Term Paper of Legal

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Term paper on

Legal Environment of Business:

A Case Study on Orion Infusion Limited (OIL)


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Legal Environment of Business:A Case Study on Orion Infusion Limited (OIL)

Md. Anwarul IslamCourse Coordinator

Business Administration,

Stamford University, Bangladesh

Legal Environment of Business

Sampad Tarafder

ID No: 04011173Md.Ahtasur Rahman

ID No: 04011242

Shakhawat HossainID No: 04011174

Md. Shawkat HossainID No: 04011163

Stamford University, Bangladesh.

August 10, 2011


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Letter of Transmittal

Date: August 10, 2011

Department of Management Studies

Faculty of Business Administration

Stamford University, Bangladesh

Subject: Submission Report on Legal Environment of Business

Dear Sir,

Here we are submitting our report on Facilities provided to a worker under the labor

act 2006, case study on Orion Infusion Limited (OIL) prescribed by you in your

course Human Resource Management. For this Purpose, we have gone through

internet, different books, articles, journals, interview of authorities and employees ofthe respective organizations and class lecture sheets for the relevant information of the

assigned topic.

Please call me for any further information at your convenient time and place.

Yours truly,

Sampad Tarafder Md.Ahtasur Rahman

Shakhawat Hossain Md. Shawkat Hossain


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Acknowledgement

At first we desire to express our deepest sense of gratitude of almighty Allah.

With profound regard we gratefully acknowledge our respected course teacherMd. Anwarul Islam, Department of Management Studies, Faculty of Business

Administration and Management for his generous help and day to daysuggestion during the survey.

We like to give thanks especially to our friends and many individuals, for theirenthusiastic encouragements and helps during the preparation of this report usby sharing ideas regarding this subject and for their assistance in typing and

proof reading this manuscript.


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Table of contents

1. Introduction

1.01 Executive Summary .......05

1.02 Scope and Objective of the Study ..06

1.03 Methodology of the Study... ...07

1.04 Limitation of the Study............08

2. Description

2.01 Company chronology ..... ..09

2.02Skilled People are There Asset .. .10

2.03 Company Organ gram ....... . 11

2.04 Human Resource Management .... . 12

2.05 Human Resource Planning....... ..13

2.06 Recruitment and Selection ... ..... 14

2.07 Job Analysis and Job Description .......16

2.08 Job Design ......16

2.09 Job Evaluation .17

2.10Training and Development .....17

3.0. Findings and Analysis ....19

4.01. Conclusion......20

4.02. Bibliography ..........21

Chapter 2

Chapter1

Chapter 3

Chapter 4


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Executive Summary

This report is an assigned job as a partial fulfillment of course requirementby honorable Course teacher Md. Anwarul Islam, Department of

Management Studies, Faculty of Business Administration and Management,

Stamford University. It is the optimum aggregated outcome of 5 pupils

about Human Resource Management Practice Of Bangladesh A Case

Study On Orion Infusion Limited. The goal of this report is to find out the

Human Resource Practices of Bangladesh, in case of Orion Infusion

Limited. Orion Infusion Limited committed to draw the most talented and

dynamic professionals from the available candidates. They consider their

skilled people as asserts for their organization. The main goal of Orion

Infusion Limited is the continuous development of the human resources

(HR) through appropriate training and motivation.

Their human resource department (HRD) trusts in team work and

respect each other. For managing the human resource OIL follow the

different steps. At first they plan their human resource for recruiting and

selecting the most talented and dynamic professionals from the available

candidates. OIL provides training and development activities to develop

their employee with future advancement and educate them in jobs kills.

Taking constructive steps they are trying to develop the skills of the humanresource pool.


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Scope and Objective of the Study

As a business expectative in future, we should have to gather experience

beside our survey. We should not concern our lesson only in classroom butto implement it in practical life that will help us in our future life .A clear

objective help in preparation of well decorated report in which other take

the right type of decision .So, we identifying objectives is very much

important. Our purpose of preparing the report is:

To know the Facilities provided to a worker under the labor act 2006,

practice of Orion Infusion Limited

To identify the various avenues for improving the Facilities provided to

a worker under the labor act 2006, policies of Orion Infusion Limited

To know about the management ability of Orion Infusion Limited

Suggesting strategies to improve the Facilities provided to a worker

under the labor act 2006,policies of Orion Infusion Limited.

