Human Resource Management Practice in SMC - Assignment Point
Human Resource Management Practice in SMC
Subject: Human Resource Management | Topics: ,

Management of the Company’s Operation

The Board of Directors is the highest decision making body of the company. It makes major policy decisions and sets guidelines for the overall management of the company.

The Chairman is an Ex-officio Member of the Board as well as its Member Secretary. The Chairman is the Chief Executive Officer of the company who is responsible to the Board for the effective and efficient running of the overall operation of the organization. The Chairman is assisted in this by the Company’s functional managers who are the Division Heads and their respective Heads of Departments.

Authority and responsibility are delegated throughout the organization enabling the senior management to focus on strategic issues by empowering their subordinates to manage routine day-to-day operations. Accountability for delegation and communication is required of management positions at all levels of the organization. The varying structure of this delegation of authority is described in this Administrative Manual/ Service Rules.

The employees of the company are broadly classified as Managers and Officers. The Management respects the input of all its employees who are encouraged express their views on organizational policies and operations.

Board of Directors

The current Board of Directors are as follows:

Mr. Jalaluddin Ahmed – (Chairperson of SMC Board of Directors)

Mr. Muhammed Ali- Director

Mr.Md. Siddique Ullah – Director

Mrs. Niloufer Manzur – Director

Mrs. Rokeya Quader – Director

Mrs. S. R. Ghuznavi- Director

Name of Company Members

Mr. Jalaluddin Ahmed – (Chairperson of SMC Board of Directors)

Mr. C M Murshed

Mrs. Laila Rahman Kabir

Mr. Muhammed Ali

Mr.Md. Siddique Ullah

Mrs. Niloufer Manzur

Mrs. Simeen Mahmud

Mrs. Rokeya Quader

Mrs. S. R. Ghuznavi

Organization Structure

SMC’s objectives of programmatic and financial sustainability required that it function effectively as a not-for-profit private (Ltd.) company. Organizational structure is relatively flat and informal to enable the managers to quickly react to perceived opportunities.

SMC’s organizational structure reflects the following principles;

Authority and responsibility is delegated throughout the organization.

The structural location of a work unit is determined by its primary function and its relationship with other units.

Employees at each level are assigned responsibilities and accountabilities within specified jobs through their respective jobs description.

Organizational structure is organized around SEVEN divisions-

  • Accounts & Finance Department
  • Administration and HRM Department
  • Marketing & Sales Department
  • Credit Realization & Customer Care Department
  • Purchase & Procurement Department
  • Legal Department
  • Planning, Research & Devolvement

The Accounts & Finance Department consists of and Accounts & Finance Department. A Chief Finance Office (FCO) who reports to the Chairman/ Managing Director/ Heads of the division.

The Administration and HRM Department consists of two department- Administration and Human Resource Management. A Department Head/ General Manager, Administration who reports to the Chairman/ Managing Director/ Heads of the department.

The Marketing & Sales Department consists of an area key strategic marketing functions organized and sales organization. A Department Head/ General Manager, Marketing & Sales who reports to the Chairman/ Managing Director/ Heads of the Department.

The Credit Realization & Customer Care Department consists of an area of Credit Realization and Customer Care. A Department Head/ General Manager, Credit Realization & Customer Care Division who reports to the Chairman/ Managing Director/ Heads of the department.

The Purchase & Procure Department consists of and Purchase & Procure Department. A Department Head/General Manager, Purchase and Procure Department who reports to the Chairman/Managing Director/ Heads of the department.

The Legal Department consists of and Legal Department. A Department Head/ General Manager, Legal Department who reports to the Chairman/ Managing Director/ Heads of the department.

Human Resource Management in SMC

SMC established itself as a leading non profit organization in Bangladesh.

It is continuing in accordance with the requirement of employment of labor standing orders act, 1965 and approved disciplinary procedures of the company. It is the duty of every employee to observe the following rules and to behave at all times in a reasonable way.

The recruitment, promotion, development and retention practices in SMC are based primarily on merit, potential and performance and on diversity that reflects, across the work force to achieve the mission. Policies and practices are stated clearly and in writing and made available to all employees.

SMC is committed to providing HR policies in line with the change environment and need of the organization.

In the SMC HRM service Ruler book and their Manual, all aspects of HRM Functions are described which includes Employment, Recruitment and selection, service and Efficiency rules, condition of employment. Promotion policy, Leave policy, Remuneration and Benefit, Performance management system and appraisal, Disciplinary procedures and others benefits.

