HR Practices and Policies of Rahimafrooz
Rahimafrooz is not just a name. It indicates milestone which Rahimafrooz has achieved with trust, support and dedication of all stakeholders and most importantly its customers. Rahimafrooz has endured turbulences of the last 60 years and has been able to transform itself from a small trading company to a leading business house. They want to emerge as an employer brand.
Rahimafrooz always give value to their customers as well as talented and hard working employees. Rahimafrooz try to attract, develop and retain qualified and competent people. Human resource management covers the fields of staffing (hiring people), retention of people, pay and bonus setting and management, performance management, and taking care of exiting employees. Now-a-days, human resource management does not merely handle recruitment, pay, and discharging, but also capitalize on the use of an organization’s human resources in a more strategic level.
Human resource management (HRM) refers to maximize employee performance in service of their employer‟s considered objectives in an organization. Human Resource (HR) is mainly concerned with how people are managed and supervised within organizations, focusing on policies and systems. HR departments and units in organizations are typically responsible for a number of activities, including employee recruitment, training and development, performance appraisal and rewarding (managing pay and benefit systems), motivational activity and so on.
Business is enlarged from manufacturing and selling to placing right people at right position in the right place at the right time. Human Resource Management provides an opportunity for discussion and promotes the understanding of the importance of human resource management to business strategy. HRM is the process of managing people in organizations in a structured and systematic manner. Human Resource Management is a key business operation practice for managing personnel within a company.
Human resource management, in the sense of getting things done through people, is an essential part of every manager‟s responsibilities. People are the most valuable asset for any organization. However, the reality for many organizations is that their people remain undervalued, under trained and underutilized. Human Resource Management (HRM) involves all management decisions and practices that directly affect or influence the people, or human resources, who work for the organization.
In recent years increased attention has been devoted to how diversified the human resources, how organizations manage those resources and how satisfied they are. This increased attention comes from the realizations that an organization‟s employees enable organizations to achieve its goals, and the management of this human resource is critical to an organization‟s success.
Rahimafrooz, founded in 1954 by Late A. C. Abdur Rahim as a trading company in Chittagong, is one of the largest business groups in Bangladesh. It consists of nine SBUs and several other affiliations. Rahimafrooz operates in three broad domains: automotive aftermarket, power and energy, and retail chain. It sells tires, batteries, lubricants, emergency power products, diesel as well as gas generators, lighting products, electrical accessories, solar systems, energy solutions using compressed natural gas, and power rectifiers. The Group also runs ‘Agora’ the first retail chain in Bangladesh.
The Group has strengthened its market leadership at home while reaching out to international markets. Ranging from automotive aftermarket products, energy and power solutions, to a retail chain. Through Rahimafrooz IPS, UPS and Voltage Stabilizer, the Company enjoys clear leadership of the emergency power products market. It also markets home and industrial lighting products from General Electric USA (GE) and electrical accessories from Hager (France). Rahimafrooz, in 2001, made a breakthrough in the urban lifestyles by launching one of very few retail chains in the country – Agora. The Group operates a non-profit organization Rural Services Foundation (RSF) through which the solar home systems reach the customers in the rural areas of Bangladesh.
Sister Concern of Rahimafrooz (Bangladesh) Limited (RABL)
Rahimafrooz (Bangladesh) Limited (RABL):
Rahimafrooz Bangladesh Limited (RABL) is the Group Parent Company that supports and guides the Strategic Business Units (SBU) from the Rahimafrooz Corporate Office (RACO). Rahimafrooz has been a partner in the development journey of this nation for sixty years now. They set the highest standards in responsible corporate behaviour and passion for success is aligned with the development of the country. Rahimafrooz are committed to playing a leading role in driving growth, prosperity, ethical values and social responsibility.
Rahimafrooz Batteries Limited (RBL):
Rahimafrooz Batteries Ltd. (RBL) is the largest lead-acid battery manufacturer in Bangladesh. The company is one of the leading regional players, with market leadership at home and export endeavors to more than 44 countries around the world. Lucas and Spark are the leading names in the local automotive battery market while Volta, Optus and Delta are gaining equity as international brands. Rahimafrooz as a Group is highly committed to its social and environmental responsibilities. All its operations are built and managed in a way so that the possibility of any detrimental effect on the environment can be eliminated or minimised. Being the leader in the lead-acid battery industry, RBL is no exception to that commitment. Safe disposal of the used batteries in Bangladesh has been a big concern.
