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Recruitment and selection: a study on beximco pharmaceuticals

Recruitment and Selection: A Study on BEXIMCO Pharmaceuticals A Research Paper Submitted to: Abdul Kader Nazmul Assistant Professor & Head, Dept. of Management, As a partial fulfillment of the requirement for the HRM course Prepared by: Nahrin Musharraf Sumayea Mahmuda Rezwana Haque Muhammad Shaikh Shahrukh Fall’2009 Dhaka [pic] AMERICAN INTERNATIONAL UNIVERSITY-BANGLADESH Acknowledgement At the very beginning we would like to express our deepest gratitude to almighty ALLAH for giving us the strength and the composure to finish this dissertation task within the scheduled time.

We would also like to express gratitude and thankful to our group members. All members are work in a team and cooperate to each other. We are very grateful to Senior Officer Miss Sadia and other fifteen employees from HR dept. of BEXIMCO Pharmaceutical Limited from whom we collected the information. We would like to take opportunity to express our sincere feelings and gratitude to our course instructor, Abdul Kader Nazmul, Assistant Professor & Head, Dept. f Management, Coordinator, Office of Sports, American International University-Bangladesh, whose expert supervision, continuous guidance and instructions have contributed greatly in the preparation of this report. December, 14th, 2009 To, Abdul Kader Nazmul, Assistant Professor & Head, Dept. of Management, American International University-Bangladesh Subject: Letter of transmittal. Dear Sir, It is a great pleasure for us that we have the opportunity to submit the report on the “ Recruitment and Selection: a study on BEXIMCO Pharmaceuticals. We have tried our level best to put in meticulous effort for the preparation of this report. Any shortcomings may arise. We will wholeheartedly welcome any clarification and suggestion about any view and conception disseminated through this report. Sincerely yours, Nahrin Musharraf (09-93063-2) Sumayea Mahmuda (09-93372-3) Rezwana Haque (09-93396-3) Muhammad Shaikh Shahrukh (09-93282-3) Executive Summary Pharmaceutical sector is regarded as one of the most promising sector of Bangladesh.

Around 410 pharmaceutical companies are operating under this industry. Now a day, BEXIMCO pharma is leading the share market of Dhaka stock exchange. Success of such an organization depends on the performance of its employees. Recruitment is seeking source for vacant positions. An effective recruiting process requires a significant pool of candidates-and the more diversity within that group the better. Where Selection begins with initial screening and ends with employment decision. Recruitment and Selection are the most important tools of putting right person in right position.

We choose this topic to find out the recruitment and selection process of BEXIMCO pharmaceuticals. They use internal search, employee referrals/recommendation, external search, recruitment alternatives for recruiting sources; they open up recruiting efforts to the external community through external search like Advertisement, employment agencies, unsolicited applicants, they basically prefer to use news paper and website advertisement sources; , they faces Job attractiveness and recruitment cost- this two type of constraints on recruiting efforts.

BEXIMCO Pharmaceuticals, they follows standard pattern of selection activities through beginning with an initial screening interview and concluding with final employment decision; when they will have a pool of potential applicants, they can element some of these respondents based on screening inquiring and screening interview procedure; they prefer three types of interview to use for effective interview like the panel interview, a situational interview, the stress interview; the organization place job offers to the selected individual via over phone and by e-mail.