Since this thesis only covers some practices of Human Resource Management of SMC, below only the rules and procedures regarding Recruitment, Training, Promotion,

Leave policy, Remuneration and Benefit and performance appraisal are discussed in detail.

Employment Policy

The goal of the Human Resources policies of SMC is to have best possible staff and to retain them through continuous development. The organization recognizes the policy of equal employment opportunity for its employees who have the potential to enhance and utilize their skills and knowledge. SMC fully support the philosophy and belief of non-discrimination in employment.

Types of Employee Recruitment Policy

There are two types recruitment polices conduct in SMC.

  • Internal Recruitment- is a recruitment which takes place within the concern or organization. Internal sources of recruitment are readily available to an organization. Internal sources are primarily three –
  1. Transfers
  2. Promotions (through Internal Job Postings
  3. Re-employment of ex-employees
  • External Recruitment- External sources of recruitment have to be solicited from outside the organization. External sources are external to a concern.

The external sources of recruitment include-

  1. Employment at factory gate,
  2. Advertisements,
  3. Employment exchanges,
  4. Employment agencies,
  5. Educational institutes,
  6. Labor contractors,
  7. Recommendations etc.

CLASSIFIACATION OF EMPLOYEES

The company employs the following three types of employees:

Permanent employee: A person who has permanent employed against a permanent position and has satisfactory completed the required period of probation (bellow, section II.3) and has been employed against a permanent position. A “permanent position” is one that is not time bound and is likely to continue for as long as the company requires its function. The continued employment of a “permanent” employee is subject to annual review of (1) the company’s continuing need for the position, and (2) its incumbent’s performance. In addition, a “permanent” employee may be separated at any time without assigning any reason with 30 days salary (ref: section II.6.iii).

Temporary Employee: a person who has been employed for work that is essentially of a temporary nature. A “temporary” position is on that is likely to continue for a  specific period. A temporary employee shall no be employed for more than two years under a single contract. The duration to la single contractual employment in SMC shall not be more than two years. A temporary employee after completing a contract, may be given a new 2 year contract based on (1) . The company’s further need for the position’s function; and (2). Demonstrated good performance of the incumbent.

Casual employees: a person who is employed on a day to day basis and paid a fixed daily wages as determined by the Management from time to time.

A part time employee is a temporary employee who is appointed to work for a specified number of hours that is less than normal working hours as determined by the company from time to time

Probationary Employment

  • All persons appointed against a permanent position are required to serve a period of probation. Internal promotion is not subject to probation.
  • The period of probation shall be 6 to 12 months in accordance with the grade of the position as follows for all new recruitment:

Position

Initial Probation Period

Maximum Extension Period

Division Head

6 months

6 Months

Head/manager/executive/officer

6 months

6 months

  When an employee completes his/her probation an evaluation report on him/her will be sought by the human Resources Department from the Supervision or the employee.

If the supervisor does not  consider the employee fit for confirmation, he/she can  recommend either (1) that the probationary  employee’s appointment be terminated ,or (2)that  the probationary  period be extended for an addition 3 to 6 months depending on the position’s grade.
The employee is confirmed in services only after the Supervisor reports in writing his/her satisfaction with the performance during the probationary period.
A new employee ,upon confirmation, is entitled  to be a Member of the Contributory  Provident   Fund, and to other benefits reserved for confirmed staff only(ref: Section IV.3)

No salary adjustment will be made at the time of confirmation. However, the confirmed employee shall be eligible for an annual increment if he/she has served at last six months following confirmation during the last evaluation period. (ref: Section IV .2(b)iv)

 Transfer

This policy will be applicable to all permanent management staff (officer and above) of the company.

Transfer from one base to another base will be covered under this policy. However, employee hired for a specific location (i.e. first posting in the regional/area office or territories after joining) will not be entitled for any transfer expenses.

Transfer Expense

The company will bear the following expenses in connection with transfer.

A . Relocation Expenses

All reasonable expenses incurred in transporting household fixtures, furniture, utensils etc. will be born by the company as per below entitlement.

B. Settling Expense:

Settling in allowance is applicable as per below entitlements. This allowance is given as one time payment.

D. Hotel accommodation and meal:

Employees are advised to organize accommodation in the new base at the earliest.