This study covers the Facilities provided to a worker under the labor act 2006, policies of Orion Infusion Limited along with some recommendations to

improve the Facilities provided to a worker under the labor act 2006, policies of

Orion Infusion Limited.


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Methodology of the Study

This report is based on both primary and secondary data. Initially, the work is

started with data those were available at Companys Annual Report and

companys news letter. Moreover, it becomes helpful to gather some more

information from the website of the company.

Later on, the work progressed through some depth interviews of good range

professionals trying to heat some expected area of the study. After that, an

effective questionnaire is designed to collect likely data from the target group of

people.

Then we analyze those data from many angles, in different aspect and present

the information in different segment according to their category, in compact

way. We highlight different important things, which we found during our

survey. After doing all of those we submit the report to the proper authority.


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Limitations of the Study

As a student of faculty of Business Administration and Management, 6th

semester, this is our first initiative for making a report on Facilities provided to a

worker under the labor act 2006, a Case Study on Orion Infusion Limited bymeeting a survey. I was really unable to collect enough information from due to

their official restrictions. Many things were so confidential that I was not entitled

to access there. Beside this we have faced the following hindrances in preparing

this report:

Lack of knowledge and experience

Short of time

Lack of computer facilities

Lack of sufficient privileges

Lack of communication facilities

The survey report focuses on Human Resource Management Practice of

Bangladesh a Case Study on Orion Infusion Limited The survey may not be

more comparable or more valid. Moreover, the report is emphasized on the

primary data such as interview of the human resource manager of Orion Infusion

Limited. Here we consider the information to prepare this report that we collect

from the annul report and our survey.


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Company Chronology

Founded in 1989 Orion Infusion Ltd. is a state-of-the-art Large Volume

Parenterals (LVP) manufacturing company. It is inception; the company was

named as Mala Chemical & Pharmaceuticals industries Ltd. which became a

public limited company in the year 1994. The company is devoted to producing

LVP products and other life saving IV fluids. Orion Infusion Ltd. (OIL) has

created a new vista in manufacturing large volume parenteral (LVP) products in

Bangladesh. Manufacturing excellence is one of the core strengths of Orion

Infusion Ltd. OIL is in the pursuit of using the state - of - the - art technology

and high level quality assurance in their production which ensuring products of

international standard. Through proper documentation and implementation of

quality management system through out the organization, OIL has achieved ISO

9001:2000 version certification from United Kingdom Accreditation Services

(UKAS) Quality Management System, UK.

The overall management of Orion Infusion Ltd. is vested in a board of director

which is accountable to the shareholders and entrusted with the responsibility to

guide the company towards realizations of its objectives in order to maximizeshareholders wealth. A sound system of internal and financial control has been

established by OIL, which involves periodical reporting, continuous audit of

different segments of the business and budgetary control to ensure optimum

utilization of the companys resources.OIL is a highly professionally managed organization. A team of skilled

professionals has been dedicating their efforts in order to achieve the corporate

objectives.


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Skilled People are their Asset

They are committed to ensuring their business practices meet high standards and

that their employees behave ethical standards act responsibly and comply with

the law. Competitive advantages can only be achieved by building up highly

motivated and skilled employees at all levels that we enable organization to

compete in a fiercely competitive market scenario and to respond appropriately

to the market needs, with regard to quality products and services and

technological innovations.

Orion Infusion Ltd. puts maximum emphasis on tits vision to be regarded as

World Class Infusion Company and to be the best in the country, both in term of

turn over and profit. So the management of Orion has embarked upon on

arduous program for development of employee competence through continuous

training and counseling.

To augment all activities related to development of Human Resource, the

management has established a Human Resource Department and hired on

experienced manager for its operation.

The highly skilled professionals of OIL:

Skilled Professionals Numbers

Pharmacists 05

Chemists 14Microbiologists 02

Engineers 08

Doctors 01

Graduates More then 300


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Human Resource Management

The term human resource refers to the people in an organization. Humanresource management is concerned with people dimensions in management.

