A REPORT ON BRITISH AMERICAN TOBACCO
1.0 Introduction 1.1 History of the Organization British American Tobacco (BAT) is the world’s most international tobacco group. British American Tobacco is the second largest Tobacco Company in the world .With a market share of 17.2 per cent, they make the cigarette chosen by one in seven of the world’s one billion adult smokers and make nearly two billion cigarette world wide everyday. BAT holds strong market positions in each of its regions and has a leadership in more than 50 markets of the 180 markets where they have an active business presence. In total BAT employs nearly 90,000 people world wide and has over 80 factories in 68 countries. Tracing its heritage back to a joint venture formed by the Imperial Tobacco Company of the United Kingdom and The American Tobacco Company of the United States in 1902, today's British American Tobacco Company was born. It was quickly expanded into major markets including Australia, Canada, China, Germany and South Africa. Throughout the 20 th century, BAT traded through wars, revolutions, nationalizations and controversy surrounding smoking. Time periods Events 1998 De-merger of financial services and British American tobacco PLC. listed on the London stock exchange as a stand-alone business 1999
Global merger with Rothmans International
2000
Imperial Tobacco Canada became a subsidiary
2001
Major investments announced in South Korea, Turkey, Vietnam, Nigeria and Egypt
2003
Won the bid for Italy’s state tobacco company, ETI
2004
The US businesses of our subsidiary Brown & Williamson combined with R. J. Reynolds to form Reynolds American, in which BAT has a 42 per cent share
2005
Share price rose above ₤10 for the first time
2006
Expanded test-markets of smokeless Swedishstyle snus in Sweden and South Africa and began a pilot in Japan
2007
Share price rose above ₤16 for the first time
Table 1: Chronological view of BAT BAT has a plan to build their business in three ways: Organic growth in their existing markets Quick and effective entry into new markets and Potentially attractive acquisition, joint ventures or other strategic alliances. The merger of British American Tobacco with Rothmans International had been announced on 11th January 1999.This global merger was completed on 7th June 1999. This brings together the number 2 and 4 players which will boast a combined volume exceeding 900 billion cigarettes around the world. The merger will help to attain in British American Tobacco’s vision of becoming the world’s leading International Tobacco Company. The British American Tobacco Group is one of the world’s leading international manufacturers of cigarettes, marketing its products in almost every country worldwide. It is the clear leader in a competitive and fast moving business. The group consists of four tobacco subsidiaries, which are given overleaf: • British American Tobacco Company Limited, which produces cigarettes in over 45 countries for domestic and foreign markets in Europe, Australasia, Latin America, Asia and Africa. • Brown & Williamson Tobacco Corporation is the third largest tobacco company in the US. • British American Tobacco (Germany) GMBH is a leading cigarette company in Germany. • Souza Cruz S.A. is the market leader in Brazil and a world leader in tobacco leaf export. Its aim is to grow its share in the world market and its profitability within the share- by offering more brands against competitors, and by running its business efficiently and well. With its current position and plans, BAT is heading towards obtaining its objective, which is to be the world’s number one in tobacco industry. Tobacco Companies Philip Morris British American Tobacco Japan Tobacco Imperial Tobacco Gallaher Altadis others Table 2: International Market share 2006
Percentage 18.7 17.1 7.7 3.5 3.1 2.1 47.8
Philip Morris
18.7
British American Tobacco Japan Tobacco
47.8
Imperial Tobacco 17.1 2.1 3.1 3.5
Gallaher Altadis
7.7
others
Figure 1- International Market share 2006(Source: BATB) BRITISH AMERICAN TOBACCO
Brown & Williams
British American
British American
Tobacco Corp.
Tobacco Company
Tobacco (Germany)
America-
Latin
Pacific
America
Europe
Africa
Souza Cruz
Asia-
MESCA
Pacific
British American Parent Company
Tobacco Bangladesh
Subsidiaries Regional Operations
Figure 2: British American Tobacco worldwide (Source: BATB) The figure in the previous page depicts that BATB is an Operating Company under the AsiaPacific region, which again operates under BAT Co. of British American Tobacco Group. Previously, BAT Bangladesh used to report to the MESCA regional headquarters for its performance review and strategic direction guidelines. But from January 1, 2002 BATB became a part of ASIA PACIFIC and reports to its respective headquarter in Malaysia. British American Tobacco Bangladesh Company Limited is one of the largest private sector enterprises in Bangladesh, incorporated under the Company’s Act 1913 on 2 nd February 1972 and since than it has been the market leader in the country. Based in Dhaka the company has one packaging factory in Dhaka and one leaf-processing factory in Kushtia. In its effort to create an international market for Bangladeshi leaf tobacco the Company has been exporting tobacco to markets in developed countries like UK, Germany, Poland, Russia and New Zealand.
Vision
To extend our leadership through world-class performance.
