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INTRODUCTION:

1.1 Objective:

To find the existing human resource planning process of Square Pharmaceuticals.

To analyze the HR demand forecast of the organization.

To identify the process of employee demand and supply forecasting process conducted for

sub-units.

To identify the promotion process within the organization and to know the process to prepare

replacement chart.

To learn how to collect information from both internal and external sources.

To learn how to use primary and secondary sources to gather required information for the

report.

1.2 Methodology :

This term paper mainly is Based and focused on the “Application of the HUMAN Resource

Planning Approaches of Square Pharmaceuticals Ltd, Bangladesh”. In order to accomplish the

specific objectives, data and information’s we have collected data from Square Pharmaceuticals

and from other secondary sources. We went to Square Pharmaceuticals Ltd.(Head office at

Mohakhali) physically and interviewed the Executive HR for acquiring and gathering necessary

information’s. Both primary as well as the secondary form of data was used to prepare the report.

The details of these sources are highlighted below:

1.2.1: Types of Sources Data:

1.2.1.1Primary Sources:

Primary data for this report had been collected through the questionnaire, interview, conversation

& discussion of Executive HR in Human resource department. On the job observation of officers

has helped a lot to know information of working process in the Service sector. The Executive HR

of Square Pharmaceuticals Limited was quite friendly & cooperative to provide lots of

information to prepare this report.

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1.2.1.2 Secondary Sources:

We gathered secondary source of data, which are already existed or collected for some purpose

other than the current investigation, which we used in report. We gather information from many

sources of books, journals, articles and some other relevant publication documents.

1.2.2: Analysis Plan:

Firstly, we gathered all the data for making this report. Then we arrange different data

methodically.

1.3 Limitation of the study:

When we studied this we found some problems .these problems affect or study highly. These

limitations make a barrier to fulfill our study. To make this report we face difficulties in

coordination of time of all group members, it was difficult to sit together for the task because of

recent political conditions. We also did not get the chance to talk with the higher level

management of Square Pharmaceuticals Ltd. Another limitation was, we were not allowed to use

any recording device while interviewing.

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2.0 LITERATURE REVIEW:

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3.0. BACKGROUND OF SQUARE PHARMACEUTICALS LIMITED

SQUARE today symbolizes a name – a state of mind. But its journey to the growth and

prosperity has been no bed of roses. From the inception in 1958, it has today burgeoned into one

of the top line conglomerates in Bangladesh. It is a flagship company in the pharmaceutical

industry which has reached this mountain of success by fighting many potential competitors like

BEXIMCO Parma, INCEPTA, ACME, RENETA, and OPSONIN etc. It initially started as a

Partnership in 1958. It was incorporated as a Private Limited Company in 1964 and converted

into Public Limited Company in 1991. Its initial public offering started in Dhaka and Chittagong

stock exchange simultaneously in 1995. Their mission is to produce and provide quality &

innovative healthcare relief for people, maintain stringently ethical standard in business

operation also ensuring benefit to the shareholders, stakeholders and the society at large.

Vision:

They view business as a means to the material and social wellbeing of the investors, employees

and the society at large, leading to accretion of wealth through financial and moral gains as a part

of the process of the human civilization.

Mission:

Their Mission is to produce and provide quality & innovative healthcare relief for people,

maintain stringently ethical standard in business operation also ensuring benefit to the

shareholders, stakeholders and the society at large

Objective:

Their objectives are to conduct transparent business operation based on market mechanism

within the legal & social framework with aims to attain the mission reflected by our vision.

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3.1. Corporate Information:

3.1.1. Corporate Governance

Square Pharmaceutical Limited’s vision, mission and objectives are to emphasize on the quality of

product, process and services leading to growth of the company imbibed with good governance.

3.1.1.1 Top Management: Board of Directors

As per provisions of the Article of Association, Board of Directors holds periodic meetings to

resolve issue of policies and strategies, recording minutes/decisions for implementation by the

Executive Management.

3.1.1.2 Executive Management

The Executive Management is headed by the Managing Director, the Chief Executive Officer

(CEO) who has been delegated necessary and adequate authority by the Board of Directors. The

Executive Management operates through further delegations of authority at every echelon of the

line management. The Executive Management is responsible for preparation of segment

plans/sub-segment plans for every profit centers with budgetary targets for every item of goods

& services and is held accountable for deficiencies with appreciation for exceptional

performance. These operations are carried out by the Executive Management through series of

committees, sub-committees, ad-hock committees, standing committees assisting the line

management.

