Implication of Human Resource Management of Akij

NORTH
SOUTH UNIVERSITY
MGT 351
Human Resource Management
Group Assignment Summer 2022
Sec: 1
Group: A

Arafat Hossain Niloy 211 226 8630

Nusrat Jahan Sumaiya 211 116 5630
MD. Razin Hossain 202 114 8630
Rafi Ahmed Adnan 211 237 8630
Rizwan Ahmed 183 191 2630
Ashik Hasan 213 207 9630
Al Arabi 201 295 3630

Prepared for:
Faseeha Zabir (FsZ) Ma’am
Lecturer
Department of Management
School of Business and Economics

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 Implication of Human Resource Management of Akij

Letter of Transmittal

9th August 2022

To,

Faseeha Zabir

Lecturer,

Department of Management

School of Business

North South University, Dhaka

Subject: Implication of Human Resource Management of Akij Group.

Dear Ma‟am,

With due respect and humble submission, we are pleased to inform you that we have been
able to complete the report on Implication of Human Resource Management of Akij Group.
This report shows the overall understanding that we have acknowledged from the course and
applied in our report. We have tried to prepare this report as precisely as possible and it
helped us flourish our creativity and enhance our knowledge.

We respectfully request that you accept this report for your consideration. We gathered as
much information as we could and attempted to compile it into a clear picture of the issue.

Sincerely yours,

Arafat Hossain Niloy 211 226 8630

Nusrat Jahan Sumaiya 211 116 5630
MD. Razin Hossain 202 114 8630
Rafi Ahmed Adnan 211 237 8630
Rizwan Ahmed 183 191 2630
Ashik Hasan 213 207 9630

Al Arabi 201 295 3630

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 Implication of Human Resource Management of Akij

Acknowledgement

By the Grace of the Almighty, we have concluded our project on time. We are grateful to
Him for providing us the strength, courage and energy for successfully completing this
Report. Moreover, we would also like to extend our gratitude to our honorable faculty
Faseeha Zabir Ma‟am for providing us the perfect guidance and knowledge for completing
this Report. Her fantastic communication skills, patience, altruism and affability has greatly
helped us in understanding and completing our work successfully. We were extremely lucky
to get such an amazing teacher. We would also like to thank Akij Group for bestowing us
with essential information on their company. Lastly, a big appreciation for our group
members for giving out their best for this report to be completed on due time.

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 Implication of Human Resource Management of Akij

Executive Summary

This report will mainly cover the HR department of this massive conglomerate comprising
details about; recruitment, selection process, training and development, performance
management process, benefits and so on. Moreover, this report will also provide
recommendations based on any improvements or alterations required.

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 Implication of Human Resource Management of Akij

Table of Contents

1. Letter of Transmittal 2
2. Acknowledgement 3
3. Executive Summary 4
4. Introduction 6
5. Methodology 7
6. Background Information 8
7. Culture of interpersonal relationships 9
8. Recruitment and selection 10
9. Recommendations 15
10. Conclusion 16
11. Reference 17

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 Implication of Human Resource Management of Akij

Introduction

Started from „Pata Biri‟, Akij Group is one of the largest industrial conglomerates in
Bangladesh. It was founded by Sheikh Akij Uddin, a well-known business tycoon, back in
1940s. Being a massive enterprise, it will obviously have a huge workforce which is needed
to be managed accordingly. This report will try to analyze its HRM techniques and may
recommend some solutions which can be implemented.

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 Implication of Human Resource Management of Akij

Methodology

The following report has been developed through a standardized interview session with the
company‟s HR department manager. The study was done in the head office of Akij Group.

Our member was able to get access to the personnel for the questionnaire through family
connections. A discussion on the vital areas of Human Resource practices were highlighted in
the interview. Apart from the HR studies, other information‟s (i.e.; background information)
were collected through the company‟s websites and other relevant internet platforms.

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Background information

Akij Group was founded in the year 1950 by Sk. Akij Uddin. He was born in 1929 in a
village of Khulna. He was the only son of his parents. His father was a local businessman and
they all lived a humble life. Even though Akij was admitted to a school, he used to invest
most of his time looking after his father‟s business. When adversity struck the economic
standing of Akij‟s family, he was bound to search for an earning source.

In 1943, when the Great Famine took place, Akij left his family in Khulna and went to
Kolkata in search of a job. All alone, without any friends or relatives, Akij stayed at the
Shialdah Railway Station. Throughout the day he would look for some work and return back
to the station to spend the night. He used bricks as his pillow when he slept.