The BEXIMCO Pharmaceuticals must establish a policy for recruitment and selection process and trained their personnel for effective recruitment and selection. The focus of this paper is to find out information related to recruitment and selection process of BEXIMCO pharmaceuticals and suggest some measures to improve which are expected to bring a revolutionary infrastructural change in and improve the present recruitment and selection of BEXIMCO Pharmaceuticals ltd. Table of content Contents/Particular | Page No. | | Chapter-01: Introduction | | | 1. 1 Profile and Background of the Organization | 06 | | 1. 2 Introduction to Recruitment and Selection | 07 | | 1. Background of the study | 08 | | 1. 4 Scope of the study | 08 | | 1. 5 Objective of the study | 08 | | 1. 5. 1 Broad objective | | | 1. 5. Specific objective | | | 1. 6 Methodology of the study | 08 | | 1. 6. 1 Primary | | | 1. 6. 2 Secondary | | | 1. 7 Limitations of the study | 08 | Chapter-02: Topic Analysis and Discussion | | | 2. 1 Analysis and Discussion of the data of Recruitment and Selection Process on BEXIMCO Pharmaceuticals| 09-16 | | Chapter-03: Findings | | | 3. 1 Findings of the Recruitment and Selection Process on BEXIMCO Pharmaceuticals | 17-19 | | Chapter-03: Recommendations 20-22 | | Bibliography | | Appendix | Chapter-01: INTRODUCTION 1. 1 Profile and Background of the Organization BEXIMCO Pharmaceuticals Ltd. (BPL) 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.

The company is also the largest exporter of pharmaceutical products from Bangladesh and received National Export Trophy (Gold), the highest national accolade for export, for record three times. BEXIMCO Pharmaceuticals Ltd. is a member of the BEXIMCO Group – the largest private sector business conglomerate of Bangladesh. It was incorporated in Bangladesh as a Public Limited Company on 29 September 1972 and commenced commercial operation in 1972. It has a turnover of Tk 16. 5 billion and employs 22, 000 people. BEXIMCO has 152, 000 shareholders and contributes to 8% of the market capitalization of Dhaka Stock Exchange.

BEXIMCO industries include Textiles, Basic Chemicals and Pharmaceuticals, Jute, Marine Foods, Real Estate and Development. BEXIMCO services include Engineering, Media, Information Technology, Trade and Financial Services. Philosophy of BEXIMCO “ We firmly believe that in the final analysis we are accountable to each of the constituents with whom we interact; namely, our customers, our employees, our suppliers, our shareholders, and fellow citizens. ” Vision of BEXIMCO The vision of BEXIMCO reflects in the Chairman following statement (Groups Annual Report 2000). If there is one characteristic that has typified the BEXIMCO approach it is Vision to be the best of our nature and human resources. A vision to establish our group and country as a respected and valued regional presence” Mission of BEXIMCO “ 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 employee, our customer, our business associates, our fellow citizens and our shareholders. ” 1. 2 Introduction to Recruitment and Selection:

Recruiting is seeking sources for job candidates. An effective recruiting process requires a significant pool of candidates-and the more diversity within that group the better. The two goals of recruiting are to generate a large pool of applicants and to provide enough information for individuals to self-select out of the process. The principal sources for recruiting employees’ include internal search, advertisement, employee’s referrals/recommendation, employee agonies, school, college, university, professional organization, the internet and casual or unsolicited applicants.

Employee leasing, temporary employees and independent contractors continue to be good sources of employees. When an organizations wish to tell the public it has a vacancy, advertisement is one of the most popular methods used like newspaper, website, blind box advertisement. Selection activities follow a standard pattern, beginning with an initial screening interview and concluding with the final employment decision. When recruiting effort has been successful, an organization will have a pool of potential applicants, they can element some of these respondents based on the job description and job specification.

This initial screening based on procedure like screening inquiring and screening interview. HR department interested in developing a weighted application form (A special type of application form that uses relevant applicant information to determine the likelihood of job success) that would predict which applicants would be stay with the company. Organization relied to a considerable extent on intelligence, aptitude, ability and interest test to provide major input to the selection process like handwriting test and honesty test (a specialized question and answer test designed to assess one’s honesty).

