Employee Compensation and Benefits Package of ACI Limited

Introduction of the report:

Bachelor of Business Administration (BBA) is a professional course and the internship program
is an important part of Bachelor of Business Administration (BBA). This program creates a
unique opportunity for the student to apply their theoretical knowledge into practice and gain
valuable real world during the program, student can also realize existing business condition a
part from having opportunities to solve the many problems. After completion of academic course
requirements the students of BBA are sent to various organizations for 12 weeks internship to
gather practical knowledge. It helps the students to acquaint with the real life situation. As ACI
Limited is one of the most important organizations. So I have selected the ACI Limited which is
one of the leading chemical industries in our country.

As a part of the internship program of BBA course requirement, I was assigned to do my

internship in ACI Limited for a period of three months (04 March, 2012 to 03 June, 2012).

Background of the report:Internship program is an integral part of BBA program. Theoretical

sessions alone cannot make a business student efficient and perfect in handling the real life
business situation. Only a lot of theoretical knowledge will be of little importance unless it is
applicable in practical life. So I need proper application of my knowledge to get some benefits
from my theoretical knowledge to make it more meaningful.

Significance of the report:This report, “Employee compensation & benefits package of ACI
Limited” has been prepared to fulfill the partial requirement of BBA program as a mean of
internship program. While preparing this report, I had a great opportunity to have depth
knowledge about the employee compensation & benefits of ACI Limited.

The main reason of this report is to become a familiar with the realistic business world and to
attain practical knowledge about the employee compensation & benefits package of ACI
Limited. It is known that there is no alternative of practical knowledge which is more beneficial
than theoretical aspects. Internship is not only essential for practical experience but also require
for understanding of corporate culture and to cope with the daylong working atmosphere. As a
student of BBA this report will be more significant in my practical life. That’s why my selected
topic is Employee compensation & benefits package. I have worked for three months at ACI
Limited to complete the internship program as an academic requirement.

Scope of the report:The report covers the Employee compensation & benefits package of ACI
Limited. The report presents employee compensation, allowance, incentives, Provident fund,
gratuity, insurance, employee leave & medical facilities of ACI Limited.

Objective of the study:

Broad objective:
To know about the employee compensation and benefits package of ACI Limited.

 Specific objectives:

     To know about the employee benefits plan of ACI Limited.

     To illustrate various types of allowances and other compensation related facilities provided by
ACI Limited.

     To identify the problems of employee compensation & benefits package of ACI Limited.

     To suggest some possible recommendations to overcome the problems.

Methodology of the report:

Type of Research:

This report is a descriptive type of research in nature and it administered by collecting both
primary and secondary data. It has tried to use both the primary and secondary sources of
collecting information and some are to make the report presentable with as less abstraction as
possible.

Types of data collection:

In order to attain the objective of the report, all-necessary information’s are prepared by
collecting both primary & secondary sources of data. These are:

Primary data:

Primary data collected directly to provide the ACI Limited companies employees compensation
& benefits package through face-to-face interaction. It is the systematic collection of information
directly from respondents using survey. Several sources of data collection are used to make this
report. The source of data are-

³ Questionnaire survey.

³ Face to face communication.

³ Telephone interview.

Secondary data:

Some secondary data collected to make the report more concrete. These data has been collected
from:

§ ACI Limited annual report 2009, 2010, 2011.

§ ACI Limited statistical report 2011.

§ Web site: www.aci-bd.com.

Methods of Primary data collection:

Primary data:

Fill up the questionnaire by questioning. In depth interview with ACI Limited employees.

Questionnaire Design:

This questionnaire was developed with the combination of close-ended procedure. By using
close-ended questionnaire the researcher can identify any opinion, complain and feelings of the
respondents. The length of the questionnaire is 2 (two) pages (A4 size paper). The questionnaire
has 2(two) sections. In section 1 – the personal information, in section 2- Subject related
questions.

Sample plan:

Population:

The population of my survey is all of the ACI Limited employees. The first step of the sampling
design is to define the report population. I mainly focused on the Head office employees.

Sample Size:

The total sample size for the study is 20.

Designation No. of employees

Junior Manager 14

Senior Manager 06

Total 20

Table: 1.1 Sample size

Sample unit:

The total sample unit is 14.

 Data Analysis and reporting:

Statistical tools and computer software like Ms Word, Ms excel, Ms Power point have been used
for analysis and reporting.

Limitations of the report:

The report is not free from some practical limitations. Following limitations have faced during
the report and the time of working & data collection:

     In many cases the relevant authorities are not helpful to provide information.

     Up to date information were not available.

     Lack of instrumental facilities to get proper information.

     Lack of Records, Sufficient books, unavailable information in website. These constraints

narrowed the scope of accurate analysis.

     The employees of the company were so much busy with their jobs, which lead a little time to
consult with me.

History of ACI Limited:

ACI’s mission is to achieve business excellence through quality by understanding, accepting,

meeting and exceeding customer expectations. ACI follows International Standards on Quality
Management System to ensure consistent quality of products and services to achieve customer
satisfaction. ACI also meets all national regulatory requirements relating to its current businesses
and ensures that current Good Manufacturing Practices (CGMP) as recommended by World
Health Organization is followed properly. ACI has been accepted as a Founding Member of the
Community of Global Growth Companies by the World Economic Forum which is the most
prestigious business networking organization.

