HR in the Insurance Industry of Bangladesh: Case study of Nitol Insurance Company Ltd.
Human Resource (HR) in Insurance Industry of Bangladesh is a synthesis of themes and concepts drawn from a long history of work and more recent management theories. With the changing needs of the insurance industry and the growing complexity of modern business professional insurance, education must undergo a constant change so that it is relevant to the needs of a dynamic society.
1.1 Objective of the Study
The report is presented in three sections. The first section contains an overview of Nitol Insurance Company Ltd., its objectives, its functions, and its organizational structure. The second section started with the “HR in the Insurance Industry of Bangladesh” where will described the Planning Employee Needs, Conducting Job Analysis, Recruiting and Selecting Job Candidate, Orienting and Training New Employees, Managing Wages and Salaries, Providing Incentives and Benefits, Appraising Performance, Communicating (Interviewing, Counseling, and Disciplining) and Training and Developing and Building Employee Commitment. The third section “Case Study of Nitol Insurace Ltd,” where we described in detail the Motor Insurance Contract- Common Feature,Categories of Motor Vehicles.
Finally, the fourth section contains recommendations and conclusion.
AN OVERVIEW OF COMPANY
Historical Background of Nitol Insurance Company
The Nitol Insurance Company Limited is a sister concern of Nitol Group. The Nitol Insurance Company Limited was incorporated in Bangladesh on October 04, 1999 as a public Limited Company under The Companies Act, 1994. The company has been given registration by the Department of Insurance, Government of the People’s Republic of Bangladesh to carry on insurance business in Bangladesh in respect of Motor, Marine, Fire, and Miscellaneous with effect from November 18, 1999.
Capital Base of Nitol Insurance Company Ltd.
Authorized share capital of the company is Taka 50, 00, 00,000/- (Fifty cores) only which is divided into 50, 00,000/- (Fifty lack) ordinary shares of Taka 100 (One hundred) each. And Paid up capital of the company is Taka 15, 00, 00,000 (Fifteen cores) only which is divided into 15, 00,000 (Fifteen lack) ordinary shares of Taka 100 (One hundred) each. Out of them 40 percent i.e. 6, 00, 00,000/- (Six cores) belongs to the entrepreneurs and the remaining 60 percent i.e. 9, 00, 00,000.00 belongs to the public. Company possess the right for increasing or decreasing the authorized capital and to divide the original or increased capital into different kinds of shares and to affix with them preferential, deferred or any other special right, condition or restriction, however, amount of authorized capital shall not be below the amount of paid up capital determined by the Insurance Act of 1938 and Insurance rules of 1958. Increase or decrease of authorized or Paid up capital shall not be done without the prior permission of the Chief Controller of Insurance.
Branches and Departments of Nitol Insurance Company Ltd
At present only Head office is in operation. The company already got permission to open six more branches. The branches of Nitol Insurance Company Ltd will be located at Bangshal, Bijoy Nagar, Khulna, Chittagong, Dinajpur & Jessore. Nitol Insurance Co. Ltd. has five (5) departments in its Head Office in Dhaka. These are Administration, Accounts, Underwriting, Claims and Re-insurance.
Address: Head Office 71, Mohakhali
The Nitol Insurance Company Limited is an Enterprise of Nitol Group and the Parent Company is Nitol Motors Ltd. Nitol Motors being the sole distributor of TATA range of vehicles in Bangladesh, used to sell large number of vehicles each year. Mr. Abdul Matlub Ahmad, Chairman of Nitol Group was aware that the owner of TATA vehicles were buying insurance from different insurance companies in Bangladesh. He also knew that in the event of accident/claims, the owner of the vehicles were subject to a host of harassment and ultimately many times end up with no claims payments or inadequate claim payments, often with unusual delays. As a result, buyers of the vehicles were put into financial stains and their capacity to pay installment to Nitol Motors was badly affected. With this scenario , our Group Chairman came up with his idea to have insurance company to provide better and hassle free full scale insurance service to their own clients as well as other clients (who are willing to buy insurance from us) by ensuring amongst others, prompt settlement of claims. This was indeed a great decision/mission to operate an insurance company to provide ONE STOP service to the clients i.e selling vehicles, arranging insurance and paying /setting claims in the shortest
possible time to Nitol Motor’s clients in one hand. One other hand, same service offered to the outside clients as well.
