British American Tobacco [human Resource Practice]

Faculty of Business Studies Premier University, Chittagong Bangladesh

MB A P RO G RAM “ H UMAN RES O URCE MANAG EMEN T” Top i c H u m a n R e s o u rc e M a n a g e m e n t p r a c t i c e s i n a l o c a l o r g a n i z a t i o n o f Bangladesh

Course Coordinator: Mr. A.F.M Aowrangajab Professor, University of Chittagong, Chittagong.

Date of Submission:

Submitted by: Biswajit Kumar Ghosh Student No: 0817230820 Semester: 2nd

The 5th May, 2009

Introduction British American Tobacco Bangladesh is one of the oldest and largest multinational companies operating in Bangladesh. The UK-based British American Tobacco Group holds 65.91% share in the company. The Government of Bangladesh owns 28.7% through several of its agencies, while 5.39% is owned by other shareholders. British American Tobacco Bangladesh began its operations in the sub-continent in the year 1910 as Imperial Tobacco Company Ltd. Post 1947After independence, in 1972, Bangladesh Tobacco Company (BTC) was formed with British American Tobacco holding majority of the shares. In March 1998, Bangladesh Tobacco Company changed its corporate name into British American Tobacco Bangladesh proclaiming its common identity with other operating companies in the British American Tobacco Group. At British American Tobacco Bangladesh, the key factor to their sustainable growth is human resource. Therefore, they have always been committed to good employment practices and have set out the framework of our Employment Principles on workplace practices, employee relations and employee human rights. The report includes the theoretical framework of various concepts of Human Resource Management and also contains the practices of Human Resource management in British American Tobacco Bangladesh for the purpose of relating the theoretical concepts with the relevant areas of an established organization.

Objectives of the study To enhance the knowledge about the Human resource activities practiced in an organization and to relate them with the concepts of the texts of the course ‘Human Resource Management’.

Methodology of the study Both primary and secondary data have been collected for the purpose of the study. •

Primary Data:

The primary data are collected by following ways:

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1. The primary data was collected by face to face interview by using a detailed questionnaire. 2. Other informal ways. •

Secondary Data:

The secondary data are collected by following ways: 1. Web Sites 2. Group Instruction Manual & Business Instruction Manual

Scope of the study By this case study we compare the knowledge with the sample company’s human resource practices. .

Limitations of the study •

Due to inexperience and lack of proper planning & feedback in time it was really difficult to understand what to do, how to do & when to do.

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Cost and time constraints did not allow for a more extensive data collection.

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Omission of some important information due to response biases and time constraints.

Brief description of British American Tobacco British American Tobacco Bangladesh is one of the oldest and largest multinational companies operating in Bangladesh. The UK-based British American Tobacco Group holds 65.91% share in the company. The Government of Bangladesh owns 28.7% through several of its agencies, while 5.39% is owned by other shareholders. British American Tobacco Bangladesh began its operations in the sub-continent in the year 1910 as Imperial Tobacco Company Ltd. Post 1947After independence, in 1972, Bangladesh Tobacco Company (BTC) was formed with British American Tobacco holding majority of the shares. In March 1998, Bangladesh Tobacco Company changed its corporate name into British American Tobacco Bangladesh proclaiming its common identity with other operating companies in the British American Tobacco Group. At British American Tobacco Bangladesh, the key factor to their sustainable growth is human resource. Therefore, they have always been committed to good employment practices and have 3

set out the framework of our Employment Principles on workplace practices, employee relations and employee human rights.

Employment Planning, Recruitment & Selection Policy Practiced By British American Tobacco Bangladesh

Employment Planning Every organization has employment planning. BAT 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 can not give the accurate situation of the personnel needs. These are basically graphical methods, which can not measure the actual personnel needs. But managerial judgment method depends upon the change in productivity, market conditions etc.

Recruitment Policy British American Tobacco Bangladesh has been in e-resourcing since 2002. They focus on ebased advertisement for more visibility and transparency beside the conventional print media. All recruitment related notices are posted on the www.bdjobs.com website. Candidates are required to fill up the blank resume format provided in the website. A well-structured and systematic selection procedure is followed to get the most suitable candidate. Following the selection procedure, pre-employment medical examination and reference checks are done. They entertain application from recognised universities from home and abroad. Applicant must be a citizen of Bangladesh. They encourage students with good academic track record to apply. They are not prejudiced against race, sex, religion, age etc. Positions will be offered to the candidate on the basis of his/her ability and the requirement of the company.