Mission
Growing our share of the total tobacco market Dominating key identified segments Table 3: Vision and Mission of BAT In its brand portfolio British American Tobacco Bangladesh has a wide range of cigarettes for different consumer segments. Starting from Benson & Hedges (Lights & Regular), which are currently imported from Europe to locally produced International Brands such as John Player Gold Leaf (Lights and Regular), Pall Mall(Lights and Regular), and also National Brands like Capstan, Star family and Scissors family are members of the portfolio. BATB strictly practices the industrial safety measures and is committed to conform to internationally accept environmental standards. All of the BATB areas are equipped with sufficient equipment, gears and water supply. BAT group head quarters recognized BATB’s level of safety practices with awards. It has also received five times the prestigious “Prime Minister’s Award” for afforestation and nine times “Zero Accident Award”. British American Tobacco Bangladesh is involved in various types of social activities. It is proactively involved in afforestation program in the rural areas of the country since 1980’s. Every year it distributes amongst the farmer and other agencies over two million plants free of charge. Till now the company, has planted 5 million trees across the country. Besides this, the company is also involved in vegetable seed multiplication project, supports philanthropic organizations like Sandhani and other Social and Cultural groups, IT education in the name of Dishari. The parent company of BATB is called BAT Co or British American Tobacco. They are the major shareholder of BATB. The operations of BATB are done according to BAT Co regulations and BAT Co looks after the management of BATB. BATB management is trained by BAT Co and on many occasions BAT Co sends their own managers to work in BATB. Different departments have different structure according to their function and responsibility. BATB maintains a modern organizational structure headed by Managing Director. Managing Director is the operational head and national sales manager. Head of every department carries out their functions with the help of line managers. Other positions of the organ gram are directors, regional manager, secretary, assistant manager, area manager, territory officer, supervisor and other staffs. The “Board of Directors” and Executive Committee (EXCO) govern the overall activities of the company. The Board of Directors is responsible for protecting the rights and interests of all shareholders and is held accountable for the overall management of the entity. The British American Tobacco Bangladesh Board consists of nine Directors, comprising the Non-Executive Chairman, five other Non-Executive Directors and three executive Directors which include the Managing Director. The key functions of the Managing Director are clearly defined. The Board is responsible for the overall system of internal control for the company and for reviewing the effectiveness of these controls. Responsibilities for implementing the company’s strategy and day to day operations are delegated to the Executive Committee, which meets monthly. The Executive Committee is chaired by the Managing Director. The other members include the Deputy Managing Director and the functional heads of Human Resources, Corporate and Regulatory Affairs, Operations, Leaf, Marketing, Finance and Information Technology. The composition of shareholders of BATB as at 31st December, 2006 was as follows: Shareholders Total No. of Shares Holding %
Raleigh Investment Co., UK Investment Corporation of Bangladesh (ICB)
39,545,358 shares 14,084,960 shares
65.91 23.47
Sadharan Bima Corporation (SBC)
1,692,397 shares
2.82
Bangladesh Shilpa Rin Shangstha (BSRS)
635,269
shares
1.06
Sena Kalyan Shangstha (SKS)
314,958
shares
0.52
Government of Bangladesh
386,824
shares
0.64
Other Bangladeshi Shareholders
3,340,234 shares
5.58
40,000,000 shares
100.00
Table 4: The Composition of Shareholders in 2006 5.58 0.64 0.52 1.06 2.82
23.47
65.91
1.2
Raleigh Investment Co., UK Investment Corporation of Bangladesh (ICB) Sadharan Bima Corporation (SBC) Bangladesh Shilpa Rin Shangstha (BSRS) Sena Kalyan Shangstha (SKS) Government of Bangladesh Other Bangladeshi Shareholders
Figure 3: Composition of Shareholders in 2006 (Source: BATB) Objectives of the Organization
The company sets the following objectives for it to achieve: • To strive hard to optimize profit through conduction of transparent business operations within the legal and social framework with malice to none and justice for all • To create more jobs with minimum investments • To be competitive in the internal as well as external markets • To maximize export earning with minimum imported in-puts • To reduce the income gap between top and bottom categories of employees. Vision “To extend our leadership through World Class performance.” Mission • Growing our share of the total tobacco market. • Dominating key identified segments. 1.3 Functions of the Organization BATB is a process-based organization, instead of having isolated departments the company has some support functions and some core functions. Typically the structure of the organization can be explained through the supply chain. In BATB it is called seed to smoke as the supply chain process. The core functions of BATB are: • Leaf
• Production • Brand Marketing • Trade Marketing • CORA. Along with the core functions there are some support functions such as • HR • IT • Finance 1.4 Organogram of the Organization M a n a g in g D ire c to r
H e a d o f T ra d e M a rk e tin g a n d D is trib u tio n
H e ad o fT rad e M a rk e tin g
S u p p ly C h a in M anager L o g is tic O ffic e r T ra d e D e v e lo p m e n t M anager S a le s P ro m o tio n O ffic e r R e g io n a l M a n a g e r
P ro d u c tio n D ire c to r
H ead of P erso n n e l
F in a n c e D ire c to r
P ro d u c tio n P la n n in g M anager
P e rs o n n e l S e rv ic e s M anager
C h ie f A c o u n ta n t
P ro c u re m e n t M anager
P e rs o n n e l P la n n in g A n d D e v e lo p m e n t M anager
M a n a g e r A u d it
T e c h n ic a l s e rv ic e M anager
E m p lo y e e R e la tio n M anager
M a n a g e m e n t A c c o u n ta n t
P la n t M a n a g e r
S e c u rity M anager
H ead o f B ran d M a rk e tin g
B ran d M an ag er
A s s is ta n t B ra n d M anager