A comprehensive interview is selection devices used to obtain in-depth information about a candidate- the traditional interview (One interviewer and one applicant), the panel interview (Several interviewer and one applicant), a situational interview (A predetermined pattern that identifies both question and expected responses), the stress interview (Create a difficult environment and assess applicants confidence level). Individual who perform successfully in the preceding steps are now considered eligible to receive the employment offer through over phone, by e-mail. 1. 3 Background of the study:

The success of an organization to a very large scale depends on its employee’s performance effectiveness and efficiency. Recruiting and selection are two important processes of identifying and employing the right person in right position. We choose this topic to find out the recruitment and selection process of BEXIMCO pharmaceuticals, which is a leading company in pharmaceutical sector in Bangladesh and also have the highest market share in the stock exchange. 1. 4 Scope of the study: As we are making this report for course requirement of HRM, we focus on HR department of BEXIMCO pharmaceuticals to enhance our study. . 5 Objective of the study: 1. 5. 1 Broad objective: To analyze recruitment and selection process and suggest some measures to improve the program of BEXIMCO pharmaceuticals. 1. 5. 2 Specific objective: • To find out the procedure of recruitment and selection program they conduct.

• To give some Suggestions made for building an effective recruitment and selection program. 1. 6 Methodology of the study: 1. 6. 1 Primary: For primary data we directly go to the HR department to collect information through questionnaire on recruitment and selection process of BEXIMCO pharmaceuticals. 1. 6. Secondary: For secondary data we can use web site of the company, reports, and book. 1. 7 Limitations of the study::

• Limited time schedule

• Getting appointment from the company

• Lack of time of the respondents Chapter-02: Topic Analysis and Discussion 2. 1 Analysis and Discussion of the data of Recruitment and Selection Process on BEXIMCO Pharmaceuticals:

• In the BEXIMCO Pharmaceuticals, they use several recruiting sources for discovering potential applicants for actual or anticipated vacancies. Recruiting is more likely to achieve its objectives if recruiting sources reflect the type of position to be filled. Internal search- 27% ? Employee referrals/Recommendation- 20% ? External search- 47% ? Recruitment alternatives- 6% [pic] Chart-1: Percentage of use of Recruitment Sources

• In the BEXIMCO Pharmaceuticals, they attempt to develop their own-low level employees for higher position through internal search. ? Weekly or monthly organization news letter- 20% ? Preparing positioning sheet from Human Resource outline those positions currently available- 80% [pic] Chart-2: Percentage of Internal Search

• In the BEXIMCO Pharmaceuticals, they open up recruiting efforts to the external community through external search like ?

Advertisement- 60% ? employment agencies- 33. 33% ? unsolicited applicants- 6. 66% [pic] Chart-3: Percentage of External Search • When the organization wishes to tell the public it has a vacancy, they basically prefer to use ? News paper- 40% ? Website – 60% [pic] Chart-4: Percentage of Advertisement Sources

• This organization prefers to use employment agencies as recruitment source like ? Private employment agencies- 80% ? Management consulting firm- 20% [pic] Chart-5: Percentage of Employment Agencies In the BEXIMCO Pharmaceuticals, they use alternative source your organization use for their temporary recruitment are ? Employee leasing- 26. 66% ? Independent contractors-73. 33% [pic] Chart-6: Percentage of Alternative Source for Temporary Recruitment

• In the BEXIMCO Pharmaceuticals, they faces Job attractiveness and recruitment cost- this two type of constraints on recruiting efforts limit human resources recruiters freedom to recruiter and select a candidate of their choice. ? Job attractiveness- 73. 33% ? Recruitment cost- 26. 67% [pic] Chart-7: Percentage of constraints on recruiting effort

• When their recruiting effort has been successful, they will have a pool of potential applicants, they can element some of these respondents based on the job description and job specification. This initial screening based on ? Screening inquiring- 73. 33% ? Screening interview procedure- 26. 67% [pic] Chart-7: Percentage of use of Initial screening • This Pharmaceuticals Company relied to a considerable extent on intelligence, aptitude, ability and interest test to provide major input to the selection process through ?