Advanced Chemical Industries (ACI) was established as the subsidiary of Imperial Chemical
Industries (ICI) in the then East Pakistan in 1968. After independence the company has been
incorporated in Bangladesh on the 24th of January 1973 as ICI Bangladesh Manufacturers
Limited and also as Public Limited Company. This Company also obtained listing with Dhaka
Stock Exchange on 28 December, 1976 and its first trading of shares took place on 9 March,
1994. Later on 5 May, 1992, ICI plc divested 70% of its shareholding to local management.
Subsequently the company was registered in the name of Advanced Chemical Industries
Limited. Listing with Chittagong Stock Exchange was made on 22 October 1995.

Advanced Chemical Industries (ACI) Limited is one of the leading conglomerates in

Bangladesh, with a multinational heritage. The company has diversified into three major
businesses.

 Mission, Vision & Values of ACI Limited:

Mission:

ACI’s mission is to enrich the quality of life of people through responsible application of
knowledge, skills and technology. ACI is committed to the pursuit of excellence through world-
class products, innovative processes and empowered employees to provide the highest level of
satisfaction to its customers.

 Vision:

Endeavour to attain a position of leadership in each category of its businesses.

Attain a high level of productivity in all its operations through effective and efficient use of
resources, adoption of appropriate technology and alignment with our core competencies.

Develop its employees by encouraging empowerment and rewarding innovation.

Promote an environment for learning and personal growth of its employees.

Provide products and services of high and consistent quality, ensuring value for money to its
customers.

Encourage and assist in the qualitative improvement of the services of its suppliers and
distributors.

Establish harmonious relationship with the community and promote greater environmental
responsibility within its sphere of influence.

Values:

Quality

Customer Focus

Fairness

Transparency

Continuous Improvement

Innovation

 Chairman’s Profile:

Mr. M Anis Ud Dowla, the Chairman of ACI Limited, is one of the most successful personalities
in Bangladesh business circle. He has maintained a high profile, and has provided leadership to
business community in different capacities. Mr. Dowla served in the British Oxygen Group of
UK in Pakistan, Bangladesh and Kenya for 27 years, including 12 years as Managing Director of
Bangladesh Oxygen Ltd. In 1987, he became the Group Managing Director of the three ICI
companies in Bangladesh. With experience gathered while working with British Multi-nationals
for over 32 years, Mr. Dowla has continued to maintain the multinational culture and
management style in ACI, with especial emphasis on quality, productivity and customer services.
M. Dowla was the President of Metropolitan Chamber of Commerce & Industry for three terms
in 1975, 1976 & 1977 and the President of Bangladesh Employers’ Federation for four terms in
1976, 1977, 1994 and 1995.

 Management of ACI Limited:

Management Committee:

Dr. Arif Dowla Managing Director

Dr. F.H.Ansarey Executive Director, Agribusinesses

Mr. Syed Alamgir Executive Director, Consumer Brands

Mr. M. Mohibuz Zaman Chief Operating Officer, Pharmaceuticals

Mr. Muallem A. Choudhury Executive Director, Finance and Planning

Mr. Sabbir Hasan Nasir Executive Director, Logistics

Mr. Priyatosh Datta Director, Quality Assurance

Mr. Pradip Kar Chowdhury Financial Controller

Ms. Sheema Abed Rahman Director, Corporate Affairs

Mr. Abdus Sadeque Director, Marketing & Sales

Mr. Imam Ahmed Istiak General Manager, Operations

Board of Directors:

Mr. M Anis Ud Dowla Chairman

Mr. Arif Dowla Managing Director

Mrs. Najma Dowla Director

Mr. Waliur Rahman Bhuiyan Director

OBE

Mr.Md. Fayekuzzaman Director

 Mr. Golam Mainuddin Director

Ms. Shusmita Anis Salam Director

Ms. Sheema Abed Rahman Director

 Principal Bankers:

Standard Chartered Bank

The Hongkong and Shanghai Banking Corporation Limited

Commercial Bank of Ceylon Plc

Citibank N. A

Eastern Bank Limited

The City Bank Limited

BRAC Bank Limited

AB Bank Limited

Bank Alfalah Limited

Mercantile Bank Limited

Premier Bank Limited

Bank Asia Limited

Dutch Bangla Bank Limited

 Management style:

Managers have to perform many roles in an organization and how they handle various situations
will depend on their style of management.

             Senior Executive and officers                                          Executive Officer           

Business of ACI Limited:

Pharmaceuticals:

In 1973, the UK based multinational pharmaceutical company, ICI plc, established a subsidiary
in Dhaka, known as ICI Bangladesh Manufacturers Limited. In 1992, ICI plc divested its share to
local management, and the company was renamed Advanced Chemical Industries (ACI)
Limited.

ACI formulates and markets a comprehensive range of more than 387 products covering all
major therapeutic areas, which come in tablet, capsule, powder, liquid, cream, ointment, gel
,ophthalmic and injection forms. ACI also markets world-renowned branded pharmaceutical
products like Arimidex, Casodex, Zoladex, Atarax etc. from world-class multinational
companies like ASTRAZENECA, UK and UCB, BELGIUM in Bangladesh.

ACI is actively engaged in introducing newer molecules and Novel Drug Delivery Systems
(NDDS) to meet the needs of the future.