M a n a g e m e n t S e rv ic e s M anager
D e p u ty M a n a g in g D ire c to r In c h a rg e o f L e a f D e p a rtm e n t R e s e a rc h /P ro je c t M anager CRO P
G L T P la n t
B le n d in g a n d L ab A d m in is tra tio n
Flow Chart:
Organizational Structure
A re a M a n a g e r
T e rrito ry O ffic e r
H ead of B ra n d M a rk e tin g
Sources- BATB
H ead of C o rp o ra te a ffa irs
BRITISH AMERICAN TOBACCO BANGLADESH
Managing Director
Deputy Managing Director
HR
Head of IT
Head of Brand Marketing
Head of Trade Marketing
Head Of Production
Flow Chart:
Head of Finance
Head Of Leaf
Head of Executive Human Resources
Executive Committee
Source-BATB Figure 5: Executive Committee 1.5 Existing Programs of the Organization
Exports finished products
Offers quality products at competitive price
Offers more than 250 off-patent and on-patent molecules
Offers facilities for contract manufacturing
Provides assistance in product promotion and training in overseas markets
1.6 Future Programs of the Organization British American Tobacco is the world’s most international tobacco group, successfully pursuing a consistent strategy that is building long term shareholder value. The four building blocks of our strategy are Growth, Productivity, Responsibility and developing
a Winning Organisation. Each is interdependent and essential for delivering profit growth and long term business sustainability. "We have confidence in our strategy, we believe that our business is sustainable and we expect that British American Tobacco will continue to grow." Paul Adams, Chief Executive, British American Tobacco. Although our products pose risks to health and our industry can be seen as controversial, our products are legal, calls for prohibition are exceptionally rare and about a billion adults globally choose to smoke. We work continuously to manufacture and sell our products responsibly. Through more than 100 years of operations, we have built a strong international reputation for high quality tobacco brands to meet consumers’ diverse preferences. And, over the past five years for example, we have delivered significant shareholder value with a total return of 294 per cent, compared to 89 per cent for the FTSE 100 as a whole. Q&A with Paul Adams, our Chief Executive, about the way ahead. 2.0 Research Methodology This report is a descriptive one, which was administered by collecting primary and secondary data. Descriptive Research has an important objective: gives description of something marketing characteristics of function (Malhotra, 2006) and also the description of phenomenon or characteristic associated with an object population (who, what, when, where and how of a topic, Copper, 2006). An effective guideline to recruit, select, direct, supervise & control the overall activities of Field Force�, it is a difficult and complicated task and no single method is appropriate for preparing the report. For this reason, a number of procedures have followed to prepare a meaningful report. The methodology of the task can be depicted as follows: 2.1 Statement of the Problem The main focus of this report is on the strategic human resources management practices in the public or private sector organizations in Bangladesh. It also pays attention to the potential and existing employee of the organization. The main purpose of this report is to be familiar with the various dimensions of human resource activities in the organization. 2.2 Rationale of the Study This report is aimed at the human resource practice in Bangladesh. It is prepared on the basis of self effort and the data collected from different source. This report strictly followed the class lecture and valuable guidelines of course teacher. Obviously this report will enhance level of knowing of us about the HR practice in the organization and will help to apply in practical .It will also help to develop the leading efficiency for the student of human resource. 2.3 Objectives of the Study The objective behind this study is something broader. Objectives of study are summarized in the
following manner: • •
To observe the working environment in multinational company. To have some practical exposures that will be helpful for my future career.
•
To Find out the areas needed to be improved in order to make the business efficient and effective.
•
To identify the problems and to provide measures to solve them.
2.4 Collection Procedure of Data Personal interview technique was the primary tool used in collecting information. Oral Interview with distribution field force in order to discuss about the related matters before preparing the report. Area Manager and Territory officer of BATB from Dhaka division (Area 4) were the main sources of secondary data. This study covered two types of data, which are: 2.4.1 Primary data Primary data has collected through unstructured personal interviews and discussions with officials of British American Tobacco Bangladesh Limited. 2.4.2 Secondary Data: Secondary data has been collected through relevant books, annual report and different manuals of BATB, and other published papers. 2.5 Analysis of Data Collected data are analyzed by using percentages, graphs to draw the conclusion. All the data have shown in tabular form. 2.6 Data Presentation We have presented the data through pie chart, which shows the corresponding years and the required information and also in percentage. 3.0 Findings of the Study 3.1 Nature of SHRM & HRIS A comprehensive Human Resource Strategy plays a vital role in the achievement of an organization’s overall strategic objectives and visibly illustrates that the human resources function fully understands and supports the direction in which the organisation is moving. A comprehensive HR Strategy will also support other specific strategic objectives undertaken by the marketing, financial, operational and technology departments. In essence, an HR strategy should aim to capture "the people element" of what an organisation is hoping to achieve in the medium to long term, ensuring that:-
• • • •
it has the right people in place it has the right mix of skills employees display the right attitudes and behaviors, and employees are developed in the right way.
BATB is a public limited company. Management Director is the operational head and appointed by the British American Tobacco. Head of every department carries out their functions with the help of line managers.