When managers engaged in human resource activities as a part of their job, they

seek to facilitate the contribution; people make to achieve an organizations

strategies and plans.

Human resource management encompasses those activities designed to provide

for and co-ordinate the Human efforts, so that they can contribute to achieve the

goals of the organizations.

Human resource department of OIL follows the following steps for managingthe human resource.

1. Human Resource Planning Policies of Orion Infusion Limited

Human resource planning is the process of estimating human resource needs for

achieving human resource and organizational goals. It is the process through

which organizational goals are translated into objective. At Orion Infusion

Limited, they believe that their Human Resources give the company a significant

competitive edge in terms of knowledge and experiences.

Along the line up adopting new innovative and advanced technologies for its

high-tech manufacturing plant, the company continued to draw talented and

dynamic professionals of the industry, as well as, taking constructive steps in

developing the skills of the human resource pool.

The effective working days of this organization is 6 days per week and each

employee will work 8 hours per day.

If it is required to slot in them for overtime duties then the duty time will be

utmost 60 hours/ weeks.

For festival leave, usually they will get the vacation of 13 days.

Orion Infusion Limited usually paid their salaries to employees within 10 days

of the next month.

They try maintaining to continuous development of the human resource throughappropriate training and motivation.


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2. Recruiting and Selection Policies of Orion Infusion Limited

Recruiting is the process of searching the potential job candidates in order to fill

up the vacant position of the organization and selection is the process of

choosing the best candidate among the available candidates. The candidates who

are successfully perform the job.

Orion Infusion Ltd. follows both the internal and external sources of recruitment.In case of internal source they mainly follow promotion, transfer and job

rotation and in case of external source they follow advertisement, employment

agency.

In case of recruitment and selection Orion Infusion Limited considers the

following process:

Need assessment

Orion Infusion Limited take need assessment to identify in which sector, it isneeded to recruit the employee for achieving their target and goals. In their

assessment they have to realize that they need human resource (HR) in the

following situation- vacancy in existing post(s), market expansion, increase in

production capacity, launching new product, introducing new system.

Checking the recruiting options

Internal

Current employees are a major source of recruits the employees but entry-level

position. Internal source are included- promotion, transfer, job rotation, friends

and relatives of existing employees. In Orion Infusion Limited promotion and

transfer are typically directed by operating manager with little involvement by

the HRD.

External

When job opening can not be filled internally, the HRD must look outside

organization for expert employees. External source included- advertisement,

employment agencies, and campus recruiting. Usually Orion Infusion Limited

considers the advertisement for their external recruiting. They mainly provide

the notice of available job in both Bangla and English dailies.

Screening and Short-listing Applications

The responses to the advertisements are sorted and screened. The CVs as well as

the covering letters are judged. Experience, educational degree, computer

literacy, etc are the basis of judging the candidates application.

Written test

It is the mot important and effective tool for judging the candidates. The written

test includes IQ test, behavioral competencies, and communication skills.


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Interview

The selection interview is a formal, in-depth conversation conducted to evaluate

an applicants acceptability. Trough interviews the interviewers of Orion

Infusion Limited seek to answer three broad questions:

1. Can the applicant do the job?

2. Will the applicant do the job?3. How does the applicants compare with other who are being considered for

the job?

Selection interview are most widely used selection technique. They can be

adapted to unskilled, skilled, and managerial and staff employees. They also

allow two-way exchange information: interviewers learn about the applicant and

the applicants learn about the employer.

Reference checking

Reference and background check are important, which refers the process to

undertake of those application that appear to offer potential as employees.

Reference check is indented to verify that was state on the application from

correct and accurate information. Some question are arises through reference

checking. Those are:

1. Is the applicant a good, reliable worker?

2. Are the job accomplishments, titles, educational background, and other

facts of the Resume or application true?

3. What type of person is the applicant?4. What information id relevant to match the applicant and the job?

Medical check-up

Normally, the evaluation consists of a health checklist and asked the applicant to

indicate the health and accident information. The medical evaluation may:

1. Entitle the employer to lower health or life insurance rates for company

pain insurance.

2. Be required by state or local health officials, particularly in food handlingoperations where communicable diseases are a danger.