ACI introduced the concept of quality management system by being the first company in
Bangladesh to achieve ISO 9001 certification in 1995 and follows the policy of continuous
improvement in all its operations.

Aligned with the concept that a pharmaceutical must ensure effective management of
environment, ACI complies with standard environment management policy, thus adorned with
EMS 14001 in 2000.

ACI maintains a congenial and supportive relationship with the healthcare community of
Bangladesh, with the belief that business excellence can only be achieved through pursuit of
quality by understanding, accepting, meeting and exceeding customer expectations.

The management of ACI, a competent team of professionals, thus operates with a progressive
attitude to provide effective solutions to satisfy the customers’ needs, through its products and
services of uncompromising quality.

 Consumer Brands & Commodity Products:

ACI Consumer Brands was initiated in 1995 with two major brands of the company – ACI
Aerosol and Savlon. These are two of most prestigious products which are enjoying the
leadership position in the market. The division started to take new businesses through off shore
trading as well as local manufacturing. In this process ACI Consumer Brands launched many
new products and also bonded with Joint Venture business relationships with ‘Dabur India’ and
‘Tetley UK’ and attained international alliances with world renowned companies.

The Consumer Brands Division boasts in having an unequivocal presence in consumers’ heart
with the market leading brands like ACI Aerosol, Savlon, ACI Mosquito Coil & ACI Pure
Spices and Flour. With close to 80% market share in own categories, ACI Aerosol and Savlon
are the persistent performers in keeping the household clean and free from germs and harmful
insects. The ACI mosquito coil has also emerged as a formidable opponent to both the mosquito
and the competition, by providing effective and affordable solution to the conscious people of
Bangladesh.
A sound mind goes with a sound body-ACI believes in this age old proverb and our young
generation needs to grow up with healthy physique and sound mind who will lead the nation in
future. With this belief, ACI has entered in to the commodity food business with “ACI Pure”
Brand. The aim is to provide purest of the food products to Bangladeshi consumers at affordable
price for which ACI has invested in very large scale in state of the art manufacturing facilities for
daily kitchen essentials like vacuum evaporated edible Salt, Spices and Flour. The products are
delighting the consumers by providing 100% dirt free, pure and natural food ingredients which
can compete against any international products.

ACI Consumer Brands is successfully serving the consumer demand for foreign products in
household and personal care category with the world renowned product range of Colgate, Nivea
& Dabur. With the proper distribution and marketing by ACI consumer brands, the world’s No. 1
tea brand “Tetley” is now available to the consumers of Bangladesh.

As a successful business, The ACI Consumer Brands is focused on achieving the consistent
growth required to continue the success and to make ACI an even stronger company. The
Consumer Brands believe this is the best way to benefit the consumers, people and the
shareholders of ACI.

ACI Consumer Brands Strategic Business Unit is headed by the Executive Director, Mr. Syed
Alamgir. Mr Alamgir is regarded as an authoritarian personality in the area of Sales and
Marketing in Bangladesh market. His track record has many successful brands which reached
leadership position in different categories in FMCG market. He is supported by competent group
of professionals working in the Marketing and Sales operations.

 Agribusinesses:

ACI Agribusiness is the largest integrator in Agriculture and Livestock and Fisheries. These
businesses have subunits like Crop Protection, Seed, Fertilizer, Agrimachineries, and Animal
Health. These businesses have glorified presence in Bangladesh.

CC & PH supplies crop protection chemicals, Seed supplies Hybrid Rice, vegetable and Maize
seeds, Fertilizer Supplies Micronutrient and Foiler fertilizer, Agrimachineries supplies Tractors,
Power Tiller and Harvester and Animal Health supplies high quality Nutritional, Veterinary and
Poultry medicines and vaccines.

ACI Agribusiness is having strong partnership with national and international R & D companies,
universities and research institutions. Before introducing any product, it is elaborately tested in
the laboratory and farmers field.

ACI Agribusiness has a large, knowledgeable and highly skilled Field Force provides training
and technical advices to the farmers. ACI is significantly contributing to national food security
through its Agribusinesses division, which is the leading agricultural integrator of the country.
ACI Agribusinesses is providing complete solution to the farmers need. This division has five
separate SBUs. They are Seeds, Fertilizer, Motors, Crop Care & Public Health, and Animal
Health. Farmers have developed confidence in our products for quality and economics. Farmers
have also come to expect proper knowledge based service from our field force.

  Subsidiaries of ACI Limited:

     ACI Formulations Ltd.

     ACI Agrgochemicals

     Apex Leathercrafts Limited

     ACI Salt Limited

     ACI Pure Flour Limited

     ACI Foods Limited

     Premiaflex Plastics Limited

     Creative Communication Limited

    ACI Motors Limited

     ACI Logistics Limited

 Joint Ventures of ACI Limited:

     ACI Godrej Agrovet Private Limited

     Tetley ACI (Bangladesh) Limited

     Asian Consumer Care (Pvt) Limited

Quality policy of ACI Limited:

ACI’s mission is to achieve business excellence through quality by understanding, accepting,

meeting and exceeding customer expectations.

ACI follows International Standards on Quality Management System to ensure consistent quality
of products and services to achieve customer satisfaction. ACI also meets all national regulatory
requirements relating to its current businesses and ensures that current Good Manufacturing
Practices (CGMP) as recommended by World Health Organization is followed for its
pharmaceutical operations.
The management of ACI commits itself to quality as the prime consideration in all its business
decisions. All employees of ACI must follow documented procedures to ensure compliance with
quality standards.