To service the insuring community in a most efficient, humble and professional way, they have emerged as a new insurance company in the General Insurance Sector of the country. Service, particularly, in maters of professional underwriting of risks efficiently and speedy settlement of claims is this motor/vision. We are here not to be flowed by others and not to flow others.
Objectives of Nitol Insurance
Objects for which the company has been established are as follows:
1. All kinds of insurances, guarantee, indemnity insurance business, accident insurance, liability of the appointer, trustees, insurances against the compensations to the laborers, insurance’s related to the industries and insurance’s against personal accidents which shall be carried out by the branches of the company that are existent or shall be established within Bangladesh and in the foreign countries and to carry on all kinds of business of general insurances and re-insurances which are recognized by law.
2. To take up the liabilities of all kinds of insurances of the motorcars, trucks, buses, scooters, vans. Tractors, and all other kinds of motor vehicles and side by side with them to take up the special risks of the road accidents, fire, theft, hijacking, hooliganism, rock stone, earth quake, flood and any other kind of sudden accident. To give guarantee for giving the compensations for the death or physical injury or loss of any organ, as the case may be, of the owner, driver of the motor vehicles and companions of them, if there is any. To give compensations to the insured against the claim made by him due to his taking of insurance policy or any other claim due to personal injury of any third party or loss of property due to which insurer becomes liable.
3. To carry on all kinds of insurance business of different kinds of vehicles and to undertake insurance policies against the full or partial damages of the engines of the airplanes, trains, rail engines, engines, rolling staff coaches and to give compensations to the owners of such motor vehicles against the claims made by any third party for any loss or personal injury and any kind of damage to the property.
4. To undertake insurance on all kinds of movable and immovable properties, such as buildings, houses, factories, warehouses, plants or any other kind of building, goods and machines of all kinds where ever they are located within Bangladesh against the damage done to them due to flood, cyclone, hail storm, storm, fire, explosion, crash of thunder and/or any loss due to them and to undertake fire or accident insurance as result of or due to affray, civil commotions, public indiscipline and such other causes.
5. To carry on the business of marine insurance and to give insurance policies of ocean going levers, ships, traveler’s, boat and other kinds of naval ships and to undertake insurances on any kind or nature of damages/or losses against the goods of ocean going ships and to undertake insurances against fees of ships, shipping loan facilities, commissions, compensations and against other kinds of payments.
6. To give assurance for a condition by which medical care and any kind of medical treatment shall be provided to family/members of family of a person during their illness, delivery of a child, service oriented insurance during their diseases and at any period of any unforeseen accidents for which any company principal or master shall bear the liability of the insurance.
7. To provide policy according to the arrangements and on the basis of the conditions made by any person, firm, company, corporation or any kind of association and to make contracts with them, and if deemed to be justified then to make contracts for payment with money or in equivalent amount of money adopting the process of giving compensations for winding up.
8. To undertake the re-insurance or supplementary re-insurance for all or any risk with the other insurers and to take up the liabilities of the re-insurance, supplementary re-insurance of any business related to the business mentioned above. To carry on all the insurance business of all kinds, which have been excluded from the list, mentioned above.
9. To acquire any interest in any land, building, any tenancy interest acquired by succession or any property or any interest included in it by way of purchase, taking of lease, exchange or by any other means and/or if deemed necessary to hold any right concomitant to that land, give lease of it or include the same in the account.
10. To join itself to any business with any government or authority, municipal, local or any other corporation all the objectives or any one objective among them of which shall be helpful for this company. To acquire any facility, right and commission from that kind of government or authority which shall be deemed by the company to be executed, received and applied and to operate the activities in conformity with the rights, facilities and commissions.
11. To pay, satisfy or settle any claim raised against the company for any contract or policy approved, transacted or executed or accepted otherwise, if the same claim has been raised justifiably even if that decision has not been taken lawfully.
12. To establish branches within Bangladesh and in foreign countries and to create local committees, advisory committees and agencies and winding up of them.
13. To enter into a contact with the leases, loan givers, loan receivers, stipend holders and others for the creation of depreciation fund, reimbursement fund, recurring fund, or any other kind of special fund and for saving and payment of cash money at a time or
for the annual premiums or with any other means, other determinable conditions and facilities.
The company is carrying out following types of insurance/reinsurance businesses:
(I) Fire Insurance Business
(ii) Marine Insurance Business
(iii) Motor Insurance Business
(iv) Miscellaneous Insurance Business
The above indicates that the company’s main product lines constitute of Motor and Marine insurance business.