One day Akij saw some people buying fruits from the street sellers at auction and selling
them in different parts of the city, making small profits. This process seemed attractive to
him. Hence, he started a small business on his own where everything costs 6 ana (currency
measurement during that time). Later on, he was fined and arrested, therefore sold his assets
in Kolkata and went to Peshawar. He returned from Peshawar after two years with some
ownings. After selling off a small business in Kolkata, Akij returned to his home town in
Khulna with 10 rupees. He met a friend of his father who used to produce „beedi‟ (hand-
rolled cigarettes). With the help of his father‟s friend, Akij started his own manufacturing
business of hand-rolled cigarettes and named it Akij Beedi.

Thus, the commencement of Akij Group took place. By the year 1972, Akij Group was well
recognized as a group of companies. Rising since then, Akij group has established around 26
business units. They are operating now as the largest group of companies in Bangladesh.

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 Implication of Human Resource Management of Akij

Culture of interpersonal relationships

Akij Group has given employment to a large number of people from all around the country.
In their corporate world, Akij has a friendly environment which creates an attachment for the
employees, who are treated as being part of the Akij family. They approach their mission and
execute their skills in the market with the help of profound leadership skills and committed
team work. The outcome of their successful interpersonal communication is witnessed by
Akij Group being the best company four times up till present. Akij aims to stand out as the
market leader through great efforts of their personnel‟s‟ skills and knowledge.

Akij group also took part in a number of social activities. Akij aims to pursue their vision
through teamwork, innovation, integrity, customer focus and trust and respect in the globe.

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Recruitment and selection

Recruitment is the process of finding or attracting candidates in terms of qualification within

or outside an organization for a job opening. And selection criterion are standards that are to
be met by job applicants. In Akij group, Recruitment is done through company owned job
portal called career.akij.net/job. All vacancies are published on the portal. The interested
candidates can apply to any role that they want. But the maximum number of clients apply
through other job searching organizations or websites, such as bdjobs.com.

The procedure given below will give a short thought regarding the way toward finding the
correct workers that Akij Group use to requite the employee:

1. Workforce planning and forecasting: Every year Akij group decides how many positions
the firm need to fill and what their character will be. They use ratio analysis as their
forecasting tools by making it based on the ratio between sales volume and number of
employees they need to fill.

2. Building a pool of candidates: Akij Group uses "Promotion" as their internal source and
"Advertising" as their external source.

3. Completing application Forms: Applicants respond to the advertisement with application

and required documents.

4. Selection Tools: Applicants first need to go through a written or a practical test. They use
different types of tests method such as cognitive abilities, motor and physical abilities,
Personality and interests, Current achievements (for freshers) and experience (for senior
candidates). The final candidates will be carefully chosen through viva by a “Standing
Selection Committee".

Akij group has a different types of selection process for each department. The selection
process for sales department is not the same as another department.

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• Sales (TSM): Akij Limited hire so many candidates for regional sales officer. The
selection process in sales job is different and divided into some steps. To hire a territory
manager Akij limited follow:

Walk-in Interview: A company uses this method of interview when it needs to

procure enormous number of candidates.

⮚ Akij group follow this interview strategy. They accept job applications during a range

of times and conduct the interview.

⮚ Checking of papers: Collecting the certificate and verifying of the papers of the

selected candidates.

⮚ Field Test: Selected candidates will face a 3 days of field test.

⮚ Bike test: The bike test is also required after the field test has been taken.

⮚ Written Test: This test will be taken of the candidates based on the 3 days field test.

⮚ Final Selection: A few chosen candidates finally gets selected as employees of the

firm, after the written test.

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● Corporate: Akij group follows certain steps to select the employee for their corporate

sector. This department is the principal base of tasks and fill in as the organization's
fundamental work places for authoritative and administrative stuff. The selection process
in corporate department of Akij group has given below:

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⮚ Job circular: Advertisement in different portals such as newspapers and online.

⮚ Interviewing the candidates: Akij group have unstructured way to interview.

⮚ Selection tools: Akij group practices different types of selection tools when it comes

to hire a candidate into a corporate department. At first, they examine the “cultural
orientation” of the candidates to see whether they match with the organizations
culture. Secondly, they see the capabilities to analyze the academic competencies. The
company mostly requires experience for senior position.

⮚ Final selection: In view of all data assembled amid the enlistment and determination

process including list of references, interviews, test comes about, candidate

evaluations, reference checks, and the council of the choice group, choose which
competitor best fulfills the preset-up necessities of the opening.

We may conclude from these that Akij Group places a strong emphasis on three factors when
it comes to hiring in the corporate department: demand, competency, and culture.

● Factory: A factory is a mechanical location, typically made up of buildings and hardware,

or, more generally, a complex with several structures, where workers produce goods or
operate machines to transform one thing into another. The selection procedures differ
somewhat from those in the sales division. Nevertheless, it largely adheres to corporate
departmental protocol.

