Executive Summary:

Human organization activity is simply the act of getting people together to accomplish
desired goals. Any organization, whether new or old, small or big needs to run smoothly
and achieve the goals and objectives which it has set forth. For it develops and
implements its own Human Resource Management concepts. As such, the basic functions
of HRM, broken down into seven different areas, allow for it to handle the strategic,
tactical and operational decisions for the organization. The seven functions of HRM are:
Planning, Recruiting, Selection, Socialization, Training and Development, Performance
Appraisal, Compensation, Labor relation, and Motivation function
Beximco Pharma (BPL) is a leading edge pharmaceutical company based in Bangladesh
and is acclaimed for its outstanding product quality, world-class manufacturing facilities,
product development capabilities and outstanding professional services. Its strategic
strengths include strong recognition of brands, highly skilled work force and diversified
business mix. Being a Learning Organization the core essence of Beximco Pharma is its
entrepreneurial spirit in every sphere of its management. In this spirit, the tasks of each
managerial function are carried out through HRM.
This report focuses on the Organizations problems and issues in HRM practices, the
approaches or initiatives BPL should take to strengthen its workforce and finally what
kind of challenges BPL would face in the 21 st century and why these are defined as
challenges. we tried to give a thorough idea of the overall economic and industrial
condition, existing competitions in both home and abroad, and future threats of
international open markets etc. In addition to that, we have recommended some
alternatives in the final segment of the report that we believe, could be helpful for BPL to
prevail over the mentioned challenges.

1. Introduction:
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Beximco Pharmaceuticals Ltd. (BPL) has been the trendsetter in Bangladesh

Pharmaceutical Market since its inception in 1979. Over the last decade BPL actually
rose to a new standard moving beyond manufacturing quality medicines to win mind
share of patients, physicians, shareholders, business partners, and communities where we
work and live. Our dedication to add more value to the common wealth of the society
compounded by innovative strategies for growth and diversification, pioneering role in
bringing new technology and implementing new ideas, and commitment for total quality
management distills the glory of our success. Today BPL is not merely a market leader.
Most of the products that it actively markets enjoy leadership position demonstrating
incomparable trust of the healthcare professionals. This is the reward for the outstanding
quality of our products- at BPL we never compromise with the quality of our products so
that our fellow citizens can live long, happy and better. BPL is the pioneer in introducing
medical service activities: publishing a full-fledged medical newsletter regularly,
conducting clinical seminars and symposiums to have better understanding of various
diseases and their management. BPL is the first national company who dared to diversify
its business into manufacturing bulk drugs to integrate itself backwards as well as
develop the nations pharma industry. While it would have been relatively easy to
diversify the business into consumer products, BPL chose the harder path with a longterm vision. Today BPL is ready to face the challenge of scarce sourcing of Active
Pharmaceutical Ingredients (API) in the post-WTO era, with its advanced API
manufacturing capability.
BPL is one of the first companies to have an extensively computerized and automated
working environment connecting every corner of the country to the centre. Productivity
through connectivity is one of our heritage of progress. BPL is the first company to go
beyond the national boundary, exporting its quality products in overseas markets in Asia,
Africa, and Europe. More than that, BPL has probably fulfilled a national aspiration of
turning a once import dependent country into an exporter of quality medicines. We
believe, with our technological and managerial know-how and ability to take on
challenges, we will be able to progress much faster towards our objective of becoming
the nations most Visionary company.

2. Company Overview:

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2.1 About Company:

Beximco Pharmaceuticals Ltd. is a leading edge pharmaceutical company based in
Dhaka, Bangladesh and is acclaimed for its outstanding product quality, world-class
manufacturing facilities, product development capabilities and outstanding professional
services. Beximco Pharma is the pioneer in pharmaceutical export from Bangladesh and
has received National Export Trophy (Gold), the highest national accolade for export, for
record three times.
BPLs year of establishment is 1976. They started commercial production in 1980.
Their current status is as a Public Limited Company. Their business lines are
manufacturing and marketing of pharmaceutical finished formulation products,
ophthalmic preparations, nebulizer solutions and active pharmaceutical ingredients
(APIs).
Overseas Offices & Associates:
Australia, Bhutan, Cambodia, Chile, Ghana, Hong Kong, Indonesia, Jordan, Kenya,
Kuwait, Malaysia, Myanmar, Nepal, Pakistan, Philippines, Saudi Arabia, Singapore, Sri
Lanka, Vietnam and Yemen
Authorized Capital (Taka): 2,000 million
Paid-up Capital (Taka): 1,259.57 million
Number of Shareholders: Around 66,000
Stock Exchange Listings: Dhaka Stock Exchange, Chittagong Stock Exchange and AIM
of London Stock Exchange
Number of Employees: 2,310
2.2 Vision:
BPLs passionate effort to achieve excellence in all spheres of its operations and its keen
endeavor to incorporate innovative new technologies into its manufacturing practice puts
it ahead of its contemporaries. Viewing the business as a mean of the social well-being of
the investor, employees and the society and customers is the main vision of BPL. The
company makes their best effort to ascertain the financial wealth and moral gains as a
part of the process of the human civilization. Beximco Pharmaceuticals Limited is
committed to contribute to keep the earth clean.