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3.2 Human Resource: Practices & Climates:

SQUARE, with its progressive business outlook, believes and practices corporate work culture

with a classic blend of efficiency and equity. SQUARE believes in company growth by

increasing efficiency level of employees and for that offering excellent environment and support

for skill and knowledge up gradation. Square values productivity as the spontaneous contribution

of Human Resources. Strategic Human Resource Development Programs are the energy sources

for SQUARE HR for running towards the zenith of success. Flow of clear and specific

information and justification of queries play the vital role to ensure the market reputation of

SQUARE as the most trusted and transparent company and it enriches the motivation level of

HR who are the real contributors and owners of his / her own jobs. At SQUARE, HRD

symbolizes the unique blending of professionalism as well as sharing the stress and success

equally like a family where every member has deep concern, feelings and pride for their own

company SQUARE. HR ensures the strong supporting role to develop & implement HR policy

guidelines for ensuring uninterrupted operation and spontaneous participation to achieve

organizational objective as well as fulfillment of employee needs. HR is maintaining an effective

way to deal with labor union and still no unrest has been recorded as dispute. Personnel working

here are taking care of SQUARE as if it is their own family. Employee-employer relation is

cordial and supporting always.

3.3 From the external environment:

3.3.1 Technology:

Square Pharmaceuticals uses both automatic and manual technology. Also uses some specialized

software for some other purpose. The company is endeavoring to upgrade and

adopt new technology in production, quality control, distribution and administration of its,

products to patients.

3.3.2 Completion:

Bangladesh’s pharmaceutical industry is the third largest tax paying industry in the country.

Square Pharmaceuticals Limited (SPL) is the largest pharmaceuticals company in Bangladesh.

Incepta, Beximco, Oposonin, Reneta, ACI and ACME were the main competitor of Square

Pharma. The IMS audit found Square Parma maintaining its leadership position in the domestic

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market with its share at 18.71 per cent, followed by Incept, at 9.34 per cent. Beximco Pharma's

position in the retail market was the third one, accounting for 8.82 per cent share of the overall

market. Opposing Parma was placed as the fourth drug producer in Bangladesh, with its market

share at 5.09 per cent, and sales growth by 27.18 per cent. The IMS data said Renata and Eskayef

were in the fifth and sixth positions in the market.

3.3.4 Labor standard:

SPL recognizes that progressive labor policies are good business practices, especially for a

company that has global ambition. The Company follows laws and encourages a work

environment that welcomes diversity and fair treatment in the recruiting process and the

workplace. Group’s HR policy strictly prohibits any form of forced labor in SPL or in any other

SBUs of Square. The Group actively pursues the policy of “No employment for Children in

Square” and at present, no child is employed in Square Pharmaceuticals Ltd or any other SBUs

of the Group.

3.3.5 Government regulations:

Square lay down and practiced policies to foster good industrial relations in all its plants and

establishments. SPL like the other Strategic Business Units (SBU) of the Group maintains and

upholds HR policies that are consistent with the Labor Laws of the country. Square

Pharmaceuticals Ltd leads the Group in encouraging workers’ freedom of association and their

right for collective bargaining

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4.0. MANPOWER DEMAND AND SUPPLY CALCULATION:

MANPOWER REQUIREMENT FOR THE YEAR 2012

2007 2008 2009 2010 2011

Executive 1143 1242 1525 1710 1845

Staff 796 913 1110 1339 1532

Workers 764 846 929 1050 1320

Total manpower 2703 3001 3564 4099 4697

4.1. MOVING AVERAGE METHOD:

2007 2008 2009 2010 2011 Forecast (2012)

Executive 1143 1242 1525 1710 1845 1493

Staff 796 913 1110 1339 1532 1138

Workers 764 846 929 1050 1320 981

Total manpower

2703 3001 3564 4099 4697 3612

Moving average forecasting =Total number of employee / Number of year

= 2703+3001+3564+4099+4697 / 5

= 18064/5

= 3612.8

= 3612

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4.2. WEIGHTED AVERAGE METHOD:

2007 2008 2009 2010 2011

Forecast (2012)Weight 1 2 3 4 5

Executive 1143 1242 1525 1710 1845 1617

Staff 796 913 1110 1339 1532 1264

Workers 764 846 929 1050 1320 1069

Total manpower

2703 3001 3564 4099 4697 3950

Executive Requirement = (1143*1) + (1243*2) + (1525*3) + (1710*4) + (1845*5)

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= 1143+2486+4575+6840+9225

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= 1617

Staff Requirement = (796*1) + (913*2) + (1110*3) + (1339*4) + (1532*5)

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= 796+1826+3330+5356+7660

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= 1264

Worker Requirement = (764*1) + (846*2) + (929*3) + (1050*4) + (1320*5)

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= 764+1692+2787+4200+6600

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= 1069.