However, employee may stay in the hotel for the maximum period of 5 (five) days subject to the non-availability of rented house. Employee’s spouse and children are also eligible for required hotel accommodation. Claims must be supported by voucher.

Maximum 5 (five) days food expenses (breakfast, lunch, dinner) will be born by the company. Employee’s spouse will also get the same allowance to cover the food related expense. Also 50% of the allowance will be applicable for each child of the employee upto maximum two children.

E. Travel Expense

Travel expense for going to the base of posting will be reimbursed at actual. In this case the employee will avail mode of transport in line with his/her entitlement.

Company will also born the travel expenses of the employee’s family members i.e. wife, child (maximum two).

Promotion

Promotion is an upward advancement to a position in the next higher grade with same or additional responsibilities.

  1. In general,  an employee shall be for promotion if he/she has a satisfactory service record and consistent good performance scores in the annual appraisal, and has worked in his/her present position for at least 5 (five) years.
  2. An employee with an outstanding service record and performance score in the annual appraisal will be eligible for fast tract promotion, which does not require a minimum time in position or grade.
  3. The promotion of all employees below the level of manager will be reviewed and recommended by a committee formed by the (head of human resources & legal matters) and appointed by the managing director.  The committee’s recommendation requires final approval of the managing director to take effect.
  4. The promotion of head of the department / managers must be recommended by the division head and approved of the managing director.
  5. In general, promotion cases will be considered after the completion of the annual performance evaluation and will be effective from the date mentioned in the promotion letter. An exception to this annual timing can be made if required to further the objectives to the company.
  6. Promotion to a position shall entail placement at the next higher step over currently drawn salary and then fixed in the suitable step in the recommended salary grades.

All promotions shall be made on the basis of merit of each case and no employee shall have a claim to be promoted to any particular post or grades.

Separation

i.        Retirement:

An employee shall retire from the service of the company on completion of 60 (sixty) years of age. In an exceptional case, however, he/she may be employed afresh for a period not exceeding two years from the date of retirement on contractual basis, and company’s policy on contractual employment will apply. Such a contract will be awarded only once.

ii.     Resignation from service:

An employee leaving the service of the company is required to give 30 days notice or surrender 30 days salary in lieu to the company.

iii.   Termination of service:

The service of any permanent employee may be terminated without assigning any reason within 30 days salary in lieu of notice.

iv.   Discharge from service:

An employee found unfit for service because of physical or mental incapacity, or of continued ill health, or because of gross misconduct may be discharged at any time.

v.      Dismissal from service:

The service of any employee may be dismissed by SMC for misconduct. (Ref: section III.1.)

vi.   Exit interview:

Though not mandatory, all outgoing employees shall normally be requested to sumit to an exit interview. The head of human resource & legal matters shall conduct the meeting at a mutually convenient time.

vii. Separation benefit:

The employee on separation is entitled to the following benefits:

a)     Gratuity

b)     Contributory provident fund

c)     Encashment of annual leave if due

          The employee is entitled to no other termination benefit unless exceptionally authorized by the board of directors.

Compensation Policy

SMC maintains a compensation package that, within the limits of its financial resources, can attract and retain persons with the qualifications and expertise best suited to the requirements of the job, as well as to the organization as a whole.

The basic compensation package consists of:

  1. Salary (basic salary, hours rent, medical allowance, and conveyance allowance where applicable)/ wages
  2. Employees’ provident fund
  3. Hospitalization & Group Insurance Benefits
  4. Gratuity scheme
  5. Festival bonus
  6. Annual leave encashment

The productivity-based supplements to the basic compensation package include:

  1. Performance incentive for sales support staff
  2. Sales incentive for direct sales staff

A. Salary

i. Grades & p77ositions:

The salary grades of the company fall in three categories as such:

1. Management Grade        : M -1 to M-9

  1. Manager’s Grade   : M-1 to M-5
  2. Officer’s Grade      :M-6 to  M-9

The positions associated with these grades are as follows:

MANAGER  POSITIONSLOCATIONSALARY GRADES
Division headHad officeM 1/M2
Head of departmentHead officeM4 */M3/M2
(senior sales manager)Sales officeM5/ M4 / M3
ManagerHead officeM3 –M4
Sales managerArea office 
OFFICER POSITIONSLOCATIONSSALARY GRADES
Senior executive /area executiveHead office / area officeM6
ExecutiveM7
Senior officerM8
officerM9