Head of HR
EmployeeRelations Relations Employee Manager Manager
HRM-Leaf GLT
IR & Welfare Manager
Remuneration, Remuneration, Systems&&IA IA Systems Manager Manager
Organizational Organizational Development Development Manager Manager
HRMOperations Operations HRM Manager Manager
HRM-L Payroll & Funds Manager
HRM Talent & Resourcing
HR Executive-MES & Services
HR Executive Learning
Employee Services Officer HR Executive Culture Occupational Health Manager
Flow Chart:
HR Profile
Source-BATB
Figure 6: Human Resource Profile To develop the most vital element of the organization which is the human resource BATB has put in a lot of efforts in responding to various changes and problems through effective formulation and implementation of human resource strategies through the HR department. • Improved performance through attractive reward system • Strive for excellent management practice. 3.2 Nature of Corporate Strategy Open-Minded: We are open minded and encourage everyone to contribute, by actively listening; by being genuinely receptive to new ideas and the ideas of others; by being open to different perspectives and by questioning and challenging the conventional. Freedom with Responsibility: We have the freedom to take decisions and act, by accepting personal the parameters of the organisation’s strategic goal.
responsibility, within
Strength from Diversity: We actively utilize our diversity of people, cultures, viewpoints, brands, markets and ideas to create opportunities and strengthen performance. Enterprising Spirit: We have the confidence to seek out opportunities for success, to strive for innovation and to accept the considered risk taking that comes with it. 3.3 Formulation of Corporate Strategy Over the last decade or so, our market share has increased by nearly 50 per cent. We are now the second largest international tobacco Group, accounting for some 17 per cent of the global market. In this section, we explain briefly why leadership is important to us and summarize the key elements of our strategy which we believe enable us to continue building a sustainable business in tobacco. As we can see that BAT has the strategy to achieve their main goal through growth, productivity & responsibility. So that we see that
BAT wants to achieve their goal through responsibility also. From here we can at least experience how responsible company BAT is. It will be clear when we come to the corporate slogan of BAT“SUCCESS AND RESPONSIBILTY GO TOGETHER�. So in a sense we can say that BAT is very responsible to the society as well. Achieve leadership of the global tobacco company
Our vision is to achieve leadership of the global tobacco industry in order to create long term shareholder value. Leadership is not an end in itself, but a company that leads its industry, is the preferred partner for key stakeholders and is seen to have a sustainable business, should be valued more highly. We define leadership in both a quantitative and qualitative sense. Quantitatively, we seek volume leadership among our international competitors and in the longer term, value leadership. We recognize that our success will depend on adult consumers and that, therefore, we must be consumer driven. Growth
We seek to increase our volume and value share of the global tobacco market through both organic growth and mergers and acquisitions.
For organic growth, we are concentrating on the key strategic segments of the market that offer the best prospects for long term growth, including Premium and International Brands. We continue to focus on the growth of our Global Drive Brands as well as being prepared to exploit opportunities for profitable volume growth in Value for Money and Low Price Segments. We also wish to sustain or develop strong positions in priority markets – simply defined as the largest and most profitable ones. We also believe it is important to continue to develop and utilize innovative, differentiated products and to offer our consumers added value from our brands. Productivity
Our overall approach to productivity is about using our global resources to increase profits and generate funds for reinvesting in our business. Today, all companies are trying to cut costs. Our approach is integrated - aiming to establish a lower cost base while improving the quality of products and the speed they get to the market, as well as our effectiveness in terms of how we deploy our people and capital. To remain competitive, it’s important to reduce the complexity and costs across our entire supply chain, while also improving our service to retailers and ensuring product freshness and integrity. We have programmes in place to find reductions in our Overheads and Indirects (anything we spend money on other than leaf, wrapping materials, cigarette making machinery and permanent labour costs) and make the most of our global buying power. In short, our aim is smart cost management. As a Group focused on our consumers, marketing is a large part of what we do and we are working to ensure we effectively and efficiently deploy our marketing resources. In order to maintain a strong balance sheet, capital effectiveness is an important part of our productivity strategy and includes a focus on inventory levels, utilizing our assets, financing and other uses of capital. Responsibility
We’ll continue to balance our commercial objectives with the expectations of a broad range of stakeholders, thus ensuring a sustainable business. We are communicating with stakeholders about our Business Principles, which explain the way we expect our businesses to be run in terms of responsibility, and demonstrating how we are following them. Our three Business Principles, Mutual Benefit, Responsible Product Stewardship and Good Corporate Conduct are each underpinned by a number of Core Beliefs At all times, we act in accordance with our Standards of Business Conduct, which express the high standards of business integrity we require from our employees worldwide. In the regulatory arena, we will continue to promote sensible tobacco regulation that: • • •
balances the preferences of consumers with the interests of society establishes an open minded and objective approach to harm reduction as a policy ensures that our businesses can compete and prosper.
We manufacture products that can be harmful to the health of our consumers and have publicly stated our aim to reduce this harm to meet both consumer needs and societal expectations. We will do this by: • •
the progressive reduction in the tar and toxins in our products the successful launch of a new generation of tobacco products with critical mass appeal that are recognized by scientific and regulatory authorities as posing substantially reduced risks to health.
Wining organization
We are confident in our strategies for Growth, Productivity and Responsibility but to deliver our vision we must also have the right people and the right working environment. That is the essence of our Winning Organisation strategy. By the right people, we mean outstanding people - those with the ability and desire to drive and deliver competitive advantage and superior performance. We want to attract, develop and retain high calibre talent. We also want an organization that is constantly learning. This learning culture shares knowledge quickly, learns from its mistakes and replicates success formulas quickly. British American Tobacco must also be a great place to work. This requires an open, confident culture that encourages change and innovation, is shaped by our Guiding Principles, inspires our people to perform to their best and importantly, enjoy their work. Finally, our Winning Organisation strategy requires that we develop leaders, at all levels in the organization, with a clear vision for the business, which foster innovation, and can align, energize and enable their teams to contribute to the building of our global enterprise. 3.4 Responsible Persons in Formulation Board of Directors The Main Board is responsible to the shareholders for the success of the Group and for its overall strategic direction and governance. At least half the Main Board, excluding the Chairman, is comprised of Non-Executive Directors who are independent - they are free from any business or other relationships which could materially interfere with or appear to affect the exercise of their judgment and have not been previously involved in the management of the Group.