2.3 Mission:

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Each of our activities must benefit and add value to the common wealth of our society.
We firmly believe that, in the final analysis we are accountable to each of the constituents
with whom we interact; namely: our employees, our customers, our business associates,
our fellow citizens and our shareholders.
2.4 Core Values:
Trust and reliability to the products emerged as one of the core values of Beximco
Pharmaceuticals Limited. It maintains quality in manufacturing of products according to
the rules of the WHO. Hiring a competent branch of people who are best in their capacity
to serve the company best, strengthen the BPL function of operation .It also give
emphasize on promoting new products through research and bringing cost efficiency in
business operations.
Beximco Pharma believes that it is in the business which deals with human health which
makes it more responsible to keep the highest standards of its products. Through its
products it tries to deliver clear benefits to the patients.
Good products, however, are only one side of its expression of commitment. BPL
believes its responsibility lies even more in ensuring that the society gets benefited while
it continues to grow.
2.5 Corporate Social Responsibilities:
Corporate social responsibility is an integral part of BPLs business strategy which is
reflected in its mission statement. Every employee of the company knows that the
company does not view its success and achievements in financial terms only, but also in
terms of its deep relationship with the society.
Each year, an increasing amount of contribution is ploughed back into social causes,
demonstrating Beximco Pharma's commitment to the nation. More importantly the
company's contribution extends beyond one-time donation to ongoing participation as
reflected in its partnership with NGOs working for AIDS patients, in supporting sports,
and in raising disease awareness among the people.
BPL donated medicines worth millions of taka to victims in national and international
calamities. Donation of medicines to victims of earthquake in Pakistan and victims of
tsunami in Sri Lanka are worth mentioning.
The company maintains a team of scientists who works as pharmaceutical experts for
good governance that give direct benefit to the common people and shareholders.
Beximco Pharmaceuticals Ltd. carefully designed its facilities for reducing hazardous
impact on the environment through operational excellence providing a friendly
environment for a healthy society for tomorrow being the main responsibility of BPL.

3. HR Management in BEXIMCO Pharmaceuticals Ltd.

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3.1 Human Resource Planning in BPL:

Planning is the core area of all the functions of management. It is the foundation upon
which the other three areas should be built. Planning requires management to evaluate
where human resource of the company is currently, and where it would like to be in the
future. From there an appropriate course of action to attain the company's goals and
objectives is determined and implemented.
Every organization has employment planning. BPL has also its employment planning.
They usually forecast their personnel needs based on their mission, strategic goals &
objectives & technological and other changes resulting in increased productivity.
Although there are several methods to predict personnel needs, but they use managerial
judgment because it gives the more real world scenario for personnel needs. They think
that the other methods cannot give the accurate situation of the personnel needs. These
are basically graphical methods, which cannot measure the actual personnel needs. But
managerial judgment method depends upon the change in productivity, market conditions
etc.
3.2 Recruitment and Selection process in BPL:
BPL looks for top-caliber people who want the flexibility and resources to grow in their
career. If you're the kind of person who has always stood out, we offer a place where you
can continue to excel. No matter what your field or range of interests, there are vacancies
where your talents can likely be applied and developed. They have thousands of diverse
people from different cultures and backgrounds working in a variety of different jobs in
different fields.

Merit is the sole criteria for selection.

Attitude is given as much weight age as functional competencies.

Panel interviews comprising of Functional Head & HR Head.

Sources for recruitment are through campus, consultants, employee referrals,

internal job postings and the internet.

Positions in Officer Cadre, GET and MT involve written tests.

Antecedent verification is an integral part of our recruitment process.

Medical fitness is pre-requisite for all positions.

Provide equal opportunity employer and do not discriminate on the basis of race,
community, religion or sex.