The pool of human resources of the company will be developed to their full potential and
harnessed through regular training and their participation in seeking continuous improvement of
work methods.

Environmental Policy of ACI Limited:

ACI is committed to maintain the harmonious balance of our eco-system and therefore

constantly seeks ways to manufacture and produce products in an eco-friendly manner so that the
balance of nature remains undisturbed and the environment remains sustainable.

In pursuit of this goal, ACI will

Comply fully with all local and national environmental regulations.

Conserve natural resources like water and energy for sustainable development, and adopt
environmentally safe processes.

Ensure appropriate treatment of all effluents prior to discharge, to prevent pollution or

degradation of environment.

Ensure appropriate communication and cooperate with internal and external interested parties on
environmental issues.

Create awareness on environmental issues among our employees and suppliers.

 Corporate social Responsibility of ACI Limited:

Societal Development through Educational Programs:

ACI’s guiding principle in all its operations is to be a ‘responsible corporate citizen’. Thus,
Social Responsibility is a top priority for every individual at ACI. Our endeavors toward
discharging our social responsibilities have become more focused since our adoption of the
principles of the Global Compact.

Initiatives that have shown significant contribution to societal development are Continued

Medical Education(CME) for medical professionals and Children’s Education Programs.

A dedicated team of medical graduates makes up the Medical Services Department (MSD) in
ACI, which carries out CME programs termed ‘Clinical Meetings’ all across Bangladesh. These
are essentially non-advertised meets of medical professionals that serve as a training and
knowledge-sharing forum, often conducted by experts on the subject. Our partners in
development for these programs are doctors, medical associations and/or departments, and
various study groups. The level of involvement of ACI in these programs may range from only
sponsoring the entire program to providing all types of services and technical support to the
presenter to even conducting the program by an MSD doctor. Support from MSD include
research support for deliberations at the meet, literature and multimedia presentation for the
program, updates on new technology and thoughts in medical fields, and even educational
support to any participant in their area of interest.

ACI has also undertaken an English Education program in Faridpur, one of the remotest districts
of Bangladesh. This provides support to teach English Language to school going children.

Outcome:

Doctors in Bangladesh who are not living in the metropolitan cities have very limited access to
the Internet or any other sources of information. In order to keep them updated on the
developments in the medical practices regularly, the CME program has been proven highly
effective.

ACI believes that by promoting education of children, we are contributing to societal

development by shaping the minds of our future leaders.

Educating the farmers, with a focus on Environment Friendly Practices:

ACI has undertaken extensive programs to educate crop farmers all over rural Bangladesh in
Good Agricultural Practices. We have a team of agricultural experts working at the field level all
across the country, holding a range of technical trainings and field demonstrations. Their
activities include

Field demonstrations on various methods of crop protection, that pose the least hazard for the
environment

Training on new technologies of cultivation, for higher yields and new crops

Training to channel partners (e.g. retailers and agricultural extension workers) and third parties
(e.g. NGO workers)

ACI also has similar education programs for animal and poultry farmers. These include

Technical trainings on diverse aspects of farming, and on application of new technologies

Farmers’ group meeting for sharing of learning and experience

Free visits to farms by veterinarians, to identify problems and give advices to individual farmers

Outcomes:
Our farmers are mostly illiterate having learnt the art and science of farming by assisting their
family on the fields. Our continuous endeavors to educate farmers have given significant benefits
on three fronts:

Raising the level of awareness among farmers on improving their agricultural output through
application of new technology, encouraging them to share experiences with neighboring farmers
and, in the long run, developing educated farmers.

Raising the educational level and technical knowledge of channel partners and third parties who
act as advisors to the farmers.

Most importantly, making the farmers aware of ways to protect the environment from hazardous
uses of chemicals on their farms, allowing them the opportunity for informed decision-making.

Support Functions of ACI Limited:

ACI hopes to continue to play a leading role in promoting greater environmental responsibility
among farmers in Bangladesh.

Human Resource (HR):

ACI HR works with a vision for creating a work-environment to foster creativity, innovation and
productivity for achieving business excellence through dynamic and dedicated people.

We believe that Human Resources are the most important asset of the organization. We identify
the training needs and provide trainings accordingly to develop the knowledge and skills of our
human resources. Thought Leadership and Team Building meetings are conducted on a regular
basis. We provide an enabling working environment to unleash the full potential of the
employees and a performance based career progression.  We have a value based culture where
dignity of the individual is the highest priority. We believe in empowerment and delegation. We
organize different social events like Family Day, Cricket Tournament, and Badminton
Tournament etc with an objective to strengthen the bondage among the employees. We practice
modern HR Policies and procedures for Recruitment & Selection, Manpower Planning and
succession planning. We use a combination of qualitative aspects and Balanced Score Card for
performance appraisal.  We have attractive policies regarding car loan, gratuity, provident fund
and hospitalization. We offer performance bonus, leave fare assistance, festival bonus and
workers profit participation fund during different times within a year.  ACI is a place to learn,
grow and contribute for improving the quality of life of people.