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4.3. EXTERNAL MANPOWER SUPPLY:

External supply = Current workforce size* (Replacement % per year + Change % per year)

Current workforce size = 4697 (Year 2011)

We assume that

Replacement % per year = 6%

Change % per year = - 7%

External supply = 4697* (6% - 7%)

= 4697*0.13

= - 610

Now we know the total demand is (4697-3950 = 747) 714. So internal supply is,

Internal supply = HR demand – External supply

= (747) – (- 610)

= - 1357

4.4. EXPONENCIAL SMOOTHING METHOD:

Forecasted manpower requirement for the previous period (Ft-1) = 4099

Actual manpower requirement for the previous period (At-1) = 4697

Smoothing constant (α) = 0.4

We Know,

Forecasted manpower (Fm) = Ft + α (At-1 – Ft-1)

= 4099+ 0.4 (4697-4099)

= 4338.2

= 4338

So, Forecasted manpower for 2012 is 4338.

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4.5. LABOR TURNOVER IINDEX:

Beginning Manpower = 5000

Ending manpower in the same year = 4697

Number of recruitment = 0

Number of employees leaving

Labor turnover index = ------------------------------------------------------* 100

Average number of employees employed

5000-4697

= ---------------------------------------- * 100

(5000+4697)/ 2

= 6.25

COHORT ANALYSIS:

Beginning Manpower = 2000

Year Employee leave Remaining employee % of survival2007 30 1970/2000 98.52008 33 1937/2000 96.852009 35 1902/2000 95.12010 36 1866/2000 93.32011 38 1828/2000 91.4

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5.0 PLAN AND CONDUCT NEEDED PROGRAMS:

5.1. Career planning:

Square phama’s human resource planning process starts with a forecast of the people needed for the company and consists of goal setting and strategic planning and program implementation and evaluation.

5.2. HR Forecasting:

Square pharmaceutical company conduct its HR forecasting cindering some factors. Such as -

First each organization sub unit has to submit its net employee requirement to the head office

forecasting unit based on future needs for labor required to meet the agreed on corporate and sub

unit objectives ( market share, production, size or expansion).

Second For calculating every sub-unit HR demand it basically consider how many employees

retire, die, are fired or otherwise terminated or take long-term leave as well as the replacement

for individuals who are promoted, or transferred out of the department. All these elements they

included in the calculation of departmental or sub-unit HR demands. These sub-unit labor

demands are then aggregated and used as the starting point for the HR demand forecasting.

Sometime when they expand the product line in to their organization, than their employee

demand is more in to their organization that are considering in to their demand forecasting.

It has many non-managerial positions such as- senior marketing Promotion Officer, marketing

Promotion Officer, and Territory Manager. Senior Regional manager (SRM) collects information

from every Territory Manager, how many employees they have need in this year. Then SRM

calculate the aggregate demand of employee and send the information to the HR manager.

Its Production department is dividing in two units, one is Dhaka unit and another one is Pabna

unit. There are 5000 employees in total in two projects.. Both unit manager calculate their own

unit requirement and send the information to the HR manager. Pabna unit manager also do same

work.

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Third HR manager calculate the all aggregate demand of employee for this year. employee in

two way on the on time horizon basis. One is short-term forecasting and long-term forecasting.

But usually they forecast for short term. Short-term forecasting offer the best estimate of the

immediate HR need of an organization. Sometime they forecast for long term. But long-term

forecasting do not provide actual requirement in to organization. Though square pharmaceutical

use long-term forecasting for some long-term project or executive level forecasting. It thinks that

short-term forecasting is the best time horizon. When it start forecast for needed employees,

5.3. HR Forecasting for managerial employee:

For the managerial employee it collect information from each department than aggregate them.

After aggregating all information from all departments they get required manpower. In previous

calculation we saw that external supply is – 610.and internal supply is – 1357. As both supply is

in (-) figure so no need to requite new employee in managerial level. Company should downsize

employee. In the admin department they have 279 existing employee, and they need 461

employee during the year. In the marketing department they have 1614 existing employee and

they need 1871 employee during the year. In the operation department they have 1490 existing

employee and they need 1765 employee during the year. So total aggregate existing employee

3383, and they need 4097 employee during the year.