The organizational structure of Nitol Insurance Co. Ltd. has two different phases. One of them consists of the top management, the member of which are involved in the policy making part of the organization.
Tasks are mainly routine and programmed. Non- routine jobs like special assignments are frequently done. The organizational set up is such that the interrelationship between the subordinate and the superior does not go beyond the established norms.
Organogram of Nitol Insurance Company Ltd.
Management of Nitol Insurance
The general superintendence and direction of the affairs and business of the Nitol insurance company Limited is entrusted to a Board of Directors. The chairman, who is appointed by the board of directors, on a fixed term. He, on behalf of directors, conducts the business, controls the functions and manages the affairs of the company in consideration with provisions laid down in the Bangladesh companies Act, 1994.
Nitol Insurance Co. Ltd. is a newly established company. The employees number of is increasing over last three years. At the beginning, the company had only nine (9) employees. Presently the company has 23 employees over the different branches.
An employee is expected to work for 40 hours each week usually in five (5) days. Support staff like Clerks, MLSS is expected to work on any day of the week at any time and are not eligible for overtime payments. An officer is not also eligible for overtime payments. The working days are Saturday to Thursday. Public holidays are announced at the beginning of the calendar year.
All staff members show maximum courtesy and consideration to their colleagues’ and superiors. Collegial relations are maintained in office. Misconduct will entail disciplinary action. The business of Nitol Insurance Co. Ltd. is expected to be conducted expeditiously, timely, and without unfair activity. Any failing is treated as inefficiency or misconduct.
MODEL OF SMALL ORGANIZATION AND LARGE ORGANIZATION
Small Organization Model
Large Organization Model
Organize the human resources activity of the small organization and large organization
Small organization department are usually limited, to maintain employee record and helping manager and find new recruits. The large organization, the head of department directly report to the company president. The large organization’s specialist does the recruiting, training, and other necessary task.
HRM are two model of HRM as following:
1. System model of HRM
2. Applied system of HRM
Applied System Model of HRM
HRM system transfer or converted some input to some output relating to the HR activity. HRM convert input to output. Output is to contribution of employee, motivation of employee, capability of employee.
Output is evaluated by the HRM and it indicates to feedback. If feedback is positive the organization performance is weal. If feedback is negative then the result two things such as HR activity are not properly or information need more or require more additional information.
HRM should be consisting of five subsystem model as following in Diagram
Framework and Challenges
Operation manager and HR experts face many challenges in dealing with people. Challenges come from within organization. So challenges are effectiveness and efficiency in ethical and social responsible way, other challenge arise from environment in which organization operates, changing demands of worker, international and domestic competitor and etc.
Preparation and Selection
To build a human resource information system, data are gathered about each job and about organization future HR need. Usually this information can advise to manager about the design of job.
Development and Evaluation
With a solid base if information, manager and HR specialist can help determine the need for orientation, training, development and career counseling of present employee.
Compensation and Protection
Employee must be paid of fair wages and salary relative to their productive contribution. At the some time, the organization needs to protect its workers from occupation hazard.
Employee Relations and Assessment
Employee need to be motivated and satisfied with their jobs. HR Specialist can provide effective program or specific advice to operating people.
HUMAN RESOURCE PLANNING
Human resource is a process that systematically forecasts or projects the future human resource and organization’s future demand for and supply of employee. This forecast include both number of employee, type of employee, what quality of employee, what skills of employee and what are knowledge of employee. HR department to develop staffing plans that support the organization strategy by allowing it to be proactive. It helps the HR to staff the organization with right number and right the people. All organization should identify their short run and long run need by examination of their corporate strategy. HR planning is useful to HR specialist in both small and large organization.
There are two causes of HR planning which are:
1) Demand causes
Demand causes are the purpose of future need for human talent in the organization. Some of these causes are within organization’s control and others are not.
Three reasons of demand causes which are
External Causes or Challenges
The external causes or challenges that affect the organization’s strategies are difficult to predict in the short run and long run. The organization’s external factor – economic, social – political – legal, technology and competitor. The planners try to estimate the availability of current workers o meet that demand by analyzing the organizational external factor.
1) Organization decision and policy: sometime decision and policy may affect future need and demand for the HR in the organization. Decisions are made to modify the strategic plan like budgets, sale, and production forecast, production line, and organization.