* Only under exceptional circumstances.

ii.Salary Grade Scales:

  1. Each grade is associated with a salary scale consisting of 20 steps that range from the minimum to the maximum salary for the grade.
  2. New recruits with no experience shall be placed in the first step to the appropriate Grade Scale.
  3. New recruits may be placed above the first step of the appropriate Grade Scale based on his/her academic qualification, skills, and level of experience upon approval by the Managing Director.
  4. All salaried employees are entitled to an annual increment of one -step within their salary grade level after serving no less than six months following their confirmation in service.
  5. When an employee’s salary reaches the end of the scale in the salary grade level he/she is working his/her salary will not increase further. In the event that the company pay scale is revised or the employee is either promoted or upgraded, the employee’s salary will be re-fixed as appropriate.

B Employees’ provident fund

All the confirmed employees of SMC are entitled to become a member of Provident Fund. Every month 10% of the basic salary of an employee is contributed to the fund along with the same amount from the company’s account. Net income of the fund each year as on 31st of December is ascertained and interest is credited to the members’ account at a rate determined by the trustees. Any member, who has not completed three (3) years of continuous service, will not be entitled to get any portion of company’s contribution.

Completed years of continuous serviceEmployee ContributionCompany Contribution
Less than 4 years but not less than 3 yearsFull50% of company contribution
Less than 5 years but not less than 4 yearsFull75% of company Contribution
5 yearsFullFull

C Hospitalization & Group Insurance Benefits:

Hospitalization Benefits:

 

Benefits

 

 

Sub Group 1

(Chief/Director/GM)

 

 

Sub Group 2

(DGM/Manager)

 

Sub Group 3

(DM – Officer)

 

Sub Group 4

(General Staff)

 

Maximum Hospitalization Benefit per insured per disability (A+B)

 

 

BDT 150,000

 

BDT 80,000

 

BDT 60,000

 

BDT 45,000

 

(A) Room & Board total limit per Disability

 

 

BDT 60,000

 

BDT 30,000

 

BDT 24,000

 

BDT 20,000

 

Room & Board Daily Limit

 

 

BDT 2,500

 

BDT 1,500

 

BDT 1,150

 

BDT 1,000

 

Daily Intensive Care Unit (ICU) No of Days Limit per disability

 

 

14 Days

 

14 Days

 

14 Days

 

14 Days

 

(B)  Other Hospitalization Expenses/Services Total Limit per Disability (includes Surgeries, Medicine, Enesthesia, Doctor Visit etc. during Hospitalization)

 

 

BDT 90,000

 

BDT 50,000

 

BDT 36,000

 

BDT 25,000

Group Insurance

Benefits (same for all level)

Basic X 36 = XXXXXXX (maximum limit is BDT 2,100,000)

For Accidental Death: BDT 4,200,000

D Gratuity Scheme

Gratuity is provided to all permanent employees on basic pay. It will be admissible to an employee, who has rendered continuous services to the company for a period of seven (7) years and more and 1 month basic pay is given for each year of services. Completed year of service for this purpose means twelve (12) months of continuous service.

E Festival  Bonus

  1. All employees shall be entitled to two festival bonuses, one prior to Eid-ul-Fitr and one prior to Eid-ul-Azha. Each bonus will be equivalent to two month’s current basic salary of the employee.
  2. To be eligible for the bonus an employee must work in the Company for at least six months or must be confirmed in his/her services of the Company, whichever comes first.
  3. Casual and part-time employees are not eligible for festival bonus.
  4. An employee who voluntarily leaves the Company is not entitled to a festival bonus that may be due immediately after his/her separation.
  5. An employee who is not in service of the Company at the time of Eid-ul-Fitr/Eid-ul-Azha will not be entitled to festival bonus.

F Annual Leave Encashment

The Company shall allow its employees to en-cash unavailed leave from their annual leave entitlements as follows:

  1. Employees with less than three years of service with the company can en-cash unavailed annual leave up to a maximum of 8 days every year during their service with the company.
  2. Employees having three or more years of service with the company can en-cash unavailed annual leave up to a maximum of 10 days every year during their service with the company.
  3. The rate of payment will be based on the last drawn basic salary of the employee.

Employee Leave Policy

The employees of SMC are entitled to the following types of leave:

  • Annual Leave

Employees are entitled to 25 days annual leave in a year.