Finance and Planning:

ACI Finance and Planning function is the nerve centre of the conglomerate. Being the nature of
the structure, ACI Finance and Planning plays the centralized role in all kinds of financial and
accounting services. Meaning it handles financial and accounting matters of not only ACI
Limited but also of all of its subsidiaries supporting the mission and vision of the Group. The
major areas of its activities include:

Corporate Finance

Treasury

Insurance and risk management

Costing

Credit Management

Accounts payable management

General accounting

Taxation

New business management

ACI finance is pioneering in introducing and implementing state of the art financial tools like
electronic banking, integrated accounting systems, better foreign exchange management through
hedging, derivatives etc. To allow us to excel in our performance ACI Finance has strong rapport
with all the international and major local banks, non-financial institution including leasing
companies.

Driving force of Finance is its motto which is “to become most value adding business partner”.
To drive this vision, ACI Finance proactively helps business in providing right and timely
information, analysis, budgetary management and participating in cross-functional team.

The Planning function not only compiles and coordinate the company plan of the conglomerate
but also instrumental in feeding the CEO and top team different macro and micro economic
situation of the country as well as world in large. These in-depth analyses help the company to
make correct and pragmatic decision as a part of strategic initiative.

The new business development area is one of the most exciting areas in ACI. Here we keep a
track on potential areas of growth being envisaged in the country, these are followed by rigorous
analysis and subsequently matching these with ACI’s competence. This allows ACI’s growth
engine to get enough fuel to take its course forward.

 Distribution:

The company maintains strategically located sales centers in nineteen different locations across
the country. It has developed an advanced distribution system through its more than 300 skilled
and trained manpower and a large fleet over eighty vehicles. The distribution system is capable
of handling continuing volume of diverse range of products from the various businesses.

The company’s distribution centers are highly streamlined, computerized and automated. We are
capable of maintaining a cold chain for some specialized range of products such as vaccines and
insulin. The combination of this advanced function and multidimensional capabilities made it
possible to handle hundreds of products efficiently.

 Commercial Department:

Commercial Department of ACI is one of the most vital functional departments of the Company
which deals with the supply chain activities of ACI. In order to keep all the businesses running
flawlessly, the dedicated and hard working employees of this department maintain a good liaison
with the customers, both national and international. The Commercial Department is consistently
achieving the best prices for the products that we purchase, ensuring enormous amount of cost
savings for the company. It offers invincible professionalism and expertise in the entire
commercial activities of ACI.

 MIS Department:

MIS department of ACI ensures the overall IT related supports for the company. This department
manages a smooth operation of software’s, hardware trouble shooting and business databases
related to sales and inventory. The MIS department consists of knowledgeable and skilled
programmers and software developers. MIS provides customized report and data analysis to the
management to facilitate effective decision making.

Training:

Training activities of ACI is focused on transforming its human capital to achieve business
excellence by increasing the bandwidth of ACI workforce. To win present and future challenges
we identify knowledge and skill sets that are pivotal factors and we design a variety of programs
so that achieving such success by using creativity, agility, flexibility, skill diversity and IT
technology becomes a custom. We scan external environment for comparing industry practices,
benchmark best practices and implement competency management programs to offer outstanding
services to our valued customers. Enormous and spontaneous shared efforts are made with the
strategic intent of achieving excellence in delivering customized services to meet the ever
changing development needs of the human resources. We design strategic learning roadmap
consisting tailored learning strategies for each of our employee clusters of the business divisions,
based on a shared vision, to make us a proud member of a learning organization. We adopt best
technology based modules, methodologies, facilities, in-house and external faculties/trainers to
ensure the best return from human development investments. Corporate Values of ACI are
embedded in the process of designing, developing and delivering each activity of Training
Department throughout the organization.
The word compensation has been derived from the Latin word “Compensatio” which means the
reward or remuneration given in exchange for labor or service. Compensation may be financial
and non- financial.

Various scholars have defined compensation in various ways. A few are mentioned below:

According to Thomas patten jr. and colleagues,

“Compensation refers to all forms of pay or rewards going to employees arising from their
employments”

According to R.S.Schuler,

Compensation Management:“Compensation is a mode through which an organization logically

evaluates the contribution of its employees and provides them with financial and non-financial
incentives according to its affordability and within the government regulation”

Compensation management provides a step-by-step approaches for designing a remuneration

system that recognize job requirements, employee related knowledge and skills, performance
related incentives that link individual, team, work unit, and organization performance.

According to Richard l. Henderson,

“Compensation management is the process by which the authority of the organization provides
some financial and non-financial benefits to the employees for their contribution”

Recognition of Employee’s contribution means-

Financial compensation:

The organization provides the financial facilities to the employees for doing their job in the
organization. Financial compensation includes the followings:

Salary.

Wages.

Incentives.

Fringe benefits.

Dearness allowance.

Medical allowance.

House rent allowance.

Gratuity.
Retirement benefits.

Non-financial compensation:

Besides financial compensation, the organization also provides non-financial compensation to

the employees for attracting and performing their jobs in the organization. Non-financial
compensation includes the following:

Dignity.

Recognition.

Working condition.

Social status.

Achievement.

 Compensation system Components:

Objectives of compensation Management:

Objectives of compensation are very important because it helps the organization obtain, maintain
and retain a productive work force.

Without adequate compensation, current employees are likely to leave. It is the main reason why
most individuals seek employment. From the employee’s point of view, pay is necessary of life.
Pay is the means by which people provide for their own and their family needs.

The Management of compensation must meet several objectives. These objectives ate listed
below:

     To acquire qualified personnel:

Compensation needs to be high enough to attract qualified personnel.