Rahimafrooz Accumulators Limited (RAL):
Rahimafrooz Group started manufacturing industrial batteries in the year 1991, in collaboration with Electrona of Switzerland. Rahimafrooz Accumulators Ltd. (RAL) commenced operation from 2009, as a separate unit to cater to the growing needs of the local as well as international market. RAL produces and markets a wide range of industrial batteries which are used in telecommunication, power station, railways, electric vehicles, forklifts, ships, buoy lighting, UPS, inverter and solar power systems. It aims to manufacture high quality batteries by employing new and innovative technology, which offers safer and more environment-friendly manufacturing processes. RAL aspires to be the leading industrial battery manufacturer for traction, stationary, solar in the South Asia region.
Rahimafrooz Globatt Limited (RGL):
Rahimafrooz Globatt Ltd (RGL) is the global wing of Rahimafrooz group. RGL is the largest battery export plant in South Asia. RGL offers a broad range of maintenance free automotive batteries manufactured according to JIS and DIN standard for a variety of vehicles, ranging from small cars to large commercial vehicles. RGL also manufactures deep cycle battery for inverter application. All these batteries have been designed by one of the leading German company.
These batteries are designed for millions of vehicle enthusiasts across Asia & Pacific, Middle East, Africa, Europe and Americas.
Rahimafrooz Distributions Limited (RDL):
Rahimafrooz Distribution Limited (RDL) is the largest marketing and distribution house in automotive aftermarket and in emergency power back-up systems in Bangladesh. RDL is the market leader in its product categories. Its product portfolio includes battery, tires and lubricants for all types of vehicles and lubricants for industrial use. It leads emergency power back up market with its IPS, UPS and Voltage Stabilizers. RDL is the exclusive distributor and marketer of the full product range of Dunlop and Castrol.
CORPORATE SOCIAL RESPONSIBILTY
Rahimafrooz‟s aspiration is to be the most admired and trusted organization, by excelling in everything it does, following ethical business practices, and adding value to its stakeholders. The Group wants to achieve all of these while being firmly committed to social responsibilities. Rahimafrooz Group, with a proud history of 60 years, strongly believes in the principle of contributing back to the community where it operates. Rahimafrooz strives to add value to the society, its economy, and environment through intelligent efforts and focused initiatives. Rahimafrooz‟s CSR vision reads, “Passionate and driven to make a difference among the Community and Environment.” Much of the Rahimafrooz CSR efforts are carried out through its social development initiative Rural Services Foundation. Currently, Rahimafrooz Group is contributing in the following areas.
Human Resources Practices of Rahimafrooz
Recruitment Policy of Rahimafrooz
The goal of recruitment process is to select and recruit competent Rahimafrooz requires for its operation and to attain aspiration, missions and objectives.
- Ensure quality recruitment of personnel.
- Bring clarity and consistency in the selection and recruitment process.
- Ensure equal opportunity for employment.
- Encourage all candidates to demonstrate their suitability for a post through the establishment of a clear, welcoming and positive process.
Validation of Need & Approval
- The Group HR or SBU HR as the case may be, shall administer the recruitment process. Best efforts shall be made to attract suitable numbers of qualified applicants and shortlist them on relative qualification, skills, and attributes to meet human resource recruitment. The Group Human Resources may authorize agencies to conduct their own recruitment programs for specific grades or positions with approval of the CEO.
- A requisition be respective Department Head should be made using the prescribed form to HR department to fill a vacant post.
- Any requisition for vacant post from grade 5 and above will be advertised in a manner likely to bring it to the notice of persons qualified to fill the post.
- They may appoint internally after internal advertisement the details will be posted, in writing, on the employee notice board(s) giving at least seven (7) working days for applications to be made.
- All types recruitment advertisements will be clear and helpful to potential candidates, and will contain a minimum of the information:
a) Post title.
d) How and where to apply
e) Role definition
f) Name and description of the organization/SBU/department.
g) Last date for applying
Eligibility for Employment
- The candidate‟s age must be 18 years or above.
- The candidate must not be convicted by any criminal court.
- Medically fit for the job he or she is seeking.
The Selection Panel
A Selection Panel will be made up of the senior management level of the concerned SBU and RACO as required. For recruitments in managerial level (Grade 8) or above, at least one person from the Group HR should be present in the final selection stage. The quorum is at least three (3) persons.
- Short listing is the responsibility of the Selection Panel.
- The criteria for selection will be consistently applied to all applicants.
- If the pool of applicants is found to be weak, the Selection Panel may recommend to the management that the post is re-advertised.