  • Medical Leave- Absence cause due to the personal illness or injury is adjusted from an employee’s Medical Leave Entitlement.
  • Maternity Leave- Female employees are entitled to avail maternity leave as per the following guidelines:
    • All female employees are entitled to avail 90 (ninety) days of maternity leave with full pay. Under special circumstance, leave may be extended (without pay) on request with the support of the supervisor and approved by the department head.
    • Maternity will be granted only twice during the entire period of service of an employee. Necessary supporting papers must be provided in this regard.
  • Paternity Leave- Male employees are entitled to avail paternity leave as per following guidelines:
    • All male employees are entitled to avail 3 (three) days of paternity leave per child.
    • Paternity will be granted only twice during the entire period of service of a male employee.
    • Paternity leave days may be avail before or after child delivery or in combination of days before and after delivery.
  • Bereavement Leave- In the event of the demise of employee’s spouse, child, parent, an employee may be granted Bereavement Leave upto a maximum 5  (five) days in a year.

Performance incentive

Performance Incentive

The individual performance incentive recognizes an employee’s extraordinary contribution to increasing the company’s productivity and effectiveness in pursuit of its objectives. It is intended to encourage and reward individual performance that EXCEEDS THE PERFORMANCE STAARDS NORMALLY EXPECTED of the employee. The performance standards that must be exceeded are:

  • Individual- those standards incorporated in the employee’s job description, and specific goals.
  • Collective – the attainment of the total cost recovery for the company as a whole and for specific field offices.

1. Eligibility

Any employee whose overall performance for the year is rated as “very good or above” in the annual performance review is eligible for the “individual” component of the performance incentive. Any head office or sales area based support staff whose overall performance for the year is rated as “fully satisfactory “in the annual performance review is eligible for the “collective” cost recovery component of the performance incentive. This includes employees who were in their probationary period during part of the year.

For all direct sales staff, performance incentives will be earned on the basis of the sales incentive scheme proposed in the annual marketing plan and approved by the board.

These staff will not be eligible for the national or area based “collective” total cost recovery component of the performance incentive.

2.  Fixing the size of the performance incentive

  1. Each year’s annual performance incentive is allocated from that year’s increased sales revenues over the total sales revenues for the previous year. Accordingly, the total amount available for the annual bonus is not fixed, but will vary according to the company’s sales performance during the year. This will be approved by the board of director from time to time.
  2. Before the start of each fiscal year, the managing director and the division head will determine the total amount available for the year’s annual achievement incentives based on the year’s projected increase in sales revenues over that of the previous year. The total amount will reflect a prudent balance between the company’s needs to reward employees whose performance exceeds expectations, and to meet its corporate financial objectives. The total amount to be allocated to the annual performance incentive is subject to the approval of the board of directors. It will be submitted to the board as an element of the budget submission for the upcoming fiscal year.
  3. The managing director, in consultation with the division head will allocate the incentive money among the divisions.
  4. For head office and area office based support staff (other than senior sales manager/sales manager/AE and sales driver), the potential maximum incentive amount for each individual employee will be fixed at the average of two months FY2002 gross salary of the employee’s category. This fixed incentive amount may be reviewed at intervals of every two years, e.g. 2004, FY2006, FY2008, etc. any future increase in the incentive amount would be a percentage increase of this initial(i.e. FY002-based) fixed amount.
  5. For direct sales staff, (sales officers and sales promotion officer) the amount of the incentive will be fixed and proposed for approval by the board. This fixed incentive amount may be reviewed at intervals of every two years, e.g. 2004, FY2006, FY2008, etc. any future increase in the incentive amount would be a percentage increase of this initial fixed amount (see below, section b. iv).
  6. For senior SM/SM, AEs and Company Sales Driver, the incentive amount will be a fixed amount calculated on the basis of a fixed percentage of the amount for SOs and SPOs (described later) and approved by the board. Their incentive amount (this fixed percentage figure) in future will change with the increase in the amounts for the SOs and SPOs.

vii. Performance Incentives on individual component for Head Office Staff will be withdrawn if the total sales revenues earned falls below 90% of the annual target. For field staff (other than direct sales staff but including Sr. SM/SM, AEs), the individual incentives will be withdrawn if the sales revenues falls below 90% of the annual target, individual amounts on performance will be proportionately adjusted downwards.

3.  Types of Performance Incentive Award

There are two types of Performance Incentive Award Scheme:

  1. Sales Support Performance Incentive (Head Office staff, and Sales Office-based Staff);
  2. Sales Incentive for all direct sales staff.