2) Workforce factor: Termination of employee, rejection of employee, retirement of employee, death, long live absence f employee also effects future need or demand of HR in the organization.
This knowledge about HR activity all people are needed for manger of organization. Usually the HR department may survey all production supervisor and manager until an agreements is reached on the number of replacement needed for the next year.
Trend Projection Forecast
In this method passed or preceded trend used to for forecast the future HR need of the organization.
Two methods are used under this technique:
Extrapolation: In this method past trend are expanded in to future HR need.
Indexation: In this method HR need are estimated on basis of a specific index of the organization e.g. 240 production worker will be added during the upcoming year.
Budget and Planning Analysis
In this method budget of the organization long run and the result of extrapolation are used for estimatig the short run HR need of the organization, long run HR need using long run analysis. Budget increases or cuts the most significant short-run HR need.
New Venture Analysis
In this method future payment for HR need of organization are estimated by making comparison with other organization that perform similar operation.
In this method a combination of varies technique and method is used for forecasting the future HR need of the organization. These techniques are mathematical method that simultaneously uses extrapolation, indexation, survey result, and estimates of workforce change to compute future staffing needs.
Supply Causes of HRM
Human resource manager must know source of supply. There are two supplies which are as follows:
Internal source of supply: internal source of supply include the current employees. Internal source of supply consist of existing employee who can be trained and or promoted, transferred at different level.
External source of supply: It includes the people or who are unemployed who are working in other organizations.
The Future Supply of HR
1. Human resource audit
2. Succession planning
3. Replacement chart and replacement summary
Human Resource Audits
Human resource audit is a technique a method or process that explains or describes or summarize skill, ability of each employee of the organization-both managerial and non -managerial. Human resource audits for the non-managerial subordinate position are called skills inventory and human resource audits for managerial are called managerial inventory.
So some of information for the Managerial Inventor must be collected from the following information:
1) Number of employee supervised by the manger
2) Total budget manage by the manger
3) Duty and responsibility of the subordinate of the manger
4) Type of employee supervised by manger
5) Management training and development received by manger
Part1. Consist of following information
- Job Title
- Previous job of the employee
This part is completed by HR department each part separate information and each completed by separate people
Part 2. Consist of following information
a) Education and quality
b) Skill and ability
c) Duty and responsibility
This part is completed by the employee himself or herself.
Part 3. Consist of following information
- Quality of performance
- Effective short age
- Readiness of promotion
This part is completed by the immediate superior.
Part 4. Consist the following information
- The result of reprint performance appraisal
- Final japed check completeness which is command about the employee overall performance.
This part is completed by HR department of the organization.
Skill inventory of subordinate must be update time to time. Because people relegation must be change, people experience may be change and, people training and development may be change.
External Source of Supply
Not every future opening can be met with present employee. So, there is a need for external supplies of human resource to fill the vacancy in the organization.
Mangers should consider the following four factors in external source of supply.
- Employee Market analysis
- Community attitudes
- Demographics trend
Employee market analysis
HR department must analyses job market and employee market for high skill job and high managerial job. So two type of job market with high or low HR specialist are realized from region to region and city to city
Community attitudes also affect the nature of labor market is the area which recruits the employees .
Demographic trend are another long-term development. Demographics are study of population characteristic that include birth rates, trend in job, immigration.
RECRUITMENT OF HUMAN RESOURCE
Human resources management will determine the requirement of each HR need and requirement of HR need through the job analysis and job description. What is the need of the job applicant and what are requirement of the people and who will fill the vacancy.
Human resource management must estimated existing HR and future HR need in the organization. HRM will be determined a requirement channel more than one requirement channel for purpose of requirement of employee. HR manager will build a pool of seeker by apply the selection channel or method.
Constraints or Barriers of the Recruitment
- Organizational polices
- HR planers
- Affirmative action plans
- Recruiter habit and capabilities
- Environmental condition
- Job requirement
Channel or Method of Recruitment
- Walk-ins and Write-ins
- Employee referrals
- Government employee agencies
- Private employee agencies
- Professional search firm
- Educational institution
- Professional associations
- Labor organization
- Military operation
- Government-Funded and Community training program
- Temporary help agencies
- Leased employees
14. Departing employee
15. Open houses
16. International recruiting
Consists of Job Application for Recruitment
- Personal data and information
- Employment status
- Education and skills
- Work history
- Military background ( if needed)
- Membership hobbies award
- Signatures line or signatures block
SELECTION PROCESS OF HUMAN RESOURCE
Selection Process is a series of specific steps used to decide which recruits should be hired.