Jan du Plessis, Chairman Jan du Plessis joined the Board of British American Tobacco p.l.c. as a Non-Executive Director in 1999 and became Chairman on 1 July 2004.
Paul Adams, Chief Executive Paul Adams has been Chief Executive of British American Tobacco p.l.c. since January 2004.
Ben Stevens, Finance Director Ben Stevens joined the Board of British American Tobacco p.l.c. in March 2008 and assumed the role of Finance Director at the end of April 2008.
Nicandro Durante, Chief Operating Officer Nicandro Durante joined the Management Board in 2006 and was appointed to the role of Chief Operating Officer in January 2008.
Robert Lerwill, Non-Executive Director Robert Lerwill was appointed to the Board of British American Tobacco p.l.c. as a NonExecutive Director in January 2005. He is chairman of the Audit Committee.
Dr. Ana Maria Llopis, Non-Executive Director Dr. Ana Maria Llopis was appointed a Non-Executive Director of British American Tobacco p.l.c. in February 2003.
Christine Morin-Postel, Non-Executive Director Christine Morin-Postel was appointed to the Board of British American Tobacco p.l.c. as a NonExecutive Director in October 2007.
Anthony Ruys, Non-Executive Director Anthony Ruys was appointed to the Board of British American Tobacco p.l.c. as a NonExecutive Director in March 2006. He is chairman of the Remuneration Committee.
Sir Nicholas Scheele, Non-Executive Director Nick Scheele joined the Board of British American Tobacco p.l.c. as a Non-Executive Director in February 2005. He is the Senior Independent Director.
Karen de Segundo, Non-Executive Director Karen de Segundo was appointed to the Board of British American Tobacco p.l.c. as a NonExecutive Director in October 2007. She chairs the Corporate Social Responsibility Committee.
Thys Visser, Non-Executive Director Thys Visser was appointed to the Board of British American Tobacco p.l.c. as a Non-Executive Director in 2001. Management Board The Management Board, chaired by the Chief Executive, comprises the Finance Director and the Chief Operating Officer of British American Tobacco p.l.c. along with the executives below. The Management Board is responsible for overseeing the implementation by the Group's operating subsidiaries of the policies and strategy set by the Board of Directors, and for creating the conditions for their successful day-to-day operation. 3.5 Recruitment, Selection & Retention Recruitment & selection of distribution FF will be done through distributors. Recruitment process will differ according to designation, role profile and responsibility. BAT management will not be involved in the recruitment process. In case of selecting quality person in the right post, management might suggest/ recommend distributor if situation arises but ultimate call will be in the hand of distributor. Recruitment & selection process can be from two sources: 1) Internal Recruitment: For any incumbent position, internal recruitment will be given first priority especially for sales supervisor position. Internal sourcing can be applicable for Manager also if any experienced sales supervisor possess great leadership skills and other administrative capability. Distribution FF Data base as a record of performance will help in identifying right person and Basic Job requirement will help in ensuring proper match of job requirement to right person. 2) External Recruitment: For any kind of external recruitment in a distribution house, except for the post of Driver/puller, newspaper advertisement will be given for the post(s). Position of Manager, Accountant, and computer operator needs to be recruited externally if suitable candidates are not found from distribution house. Recruitment should take place in at least two steps. There will be a written test and in the second step there will be an oral test. Presence of respective Territory Officer is recommended in the Viva. Final selection will be done on the basis of pure performance in the recruitment process. 3.6 Recruitment & Selection of Different Position 1) DR/ Salesman: As this role is directly market oriented and it needs physical effort. That is why; young and energetic person should be recruited to work as salesmen. Experience will be given priority. DR/Salesmen having competitive company experience are better not to be recruited for loyalty
issue and confidentiality maintenance. Minimum qualification of salesman needs to be HSC. In terms of recruiting DR, screening of resume and calling for interview is not a hard and fast rule. 2) Sales Supervisor: • Experience to work as a DR in market should be given first preference. Business result in the route is also an indicator of an effective salesman. • Selection of DR supervisor will be promotion from within, the experienced and result oriented person from the DR pool of the distribution house will get preference. • House manager can suggest distributor about recruiting suitable candidates. • Territory officer might give his consent based on business performance, market conduct and experience of a salesman. 3) Manager: • House manager is a post which requires high extent of leadership quality, education and operational knowledge. • Following qualification is a pre requisite for house manager applicant: • Educational qualification- Minimum graduation • Experience about dealing with cash, comfortable in billing and account management • Basic computer knowledge- MS Word, MS Power point, MS Excel Bio-data/ Resume screening Interested persons will be asked to provide resume in the house. Distributor himself or general manager will be involved in resume screening based on above mentioned criteria. Written Test: A one hour written test will be conducted by the distribution house. Candidates will be judged based on the following parameter in the written test: • Language capability – English & Bangla • Mathematics – Arithmetic (Unitary method, Profit & loss) • General knowledge The question paper preparation, Mark distribution, time table, passing score, etc will be decided by General Manager of the house and distributor. Oral interview: Selected candidates those will be successful in the written test will be asked to face an interview with Distributor and General Manager of the house. During the interview, candidates will be noticed on following parameters: • Smartness • Promptness • Commitment towards job • Communication • Correct Answer Final Selection:
Final selection will be based on the performance of both written test and oral interview as well. The selected candidates will be informed about their recruitment through their contact number / contact address/ reference. Distributor or general manager of the house will inform the selected candidate personally. After final selection of the candidate, candidates are given a “letter of appointment” from the organization. Candidates are then asked to complete some documents which are required for security purpose. Following are the list of documents with explanation: • Personal Guarantee • Guarantor • Distribution house personal information sheet. Personal Guarantee: Selected candidates are required to give a personal guarantee in a Tk.150.00 stamp. Personal Guarantee stamps includes the following points • Name address of the candidate and his father/mother. • Role profile • Do’s & Don’ts • Resign Notice. • Termination system. Candidates sign the above mentioned document and give a personal guarantee for his job. Guarantor: Other than personal guarantee, candidates are required to complete another Tk.150.00 stamp by a guarantor, who will guarantee the candidate, that if for any misconduct of the candidate during his job the organization is affected, the guarantor will be held liable. Two photograph of the guarantor will also be attached with the stamp. Distribution house Personal Information Sheet: Personal Information sheet comprises of the following information: • Personal Details • Address Details. • Two Photograph • Education Details • Guarantor Details. • Emergency Contact • Address of Parents, uncles, in laws • Character certificate(school, college) Above mentioned Documents and CV of the candidates are put in the candidates personal file, which is kept with the Manager Operations/ Branch Manager/ Company Secretary. 4) Accountant: The screening and recruitment process will be same as Manager in case of distribution house accountant. • In the written test, passing score will be a bit different than that of a manager and question will emphasize more on numeric calculation capability and information management
•
Oral interview will be much lenient that that of a manager. Basic communication will be judged.
