt.
Compensation & Benefit: Two NGOs have almost similar policy. In this section we
mainly surveyed the satisfaction of employee on the salary they are drawing,
availability of health insurance, rent and transport expenses. We have found that both
NGOs employees are satisfied with their salary. All NGOs cover health insurance for
the job holders. But they dont give any life insurance. In case of festival bonus,
annual leave, sick leave, maternity leave and parental leave we found almost same
scenario. In case of transportation WARBE is very much with their female
employees. They provide transport for female employees and male employee on
official purpose. But SARO doesnt provide any transportation facilities.
Occupational Safety and Health Administration (OSHA): It is pleasant to hear that
most of the OSHA guidelines maintained by the foreign NGO, Swiss contact; they
have sufficient walking space, safely drills, fire preventions, emergency exits. But
electrical system and material storage is absent. But on the other hand, the local NGO,
Warbe Development Foundation, does no really follow the OSHA according to the
international standards. In fact, they hardly follow any kind of safety measurements in
the organization. They have sufficient walking space, safely drills, fire preventions,
emergency exits. But electrical system and material storage is absent. They do not
have any fire exits, no fire extinguishers inside the organization workplace.
36
Comparison of the local and foreign

Pharmaceuticals ( Eskayef ltd. Vs. Novartis )
Human Resource Management is the organizational function that deals with issues related to
people such as compensation, hiring, performance management, organization development,
safety, wellness, benefits, employee motivation, communication, administration, and training.
It is also a strategic and comprehensive approach to managing people and the workplace
culture and environment. Effective HRM enables employees to contribute effectively and
productively to the overall company direction and the accomplishment of the organization's
goals and objectives.
In this report we are going to sketch the current situation and culture of two pharmaceutical
companies. In Bangladesh there are several local and global pharmaceutical companies
running their operations. We have surveyed on a local company and on a Swiss company to
compare their organizational policies. Considered pharmaceutical companies are as follows:
Swiss Company: Novartis

Local company: SK+F
uptake similar sector people. For recruitment circulars Novartis used to circulate
formal circular. They give advertisements on Bdjobs.com, Prothomalojobs.com,
Prothom Alo and Bangladesh Protidin (news papers) for recruiting people which is
formal recruiting system. Formal screening test and formal written test is observed in
this company. But they dont take any IQ test. Local company SK+F prefers internal
reference more than advertisements for recruitments. Their screening test is formal
but the written test is highly formal. They take IQ test in interview board. If we
compare with the Swiss one stated above, we found many similarities with local ones.
Both of them demand for medical tests. As these are the pharmaceuticals company
they strongly follow medical tests. In case of negotiation employees of Novartis can
negotiate with their salaries but the negotiation style of local company is semiformal. Similar industrys candidates are highly preferred both in Novartis and SK+F.
37
employees which is carried out by both local and global companies though we found
some difference. Local company do in house training for the employees whereas
Swiss company arrange abroad and out sourced training. Novartiss trainers are from
Bangladesh but sometimes they call some trainers from outside our country. But
SK+Fs trainers are from our country they dont demand for outsiders.
Purpose of training varies from company to company. Local company arrange training as per
the department need on the other hand Swiss company arrange as per incumbents need.
Performance Appraisal System: Novartiss promotional system is based on
admin. On the other hand SK+Fs promotional system is based only on performance
and issued by the E.C members and the General Secretary. Both of the company
frequency of promotion and criteria is same.
Compensation & Benefit: Two companies have almost similar policy. In this
section we mainly surveyed the satisfaction of employee on the salary they are
drawing, availability of health insurance, rent and transport expenses. We have found
that both companys employees are satisfied with their salary. All companies cover
health insurance for the job holders. But they dont give any life insurance. In case
of festival bonus, annual leave, sick leave, maternity leave and parental leave we
found almost same scenario. In case of transportation both company are very much
with their female employees. They provide transport for female employees and male
employee on official purpose.
Occupational Safety and Health Administration (OSHA): It is pleasant to hear
that most of the OSHA guidelines maintained by both company. They have sufficient
walking space, safely drills, fire preventions, emergency exits. But electrical system
and material storage is absent.
38
Comparison of the local and foreign Cement