Step in the Selection Process
The organization selects employees, and applicants select employers. It begins with a visit to the HR office or a written request for an application. The application begins to form an opinion of the employer with this early step.
In this system some the employee of the organization takes a number of steep of the job seeker and job applicable for the purpose of evaluated wages and a job seeker fit the requirement for the job. Some application of employment related test are included psychological test, knowledge test, performance test, graphic response test, attitude test, medical test.
In this system of selection interview and an in-depth interview conducted by the employer in order to determine, the acceptability interview allow particular job seeker for purpose accept interviewer.
The interview seeks to answer to answer three road question:
1. Can the applicant do the job?
2. Will the applicant do the job?
3. How does an applicant compared with other who is being considered for the job?
Process of Selecting Interview
- Interviewers preparation
- Creation of report
- Exchanges of information
- Termination of the interview
- Evaluation of the interview
References and Background Checks
In this system of selection process that the employer uses some references background cheek to examine or verity or acquires of the data and information that the reference are supplied by the job candidate.
Two type of reference or background check may be used in this regard
- Personal reference: its concerns while personal characteristics of the job seekers and this reference are supplyed by the friend, relative, family member, or other who know the job candidate personally.
- Employee reference: employee reference concerns with previous work experiences or history and this reference are provided by the previous employers of the job candidate.
In this system selection procedures that the employer makes a medical evaluated of the job candidate, in order to determined whether physically fits for the jobs. It may be simple health check list where the job candidate is asked to indicate whether he has suffer from any serious decision previously or whether he has physically handicraft or other half problem, or it may be a through medical checkup that is done either by the physician of the organization or by the expert or specialist outsides of the organization.
Some time and some organization invite superior or boss of the newly selecting employee is involve in this steep of the selection procedures. It is, because the immediate superior can accurately evaluated the require skills, ability of the
job candidate and he can also answer to the questions that it may be asked by the job candidate to desire whether aspect or not aspect of the job.
Realistic Job Preview
Some times a realistic job preview is provided the job candidate and this preview the job candidate are shown the job description or duty and responsibility that it to be perform by them
The working condition in which they will work, the machine and equipment that it to be used by them, the working relationship of them with there superior, subordinate and peers etc. this preview will help the job candidate to decide whether to expect or not to expect if it is other by them.
The selection Decision is informed to the successful candidate and rejecting candidate in this method. Similarly record of both the selecting candidate and rejecting candidate should be maintain and retraining in the organization. Record of the selecting candidate should be maintained for the hire futures reference. But the record of unsuccessful candidate should be maintained for two references.
- If any of the successful candidates does not joint someone from the unsuccessful candidate, may invite as he or she has passed through all this steep of selection procedure.
- If there is legal implication over a selection the maker, may go to court and these records will act as evidence in the court of law in favor of the organization.
Inductive Successful Candidate
In this steep selection procedures that the employee make arrangement for orientation of the newly selection
Two activities are involved in this system as following:
- Acquainting newly selection employee with the new job, new surrounding and new environments. This acquainting is done through class for lectures through printing booklets, through film, video and slide. This acquainting several doe on this history, product and services and operation of the organization; general policy, rules, and regulation of this organization; the compensation, benefits, lives vacations, holydays and etc; economic reward and recreational and facilities; opportunities such as insurances plans, providing fund facilities, gradually etc.
HUMAN RESOURCE TRAINING AND DEVELPOMENT
Training: It for operating people that training tech them how to perform their current jobs.
Steeps in Preparing Training and Development Program
HR specialists and managers must asses the needs, objective, continent, and learning principle associate with training.
Assessing the Training Needs
First steep, manager must identify which of the employee of the organization both manager and non managers need training and what type of training need.
Secondly, manager must identify the present problem and future challenges of the organization that it is required training of the employees to solve this problem and to face these challenges.
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Thirdly, manager must identify and evaluate the changes both in the internal and external environment that it leads to requirement for training of the employees.
Designing the Training Objective
In this steep, a number of training program should be design with a specific objective or objectives and this objective or objectives must be decided before starting the training programs.
Designing the Training Contents
In this steep managers design the contents or tropics or subject makers for a specifics training program which should be related to teaching specifics skills and abilities, providing special knowledge changing attitudes to the right direction and increasing or improving moral and job satisfaction of the employees.