A  Performance Incentive Committee administers the award of individual performance incentives. The Committee consists of five members nominated by the Division Head and appointed by the Managing Director to two-year terms. The Head of Human Resources & Legal Matters serves as the Committee’s Secretary. The man functions of the Performance Incentive Committee are;

  1. To review the individual performance incentive recommendations submitted by the Head of Human Resources & Legal Matters (ref: Section VI.(c) iii-v) ;
  2. To review individual performance targets mutually agreed to by the employee and his/her supervisor to ensure that the threshold for “outstanding” performance truly exceeds the normal expectations for the position:
  3. To review the distribution on performance appraisal scores to identify patterns of bias (too high or too low) in the ratings of supervisors.

Administration of the performance incentive award for head office and sales office-based support staff

The performance incentive for sales support employees is intended to encourage and reward high performance ABOVE  AND  BEYOND  THOSE  NORMALLY EXPECTED  in an employee’s specific area of work.

An employee whose overall performance for the year is less than completely satisfactory s not eligible for a sales support performance incentive award. The performance incentive award will be administered as follows

  1. The annual performance review discussion between an employee and his/her supervisor will include consideration of any work achievements during the review period that exceeded the performance standards that the employee is expected to meet. If mutually agreed between supervisor and employee, these are recorded in the standard individual achievement form that describes the achievement and serves as a recommendation for the award. This recommendation, together with the annual performance review, is submitted to the head of human resource & legal matters.
  2. The head of human resource & legal matters reviews each recommendation for a performance incentive against the employee’s normal performance expectations. This review may include further discussion with the supervisor and employee as needed. If the head of human resource & legal matters disagrees with the recommendation, he/she will communicate this to the supervisor and employee with an explanation for its non-acceptance. If the head of human resource & legal matters agrees with the recommendation, he/she will forward it to the performance incentive committee for review.
  3. The performance incentive committee will communicate its agreement with a recommendation to the head of human resource & legal matters, who will, in turn, record that agreement in the employee’s personal file and arrange for he payment of the award to the employee. If the committee disagrees with the recommendation, it will communicate its reasons in writing to the supervisor and employee, copying the head of human resource & legal matters.
  4. Of the total performance incentive amount, 25% will be awarded only on the attainment of total cost recovery in the national or regional/area as applicable. The remaining 75% will be awarded for individual performance.

The following table summarizes the eligibility requirements for head office and area based sales support staff:

Level of achievement
Incentive earned on:
Individual performanceCost recovery

 

Total incentive
Every goal met on deadline and quality exceptional. Additional initiatives taken and completed. Rated as “outstanding” in performance appraisal.75 % of fixed incentive amount25 % of fixed incentive100 % of fixed incentive amount
Every goal met on deadline and quality acceptable.. Rated as “very good” in performance appraisal.50 % of fixed incentive amount25 % of fixed incentive75 % of fixed incentive amount
Most high priority goals met by deadline with acceptable quality. Rated as “satisfactory” in performance appraisal.Not eligible25 % of fixed incentive25 % of fixed incentive amount
Most goals not met by deadline and/or quality of work is unacceptable. Rated as” not satisfactory “in performance appraisal.Not eligibleNot eligibleNone
  1. The level of performance achieved by an individual employee will be determined by the score rate by an employee on his/her annual performance appraisal and measured against the predetermined composite score range for awards for level of performance.
  2. Incentive for the area sales staff who support all area offices within region (i.e. Sr. SM/SM, HT&CI Officers and MVU Staff) will be tied to area sales targets and individual performance.

Fixation of incentive amount for Sr. SM/SM/AE and Sales Driver

The calculation of the potential maximum incentive amount for all staff mentioned above will vary by category of staff. These fixed incentive amounts may be reviewed at intervals of every two years. For the period FY2003-2004, the total performance incentive amounts for these sales support field staff has been fixed as follows:

Area executive5% over the average of the sales officers and sales promotion officer’s incentive amount combined.
Sales manager10 % over the average of area executive’s incentive
Sr. sales manager10 % over the average of sales manager’s incentive
Sales driver50 % of the incentive amount of sales officer’s incentive with whom the driver is attached.