3. Be useful to evaluate where the applicant can handle the physical or

mental stress of a job.

Offer letter

When the candidates satisfy the Human Resource Recruiting Broad, then the

broad provide to the candidate offer letter.


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Orientation /induction

Through orientation Orion Infusion Limited thy to introducing the new comers

or new employees with its work unit, rules and regulation, culture, norms, value,

believe and exposure to all important functions and locations of the company

and so forth.

Follow up

For make the employee more effective and efficient Human Resource

Department continuously interacts with the new entrants assisting to cope up

with the work environment, work culture, peer groups etc. In this stage the

management tries to help the employee to get settled her/his problems in the job,

work environment and workplace-culture.

3. Training Policies of Orion Infusion Limited

Training is a learning process that involves the acquisition of skills, concepts,

rules, and attitudes to increases the performances of the employees in the

organizations. On the other hand development is more future oriented, and more

concerned with education, than is employees training or assisting a person to

become a better performer. Orion Infusion Limited gives emphasis both for

internal and external training. Any new operations or product is marketed, they

gives training to the employees attached to the operations. Development helps

the individuals handle future responsibilities, with little concern for current job

duties.

In order to excel in a competitive marketing environment there is no alternative

to development knowledge and skilled level of people through training. Training

and development program of OIL include orientation activities that

Inform employees of policies and procedure of OIL

Educate them in job skills

Develop them for future advancement

Needs

assessment

Evaluationcriteria

Learning

Principles

Actual

program

Skills,

knowledge,

ability of

workers

Evaluation

Program

content

Training &

development

objectives


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Figure: Preliminary steps involve in preparing a training and development program

The above figure shows the sequences that should be followed by OIL beforeany training and development begin. Need assessment identify the current

problems and future challenges to be met through training and development.

Then they set different training and development objectives for the new comers/

employees. Actual training program are set from the available program

according to the performance of the employee. After the end of training period

their skills, knowledge, and ability of working are evaluated. In the year 2006,

the following training programs were conducted:

MPO Recruitment training Team building and leadership

Development of team building and leadership

Development of managerial skills

4.Job Analysis and Job Evaluation Process of Orion Infusion Limited.

Job Analysis

Job evaluation is the process of appraising the different positions of employees

in the organization with a view to establish a well conceived for pay-structure.For job analysis OIL consider several common uses such as- job definition, job

re-design, orientation, socialization, carrier counseling, employee safety,

performance appraisal and compensation. OIL follows the observational method

for job analysis. In this process they observe the individual or individuals

performing the job and pertinent notes describing the jobs or describing the

work.

This information includes such things as what was done, how it was done , how

long it do, what the job environment was like, and what equipment was used. In

this process information about jobs is systematically collected, evaluated, andorganized. This action are usually done by human resource specialized about

each job and every person in the organization. In the time of job analysis

following matters are need to be considered:

1. Identify the job to be analyzed.

2. Develop a job analysis questionnaire.

3. Collect appropriate job analysis information.

Job EvaluationOrion Infusion Ltd. follows the Ranking and the Classification method for

evaluating the job. In case of ranking method a committee typically compared of


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both management and employee to representative to arrange the job in a simple

rank order, from highest to the lowest rank. In case of classification method this

classification are created by identified some common denominators like skills,

knowledge, responsibilities with the desired goals being the creations of a

number of distinct classes on grades of jobs.

5. Performance Appraisal System of Orion Infusion Limited

Performance appraisal information can provided needed input for determining

both individual and organizational training and development needs. Another

important use of performance appraisal is to encourage performance

improvement. In this regard Performance appraisals are used as means of

communicating to employees how they are doing and suggesting needed

changes in behavior, attitude, skill or knowledge.

For apprising the performance Orion Infusion Limited (OIL) consider the

different criteria of the employee, such as attendance, attitude, cooperation,

initiative, dependability, quality of work, overall output, honesty, personality,

ready to take challenge etc.

The process of evaluating the performance of the employee of Orion Infusion

Limited are shown in the following chart-

Employees name .

Department .