Designing the Learning Principles
In this steep, manager will make arrangement for providing or delivering the contents of training or tropics of training or subject mater of training. Manager or trainers must decide and tactics some principles pf learning such as participations, repetition, relevance, feedback etc.
Evaluating the Effectiveness of Training
In this steep after completion of a training manager will evaluate the effectiveness of training program in order to determine whether successful or not. If any training program is unsuccessful then manager should changes or modify either the content of training program or method of providing training.
Method or techniques of training of development
- On-the-Job Training Techniques
- Off-the-JobTraining Techniques
On-the-Job Training Techniques
- Job Instruction Training
- Job Rotation Training
- Apprenticeship Training
Off-the-Job Training Techniques
- Video Presentation
- Vestibule Training
- Role Playing
- Behavior Modeling
- Case Study
- Program learning
- Laboratory Training
Evaluation of Effective of a Training Program
After complete the training program manger can be evaluated by applying the following outcome of training and development:
1. Reaction of the trainees to the content of training and process of training program.
2. The knowledge and learning that the trainees acquire through the training program.
3. The changes in the behavior of the trainees that resulted from the training program.
4. The measurement result or improvement in the trainees of a training program.
COMPENSATION MANAGEMENT OF HUMAN RESOURCE
Compensation Management is human resource management function that deal with every type of reward individual reactive in exchange for performing organizational task. Effective compensation is adequate, equitable, balanced, cost-effective, secure, incentive-providing, and acceptable to the employee. Purposes of compensation are that help the organization to obtain, maintain, and retain employees and its performance are three Factor- Function as following:
Objective of compensation management are that Pay level should be match with market price, To obtain, maintain and retain employees, Ensure equity (internal and external), Should be SMART (Specific, Manageable, Attentive, Realistic, and Time-oriented).Top manger, compensation specialist and each level of management will make the compensation decision about how much to pay, what system to use and what benefits to offer, and so forth.
Design the Total Compensation
Intrinsic are psychological states that result from doing a job and extrinsic reward are monetary and non-monetary reward from the job.
Core job dimension of intrinsic reward are Skill inventory, Task identify, Task significance, Autonomy, Feedback (how am I doing)
These factors are supposed to motivate the employees to perform well, increase their satisfaction with their job, and so forth.
Core compensation of extrinsic reward are Base pay (wages and salary), Cost of living adjustment (COLA), Seniority pay (assume people get more experienced, more valuable-human capital increase), Merit pay permanent increase due to performance in last year, etc, pay for knowledge/ skill based pay.
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Non-monetary are paid time off, Non-monetary incentive, and many others and its can be legally required, Discretionary (Protection-health, disability, Pay for time not worked, service are day care center, etc), and legally are which laws?
Compensation Role within Human Resource Management
- Setting pay so that it is internally consistent compensation reflects the relative value of employees, level of skills needed and complexity of jobs.
- Monitor this consistency through Job analysis (what are we doing?), Job evaluation (how much are we paying for different job duties).
- Setting pay is externally consistent (competitive with the market) and set through regular compensation (wages and salary) surveys.
- Recognize individual contribution through performance based pay and pay base on credential (get a degree, get paid more).
Job Analysis: Job analysis is a process that systemically collects evaluates and organizes the information about the job of an organization.
Application of Job Analysis Information: Job analysis information is generally used for preparing the following document of the organization:
- Job description
- Job specification
- Job performances standard
Job description is a written description that it explains or describe the duty, responsibility, working condition, working hour, other aspect of each job of the organization
Position: Work consisting of responsibilities and duties assignable to one employee. There are as many positions as there employees.
Job: Work consisting of responsibilities and duties that are sufficiently alike to justify.
Class: A group of job similar as to kinds of subject matter, education, experience, level of difficulty, complexity, and responsibility.
Class-series: A group of job classes having similar job content but differing in degree.
Family: Two or more class series within an organization that have related or common work content.
Occupation: A grouping of jobs or job classes within no. of different organization that similar effort skills, and responsibility.
Class description: Class description defines the work of relatively large numbers of employees, rather than define what one or a few employees do. These descriptions identify all or at least the “major” tasks are performed by all or a major group of employees in a work until or section of the organization.