5.4. HR Forecasting for non managerial employee:

For non managerial employees, HR forecasting is basically done on the basis of expansion plan

of the company. About 1600 non-managerial employee are work in the two project. On the basis

of current human resource from the year 2006 to 2011 & calculating by using MOVING

AVERAGE METHOD the company needs to recruit more 981 & by using WEIGHTED

AVERAGE METHOD 1069 worker for non managerial level, as they have plan to expand their

business.

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5.5. Develop Training & Employee Development in Square pharma:

Square Pharmaceutical’s Training & Development enables its people to enhance their skills,

keep them updated with recent changes. Basically Square Pharmaceutical develop their training

program yearly basis & offer both on-the-job and off-the- job at both theoretical and practical

training opportunities through a range of Local, Regional and International Training programs

that include both functional and managerial levels on the basis of Training Need Assessment.

Training Need Analysis (TNA) is conducted by Department Heads and Human Resource

Department jointly on the basis of job analysis.

Every year 1200 approximately Field Forces-Medical Promotion Officer (MPO). MPO officer

get 3 month off the job training, and then they recruit them. Senior Medical Promotion Officers

(SMPO) are also get training. But they get on the job as well as of the job training, every month

or every few month. Also 500 management staffs and 700 non-management staffs getting

training per year.

5.6. Management Development Training

Round the year, management development training is organized for managers & executives at

our Corporate Headquarters, Dhaka Unit & Pabna Unit. Our own and renowned resource persons

from home & abroad conduct the training sessions. We also send our employees to renowned

local training institutes for specialized training.

5.7. Overseas Training

It sends its employee to abroad for training program depending on availability of appropriate

topics.

5.8.Field Forces Training & Development

Each year, a significant number of Field Forces complete their induction training program and

joined to their respective markets and appear at examination in every month for further

development.

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5.9. Field Forces Refresher Course

For updating product knowledge and selling skills of field forces, Refresher Course is organized

in four different regions in every month.

5.10. Territory Manager Training

Twice in every year, mid-level managers of sales participate in the training program titled “Sales

Territory Management” at a regular basis.

5.11.Distribution:

Every year a number of Distribution Assistants (DA), Data Entry Operators (DEO) go under

induction training program immediately after initial recruitment.

Each month, Refresher course for DA, Driver and Packers is organized in two different depots

for updating their knowledge.

So we can say that Square is very much focused on their training.

5.12. Promotion:

Promotion is very hard to get in Square. The employees are given promotions on the basis of

their performance & experience at the end of the year.

Employee need to show their better performance consistently at least 3 years that is evaluated

by HR department. By getting promotion their salary range will be high but designation will not

change very fast.

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6.0. COMPARISION BETWEEN PRESENT AND NEW MANPOWER

PLANNING PROGRAM:

Square pharmacy has now 4697 total workforce which is really large in a rather than past manpower. If square pharma wants to establish new manpower planning programs they need to change some method.

In present time they provide training not only training they provide motivation to the employee.

Basically Square Pharmaceutical developing their training program yearly basis. Every year

1200 approximately Field Forces-Medical Promotion Officer (MPO). MPO officer get 3 month

off the job training, and then they recruit them. Senior Medical Promotion Officers (SMPO) are

also get training. But they get on the job as well as of the job training, every month or every few

month. Also 500 management staffs and 700 non-management staffs getting training per year.

For getting training basically non-management staffs are come into focus. They are called

“BEAUTY OF SQUARE”. Every staff’s like- drivers, security grads all are getting on the job

and off the job training. In addition, employees are also getting overseas training when

machinery’s are imported into abroad. So we can say that Square is very much focused on their

training.

So in future when they training they can provide training programmed over internet to the all

employee. They keep record of all employees through database.

Promotion is very hard to get in Square. They are basically provided by experience and by better

performance. Employee need to show their better performance consistently at least 3 years. By

getting promotion their salary range will be high but designation will not change very fast.

Employees need at least 3 years experience to get promote from Executive to Senior Executive

and to get promote Manager Position need 7-8 years experience.

In present they promote employee who have at least 3 year’s experience. But in future to

increase productivity they promote employee to the executive position who have at least 6years

experience. And to get managerial position they need to have at least 10 years experience.

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Square pharmaceutical company forecasting their employee in two ways on the basis on time horizon.