Handwriting test- 65% ? Honesty test- 35% [pic] Chart-8: Percentage of Scoring of written test

• A comprehensive interview is selection devices used to obtain in-depth information about a candidate; they prefer three types of interview to use for effective interview like ? The panel interview (Several interviewer and one applicant)- 25% ? A situational interview (A predetermined pattern that identifies both question and expected responses)- 35% ? The stress interview (Create a difficult environment and assess applicants confidence level)- 40% [pic]

Chart-9: Percentage of Scoring on Interview

• This organization verifying information of job candidates which provides on the application form through ? Contacting other job related and personal reference- 53. 3% ? Contacting former employer- 46. 66% [pic] Chart-10: Percentage of Use of Reference checking

• Individual who perform successfully in the preceding steps is now considered eligible to receive the employment offer; then the organization place job offers to the selected individual via ? Over phone- 86. 6% ? By e-mail- 13. 33% [pic] Chart-11: Percentage of Use of Media for Offering Job Chapter-03: Findings 3. 1 Findings of the Recruitment and Selection Process on BEXIMCO Pharmaceuticals From the perspective of the facts discussed in analysis and interpretation of data, there have specific significant findings of the recruiting and selection process on BEXIMCO Pharmaceuticals. • In the BEXIMCO Pharmaceuticals, they use several recruiting sources for discovering potential applicants for actual or anticipated vacancies.

They use internal search, employee referrals/recommendation, external search, recruitment alternatives. • In the BEXIMCO Pharmaceuticals, they attempt through weekly or monthly organization news letter and preparing positioning sheet from Human Resource outline those positions currently available to develop their own-low level employees for higher position through internal search. • In the BEXIMCO Pharmaceuticals, they open up recruiting efforts to the external community through external search like Advertisement, employment agencies, unsolicited applicants. When the organization wishes to tell the public it has a vacancy, they basically prefer to use news paper and website advertisement sources.

• This organization prefers to use employment agencies as recruitment source like private employment agencies and management consulting firm.

• If any individual drop his/her CV who has adequate skills who would be prime candidates for a position of this organization. But the position is not currently available, and then this organization can be kept the CV for future consideration. In the BEXIMCO Pharmaceuticals, they use alternative source your organization use for their temporary recruitment are employee leasing and independent contractors.

• In the BEXIMCO Pharmaceuticals, they faces Job attractiveness and recruitment cost- this two type of constraints on recruiting efforts limit human resources recruiters freedom to recruiter and select a candidate of their choice.

• In the BEXIMCO Pharmaceuticals, they follows standard pattern of selection activities through beginning with an initial screening interview and concluding with final employment decision. When their recruiting effort has been successful, they will have a pool of potential applicants, they can element some of these respondents based on the job description and job specification. This initial screening based on screening inquiring and screening interview procedure.

• This Pharmaceuticals Company relied to a considerable extent on intelligence, aptitude, ability and interest test to provide major input to the selection process through handwriting test and honesty test. A comprehensive interview is selection devices used to obtain in-depth information about a candidate; they prefer three types of interview to use for effective interview like the panel interview (Several interviewer and one applicant), a situational interview (A predetermined pattern that identifies both question and expected responses), the stress interview (Create a difficult environment and assess applicants confidence level).

• This organization verifying information of job candidates which provides on the application form through contacting other job related and ersonal reference and contacting former employer.

• In the BEXIMCO Pharmaceuticals, they conduct medical/ physical examination to determine an applicant’s physical fitness for essential job performance.

• Individual who perform successfully in the preceding steps is now considered eligible to receive the employment offer; then the organization place job offers to the selected individual via over phone and by e-mail. Chapter-04: Recommendations Following are some recommendation made for building an effective recruitment and selection process: Recruitment and Selection policy: The BEXIMCO Pharmaceuticals must establish a policy for recruitment, hiring; including criteria, procedures, responsible individuals and applicability of diversity and affirmative action.