The following table summarized the eligibility requirements for the sales incentive for sales support field staff:

Level of achievement
Incentive earned on:
Individual performanceCost recovery

 

Total incentive
Every goal met on deadline and quality exceptional. Additional initiatives taken and completed. Rated as “outstanding” in performance appraisal.75 % of fixed incentive amount25 % of fixed incentive amount100 % of fixed incentive amount
Every goal met on deadline and quality acceptable.. Rated as “very good” in performance appraisal.50 % of fixed incentive amount25 % of fixed incentive amount75 % of fixed incentive amount
Most high priority goals met by deadline with acceptable quality. Rated as “satisfactory” in performance appraisal.0 % of fixed incentive amount25 % of fixed incentive25 % of fixed incentive amount
Most goals not met by deadline and/or quality of work is unacceptable. Rated as” not satisfactory “in performance appraisal.0 % of fixed incentive amount0 % of fixed incentive0 % of fixed incentive amount

The level of performance achieved by an individual employee will be determined by the score rate by an employee on his/her annual performance appraisal and measured against the predetermined composite score range for awards for level of performance.

b. Sales incentive for direct sales staff

This incentive scheme is for those employees who are directly involved in the implementation of sales targets. They include sales officer/executive, sales promotion officer/executive.

This sales performance incentive for the different categories will operate on the basis of the following principles-

  1. Targets for sales officers are base on individual brand volumes, CYP and Revenue, and may also include other sales related criteria such as effective calls, outlet coverage etc. depending on the need to improve such performance.
  2. Targets for sales promotion officer will be based on both qualitative and quantitative measures such as doctor visits and their impact, seminars/workshops, inject able administrations, and condom sales to selective outlets.
  3. The concerned division head and head of sales will fix the criteria incentive amount for each criterion at the beginning of the financial year. These will be proposed in the marketing plan for approval of the board.
  4. Incentive for direct sales staff can be earned at only two level of achievement 10-105 and 106%
  5. The maximum incentive amount for each category of direct sales staff for FY 2003 has been approved as follows:
Categories of staff
Leave of achievement *
<100%101-105 %106 %>

 

Sales officer0Tk. 44,000Tk. 58,000
Sales promotion officer0Tk. 41,000Tk. 54,000
STD/AIDS program officer0Tk. 15,000Tk. 20,000
    

The percentage by which the objectives achieved must exceed the targets fixed for the year may very depending on the challenge and difficulty associated with the achievement of the projected sales targets/objectives for the various brands and products sold. This percentage may vary from year to year to reflect the company’s annual sales strategy and objectives.

  1. Direct sales staff will not be eligible for incentive on national or area based cost recovery.

Discipline

Each employee is personally responsible for following the company’s work rules.

a. Types of misconduct

Employee behavior that is inconsistent with the faithful discharge of his/her duties is considered to be misconduct, and is grounds for disciplinary measures that can be imposed by the employee’s supervisor. The following acts and omissions shall be treated as misconduct:

  1. Willful insubordination or disobedience of a superior;
  2. Theft, fraud or dishonesty in connection with company business or property;
  3. Committing, r involvement in, an act of bribery or any illegal gratification for personal gain;
  4. Habitual absence, or absence without leave for more than ten days;
  5. Habitual late attendance;
  6. Breach of any law or rule or regulation of the company;
  7. Riotous or disorderly behavior in the company;
  8. Habitual negligence or neglect of work;
  9. Resorting to illegal strike or ‘go-slow’;
  10. Falsifying, tampering with, damaging, or causing loss of company ‘s records or property;
  11. Conduct unbecoming of an employee of SMC;
  12. Any act subversive of company’s interest;
  13. Conviction for any criminal offence in the court.
  14. Sexual harassment (*deliberate offensive comments, gesture/physical contact of a sexual nature in work or work-related environment; * influencing or offering to influence, or threatening the pay or career of another person(male or female), in exchange for sexual favor)
  15. Receiving any gift or/and favor from any person/organization which effect the performance of official duties of an employee;
  16. Formation of any kind of association in the company which will effect the performance of official duties of an employee.

b.  Penalties for misconduct

An employee, if found guilty of misconduct, may be given any one or more of the following penalties depending on the gravity of offence, past conduct, and any other relevant circumstances:

  1. Dismissal from service
  2. Discharge from service
  3. Withholding of increment or promotion or both
  4. Non-payment of incentive for a specific period
  5. Suspension for 7 days without pay
  6. Warning letter

Human Resource Management

 

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