Element of the Job Description
Job descriptions are included five sections as following:
Job Title Status Job Code
Written by Department/ Section
Approved By Grade Points
Title of Immediate Supervisor
Job Definition: The job definition describes the responsibilities and duties of the job. After completed the responsibility statement, a list of duties should be developed for each responsibility. (7+2) OR (7+4)
Ranking- (two possible ways of structuring)
List and sequence them by occurrence
List and sequence them by relative importance
The Job The Job and its The Job and its
A stamina (“stander nine”) or nine intervals rating scale
Frequency: How often is this Duration: Time spent in performing
Activity typically performed on the activity.
1= at lest once a year 1= less than 30 minutes
2= at least once each 6 months 2= 30 minutes to 1 hours
3= at least once each quarter 3= over 1 hour to 2 hour
4= at least once each 2 month 4= over 2 hour to 4 hour
5= at lest once a month 5= over 4 hour to 8 hour
6= at least once each 2 week 6= over 8 hour to 16 hours
7= at lest once a week 7= over 16 hours to 32 hours
8= at lest once each 2 weeks 8= over 32 hours to 40 hours
9= at lest once each 2 weeks 9= more than 40 hours
This section determine what skills, knowledge, or abilities are required for performing a particular job
1. Level of education 2. Level of experience
3. Abilities and skills, 4. Physical standards, and
5. Certification or licensure requirements.
Performances Appraisals is a process of evaluation the performances of productivity of the employees in the organization. This performance appraisal is too done achieve the following objective:
- Performances improvement
- Compensation adjustment and decisions
- Placement decisions(transfer, demotion)
- Training and development need
- Career planning and development
- Staffing process and deficiencies improvement
- Overcoming information inaccuracy about job analysis human resources plans, etc.
- Diagnosing the job design errors.
- Ensuring equal employment opportunities
- Meeting external challenges relating to the personnel matters of the organization.
11. Obtaining appropriate feedback on human resources of the organization.
Techniques Method Performances Appraisals
The passed orienting performances appraisals method as following:
1. Rating scales
2. Weighted check list method
3. Forced choice method
4. Critical incident method
5. Behaviorally anchored rating scales
6. Filed review method
7. Performances tests and observation
8. Comparative evaluations appraisals
A sample rating scale for performances evaluation
Instruction: For the following performances factors, please indicate on the rating scale your evaluation of the named employee.
Employee’s Name ………………. Department……………….
Name of supervisor Rater……………….. Period of valuation……….
Performances Dimension Responses on the scale
Excellent Good Accepted Fair Poor
5 4 3 3 1
1. Cooperation …….. …… ……… ….. …..
2. Attitude …….. …… ……… …… …..
3. Skill and ability …….. …… ……… ….. …..
4. Initiative …….. ……. …….. …… ….
5. Behavior ……… ……… …….. …… ..…
Theoretical Version: In this techniques the employee of the organization are evaluated by their respected supervisor on a part scale on the basis of their overall performances in the organization. For this purpose and evaluation form is completed for each employee by his supervisor. For completed this evaluation form this supervisor find of all decide a number of performances dimension. Then he selected a number of responses on the scale and assign some Wight values to each of this responses. Then he checks the most appropriate responses for each performances dimension. Then he compute the total score for each employee and on the basis of this total score the employee is rated.
An example of a Weighted-Performances Checklist
Instruction: Check each of the following items that apply to the named performances of employees.
Employee’s Name ………………. Department……………….
Name of supervisor Rater……………….. Period of valuation……….
Statement Wight Values Score
1.The employee make
decision in every new situation 25
2. The employee listens to other
But does not consider their advise 15 15
5………………………………… 20 20
Total score 100 35
Theoretical version: In this method supervisor first of select a number of statement relating to the performances of the employees. Then he assign some point or weight values to each this statement on the basis of their relative important to the performances of the employees. Then the supervisor selected one or more statement that are relevant or that are appropriate for each employee. Then total point or Wight values are computed. Then on the basis of this total point the final rating of the employee is done.
Salaries and Benefit Packages
Nitol Insurance Company Ltd does not follow national pay scale. It follows own pay scale. Nitol Insurance Company Ltd pays House Rent, Medical Allowance and Convenience Allowance with the basic pay. These allowances are fixed basis, not percentage basis on basic salary. Employees also get two festival bonuses in a year, which is equal to the basic salary. There is no benefit package for an employee’s family members.