- When taking reference, referees should be asked specific questions. These will include:
a) Length of time they have known the candidate.Last regular contact with the candidate.
b) Capacity in which they have known the candidate.
c) Assessment of the candidate‟s strengths and weaknesses.
d) Reasons for leaving.
The format, style and duration of interviews are matters for the Selection Panel to decide, but the following will be adhered to:
a) Briefing: All candidates will be given relevant information about the company to enable the candidates to make further enquiries about the advertised job.
b) The formal interview: Before the interviews the Selection Panel will agree on the line of questioning to be followed and will ensure that similar questions are put to each candidate. The questions asked will be aimed at obtaining evidence of how each candidate match the requirements of the Role Definition. The same areas of questioning will be covered for each candidate.
c) The Selection Panel will evaluate the candidate at the end of the interviews. The notes taken and documentation used in this evaluation process will form part of the formal record of why candidates were or were not selected. In case the candidate is selected, the interview records will be appended to the employee‟s personal file. For all other candidates who were not selected, the records will be retained for six (6) months; after that time they will be destroyed.
A range of options to develop an interview process appropriate to the level of post on offer should be used. Options that the Selection Panel may consider include:
a) Presentation by candidates.
b) Discussion in small groups about a topic relevant to the post on offer.
c) Small group interviews with management panels.
d) Practical test.
e) Skills demonstration
The Selection Panel to be provided by HR Department with copies of:
a) Role Definition covering job descriptions and person specifications;
b) Application forms, letters of application, and CV;
c) Reports of any exercises or practical tests or skills demonstration;
d) Timetable of interviews.
At least three interviews should be taken for jobs from grade-5 and above. The number, place, interviewers and procedure of the interview will be decided by the Selection Panel. The short listed candidates on each stage must be informed at least three (3) days prior to each interview.
Recommendation by the Selection Panel
- The Selection Panel must reach an accord on the prospective candidate within the specified time and will make clear recommendation for offer of employment.
- Recommendation made by the Selection Panel should be approved by the COO/CEO as the case may be to be treated as the final decision.
- The offer of employment shall be issued by Group HR or SBU HR depending on the situation.
- The candidates who have participated in the final round of interview but not considered for employment should given a letter of regret.
Offered Pay and Probation
- Only the approved pay scale/grade could be offered by the SBUs. Any deviations should be approved by Group HR.
- Any selected candidate irrespective of position should be placed in probation for six (6) months unless otherwise having approved by CEO/SBU Head
Training Policy of Rahimafrooz
- Develop a competent workforce, able to respond to the demands made upon them in carrying out their jobs.
- Ensure quality training is provided to equip the workforce with the necessary skills, knowledge, competencies and attributes to perform their jobs effectively.
- Update employees with technological and operational changes and developments.
Training Need Assessment
Training needs will be identified at the following stages:
- The identification of the training and development needs of individuals and groups of employees is vital to the success of the training and development policy.
- During Induction: Any immediate training needs will be identified and discussed by the concerned manager and HR department during the employee‟s induction period when initial targets and objectives are set. Required trainings will be organized during the first three months of employment wherever possible.
- Selection Interview
- End of Probation Assessment
- Everyday interaction and monitoring by supervisor
Roles and Responsibilities for Implementing the Policy
Employees have the responsibility to:
(a) Seek out and participate in training opportunities to improve their job performance and competencies.
(b) Obtain approval from their supervisor to attend training programs.
(c) Apply learning in the work place.
Supervisors and managers have the responsibility to:
(a) Support and provide opportunities for individuals to pursue job-related training.
(b) Help and guide employees in identifying their weak areas for improvement.
Human Resources department’s responsibilities:
(a) Facilitate concerned department in identifying training/development needs.
(b) Arrange in-house or external facilities/resources for providing the required training.
(c) Conduct/assess training effectiveness in association.
The training budget will be allocated at the beginning of each financial year in accordance with training needs identified and the organization‟s objectives for the forthcoming year. The training plan will be reviewed annually. All training will be evaluated by the HR Department by means.
Promotion Policy of Rahimafrooz
- Facilitate career progression of employees.
- To reward really deserving employees.
- Maintain clarity and uniformity in promotion/upgrading decisions.
- Provide a transparent system through which employees can foresee a career path.
- Provide appropriate criteria/requirements for promotion to a higher grade.
- As far as practicable, internal promotion is encouraged to replace vacancies in higher grades when occur.
- Promotion is not an automatic process and cannot be claimed by an employee as a matter of right.
- Generally, no promotion would be considered before completion of three (3) years in a particular position. However special consideration would be made in case of proven and outstanding performance and ability. Promotion should only be considered when one has consistently exceeded in performance compared to his or her present position‟s requirement.