5) Godown keeper: It is advised to recruit godown keeper internally . • A senior DR can be promoted or sales supervisor can be laterally positioned as go down keeper • In terms of external recruitment, structured written test is not applicable for godown keeper. It will be interview with distribution manager/ General manager Probation: Candidates are on a probationary period for six months. During probation period, candidate will be in continuous on the job training from his immediate supervisor (General Manager or distributor) • His capability, commitment, attitude will be observed and necessary improvement feedback will be given by house management • After successful completion of the probationary period, candidate will become permanent employee of the organization. • Probation will not be applicable for any candidate who will be internally recruited/ promoted from within the distribution house FF. Appendix: Probation confirmation report Confirmation On successful completion of the probationary period, a hard copy of the confirmation report with necessary entries must be forwarded by distribution manager or distributor. • The report will contain a formal forward letter addressing the probationer that he has been confirmed • Upon confirmation, Manager is entitled to avail all the facilities mentioned in his designation. • The report will contain his Job responsibilities, role profile and also mention certain conducts/ behaviors on which job can be terminated. • His salary and remuneration detail will be available in the report. • An agreement/ deed will be attached with the report where manager will put down his signature stating that he has understood his job responsibilities, role profile, Salary and benefit scheme properly and eager to work as per stated terms and clauses. Appendix: Confirmation letter, FF Service agreement Job Succession Planning: There should be an alternative option against all the positions related with in house activities and administrative work. The designation against which immediate successor needs to be decided are: • House Manager • Accountant • Computer operator
House manager will look after computer operator activities while he is absent. In terms of successor, external recruitment will be preferred Job Termination: House manager can be terminated from his current job on account of : • Unsatisfactory performance • Financial misconduct • Physical disability to continue with the job Termination Process: The employee needs to be circulated with one month notice in lieu of one month salary prior to the date of termination. • The termination will be applicable upon receiving of all the distribution house assets in proper form including ID card. • The distributor himself will take the decision about the termination of distribution manager. General Manager of the house (where applicable) will negotiate with the distributor but termination letter will be signed off by the distributor. • During probation period, distributor might terminate anyone anytime without issuing prior notice. Similarly, any incumbent might resign anytime without prior notice during probation perio Salary & Allowance: Salary of distribution FF will be divided into two broad categories. One is the monthly fixed salary (Fixed portion) and the other one is variable part. Variable part will be based on performance. Any incumbent going through probation period will only receive the basic part of the salary. Variable portion will be applicable upon completion of the probation period. 2. Basic Salary: Basic salary will differ according to the role profile, job responsibilities in different positions. Below is a standard form of Basic for different roles: Designation Basic Salary Amount Van puller 1500 Mechanized Van puller 2000 DR/ Salesman 2500 Sales Supervisor 4500 Godown keeper 5000 Accountant 5000 Cashier 4500 Computer operator 4500 Manager 7500 Table 5 : Basic Salary of the Employees Apart from Monthly basic salary, there will be other thing incorporated in Fixed Part and that is Daily Allowance. This can be rephrased as food allowance. Daily allowance will be uniform amount for all FF. Ideal Food allowance amount is 40 Tk/day for all field force.