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Selection Process •

If the application is successful, They will be invited to a preliminary interview which will be taken by a member from the function to which they have applied and a member of the Human Resource team.

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As a final candidate, they will be invited to a specifically designed British American Tobacco assessment centre. This will provide them opportunity to demonstrate their skills and suitability through their performance in a number of participative and individual exercises. They will also have the opportunity to meet managers and to gain first hand experience of what it is like to work for British American Tobacco Bangladesh. Regardless of the outcome, participants find it a unique opportunity to demonstrate their strengths.

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If they get through the Assessment Centre, they will be recommended to the respective Heads of Functions for a final Interview.

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They are committed to keep them informed of their progress through every step of the selection process.

Employee Socialization, Training &Development, Performance appraisal Socialization Socialization is a process of adaption. Organization entry socialization refers to the adaption that takes place when an individual passes from outside the organization to the role of an inside member. Socialization can be conceptualized as a process made up of three stages: 1. Pre-arrival stage: This stage explicitly recognizes that each individual arrives with a set of organizational values, attitude, and expectations. 2. Encounter stage: Here the individuals confront the possible the dichotomy between their expectations and reality.

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3. Metamorphosis stage: Finally, the new member must work out any problems discovered during the encounter stage. The organization gets higher productivity, greater employee commitment, and lower turnover rates through socialization. Employees achieved reduced anxiety, increased awareness of what is expected on the job, and an increased feeling of being accepted by their peers and bosses. When socialization works, employees receive the confidence and satisfaction what comes from feeling that they are members in good standing in the organization.

Training and Development Training: A learning experience in that it seeks a relatively permanent change in an individual that will improve his or her ability to perform on the job. To make training a success, a trainer should take care of the following points: 

Make learning meaningful.

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Make skills transfer easy and

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Motivate the learner

Employee Training Method On-the-job Training: It means having a person learn a job by actually doing it. Advantages: 

Relatively inexpensive

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Trainees learn while producing

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No need off-site facilities

Drawbacks: 

Low productivity while the employees develop their skills

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The errors made by the trainees while they learn.

Apprenticeship Training: It traditionally involves having the learner study under the tutelage of a master craftsperson.

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Informal Learning: This learning process is not determined or designed by the organization. But the organization may ensure it by creating a learning environment in the organization. Job Instruction Training: Listing each jobs basic task, along with key points, in order to provide step-by-step training for employees. Lectures: The most simple and quick way to provide knowledge to large groups of trainees. Simulated Training: It places the trainee in an artificial environment that closely mirrors actual working conditions. Development- Any attempt to improve current or future management performance by imparting knowledge, changing attitudes, or increasing skills. Any effort toward developing employees must begin by looking at the organizations objectives. The objectives tell us where were going and provide a framework from which our managerial needs can be determined.

Employee Development Method Managerial On-the-Job Training: The development of employee’s abilities can take place on the job. It includes: •

Job Rotation: It involves moving a trainee from department to department to broaden their understanding of all parts of the business and test their abilities.

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Coaching Approach: The trainee works directly with a senior manager or with the person they are to replace.

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Action learning: Here the management trainees are allowed to work full-time analyzing and solving problems in other departments.

Off-the-job Training: It includes: •

The Case Study Method: Here the manager is presented with a written description of an organizational problem to solve in a discussion with other trainees.

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Management Game: The manager presented with a computerized decisions regarding but simulated situations. 7

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Outside Seminars: Many organizations now are using this popular method on various aspects of business and management.

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Behavior Modeling: It involves the Modeling-Role playing-Social reinforcementTransfer of training.

Performance Appraisal Evaluating an employee’s current and/or past performance relative to their performance standards. Importance: 

It does little good to translate the employer’s strategic goals into specific employees’ goals

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It develop a plan for correcting any deficiencies he appraisal might have unearthed

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It should serve a useful career planning exhibit strengths and weaknesses.

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It almost always effects the employer’s salary raise and promotional decisions.