As per service rule, Employees can enjoy causal leave for 15 days, sick leave for 14 days and earn leave for 30 days in a year. Maternity leave is also permitted for two months. Leave is earned by duty only. All application for leave will have to be addressed to competent authority and submitted through proper channel. Medical leave is sanctioned on the ground of proper medical certificate. Leave without pay is granted under special circumstances, when no other leave is admissible
Job evaluation is process of measuring the relative worth or value of each of an organization in relation to other job of the organization.
Techniques of Job Evaluation: There are four techniques job evaluation that are widely used in modern time:
- Ranking method
- Job classification method
- Point system method
- Factor comprise method
Ranking Method: In this method the job of the organization are arrange in order of their increasing values. This arrangement is done two way- first one department level by the department head and then on interdepartmental level that is done by HR department. Then this job is ranking all the several of job description.
After ranking the job of the organization they are group in two way small numbers of classes. Then monitoring values is allocated to each of their classes of job not for all job of organization.
Arrangement of job an departmental level:
Depart-1 Depart-2 Depart-3 Depart-4
Job Ranks Job Ranks Job Ranks Job Ranks
B 3rd A 4th A 4th D 3rd
C 1st B 3rd C 2nd C 2nd
A 4th D 1st B 3rd B 4th
D 2nd C 2nd D 1st A 1st
Group = X and Y
Group X = C and D = TK 2000 per weeks
Group Y = A and B = TK 1800 per weeks
Point System Method: In this method a number of factor which are
more or less to all job of the organization are selected. Then each of this factor each assign a Wight values or point on the basis of its relation important to the job of the organization. Then each compare with this factor and each given a point values. Then the total point values of each computed and on the basis of the total point value is computed is to monitoring values for each job of Organization.
Factor common to all job:
- Skills– a. Education b. Experiences c. Training d Initiative e. Analytical f. Accuracy
- Effort– a. Physical b. Mental c. Position d. Continuity of work
- Responsibility– a. Equipment b. Materials c. procedures d. supervision e. safety f. work of other
- Job condition– a. Working condition b. Cleanliness c. an avoidable and hazard
Factor Wight Values
a. Education 100
b. Experiences 125
c. Training 125
Factor Wight Values
d. In initiative 50
e. Analytical 50
f. Accuracy 50
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a. Physical 50
b. Mental 25
c. Position 100
d. Continuity of work 75
a. Equipment 25
b. Materials 25
c. procedures 50
d. supervision 25
e. Safety 25
f. work of other 50
Job Condition 50
a. Working condition 25
b. Cleanliness 20
c. an avoidable and hazard 05
Job – A
Job – B
Job – A
Skill a. Education 100
Effort d. Continuity of work 75
Responsibility b. Materials 25
Job Condition c. an avoidable and hazard 05
Skill c. training 152
Effort b. mental 25
Responsibility a. equipment 25
Job Condition b. cleanliness 20
Point Value Salary
100-150 TK 2000
151-200 TK 2500
Salary for job A= TK 3000
Salary for job B= TK 2500
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Salary Structure of five key officials in Nitol Insurance Company
Basic Salary 25,000
House Rent 35% of Basic Salary 8,750
Medical Allowance 10% Basic Salary 2,500
Dearness Allowance 10% of Basic Salary 2,500
Conveyance Allowance TK 1000 per Month 1,000
Employee contribution to Provident Fund 10% of Basic Salary 2,500
Entertainment Allowance TK 300 per month 300
Total = 42,550
Basic Salary 20,000
House Rent 35% of Basic Salary 7,000
Medical Allowance 10% Basic Salary 2,000
Dearness Allowance 10% of Basic Salary 2,000
Conveyance Allowance TK 1000 per Month 1,000
Employee contribution to Provident Fund 10% of Basic Salary 2,000
Entertainment Allowance TK 300 per month 300
Total = 34,300
An Internship Report on “HR in the Insurance Industry of Bangladesh – Case Study of Nitol Insurance Company Ltd” Page 55 of 83
Basic Salary 13,000
House Rent 35% of Basic Salary 4,550
Medical Allowance 10% Basic Salary 1,300
Dearness Allowance 10% of Basic Salary 1,300
Conveyance Allowance TK 1000 per Month 1,000
Employee contribution to Provident Fund 10% of Basic Salary 1,300
Entertainment Allowance TK 300 per month 300
Total = 22,750
Basic Salary 13,000
House Rent 35% o