Total Fixed Salary in a month = Monthly Basic + (Daily allowance * working day). 3. Variable Salary: • The variable portion of salary will be performance incentive. • The determiner of the performance incentive will be route wise sales 4. Telephone Facility: It is suggested that telephone facility needs to be provided for the functional use of limited distribution FF. • According to need and importance, Distribution manager and sales supervisor will avail mobile phone facility within their benefit scheme. • The benefit will be activated upon confirmation of job. The mobile set along with connection will be provided by distributor. • Fixed amount will be provided monthly for mobile charge. The amount will be Tk 500 for sales supervisors and Tk 900 for distribution manager. • The phone will be fully possessed by the above mentioned FF, in addition of their functional use they can use it for their private reasons and take the mobile with them during leave. • In case of Malfunction/ mechanical problem, the concerned FF will repair the set at per the warranty provided by the distribution house. • Upon termination of job, concerned FF will have to return it back to the distribution house 5. Payment of Salary and Allowance: Distributions FF need to receive their salary within first three working days of every month. • Salary payment will be in cash basis. FF will collect it from distribution house. • House Manager and accountant will be responsible for providing salary to all the FF. • Yearly Festival Bonus will be paid in advance before one week of the festival. If it is paid at year end, automatically it will be included with December salary. • FF salary might be subject to income tax. It depends on whether FF earns within taxable income bracket. 3.6 Strategies for Recruitment, Selection and Retention Recruitment is the process trough which the organization seeks applicants for potential employment. Selection refers to the process by which it attempts to identify applicants with the necessary knowledge, skills, abilities and other characteristics that will help the company achieve its goals, companies engaging in different strategies need different types and numbers of employees. The strategy a company is pursuing will have a direct impact on the types of employees that it seeks to recruit and selection
Figure 7: Ways of Generating Human Resources 3.7 Strategic choices usually made BATB is a tobacco based organization so it has to take the decisions concerned with tobacco and to realize its impact on the market as well as total consumer climate. The followings are the strategic decisions that usually made by the company. • Limits of Risk Management and the New strategic Policies •
Impacts to Human Health and the Environment
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Impacts of, and Issues Associated with, tobacco Production from Manufacture to Final Use and Disposal
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Economic Issues and Competitiveness
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References
3.8 Training of HR and development of HR Training & Development: To train the working people is one of the most important jobs of any TO. They generally train the people working for the distributors, for example distribution representative and also the contract merchandisers within his territory. They also train the retailers about how to approach customers, if necessary. Training and Development is an ongoing process in British American Tobacco Bangladesh with the personal and professional development of our talent pool seen as a top priority in British American Tobacco Bangladesh. •
We offer both on-the-job and off-the-job at both theoretical and practical levels with training and development opportunities provided through a range of local, Regional and International Training programmes that include training and development programmes at both functional and managerial levels.
British American Tobacco Bangladesh's approach to personal development is quite special" says George Telfer, The Leadership Trust's International Programme Director. The Leadership Trust (www.leadership.org.uk), a globally recognized provider of leadership development. The primary focus on supporting personal development is unique, even from a global perspective, having worked with many leading multinational organizations. It is quite rare to see investment made at this level, and on this scale, with the prime focus being upon the personal development of the company's key asset; its people. BATB Training and Development enables people to discover their own personal leadership skills and qualities in an enterprising, safe and supportive learning environment, which make working with British American Tobacco Bangladesh's talented and emerging leaders both a pleasure and a privilege. 3.9 Promotional strategy, transfer, discharge, resistance to change strategy Traditional approaches to career planning, performance appraisals, reward management and employee development must be re-appraised in light of the vision, characteristics and mission outcomes as reflected in the HRM plans, policies, and practices. BATB follow a model for its employee promotional or discharging activities.
Figure 8: The model for measuring the performance of the employee. 3.10 Career development strategy Career Development: It is more of a future-oriented training. Only executives get the opportunity to take part in this type of training. As the company has future plan and clear knowledge about the potential vacuum in the future it continues to improve its workforce. The company provides functional as well as general management training. Functional Training: Functional training is the training which aimed at developing the functional areas like Sales, Production, Marketing, etc,
General Management Training: Except functional training all other trainings is General Management Training Management Development Program: The company has management development program. It is an ongoing process. The development program is separated in different small modules. For the management development program both on-the-job and off-the-job methods are used. The management development program is aimed at improving managerial performance. It is mostly educational process and the executives have gone through lots of reading and think about what might increase their productivity. The program is also come as fringe benefit for the executives. But it is almost a pleasure trip in disguise of training. The trainings they had were merely attending the programs and they had lot of time roaming the tourist spots of the countries. Coaching, understudy assignment, job rotation and committee assignment are the on-the-job method the company uses for management development program. Only horizontal job rotation is used in the company. The method is now discontinuing in the company. The employees don’t feel belongings in the new department. It results lower productivity and quit. As a matter of fact, who posted under job rotation, 50 per cent among them quit from the organization. The company has committee assignment on-the-job management development program method. But it is not very widely used. Lecture and Simulation Exercise are off-the-job methods that the company uses. The company always considers cost before go for any type of training. If the on-the-job training is less costly then the off-the-job training then it goes for on-the-job training. 3.11 Strategic pay rewards and benefits Bonus payment: • For distribution house FF, only one bonus will be applicable and that is festival Bonus. • Festival bonus amount will be equivalent to maximum one month Basic salary. • This amount might be paid in one big festival in a calendar year (Preferably Eid ) or at the end of each year. This is subject to the discretion of distributor. • Festival bonus will not be applicable for any employee who is going through probation period. • A person serving more than 9 months will be eligible to receive full festival bonus. • Confirmed employee serving less than 9 months will get 50% of the bonus. Yearly attendance reward: This thing is a special motivating tool for distribution FF for ensuring their full attendance. • Best attendance reward will be given to the FF who directly works in the market (DR, Puller, sales supervisor). The amount will be 1000 Tk. • Runner up person (Second best attendance) will get 750 Tk as reward. All FF who have ensued full attendance by not exceeding allocated yearly leave will get 500Tk