Industry ( Fresh Cement vs. Holcim Cement)
Recruitment & Selection Process: Our main focus in this section was to collect
information of Recruitment circulars, screening test, writing tests, interview, referral
and priority to uptake similar sector people. For recruitment circulars Holcim cements
circulates formal circulars and Fresh cement does the same too. They give
advertisements on different job portals such as: Bdjobs.com, Prothomalojobs.com and
Daily Star for recruiting people which is formal recruiting system. Formal screening
test and formal written test is a must for both the companies. Referrals have certain
importance in Fresh Cement but since Holcim in an MNC there is rare scope for
referrals. Their screening test, interview and written test are highly formal. Though
Fresh Cement does not require any health test before recruiting, it is also a part or
recruitment process in Holcim cements. Candidates can negotiate their expected
salary to some extent in Fresh cements.
Training & Development: Holcim is very much conscious about the training and
development. After the recruiting and selection process the HR department send the
employees for three types of training session. They are IN house, external, and
overseas. In house includes the safety training with the consideration of HRM
Department. External training refers that here employee can write to their Department
head and HR Head about some training. Every year they select some good candidates
for taking them to abroad for training. They offer two types of international training
IOSH, NOBSH. From South East Asia region they send three to five employees every
year to their apparent country Switzerland. On the other hand, Fresh Cements hold a
training programme once every year for their employees and the training are basically
in house , by trainers within the boundary. Since the HR Dept of Fresh Cement is very
new in the field ( 2 years) they are still planning to enhance the training and
development facilities for the upcoming years.
Performance Appraisal System: Holcims promotional system is based on
admin. Fresh Cements has a rather unique way of appraisal. The frequency for
performance appraisal is ones every year. Employees have to ensure 3 main criteria :
a) is the employee is doing his work at the best , b) is the employee performing extra
39
work after finishing the work assigned to him and c) if the employee is capable to
maintain consistency if he receives promotions to greater responsibilities. Holcim
gives promotion based on the employees own KPI and departments KPI. Every year
at the end HR department combine the KPI and give promotions to the employees.
This process is called E-Dialogue.
Compensation & Benefit: Holcim Cements provides bonuses thrice a year.

Employees get transportation facilities as well. Fresh cement provides bonuses twice a
year. Festival bonuses are given by both the companies . Maternity leave is given as
per Law (16 weeks), sick leaves in Fresh cement is for 14 days, in Holcim its for 12
days. Perks are given to high performers in Holcim .
Occupational Safety and Health Administration (OSHA): As per OSHA both the
companies maintain high security and safety. Employees at the field and industries are
strictly instructed to wear safety gears, as these are cement industries any kind of
danger or accident might occur any time. They have sufficient walking space, safely
drills, fire preventions, emergency exits. Fresh cement even has a Fire Brigade
Tranport for their emergency cases.
40
Findings
Local vs MNC
There are several differences in HRM practices between local cement companies
and multinational cement companies in Bangladesh. Multinational companies tend to
follow more structured way in their recruitment and selection process, training &
development, promotion system and in performance appraisal system. But local
companies have a mixed and less formal way of practicing HRM in their
organizations.
Recruitment and Selection Process
In job advertising both MNCs and Locals try to follow formal proceedings. They give
their job advertisement in print media and also in online job pages like BDJobs.com,
ProthomAlo Jobs, Lose Monkey etc. Very few MNCs do their recruitment and
selection through third parties. So they dont do any job advertising form their own.
Screening process is mostly structured in both MNCs and in Local companies.
MNCs have much standard way of screening comparing to locals. Written test is
taken formally in MNCs as well as in locals. But sometimes some MNCs dont take
written test for some of its hiring positions. It completely depends on their
departments need. Locals mostly have written test for their most of the required
positions. After the written test next step is interview. MNCs and locals both have
structured interview method. MNCs have highly structured and structured interview
process and locals have structured and semi-structured process in interviewing.
Several MNCs requires medical test must and for some its essential. Locals are not
that serious on medical test. If its essential for the post to take medical test then
medical test is taken or else its not necessary. Negotiation is at the end of
recruitment process. Once the candidate has been through all the screening process
he then gets the opportunity to negotiate on salary. Not all the organizations offer
negotiations for candidates. Most of the MNCs offer negotiation option for the
candidates and they have the freedom for asking on their salary. Even if the locals
offer negotiations it remains under a benchmark. Most of the MNCs have referrals
and they are mostly from the top management. Locals hardly have referrals and if so
its from the top management. Similar industry candidates are preferred in both
locals and in MNCs.
Training and development
In training and development the primary training is given in office which is known as
on the job training. Then according to the requirements the training is allocated.
MNCs have various training for its employees including fire drill, factory safety
41
training. Local companies are not that far behind either when it comes to training.
They also provide opportunities for going abroad when it comes to talented
employees but more often than not training is done in house. MNCs tend to display a
pattern of training their workers on a location basis especially when it comes to
safety concerning their onsite workforce.
Promotion System
MNCs go the all American way when it comes to promotion with performance
leading the way when it comes to the deciding factor. Local companies operate on a
more yearly foundation for their promotion system. Both sides are neutral towards
succession planning leading the job description and position requisites to choose the
initial pool of candidates. Performance appraisal is practiced in both MNCs and in
locals. These performance appraisals are done by the Human resource department
and respective departments. The competitive advantage MNCs have against local
companies lies in its facilities, skilled human resource and management. Thats why
local organizations in specific try to minimize its turnover rate in terms of top
performers. Employees leave organizations for many reasons; oftentimes these
reasons are unknown to their employers. Employers need to listen to employees
needs and implement retention strategies to make employees feel valued and
engaged in order to keep them.
Compensation and benefits
MNCs have a much open mentality when speaking of their salary
packages when
compared against their local competitors. Fringe benefits range from company car
privileges to medical expenses duly paid along with festive bonuses. Things are
more undisclosed in the local companies with the base salary kept a bit lower to stay
within tax breaks. This in return is made up of the multitude festival bonuses on offer
throughout the year.
OSHA
While health and safety regulations are maintained in all forms everywhere we have
found that MNCs take a more proactive approach to ensure disciplined work
practices for their employees so that they not only reach the industry standard but
create a brand new benchmark in the process. Local companies place their trust in a
"flexicurity" model: new ways of balancing flexibility and security in relation to
employment, income and social protection. ILO also encourages a "flexicurity"
approach which requires, but also promotes, high employment rates. Without
competitive enterprises which are able to adjust their workforces to market
conditions, employment performance will be poor.
42
Conclusion
For the past 3-4 weeks, we have interviewed 10 HR managers of Bangladeshs top
companies 5 Local and 5 MNCs. We surveyed around 30 employees and got to
know how the companies are run by the administrators using the help from HR
department.
From our surveys and findings we have found out a very important thing. The HR
practices in MNCs are lot better than that of local. The five major areas of HR which
are Recruitment and Selection Process, Training and Development, Promotion
System, Performance Appraisal System and Compensation Benefits are followed by
the MNCs very well. Of course big companies like Holcim and Novartis lack in some
areas, but as they are given guidelines and policies from the parent company, they
have to adhere to it strictly.
The recruitment process is seen to be very structured in the MNCs than that of
locals. As they are all of them are service oriented T&D, performance appraisal and
promotion are similar. But the compensation packages are more and preferable in
MNCs than the local ones.
From all this we found out that HR is still new in Bangladesh and most companies
are still not ready to fully implement it, but most of them are aware of it. Everyone
knows its importance and HR is getting recognized as it should be.
43
Appendix
Novartis Pharmaceuticals LTD
Fresh Cement Industries Limited
44
Eskayef Pharmaceuticals Limited
PRAN-RFL Limited
45
Swiss contact
Movenpick Ice-cream Parlor
WARBE Development foundation
46
Holcim Cement
47