• Qualified Personnel: BEXIMCO Pharmaceuticals should ensure that personnel involved in recruitment and selection are well trained in their equal employment opportunity responsibilities; which recruitment source will be used for which position, how many numbers of employees will take from internally or externally- that sort of activities will easier for that personnel through recruitment and selection related training. Strategic planning: Successful employment planning is designed to identify an organization human resources need. The BEXIMCO Pharmaceuticals should engage in short term and long term strategic planning. They can use HRIS software to keep employees update; which type of qualified employees they have; forecast future requirement of qualified employees.

• Emphasize on internal search: BEXIMCO Pharmaceuticals basically relied on external search for recruiting purpose. They must attempt to develop their own low level employees for higher positions through more internal search.

To do so they must ensure a communication network notifying interested persons of opportunities, including advertising within the organization like “ position open” bulletin board in every department.

• Job fair: BEXIMCO Pharmaceuticals must use open up recruiting efforts to the external community like job fair through external search. They can participate in career and job fairs and open houses and must develop and support educational programs and become more involved with educational institution that can refer more diverse talent pool. Partnership with professional organization: BEXIMCO Pharmaceuticals can build up partnership with that professional organization that have mission to serve targeted group. Professional organization that provide placement facility who looking for employment and company looking for employees can find each other. They can use recruiter, referrals, and search firms with instructions to present diverse candidate pools to expand search network.

• Blind box advertisements: BEXIMCO Pharmaceuticals can use blind box advertisements for lower level position. Through blind-box advertisement HR department can easily find out qualified applicants. Aid from Public agencies: They conduct their production operation in factory; to move their operation they need minimum trained worker. To reach that sort of worker they must use public or state agency. Public agencies tend to attract and list individuals who are unskilled or have had minimum training.

• Internship facility: For temporary recruitment or temporary help service, BEXIMCO Pharmaceuticals can take internee from reputed university. To do so they can easily fill up their temporary needs and also find out potential and qualified future employees from internee. • Community involvement: BEXIMCO Pharmaceuticals may explore community nvolvement option so the companies higher profile may attract more interested person; like they can involved in nation well being program- city beautification, sponsorship for aid underprivileged child and so on.

• Job attractiveness: Job attractiveness is one of constraint of BEXIMCO Pharmaceuticals for recruit manual worker. To remove job attractiveness as a constraint on recruiting efforts, they should practice job rotation which may reduce boredom of employees; they should increase payment level for manual worker and also give promotion to potential which attract a qualified pool of applicant. Screening interview: BEXIMCO Pharmaceuticals should emphasize on screening interview for elimination for some of respondents. Sharing job description information frequently encourages the unqualified or marginally qualified to voluntarily withdraw from candidacy with a minimum of cost to the applicant or your organization. Conference call interviews or video conferencing can help minimize cost during screening interviews.

Weighted application: HR department of BEXIMCO Pharmaceuticals should develop a weighted application form (A special type of application form that uses relevant applicant information to determine the likelihood of job success) that would predict which applicants would be stay with the company. To do so, based on candidates work experience, HR department would select two groups like short tenure and long tenure with previous organization and easily find out how long applicants would be stay with the company. • Traditional Interview: A comprehensive interview is selection devices used to obtain in-depth information about a candidate.

BEXIMCO Pharmaceuticals use three level interview segments. HR department of BEXIMCO Pharmaceuticals should use traditional interview which is one on one encounter between the interviewer and applicant. To do so, it will reduce potential applicant nervousness and he/she can well inform before join other three level interviews. • Background investigation: HR department should undertake a background investigation of applicants who appear to offer potential as employees. They should verify an individual legal status to previous work through checking credit reference, criminal records and so on.