A diagram of the recruitment and selection process in BPL would be the following:
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Need assessment

Checking the
recruiting
options

Vacancy in existing
post(s)
Market expansion
Increase in production
capacity
Launching new product

Internal
External

Advertisemen
t in National
Dailies
(Both Bangla
and English)

Introducing new system

Interview
Preliminary
interview:
elimination process
(short-listing)
Second interview:
work knowledge
/behavioral
competency
Final interview:
pre-selection
interview

Selection
Application blank
filling
Medical check-up
Offer letter

Written test (optional)

IQ test
Behavioral competencies
Communication skills

Orientation /induction

Exposure to all
important business
/functions and
locations of the
company
Feedback report
focusing on learning
experience (s) of the
induction program
Placement

Sorting
Applicatio
ns
Weights are
assigned
based on the
selection
criteria

Follow up
HR Department
continuously
interacts with
the new entrants
assisting to cope
up with the work
environment,
work culture,
peer group etc.

4. HRM Problems in BEXIMCO Pharmaceuticals Ltd.

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The Pharmaceuticals industry of Bangladesh has been the one of the key export division
and a main source of foreign exchange for the last 15 years. Pharma factories in
Bangladesh provide employment to 40 percent of industrial workers. But without the
proper laws the worker are demanding their various wants and as a result conflict is
began with the industry. Labor unrest is a great problem in the pharmaceuticals sector.
HRM faces the following challenges when they conduct major activities of HR. In
Bangladesh whole industry there are following common challenges faced by Human
resource department specially BPL:.

Human Resource Department faces challenges in respect of hiring the wrong

person for the job. They also face challenges when they requite person for a
specific position.
It faces challenges regarding experience high turnover.
It faces problems when employees not doing their best.
It is highly concerned about wasting time with useless interviews.
It faces challenges regarding discriminatory actions of employees which led the
company to court.
It faces problems when employees started to think that their salaries are unfair
relative to others in the organization.
It faces problem when employees commit any unfair labor practices.
It faces problem as par motivating sub-ordinates non-financially.
It faces problem according to improving employees out-side Dhaka.
It faces challenges in case of recruiting fresher.
It faces challenges regarding conflicts among the sub-ordinates in the
organization.
It faces challenges in case of quality management of the employees in the
organization.

Main problem is the insufficient infrastructure regarding Pharmaceuticals sector. In our

country there is an acute shortage of electricity and gas supply. Because of load shedding
disruption in production occurred and owners use generator for electricity. This problem
also hampers production and increase production cost which is threatening in the
competitive market.

There are some other problems which are associated with this sector. Those are- Lack of
marketing tactics, absence of easily on-hand middle management, a small number of
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manufacturing methods, Lack of training organizations for industrial workers,

supervisors and managers, Autocratic approach of nearly all the investors, fewer process
units for textiles and garments, Sluggish backward or forward blending procedure,
incompetent ports, entry/exit complicated and loading/unloading takes much time, timeconsuming custom clearance etc.
Some other problems are describe hereLack of training and development:
Lack of sufficient training and development programs in Pharmaceuticals sector.
Lack of HRM policies and practices:
Companies are unwilling to follow the proper HRM policies and programs to
develop their workers and employees
Lower Compensation Package:
Our Pharmaceuticals Sector are getting very cheap rate labor & they are very
much ignored about facilitate them with sound salary & benefit packages.
Lack of Motivation:
Our Pharmaceuticals employees are reluctant of getting adequate motivation
from their employers for improving themselves.
Work under pressure:
Workers have to meet demands whenever they have to produce for export
shipping as their top managements orders to do in a limited time.
Communication Problems:
The worker may encounter communication problems in the hierarchy. This lack
also impairs performance.
Very Expensive Incentives Required:
To get these highly qualified people to accept a assignment, very expensive
incentives, such as much higher salaries and benefits, are often required.

5. HRM approaches to be taken in BPL:

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Working conditions in the pharmaceutical sector do not meet the ILO standards. In order
to protect labour rights, job security and other benefits, workers should be provided with
appointment letters detailing the conditions of employment. Fair labour, modern HRM
practice and IR activities are needed to improve working conditions in the
Pharmaceutical sector. Better human resource management (HRM), it is proposed, could
play a key role in ensuring social compliance in pharmaceutical factories. Currently,
human resource management in the pharmaceutical sector is limited and often counters
Productive. The Pharmaceutical sector would benefit by the introduction of modern
human resources and industrial relations activities through the establishment of human
resource or personnel management units in the industry. The introduction of modern
human resource management would ensure that labour standards are addressed, that
workers rights are not violated, and that there is a safe working environment. HRM can
create a congenial work environment in the factories that enhances job satisfaction,
through training, job security, introducing flexible working times, encouraging new
Technology and introducing rewards, benefits and other fringe payments. In fact most of
the garments factories have no Well Defined HR or PM unit, as a result, workers rights
are minimal. Working conditions may improve with the establishment of a HRM unit or
Personnel Management unit in each industry and concludes that this is the highest
priority. It proposes setting up a standard through modern HR and IR practices and fair
labour practices in collaboration with employers, employees, TU representatives,
multilateral agencies and other stakeholder groups.
Ref: (Human Resource Management. (A Strategic Approach) By William P. Anthony, Pamela L. Perrewe and K. Michele Kacmar).
Scientific method and Social Research B.N.Ghosh.