     To retain present employees:

Compensation level must be competitive in order to retain qualified employees otherwise they
may leave.

     To ensure equity:

Workers must be paid at a rate equal to the pay that similar workers receive in another firm.

     To reward desired behavior:

Good performance, experience, loyalty, new responsibilities and behavior can be rewarded
through an effective compensation plan.

     To control costs:

The compensation system must be cost effective.

     To comply with legal regulations:

The compensation system must with all sorts of legal regulations.

     To further administrative efficiency:

IN pursuing the other objectives of effective compensation management, wage and salary
specialists should design the compensation program in such a way that it can be administered
efficiently. Administrative efficiency, however, is the secondary priority of the compensation
management.

     To manage conflict and to ensure congenial working environment.

     To generate motivation among employees.

     To reduce turnover.

     To ensure loyalty/ commitment and participation.

     To reduce absenteeism.

     To enhance or improve productivity.

Factors affecting pay satisfaction:

To ensure continuity of sound working spirit.

Nash and Carroll found that pay satisfaction varies with the following factors.

Salary Level:

Higher the pay, higher the satisfaction within an occupational group.

     Community cost of living:

Lower the cost of living, higher the pay satisfaction.

     Education:

Lower the education level, higher the pay satisfaction.

     Experience:
Higher the experience, higher the pay dissatisfaction.

     Future expectations:

The more optimistic the employee is about future job conditions, the greater the pay satisfaction.

     Pay basis:

The more pay is perceived to be based on merit or performance, the greater the pay satisfaction.

     Other personal characteristics:

The more intelligent, self-assured and decisive a person is, the lower the pay
dissatisfaction. Consequences of Ineffective compensation:

A compensation consequences of ineffective compensation system, may be termed as over-

compensation and under- compensation

When the employees are paid more than what they really deserve, the system is called over-
compensation and when the employees are paid less then they really deserve, the system is called
under-compensation.

Over-compensation and Under-compensation are both harmful to the enterprise and employees
alike. The effects of over and under-compensation on employees and the enterprise are stated
below:

Effects of over-compensation Effects of under-compensation

      Demoralizing effects on other employees.Over       Loss of initiative.Lack of Motivation.

enthusiasm.
Feeling of insecurity.
Loss of initiative.
Feeling of anxiety.
Feeling guilt.
Decline in the quality of work life.
Feeling of discomfort.
Pay dissatisfaction.
Lower performance.
High turnover.
Not cost effective.
High absenteeism.
Loss of competitiveness of the firm.
Low Performance.

Table: 3.1 Consequences of Ineffective compensationConsequences of pay Dissatisfaction:

When employees are not satisfied with the compensation package, pay dissatisfaction arises. The
pay dissatisfaction has manifold effects on employees. The desire for more pay may lower
performance, increase grievances, cause stress, compel employees to search for new jobs
resulting in loss of time and so on. These are stated below:

Desire for more pay:  

      Performance.

      Strikes.

      Grievances.

Search for higher paying jobs:

      Absenteeism.

      Turnover.

      Low performance.

Pay dissatisfaction:

      Job dissatisfaction.

      Turnover.

      Absenteeism.

      Psychological withdrawal.

      Poor mental health.

Compensation sub-systems of the reward system:People obtain compensation rewards that

provide money to purchase a wide variety of goods and services to receive in kind payments of
goods and services that would have required the expenditure of money.

There are eight compensation dimensions. These are as follows:

Pay for work and performance:

      Base pay.

      Base pay add-ons.

Pay for time not worked:

      Holidays.
      Vacations.

      Election official.

      Witness in court.

      Maternity leave.

      Paternity leave.

      Blood donation etc.

Disability income continuation:

      Short term disability.

      Long term disability.

Loss of job income continuation:

      Unemployment insurance.

      Guaranteed annual income.

      Job contract.

      Unemployment benefits.

Deferred income:

      Social security.

      Pensions plans.

      Savings and thrift plans.

Spouse income continuation:

      Pensions plans.

      Life insurance.

      Group life insurance.

      Total and permanent disability.

Health, Accident, Liability protection:

      Medical, Hospital and surgical insurance,

      Social security.

      Health maintenance organization. (HMO).

Income Equivalent payment:

      Child care.

      Certain tax benefits.

      Club membership.

      Giving of gift.

      Subsidized food service etc.

Non-Compensation sub-systems of the reward system:The other major part of the reward system
consists of non-compensation rewards. These rewards are much more difficult to classify and
their components far more complex than is the case of compensation rewards. Non-
compensation rewards are all the situation related rewards not included in the compensation
package.

      Enhance dignity & satisfaction from worked performed.

      Enhance psychological, Health, Intellectual growth, and emotional maturity.

      Promote constructive social relationship with co-workers.

      Design job that requires adequate attention and effort.

      Allocate sufficient resources to perform work assignments.

      Grant sufficient control over the job to meet personal demands.

      Offer supportive leadership & management.

 Compensation and benefits package of ACI Limited:

Compensation is really very important matter for any business organization. For any business
organization, the employees who make up the workforce are very important. It is also very
important to make an attractive compensation package for these employees. The compensation
package must be very attractive to increase the image of the organization as well as to retain the
employees with the organization.