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Introduction

Objective of the Study

Employee training & development

Background of the Ice Cream Industry in Bangladesh

The fact that the Bangladeshi

Background Information: (Swiss Contact

Name of the organization

Swiss Contact (SARO)

Warbe Development Foundation

Dr. Anna Crole-Rees and Marina

Md. Faruqe Ahmed

Mr. Lawrence Boidya

Current CEO or Chairperson

House no.19, Road no.11,

9/31-D, Eastern Plaza (8 Floor),

Established in which year?

Operation in which other

Developing countries in South

Work for the rights of the migrant

Avg. working hours (Full Time

Background Information: (Pran RFL vs Nestle)

Name of the organization

Maj Gen (Retd.) Amjad

Henri Nestle, Charles Page and

Faiyaz Khan Chowdhury

Maj Gen (Retd.) Amjad Khan

PRAN-RFL Center, 105,

Gulshan Tower (4th floor)

Food and Beverage company,

Food and Beverage company.

Established in which year?

September, 1994 (Bangladesh)

Operation in which other

South Asia, Africa,

Operations in more than 86

EAT DELICIOUS. LIVE

Good Food, Good life

Around 330 (inside the office)

No. of employees (in

Background information: (Novartis vs

Name of the organization

Local Pharmaceutical company

ESKAYEF BANGLADESH LTD

Mr. Latifur Rahman,Transcom

Current CEO or Chairperson

Mr. Latifur Rahman

House 50, Road 2/A, Dhanmondi

Established in which year?

Operation in which other

Maintain people's health and

Avg. working hours (Full Time

Background Information: (Holcim vs. Fresh

Name of the organization

Gulshan 2, Dhaka, Bangladesh

Mohammed Yasin Ahmed

Mrs. Sharmin Sultana

Current CEO or Chairperson

Mohammed Yasin Ahmed

Ninakabbo, Level-7, 227/A,

House No.15, Rd-34, Gulshan

Building Materials (Cement)

Building Materials (Cement)

Established in which year?

Operation in which other