BPL have some policy provided by the higher authority of BPL to solve the problem.
According to that they follow the following procedures:
a) They changes employees interdepartmentally such as marketing department to
selling department to avoid such king of problem.
b) HRD of BPL always tries to appraise individual performance thus wrong person
can be a better person in near future.
c) Building employees commitment always proved as a better solution to make a
better employee from a wrong person for the post.
d) BPL provide training facilities for the wrong personnel to come into a track.
e) BPL always tries to be fair with all employees so that wrong person get assurance
f) for his job of his own department.

6. Major Challenges for the Pharmaceutical Sector/BPL in 21st Century:

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6.1 The Global recession

The global economic environment puts a sustained impact on the Bangladesh economy
and the economy of Bangladesh has been integrating into global economy.
6.2 International price comparisons in terms of productivity
One of the most important aspects of competing in this intensely competitive world is to
Minimize production costs and maximize quality. Bangladesh pharmaceutical industry
lacks the both.
6.3 New Competitors
With the withdrawal of quota restrictions, some of the countries may find it economically
advantageous to withdraw their production outlets from this country and export directly
from their home countries. Moreover, some of the pharmaceutical companies exporting
countries from which Bangladesh is currently importing medicines are expected to
increase their supply of medicines in the liberalized trading environment to increase their
foreign exchange earnings. This implies that the possibility of a reduction in supply of
fabrics from countries to Bangladesh cannot be ruled out, since they will be trying to use
more of their medicines to produce goods for exports.
6.4 Technological Development
The competing countries are developing artificial intelligence with the improvement of
technologies, which will take the responsibility of production, planning and control in the
pharmaceutical industries. The pharmaceutical sector of Bangladesh will have to absorb
such development at the beginning of the 21" century.

6.5 Demand variations

As the market will be open for all producers in the world everyone will have access in the
markets all over the world. Every foreign country has its unique culture. In that situation,
consumers will have many options and their tastes and preferences may change very
rapidly. So, the suppliers will have to be aware of the consumers' tastes and preferences
from time to time in the world market, which is a big challenge for the producers and
marketers.
6.6 Labor Productivity
The productive efficiency of labor is more important determinant for gaining comparative
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advantage than the physical abundance of labor. In Bangladesh, the pharmaceutical

companies workers are mostly unprivilaged with little education and training. The
employment of an uneven number of unskilled labors by the pharmaceutical factories
results in low productivity and comparatively more expensive apparels. Bangladesh labor
productivity is known to be lower when it compared with of Sri Lanka, South Korea and
Hong Kong. Because of cheap labor if our country makes the labor productivity in the
apex position, then we think the future of this sector is highly optimistic.
6.7 Product Diversification
At the beginning of the 21s' century we should develop product diversification through
Market oriented design. Since culture varies across countries international marketers need
to acquire required skills in this regard. Without such skills, pharmaceutical sector will
not be able to compete in the global markets after 2020.
6.8 Research and Training
The country has no dedicated research institute related to the apparel sector.
Pharmaceutical is highly safety oriented and constant market research is necessary to
become successful in the business. These and related initiatives need encouragement
possibly intermediated by donor-assisted technology and knowledge transfer. A
facilitating public sector role can be very relevant here.
Ref: Journal of International Affairs (Volume 4, Number 2, July-December 1998)
1.

The Independent Bangladesh Yearbook (1999), pharmaceutical Industry, p.166

2.

Dowlah CAF (1998), "The Consequences of the GATT Uruguay Round for the pharmaceutical Sector in Bangladesh",
Journal of Internal Affairs, Vol. 4, No. 2, Bangladesh Institute of Law and International, Affairs, P. 20

3.

Abrar Ahmed Apu , www.abrarahmedapu.com

7. Overall Findings and Recommendations:

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At the conclusion of the report I would like to say that the BPL, Bangladesh has practiced
the standard human resource management. Here I have some recommendations that
identify avenues for improving the human resource management policies of BPL,
Bangladesh.