ACI Limited is also following a compensation package that helps them to retain the full time
employees and the casuals. Though they are on a track to compensate the employees in a
competitive manner, but they try to give a bit higher salaries and wages to the employees to
remain as a competitive organization in the market.

They judge the job positions first and then they go for the study of the same categorized job
position in the other organizations, and see the pay level of these positions. Then, ACI Limited
decides that how much will be paid to the positions that they are defining or examining. In this
case ACI Limited tries to be very fair about the pay levels. They try to fix the pay level in such a
manner that is fair and effective for them and to the employees too.

ACI compensation & benefit packages are:

Allowances Incentives/ Benefits

Office Management Field Staff Office Management staff Field Staff

staff

House Rent House Rent Provident fund. Quarterly/ Yearly:

allowance (100% of allowance (100% of
basic) basic) Gratuity. Yearly Leave Fare
Assistance. (50% of basic)
Medical allowance Medical allowance Group Insurance Policy.
(50% of basic) (100% of basic) Yearly two festival bonuses.
Medical Benefits. (100% of basic)
Transport Transport allowance  
allowance (50% of (50% of basic) Yearly workers participation
basic)   Fund.  (50% of basic)
Utility allowance
Lunch allowance (50% of basic) Quarterly sales incentive.
(Tk.1100 to Tk. (Not fixed)
1500) Quarterly/Yearly:
Long Term:
Utility allowance Yearly Leave Fare
Assistance. (60% of Provident Fund.
(50% of basic)
basic) Gratuity.
 
Yearly two festival Group Insurance Policy.
bonuses. (100% of
basic) Medical Benefits.

Yearly performance  
Bonus. (50% of
basic)

Yearly workers
 participation Fund.
(50% of basic)

Long Term:

Table: 4.1 ACI compensation & benefit packages

Employee benefits Plan of ACI Limited:

Employee benefits plan is the most important part of an organization. It is motivated to

employee. ACI Limited continually evaluates and reviews its employee benefits plan to ensure
that benefits are competitive. Employee benefits plan are:

I.      To establish wage & salary plan of  ACI Limited employees:

Wage & salary plan comprises the following components:

     ACI has a competitive monthly total base salary.

     The company follows an annual performance based salary increment.

     Performance bonus is available in ACI.

ACI Limited also provides night shift premium, incentive, festive advance, transport
reimbursement etc.

II.      To implement employee incentive plan of ACI Limited:

     Quality of work output. ( How many units produced)

     Quality of  work output ( What was the quality of the product or service being produced or
served)

     Monthly sales. ( How much sales was generated)

     Work safety record. ( How many hazard or errors are being reduced)

     Work attendance ( If the absent is reduced or attendance is good)

III.      To ensure health & medical allowance plan of ACI Limited employees:

All employees of ACI will receive a monthly medical allowance as per respective grade of the
employee. The allowance will be paid together with the employee’s monthly salary and for this
no receipt needs to be submitted.

 IV.      To make sure effective Provident fund plan of ACI Limited employees:
Permanent employees of ACI Limited are eligible to become members of the provident fund.
Employees contribute 10% of their basic to the provident fund and the company makes equal
contribution to the fund.

 V.      To make situation demanding  profit sharing plan of ACI Limited employees:

There are some employees who prefer to feel a sense of ownership; this also gives them direct
reason to want to see the company succeed because they are financially invested. As a means to
invigorate many companies offer profit sharing as a reward for strong motivation in a job well
done.

VI.      To provide flexible-time benefits plan for employees in order to ensure their right:

Many employee want Alternative work schedules. Sometimes employees flourish on different
kinds of work schedules as opposed to the traditional (and often monotonous) 9to 5 schedules.

VII.      To set up leave for marriage, maternity leave, sickness leave and vacation leave plan of
ACI Limited employees:

ACI also has paid leave for marriage, maternity, sickness and vacation plan.

 VIII.      To make sure short term & long term benefit plan of ACI Limited employees:

Short term benefits plan:

Yearly Leave Fare Assistance.

Yearly two festival bonuses.

Yearly workers participation Fund.

Quarterly sales incentive.

Long Term benefits plan:

Provident Fund.

Gratuity.

Group Insurance Policy.

Medical Benefits.

  IX.      To establish gratuity plan of ACI Limited employees:

ACI has gratuity plan. Gratuity is considered as long-term financial benefit for employees.
Payable at the time of leaving the company upon completion of at least 8 years of continuous
service. The employee will receive an allowance equal to his/her last drawn basic for each
completed year of service.

X.      To cover all employees under the group life insurance plan:

ACI Limited provides insurance coverage for partial or permanent disability and death under
group life insurance.

  XI.      To concentrate on the  Leave benefits plan of ACI Limited employees:

ACI limited all management staff will have the following leave entitlement in a calendar year.

Privilege leave: 24 days

Sick leave: 14 days.

 Various allowances of ACI Limited:

Different types of allowances given on the basis of salary in ACI Limited:

  Employee Designation

Salary & Benefits Office Management staff Field Staff

Basic Salary 5500-57000 3000-8500

House Rent allowance 100% of basic 100% of basic

Medical allowances 50% of basic 100% of basic

Transport allowances 50% of basic 50% of basic

Lunch allowance Tk.1100 to Tk.1500 ——-

Utility allowance 50% of basic 50% of basic

Table: 4.2 various allowances of ACI Limited

Compensation related facilities/ Benefits of ACI Limited:

Employee salary:

ACI Limited is committed about maintaining salaries and benefits that are fair to all employees
and competitive in the local market place. The management monitors changes in the economy
and salary market to ensure that ht overall compensation package is sufficient to attract, recruit
and retain high quality staff within the financial capabilities of ACI Limited. At all times the
management considers long term financial implications of changes in employee compensation as
well as fairness to employees currently serving the company.