Raters name

Date

Excellent Good Acceptable Fair poor

1. Attendance

2. Attitude

3. Cooperation

4. Initiative5. Dependability

6. Quality of work,

7. Ready to take challenge

8. Overall output

9. Honesty

10. Personality

Total

Total Score


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Based on the above mentioned criteria the rater provides score to the employee

and according to the total score their performance is appraised.The human

resource department (HRD) of OIL usually designed and administers the above

performance appraisal systems. For evaluating the performance appraisal OIL

mostly follows the rating scale method.

6. Promotion Policies of Orion Infusion Limited

The movement of personnel within an organization- their promotion, transfer,

demotion, and separation is a major aspect of human resource management. The

actual decision about whom to promote, and whom to fire can also be among the

mot difficult, and important, a manager has to make. For every organization

promotion is extremely important, when the process based on merits and skills

of the employee. The employee of Orion Infusion Limited are gets both rewards

and punishment from their employer based on their performance. Usually money

transfer or other benefits are provided as rewards. On the other hand a major

problem of promotion is discrimination and favoritism.

7. Pay Policies of Orion Infusion Limited

Once the job evaluation is complete, the data generated become the nuclease for

the development of the organizations pay structure. This means pay rates or

range will be established that are compactable with the ranges, classifications, orpoint arrived at through job evaluation.

Pay structure

No information is given, as this is considered highly restricted information.

Provident FundIn Orion Infusion Limited 12% of the basic salary goes to the provident fund

and the employee pays the same amount of their basic salary.

Medical Facilities

Doctors are arranged to visit each location of numbers of times a week to

provide necessary medical support to the employees. Moreover, the non-

management staffs enjoy medical treatment at Holy Family Hospital at company

arrangement.

Health Insurance Policy

No information is given by the authority of OIL.


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Findings and Analysis

a) Orion Infusion Ltd. beliefs, in present competitive and dynamic environment

human resource department are the most valuable department than the others.

b) They consider their skilled people as asserts for their organization.

c) OIL committed to draw the most talented and dynamic professionals from the

available candidates.

d) Orion Infusion Ltd. follows both the internal and external sources of

recruitment.

e) Training and development programs of OIL include orientations, and

socializations activities to inform employees about policies and procedures.

f) OIL try to develop their employee with future advancement and educate themin jobs kills.

g) For job analysis OIL consider several common uses such as- job definition,

job re-design, orientation, socialization, carrier counseling, employee safety,

performance appraisal and compensation.

h) Orion Infusion Ltd., design their job in such way, which is the right person at

the right place at the right time to achieve their objectives and goals.

i) Orion Infusion Ltd. follows the Ranking and the Classification method for

evaluating the job.

j) For evaluating the performance appraisal OIL mostly follows the rating scale

method.

k) Taking constructive steps they are trying to develop the skills of the human

resource pool.

l) Their human resource department (HRD) trusts in team work and respect eachother.


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Conclusion

In present competitive and dynamic environment, human resource are

now being viewed as the most valuable mean for gaining advantages

over other. Competitive advantages can only be achieved by building

up highly motivated and skilled employees. To fulfill the vision,

mission, and core objectives of a company the management has needed

to established a effective and efficient human resource department and

hired the confident and most promising professionals.


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Bibliography

DeCenzo David A. and Robbins Stephen P., Personnel/Human Resource

Management, Prentice-Hall of India Private Limited, 5 August (2005), p.p. 148-227

Annual Report, Orion Infusion Ltd., Financial year 2008-2009, p.p. Al.

Karim Md. Ebadul, Chief Human Resource Officer, Orion Infusion Ltd.

Werther William B. and Davis Keith., Human Resource and Personal

Management, Mc Graw Hill Book Company, Boston, USA-1981,p.p. 181-241.

Stoner James A.F. and Freeman R. Edward and Jr. Daniel Gilbert.,

Management, Prentice-Hall of India Private Limited (2003), Sixth

Edition,p.p.374-402

Human Resource Management Practices in Bangladesh: http// www.

hrmpb.com/

Human Resource Management Practices in the 21st Century: http// www.

hrmp21.com/

Human Resource Management and Expatriate: http// www. hrmexp.com/

Retrieved date June 25, 2007.

Human Resource Management of BCCP,Bangladesh: http// www. hrm. bccpba.com/

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