1. The company should be prepared the standard human resource planning. Because
the success and failure of the organization is highly depend on the proper human resource
planning.
2. The OMR process practiced in the organization is a very effective tool to fill
probable vacancy. The in house circulars within the group also act as a useful device to
find the right person of the right job.
3. The manager training program of the company is a good way to groom a to -be
manager for the probable vacancy in the future. The organization should regularly
follow this procedure to build a productive and valuable workforce. The selection tools
and procedures used in this program have also provided to be very effective. To cope with
the ever-changing, competitive corporate world, the organization should welcome new
ideas as well as fresh starters to trigger innovative ways to nature overall workforce
competence. The assessment center approach is designed to identify the essential
expertise of the candidates that enable to locate and select the right person for a
managerial. This method is formally followed only in the manager trainee selection
system. But this should also be followed in selecting the entry-level managers too.
4. The HR Department should look into the matter of consuming more time in the
process of calling the applicants after their responses very seriously. The organization
could control the size of applicants pool by using more clear and specific statements in
the ad in terms of the minimum educational degree, preferred institutions and other
necessary criteria based on which the initial screening of the applications were
conducted.
5. BCCP, Bangladesh could participate in the job fairs for their recruitment. A
considerable volume of applications is dropped in the organizations as a result of the

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exposure created in the job fairs. The organization can promote its image as a potential
recruiter through its successful participation in the job fairs.
6. The company can recruited also for campus recruiting that could bring a yield
of highly educated fresh-starters for the entry-level the organization could arrange
seminars in the top business schools country. Also the company should facilitate online
CV-posting system that is a very popular and effective practice used by the top business
organizations.
7. The company should follow both on-the-job and off-the job method training
when they are training their employees.
8. The HRD manager of the company should be analyzed the organizational jobs
properly. Because job analysis serves the cornerstone of all human resource functions in
an organization. Side by side the HRD manager should evaluate the different positions of
employees in the organization in order to establish the well conceived for pay-structure.
9. Before appraising the performance of employees in the organization properly,
the HRD manager should be established the standard. Here it is noticeable that the HRD
manager should appraise the performance of all employees in the organization without
showing any discrimination.
10. The HRD manager should prepare the standard promotion policy for the
employees of the organization. Here it is very much important that the employees should
get the promotion based on the performance not the nepotism, political influence and
whatsoever.
11. The HRD manager should established the standard pay structure for the
employees of the organization in order to reduce the high turnover of employees.

7. Conclusion:

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Pharmaceutical Industry has grown in Bangladesh in the last two decades at a

considerable rate. The sector consistently creates job opportunities for highly qualified
people. Pharmaceutical companies are either directly or indirectly contributing largely
towards raising the standard of healthcare through enabling local healthcare personnel to
gain access to newer products and also to latest drug information. As one of leading
pharmaceutical manufacturer Beximco Pharma plays a vital role in the industry as well as
in the national economy.
To be successful, relentless contribution and dedication of the organizations human
resource management is very much needed. To compete in international as well as in
local market in adverse situation the HR managers work has become much more difficult
in todays ever changing business environment. Developing plans in a dynamic situation
demands critical analysis of the situation and strict adhering to the core principal of the
organization. As Beximco Pharma is decentralized organization and core values are
cherished by everyone within the organization, operating in dynamic situation is easier
than it seems.
With the development of healthcare infrastructure and increase of health awareness and
the purchasing capacity of people, this pharmaceutical 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. So, it is a
great responsibility for Beximco Pharma as well as other companies in this industry to
concentrate on quality product and quality service to take this industry towards further
success. The Bangladesh government should also be considerable and cooperative to help
the businesses flourish.

8. Bibliography / Reference:

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Scientific method and Social Research B.N.Ghosh.

Business Research Method. By Donald R. Cooper, and Pamela S.Schindler.
Business Research Method by W.Zinkmund.
Article of Dr.Mahbubur Rahaman. Pharmaceutical Sector and Its Future. 2000.
Human Resource Management. (A Strategic Approach) By William P. Anthony,
Pamela L. Perrewe and K. Michele Kacmar.

Journal of International Affairs (Volume 4, Number 2, July-December 1998)

The Independent Bangladesh Yearbook (1999), Pharmaceutical Industry, p.166

Abrar Ahmed Apu , www.abrarahmedapu.com

Human Resource Management and Industrial Relations - Dr. Abdul Awal Khan.
Websites: www.beximcopharma.com
www.google.com

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