Training

Akij did not disclose any information regarding employee training. However, their probation
duration is 6 months and the employee‟s performance are evaluated throughout the 6 months.
If their performance is satisfactory, then they will be assigned for a permanent position. If the
performance requires higher perception, they will give 3 months for improvement of the
employee‟s performance along with PIP (Performance Improvement Plan).

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Performance Appraisal

Akij have a yearly performance appraisal which is calculated from every July-June fiscal
year. Before the ending of June, their employee‟s performances are evaluated through their
KPI system. After working for an entire year, employees will sit with their line manager to
receive performance evaluation through the KPI records. Employees who performance better
receives monetary benefit. They have a salary increment which provided based on the grade
achieved in the performance evaluation. Those who perform extraordinary are taken into
special consideration by the management. The employee may receive a promotion, or a
higher increment based on her performance. The promotion policy of Akij is minimum 3
years working record and their designation change in every 3 years.

In terms of resigning, the employee must inform through notice at least 2 months early. The
liability of the resigning employee will be paid throughout the 2 months unless they won‟t
notify 2 months earlier. Instead, 2 months of salary is being cut from the employee‟s pay. As
for the company, they may fire any employee without information but following the payment
of 2 months‟ salary to him/her upon the termination.

Benefits

Salary: Akij follows market average for their salary, not any structured payment policy.
They have a benchmark for compensation. Depending on the employee‟s position,
responsibilities, they determine the band of the salary range.

Bonus: Akij offers 2 weekly holiday leaves, along with festival bonuses. They have an extra
bonus system known as Leave Fare Assistance Bonus, which is a benefit one will receive
after completing 1 year of service. Along with that, they also provide 5 days privilege leave.
These holidays can be spent together as per the employee‟s preference. The structure of the
privilege is 5 days on first year, 7 days in the next year and 10 days in the year after that.

Insurance: They provide medical insurance for family members up to 4 members.

Transportation: Akij provides full free transport service for their employees.

Lunch: They have subsidized lunch system, meaning only part of the cost is covered by Akij.

Leaves: Akij allows 10 days of casual leave, 14 days of sick leave, 3 days in a week early
leave. In terms of emergency like, first-blood relative‟s death, they provide a leave for 3
days.

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They also allow a leave for Hajj only once in their employee‟s timeline. They don‟t have any
earned leaves.

Work-from-Home: Akij did adapt to remote working during COVID-19 situation.

Currently, it requires a valid reason and permission from higher authority to sit for work from
home.

Gratuity & Provident Fund: The eligibility for gratuity and PF is minimum 7 years of
working record. For PF, 10% of the basic salary from the employee is cut (5% is cut and 5%
is paid). After 7 years, the employee will receive the entire portion. If an employee quits after
7 years, for every year they will receive their basic salary.

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Recommendations

Besides the current practice and strategies, Akij can consider introducing more advanced HR
practices. They can use better quality software-based worker management which can help
them save time and money and ensure more transparency, Bitrix24 or Hibstaff are good
quality software available in the market. Akij can also consider hiring foreign consultants
who can help them improving the overall environment. Most importantly, Akij should
become more focused on implementing a strategic human resource management that will
help the workers giving their efforts focused towards company‟s goals. They then identify
ways that departments can change in order to get better and hire employees with the right mix
of skills and abilities to make that possible.

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Conclusion

To sum up, Akij already has a well-trained Human Resource department but following the
recommendations, they will be able to improve their HR department further which as a result
will help the entire company as a whole and will lead to enhancement of their HR practices.

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References

1. Bdjobs.com. n.d. Largest Job Site in Bangladesh, Search Jobs | Bdjobs.com. [online]
Available at: https://www.bdjobs.com/?fbclid=IwAR3Bh-OeMbmKcenUy-
Ay80fuq5xrjYCBbCPI0uB2etQe3Mp5rzlR3My209o
2. Business Inspection BD. n.d. Top 10 Group of Companies in Bangladesh - Business
Inspection BD. [online] Available at: <https://businessinspection.com.bd/top-10-
group-of-companies-in-bd/>
3. Career.akij.net. n.d. Career | Akij Group. [online] Available at: https://career.akij.net/?
fbclid=IwAR1mqQYqPK5t-hJ9cwrq8YAF9PAGwm
4. Dessler, G., 2008. Human resource management. Upper Saddle River (N.J.): Prentice
Hall.
5. En.wikipedia.org. n.d. Sheikh Akijuddin - Wikipedia. [online] Available

at: https://en.wikipedia.org/wiki/Sheikh_Akijuddin

6. n.d. [online] Available at: https://www.akij.net/about-founder

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