- Job evaluation will be done for promoting employees.
- A separate assessment is required for the concerned person by at least three persons, of which one from the HR department
- Consideration of promotion to a higher level is linked with fulfilling of the minimum education, experience, skill and competency requirements.
- There must be a substantial increase of overall responsibility in the job to beconsidered for promotion.
- The employee must have a demonstrable performance record
- The organization structure and business plan must support the promotion.
- Person profile of the employee must match the requirements of the higher position.
Performance Management Policy of Rahimafrooz
An ongoing process of communication between the supervisor and the employee focused on making the employee achieve his or her best workplace results and continuously improve upon.
- Provide direction and clarify performance expectations and goals
- Share feedback and observations with the employee concerning job performance, both what is done well and what needs improvement
- Identifies training and professional development needs for career growth.
- A tool to provide reward in a systematic manner
- Reinforce core values and model behavior
- Encourage performance and continuous learning
The review process is top-down. The individual employee and his or her superior will set the key Result Areas (KRA) targets. The KRA targets should be Specific, Measurable, Attainable, Realistic, and Time-bound. Make the target as elaborate and specific as possible. The target statement should contain enough details and broken into interim measures. Qualitative aspects of the target must be considered as well.
- An individual‟s KRA must not conflict with another‟s
- Both the appraisee and appraiser should agree on the KRAs and associated ratings.
- KRA targets of all managers from grade 8 upwards must be approved by Group CEO after validation by Group HR.
Role of the Appraiser
- Fix a mutually convenient time
- Ensure there are no interruptions
- Listen/see with an open mind to what is said or presented
- Keep language clear & free from misinterpretation
- Sum up time to time
- Keep notes
Role of the Appraisee
- Fix a mutually convenient time
- Listen with an open mind to what is said
- Keep note of what is said/advised for improvement
- Keep language clear & free from misinterpretation
Role of the HR Team
- Facilitate the whole process, provide necessary training, clarification where needed
- Ensure completion of the process within the time schedule
- Validate the process
- Keep language clear & free from misinterpretation
- Validate the KRA targets
Benefits- Retention Initiatives in Rahimafrooz
Variable Profit Bonus: (VPB)
VPB is linked to segment profit achievement and SBU profit achievement. It manifests performance-based reward. The better performing teams are rewarded more than poor performing teams. It makes the teams motivated to perform better as group. It is powerful driver of segment performance. It gives the people an opportunity to get some added benefit over their basic salary. Eventually, the whole group is benefited. This is one kind of variable pay.
KRA bonus is linked with individual performance. It makes the employee achieve his or her best workplace result. The individual and his/her superior will set the KRA targets. KRA targets should be fixed based on SBU Annual Business Plan and role definition of the employee. KRA bonus is determined on the basis of KRA target achievement.
There are two festival bonuses in a year. Each bonus is equivalent to the basic. An employee is entitled to get the full festival bonus after completing one year of service. If an employee has not completed minimum six months or more than six months, he will be given a bonus on a pro-rata basis for the period completed.
Provident Fund & Gratuity:
There are provisions of provident fund and gratuity. It secures a tension free post retirement life. It creates savings for the employees. Every month 10% of the basic salary will be deposited in provident fund account. The company will deposit equal amount of money deposited by the employee. The employee will get gratuity at the end of service with the company. Gratuity= Number of Service Year X the Last Basic Salary.
There are ample scopes for training. Training makes an employee feel confident and motivated. It also makes him/her loyal to the company. There is scope of overseas training as well subject to requirement.
There is provision of education sponsorship. If an employee wants to get a professional degree in order to develop his career and the company considers justified then the company will bear the expenses of his education.
The permanent employees and their family (father, mother, spouse and children only) of Rahimafrooz are entitled to hospitalization benefits to a minimum limit of Tk. 50000. It is a compelling retention initiative. Health care benefit is the most preferred reward for any employee of any organization. It removes anxieties and worries of employees and enhances a sense of belongingness among the employees.
It is another top priority benefit among the employees. It provides time for rest and recreation that result in better performance and job satisfaction. In Rahimafrooz Group there is provision of five type of leave.
a) Casual Leave: The employees are entitled to casual leave with full pay for ten days in a year.
b) Sick Leave: The employees are entitled to sick leave with full wages for a total period of fourteen days in a year. Sick leave can be carried forward not exceeding twenty-eight days.
c) Quarantine Leave: An employee is entitled to quarantine leave for a maximum of three months in case of contagious disease or temporary disability. The leave period can be extended for maximum another three months. After that the person will be considered unfit for the job. This is surly a persuasive benefit for the employees.
d) Annual Leave: Employees who have completed a period of (12) twelve months continuous service shall be allowed during the subsequent period of twelve months leave for twenty days with full wages.
e) Maternity Leave: A female employee who has completed a minimum of nine months service shall be entitled to enjoy sixteen weeks maternity leave with pay. Maternity leave will be admissible for six weeks before and six weeks after the date of delivery.