Bibliography • Anonymous (2009). Recruiting & Selection process, Retrieved on Dec. 6, 2009 from http://www. beximco-pharma. bd. com/html • Decenzo, D. & Robbins, S. (2008). Fundamentals of HRM, 160-161, 189-192, 8th edition, New Jersey, John Willey & Sons. • J, Dash. (2000). Job-Hunting Professional, 185, 187, 5th edition, New York, Longman. • Y, Ganzach. (2001). Recruitment: Job Seekers Take Offense in Interview Blinder, 125, 6th edition, Chicago: Irwin. Appendix -A Sample Questioner Recruitment and Selection Process: A study on BEXIMCO Pharmaceuticals Personal Information: Name: Organization Name:

Gender: Male/Female Designation: Tenure of job: An Empirical Study on Recruiting Procedure: 1. Recruiting is more likely to achieve its objectives if recruiting sources reflect the type of position to be filled. Which type of recruiting sources your organization use for recruiting purpose? (You can choose more than one option) o Internal search o Employee referrals/Recommendation o External search o Recruitment alternatives 2. How your organizations attempt to develop their own-low level employees for higher position through internal search? o “ Position open” bulletin board in the office Weekly or monthly organization news letter o Preparing positioning sheet from Human Resource outline those positions currently available. 3. How your organizations open up recruiting efforts to the external community through external search? (You can choose more than one option).

o Advertisement o Employment agencies o Through job fair o Professional organization o Unsolicited applicants 4. When your organizations wishes to tell the public it has a vacancy, which type of advertisement your organization prefer to use? (You can choose more than one option). o Newspaper o Website o Blind-box . Does your organization prefer to use employment agencies as recruitment source; if yes then what type of employment agency? (You can choose more than one option). o Public or state agencies o Private employment agencies o Management consulting firm 6. If any individual drop his/her CV who has adequate skills who would be prime candidates for a position of your organization. But the position is not currently available, and then your organization can be kept the CV for future consideration? o Yes o No 7.

Which alternative source your organization use for their temporary recruitment? You can choose more than one option). o Temporary help service o Employee leasing o Independent contractors 8. Do your human resources managers face any constraints in determining recruiting sources? o Yes o No 9. If yes, what type of constraints on recruiting efforts limit human resources recruiters freedom to recruiter and select a candidate of their choice? (You can choose more than one option). o Organization image o Job attractiveness o Internal organizational policies o Government influence o Recruitment cost 10. Do you have any suggestions to improve your organization recruiting procedure? An Empirical Study on Selection Procedure: 1. Do your organization follows standard pattern of selection activities through beginning with an initial screening interview and concluding with final employment decision? o Yes o No 2. If your recruiting effort has been successful, you will have a pool of potential applicants, you can element some of these respondents based on the job description and job specification. This initial screening based on which procedure- o Screening inquiring o Screening interview Both 3. If your HR department interested in developing a weighted application form (A special type of application form that uses relevant applicant information to determine the likelihood of job success) that would predict which applicants would be stay with the company? o Yes o No 4. How your organization relied to a considerable extent on intelligence, aptitude, ability and interest test to provide major input to the selection process? o Handwriting test o Honesty test (a specialized question and answer test designed to assess one’s honesty) o Both 5.

A comprehensive interview is selection devices used to obtain in-depth information about a candidate; which types of interview forms your organization prefer to use for effective interview? (You can choose more than one option). o The traditional interview (One interviewer and one applicant) o The panel interview (Several interviewer and one applicant) o A situational interview (A predetermined pattern that identifies both question and expected responses) o The stress interview (Create a difficult environment and assess applicants confidence level) 6.

How your organization verifying information of job candidates which provides on the application form? (You can choose more than one option). o Contacting other job related and personal reference o Contacting former employer o Verifying an individual’s legal status to work 7. Does your organization conduct medical/ physical examination to determine an applicant’s physical fitness for essential job performance? o Yes o No 8. Individual who perform successfully in the preceding steps are now considered eligible to receive the employment offer; how your organization place job offers to the selected individual? Over phone o By e-mail o By post 9. How your organization can predict which applicants will perform satisfactorily on the job? o Reliability (A selection device’s consistency of measurement) o Validity (The proven relationship of a selection device to relevant criterion) o Cut scores (A scoring point below which applicants are rejected) 10. Do you have any suggestions to improve your organization recruiting procedure?

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