One is short-term forecasting and long-term forecasting. Generally most of the time they forecast for

short term. Sometime they forecast for long term. Because they think that short-term forecasting is the

best time horizon. As a result, short-term forecasting is best assumption about the future. But long-term

forecasting do not provide actual requirement in to organization. Though square pharmaceutical use long-

term forecasting for some long-term project or executive level forecasting. Short-term forecasting offer

the best estimate of the immediate HR need of an organization. When they forecast employee need, First

each organization sub unit has to submit its net employee requirement to the corporate forecasting unit

based on future needs for labor required to meet the agreed on corporate and sub unit objects. When we

calculate every sub-unit, we consider how many employees retire, die, are fired or otherwise terminated

or take long-term leave as well as the replacement for individuals who are promoted, or transferred out of

the department. All these elements they included in the calculation of departmental or sub-unit HR

demands. These sub-unit labor demands are then aggregated and used as the starting point for the HR

demand forecasting. Sometime when they expand the product line in to their organization, than their

employee demand is more in to their organization that are considering in to their demand forecasting.

In future situation Square pharma each sub unit provide HR requirement to the head office. So they can

decide how much HR requires for their organization.

SPL recognizes that progressive labor policies are good business practices, especially for a

company that has global ambition. The Company follows laws and encourages a work

environment that welcomes diversity and fair treatment in the recruiting process and the

workplace. Group’s HR policy strictly prohibits any form of forced labor in SPL or in any other

SBUs of Square. The Group actively pursues the policy of “No employment for Children in

Square” and at present, no child is employed in Square Pharmaceuticals Ltd or any other SBUs

of the Group.

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7.0 SUGGESSIONS TO DEVELOP MANPOWER PLANNING :

As we can see that total current manpower of the SPL is 4697. After conduction the moving

average forecasting we found the total manpower required for 2012 is 3613. After conducting

weighted average method we found that manpower requirement for 2012 is less than their

current level of manpower.

Currently SPL should not go for a downsizing because their employees are very much qualified

and trained. It’s recommended that organization should retain their quality employees that’s

why organization can open a new department and replace their existing employees.

Currently SPL don’t have to recruit manpower. But if needed in the future they should emphasis

on internal recruitment because it’s profitable for them.

It does not follow any formal labor demand forecasting and still did not take any initiative to

determine the labor supply properly. So it still cannot measure whether there are more or less

employees than what it actually needs. For effective human resource planning SPL's HR

department can introduce some methods for labor demand forecasting and determining the labor

supply. They can develop an application form for all the candidates who want to apply. During

the selection procedure they should go for background checking of candidates and give some job

oriented problems to examine their reasoning ability. Job analysis should be done after a specific

time period which will help to explore new skills, abilities and knowledge required for the jobs.

The HR department can arrange web based training programs to make the training program cost

effective. Besides they should also introduce job enlargement, enrichment, rotation, team work to

develop the skills and abilities of the employees. The management must appreciate the

performance of the employees. Recognition, praise, and adding responsibilities all work as

motivators for the employees. They can give salary increments to the employees based on their

improved performance. There should be 360- degree feedback system by interview. For this

process different people who are related with the employees such as suppliers, customers, peers,

etc. evaluate their performance and the performance feedback should be provided to the

employees on a regular basis. All the aspects of human resources should be maintained in the

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employee database to reduce the manual file work and data redundancy in order to make the

employee information system cost effective.

SPL should conduct a formalized moving average method or weighted average method to

identify the accurate forecasting for the organization.

Employees are the most important assets for any organization. So the organization must ensure

that the right person is hired for the right position at the right time and he is trained and

developed properly to accomplish his job activities effectively.

While providing the job description to the new employee the supply chain department itself

changes the job description to fit it with the employee. They do not contact the HR department to

make them know about these changes. Thus the HR department cannot know properly what a

new employee is actually doing in the company and what his responsibilities are. SPL should

also work on this issue.

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8.0 CONCLUTION:

Square Pharmaceuticals Ltd. now-a-days is holding the top position in pharmaceuticals industry

in Bangladesh, with market share of 18.71 percent. It strictly follows the labor law to recruit

employees and maintain them. The most widely used recruitment source for this company is

external sources. It provides training for all employees working in different levels of the

organization. This training includes both skill development training and safety training.

Promotion process is very tough in Square. But after a certain accomplishment it provides

incentive facilities for employees.

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REFERENCE

1. www.polarisproject.org/

2. www.sljm.pim.lk/.../human_resource_management_practices-a_case_

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