as attendance reward. 3.12 Strategic performance evaluation methods limitations results benefits There are various kinds of method for measuring performance appraisal. But we get information that BATB uses only three type of performance method. These are at below: 1. 360-degreefeedback 2. Experience based. We describe those at below: 1.360-degree feedback One currently popular methods of performance appraisal is called 360-degree feedback. With this method managers peers, suppliers or colleagues are ask to complete questionnaire 2. Experience based BATB measure the performance of employee by experience. For example MR. X has been working in BATB for three years and MR. Y has been working in SQUARE for two years. So BATB favor MR. X for his more experience. 3.13 Strategic disciplinary action All employees are expected to meet performance standards and behave appropriately in the workplace. Disciplinary or corrective action is a process of communicating with the employee to improve unacceptable behavior or performance. You may take disciplinary action when other methods such as coaching and performance appraisal have not been successful. Square uses the following disciplinary action against the employee. Suspension A suspension is an action which places an employee for disciplinary reasons in a temporary status without duties and pay. Removal Removal is an involuntary separation of an employee from employment. . A disciplinary removal is the most severe disciplinary action Investigations Policy The Investigations policy states the Company reserves the right to use any lawful method of investigation which in its sole discretion it deems reasonable and necessary to determine whether any employee has engaged in conducts warranting disciplinary action. Disciplinary action Form This Disciplinary Action form is used by an employer to document a warning to an employee for his or her unsatisfactory performance. It details the shortcomings and clearly states consequences for non improvement or recurrence. It is signed by both the
employer and the employee being warned 3.14 Strategic grievance handling Grievance as used in the Agreement pertains to the application or interpretation of any provision of the Agreement. As BATAB is a company huge operational activities, it faces various hazardous events and grievance. So to get rid of this fact it follows some principles to settle the grievance. These are: Settlement of grievance Try to settle in early stages. Review past settlements. Is the settlement asked for consistent with violation? Is the settlement asked for precedent setting? Make a permanent record of the settlement Preventing Grievances Be proactive, not reactive. Listen/Listen/Listen. Don't assume, check. Respond to problems as soon as possible. Don't blame others. Take responsibility. Know your contract and letters of understanding. Know your rules of conduct. Check with others. 3.15 Strategic collective bargaining process BATB follow two type of collective bargaining process in various settlement issues. These are: Traditional Collective Bargaining Traditionally, the principle of equal power frames negotiations for both the union and employers. Negotiating techniques labeled 'rights-based' or 'traditional' CB have been developed to allow each side to maintain the appearance of power in the face of confrontation. Based on experience of what constitutes success, each side will have given much thought to the composition of its bargaining committee, to the list of demands it will make, and to strategies for winning. Non -traditional Collective Bargaining Using the 'we vs. them' approach of traditional CB may accomplish a desired contract that results in improved working conditions for nurses 3.16 Ways of limiting the activities of trade union • • •
Developing common approaches to spot and tackle problem behaviour Developing a media and communication strategy to explain better trade union policies. Promoting good governance, democracy, education and economic prosperity among employee.
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Developing inter-cultural dialogue within and outside the Union; Continuing research, share analysis and experiences in order to further understanding of the issues and develop policy responses.
3.17 Need for union free organization BATB is a private organization that’s why trade union is not essential here. 3.18 Strategies for improving productivity Our overall approach to productivity is about using our global resources to increase profits and generate funds for reinvesting in our business. Today, all companies are trying to cut costs. Our approach is integrated - aiming to establish a lower cost base while improving the quality of products and the speed they get to the market, as well as our effectiveness in terms of how we deploy our people and capital. To remain competitive, it’s important to reduce the complexity and costs across our entire supply chain, while also improving our service to retailers and ensuring product freshness and integrity. We have programmes in place to find reductions in our Overheads and Indirects (anything we spend money on other than leaf, wrapping materials, cigarette making machinery and permanent labor costs) and make the most of our global buying power. In short, our aim is smart cost management. As a Group focused on our consumers, marketing is a large part of what we do and we are working to ensure we effectively and efficiently deploy our marketing resources. In order to maintain a strong balance sheet, capital effectiveness is an important part of our productivity strategy and includes a focus on inventory levels, utilizing our assets, financing and other uses of capital. 4.2 Recommendations Support from Distributor Distributor will follow a standard format & conduct the head hunting activities of distribution FF like the notice circulation, recruitment, on the job training providing and job confirmation, benefits, remuneration and compensation will be done through the distribution house. While recruiting, it is better that distributor will look for young and energetic and to some extent experienced (Accountant, computer operator, House manager) person to work as Field force. Distributor must have a specific set of FF for BATB business operation. Part time service in other business apart from BATB will not be accepted by company. While working in distribution house, FF needs to abide by the company policy regarding any business operation issue. Issues about stock lifting, Issuing stock in the route, distribution, setting ceiling and flooring on stock, market price communication, etc. will be totally as per BAT management instruction. In case of FF like DR & Puller those who work at the retail level directly, distributors must recruit some additional manpower ensuring uninterrupted survey during
absenteeism. Alternative plan during FF absenteeism needs to be developed in the distribution house. Support from BATB: ď ś As FF deals with BATB business, company might come up with various FF motivating programs/ promotion for them according to company policy and situation concerned. This will be additional support from the company’s end to motivate FF. ď ś Arrangement of necessary training will be conducted for the FF (DR, Sales supervisor, Manager) for their development and better business understanding. Training like TSE, Brand academy etc. might be rolled on according to the decision of BATB company management.