Personal Loan Policy:
Any permanent employee is eligible for personal loan if he or she works, apart from being confirmed in his or her job, for at least one year to the satisfaction of the management. Personal loan may be sanctioned against security of the employee‟s Provident Fund and the loan amount shall not exceed the total amount accrued in that fund till the date of application. Repayment of personal loan must be made in ten equal monthly installments.
OBSERVATION & FINDINGS
Organizational culture is the behavior of humans within an organization and the meaning that people attach to that behavior. Respect for employees of all level exists in Rahimafrooz. It is getting a rare phenomenon in most of the local organization. Rahimafrooz has proved itself a caring organization.
Minchington (2005) defines employer brand as “the image of your organization as a ‘great place to work'”. Rahimafrooz Group tries to attract, develop and retain employees. Now they are getting concerned about attracting talent. They are putting emphasis on employer branding.
A wonderful work environment exits in Rahimafrooz. It has earned the reputation of being a caring organization for the employees. Low turnover rate is the manifestation of it. Lot of people has been serving in Rahimafrooz for more than 10 to 15 years. People are hardly fired or discharged unless it is a case of major misconduct. Even the underperforming employees are given opportunity to develop themselves.
Training and development is a function of human resource management concerned with organizational activity aimed at bettering the performance of individuals and groups in organizational settings. Training is a common activity in Rahimafrooz. At SBU as well as group level training is conducted round the year.
As far as HR is concerned, a culture of acquiring knowledge of modern Human Resource practices and implementing them in the organization exists. It has made HR play a significant role in the overall organization. The Human Resource practices are welldefined and widely explained to ensure an all encompassing HR management. They are not confined within traditional administrative role. They are devoted to play a proactive strategic role contributing directly to strategy development and implementation. Rahimafrooz are committed to drive business excellence and create a rewarding workplace through people.
- Human Resource Inform System should be utilized effectively and efficiently.
- Employer branding of an organization is important to attract good talent. People have perception about Rahimafrooz as a leading business firm in their industry. They have to make them unique to be the desire of pick talents.
- Rahimafrooz should appoint more internship program for graduate students. However, the new graduates who are entering into the job market have little knowledge about Rahimafrooz as a workplace. Extensive programs like participation in the job fair, seminar in leading universities, taking interns, sponsoring different programs in universities etc.
- More intensive training program should be introduced to increase employee performance. Employees need more training to improve their performance to achieve their KRA targets.
- Transport facility should be introduced for employees.
- Based on performance one employee from each SBU can be awarded “employee of the year”. They should categorize their employees according to performance and year of employment. To give security to their employees, they can give awards to the best employee of each category.
- Rahimaafrooz should give scholarship for education/diploma to potential employees. It will help employees to be loyal to them.
- For being working friendly, they should redecorate their office and manage an effective relaxation space (Google) for employees. This will add a new wing to their HR.
Rahimafrooz emerged as a small trading house in 1954. Over last 60 years business expansion, product differentiation and acquisition took place. Rahimafrooz is at the moment one of the leading business houses in Bangladesh. It is a brand name as far as business is concern. Rahimafrooz focuses on building high quality human resources with expertise and professional skills .The company human resources development strategy is too built up quality manpower with conceptual managerial knowledge skills through designing of continuous in house and outside training program. They arrange in house, customized special training at for fresh entrained to build up quality manpower and suitable placing them in productive channel. It also arrange training program, workshop etc. Rahimafrooz offer attractive salaries and benefits in line with top industrial employers in Bangladesh. Scope of advancement is strictly performance based. They have mobilized adequate distributors to serve all parts of the regions; they are one of the largest distribution organizations in Bangladesh. This network makes possible the flow of goods from the producer through intermediaries to the buyer.
Rahimafrooz has proved itself a caring organization to the existing employees. As a result, apart from some exception, turnover rate is still very low. Overall manning trend line is almost flat.
All these manifest compelling retention management practices in Rahimafrooz. Time is changing. The corporate environment is getting competitive. Constant supervision of the environment and application of modern retention management practices are necessary to cope with the competition.