Methods of Appraising Performance Graphic Rating Scale Method: A scale that lists a number of traits and a range of performance for each. The employee is then rated by identifying the score that best describes his or her level of performance for each trait. Alternation Ranking Method: Ranking employees from best to worst on a particular trait, choosing highest, then lowest, until all are ranked. Paired Comparison Method: Compare each employee with each other employee. It is a matter of combination. Forced Distribution Method: Similar to grading on a curve, predetermined percentages of rates are placed in various categories. Critical Incident Method: Keeping a record of uncommonly good or undesirable examples of an employee’s work-related behavior and reviewing it with the employees as predetermined times. Narrative Forms: It is an essay type method. 8

BAT’S Socialization Process In BAT the Human Resource Manager make decisions about how they want to socialize their new employees. Employees begin with a relatively formal socialization to learn the pivotal standards of BAT. Then they begin the formal socialization process on the job, where they learn the norms of their work group.

Training System of BAT Types of Training: •

Technical Training

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Management Training

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Safety Training

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Occupational Health

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General Training (Management, Accounts, Sale etc.)

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Social Skill Training

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Refresher Training

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Workers Education Training

On-the-job Training Process •

Identifying the training needs: What kind of training is needed for how many people to what standard of performance the objectives of the training must be determined.

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Analyzing the attitudes, skills & knowledge(ASK)of the job: Designing what has to be learned.

Planning the training program & implementing it 9

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The stages of the training

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Recording the results

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Providing the stuff and equipment

Evaluating the results •

Deciding whether the training objectives have been met

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Considering how they could have been met more effectively

Training Aids The following training aids are generally used in training programs in BAT •

Multi media

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Overhead projector

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Flip chart

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White board etc.

BAT’S Performance Appraisal Their remuneration policies are designed to be highly competitive and to ensure differentiation amongst individuals and teams on the basis of performance. Their employees are rewarded based on the challenge of their roles in their business, the career opportunities and positive team relationships.

Employee Compensation Employee compensation refers to all forms of pay or rewards going to employees and arising from their employment. It has two min components: 1. Direct financial payments: Wages, salaries, incentives, commissions, and bonuses. There are two ways to pay directly:

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Time based pay: Daily, hourly, weekly, biweekly or monthly wages and salaries

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Performance based pay: Ties compensation directly to the amount of product the worker generates.

2. Direct payments: Financial benefits like employer-paid insurance and vacations.

Factors influencing the design of compensation plan •

Legal considerations in compensation

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Union influences on compensation decisions

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Corporate policies and competitive strategy

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Policy issues affecting the plan of an organization

Establishing Pay Rates Step-1 The Salary Survey: A survey aimed at determining prevailing wage rates. A good salary survey provides specific wage rates for specific jobs. Formal written questionnaire surveys are the most comprehensive, but telephone surveys and newspaper ads are also sources of information. Step-2 Job Evaluation: A systematic comparison done in order to determine the worth of one job relative to another. Job Evaluation method includes: 1. Ranking: Involves ranking each job relative to all other jobs, usually based on overall difficulty. There are several steps in this method: •

Obtain job information for each job

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Rank jobs by department or in clusters

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Select just one compensable factor

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Rank jobs

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Combine ratings

2. Job Classification: Categorize jobs into groups 3. Point Method: A number of compensable factors are identified and then the degree to which each of these factors is present on the job is determined. 4. Factor comparison: Ranking jobs according to a variety of skill and difficulty factors, and then adding up these rankings to arrive at an overall numerical rating for each given job. Step-3 Group Similar Jobs into Pay Grades: A pay grade is comprised of jobs of approximately equal difficulty. Step-4 Price each Pay Grade-Wage Curves: This curve shows the relationship between the value of the job and the average wage paid for this job. Step-5 Fine-Tune Pay Rates: A series of steps or levels within as pay grade usually based upon years of service.

Benefits Indirect financial and non financial payments employees receive for continuing their employment with the company. There are several types of benefits: 

Supplemental Pay Benefits

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Insurance Benefits

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Vacations and Holidays

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Sick Leave

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Parental Leave and Family Leave

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Medical Leave

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Retirement Benefits

Conclusion British American Tobacco is one of the reputed multinational companies in Bangladesh. They have continued their business with good reputation. As a leading company in cement industry they always try to maintain the highest quality of their products. Their human resource department is strong & treats their employees as an asset. BAT has already earned reputation as a very potential Multinational Company of the country. This has been possible due to skilled manpower, which has been developed by taking proper recruitment and selection strategies and giving sufficient training and development opportunities and also retaining their employee through providing adequate compensation and benefit .We write in no uncertain term that BAT is functioning very well and we hope that it will continue its operations and will become the trendsetter of the Human Resource Management practices of Bangladesh.

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