Principles of salary:

The compensation structure is framed with the objective to attract and retain high quality people.
The guiding principles of the compensation policies are:

Individual’s background and Experience.

External pay market levels and trends ( determined through compensation survey)

Particular skills requirements of the company.

Company’s affordability.

Company’s statutory obligations.

Payment of salary:

Mode of payment:

Payment shall only be made in Bangladeshi take. Every employee should have a salary account
in company nominated commercial bank. The salary will be transferred to the respective salary
accounts from the confidential department within the last day of each month.

Pro rate payment:

If any employee is hired in the middle of a month the salary will be paid on pro rate basis and the
salary can be paid in cash if the salary account is yet to be opened.

Advance salary payment:

No advance salary or advance from already earned salary can be disbursed to any employee
without written approval of the managing director.

 Loan against salary:

Generally such loan is discouraged. Only en extreme cases, depending on the merit, loan may be
considered and approval for loan will require managing director’s approval.

Incentives:

Compensation fluctuates according to:

A pre-established formula.
Individual or group goals because group goals are different from individual goals.

Company earnings

An incentive adds to base pay:

It controls costs because the employee is being paid for his/ her extra effort and for the benefits
brought to the organization.

Motivates employees.

Incentive pay categories:

  Individual.

  Group.

  Company-Wide.

Individual incentive:

Quality of work output. ( How many units produced)

Quality of  work output ( What was the quality of the product or service being produced or
served)

Monthly sales. ( How much sales was generated)

Work safety record. ( How many hazard or errors are being reduced)

Work attendance ( If the absent is reduced or attendance is good)

 Group Incentives:

Customer satisfaction.

Labor cost savings.

Materials cost savings.

Reduction in accidents.

Services cost savings.

 Company- Wide:

Company profits.

Market share.
Sales revenue.

Sales Incentive:

              I.      Instead of performance bonus, field sales staff will the rewarded with quarterly
sales incentive for their contribution to the company.

           II.      Incentive schemes for each business will be proposed by respective business head
during budget preparation for the coming year. This scheme will require approval from the
managing director and should be communicated to field force before beginning of the year.

         III.      Based of requirement of the business, head of business may propose and implement
any change of the scheme subject to the approval of the managing director.

Provident fund:

The company has instituted provident fund for management staff.

All Management employees will join the provident fund scheme after confirmation.

Along with the confirmation latter Human Resource Department will send a provident fund
joining and nomination form to the employee.

 The provident fund will run on contributory basis, i.e. 10% of basic salary from the employee
and equal amount from the company.

 If any employee leaves the company, he/she will be entitled to the company’s contribution only
after 5 years from the date of confirmation, else, the employee will only be entitled to his/her
own contribution.

Company has formed a trusty committee to maintain the provident fund.

Conditions with regard to provident fund shall be regulated as per the rules of the fund.

 Gratuity:

An employee shall be eligible for gratuity on leaving the company after continuous and
confirmed service of at least 8 years to the following terms and conditions:

I.      Separation on account of superannuation, ill-health, physical or mental incapacity,

redundancy or termination:

Year Amount
 On completion of 8 years of service & having not Half month’s basic salary for each completed year
completed 12 years service of service

On completion of 12 years of service 1 month’s basic salary for each completed year of
service

On completion of 16 years of service 2 month’s basic salary for each completed year of
service

Table: 4.3 Gratuities

  II.      Voluntary Resignation:

Year Amount

Before completion of 8 years of service No gratuity is payable

On completion of 8 years of service & having not Half month’s basic salary for each completed year
completed 12 years service of service

On completion of 12 years of service 1 month’s basic salary for each completed year of
service

On completion of 16 years of service 2 month’s basic salary for each completed year of
service

Table: 4.4 Gratuities

In the event of death or total disablement; gratuity will be paid at the rate of two month’s basic
salary for each completed year of service. In case of death, the gratuity shall be paid to the legal
heir/ heirs.

The term basis salary, as used, means basic salary last drawn by the employee at the time of
separation from the company’s employment.

Insurance:

The company has instituted a fund for management staff which provides payment of death during
service by any cause, except in the first twelve months of insurance.

                I.      Group life insurance is payable under any kind of death during service except in case of
suicide.
             II.      Staff should advise HR Department the particulars of their nominees including
name and relationship.

           III.      If the nominee is a minor, the name of the minor’s guardian should also be advised.

          IV.      The payable insurance amount according to the  management grades are given
below:

Management Grade Amount

JB- MIII Tk.100,000/-

MIV- MVII Tk.200,000/-

MVIII & above Tk.400,000/-

Table: 4.5 Insurance

             V.      Respective business/ department will pay equivalent to the payable insurance
amount to the nominee/ guardian (in case of nominee is a minor).

Medical benefits:

All employees of ACI will receive a monthly medical allowance as per respective grade of the
employee. The allowance will be paid together with the employee’s monthly salary and for this
no receipt needs to be submitted. For special case of treatment, following are the additional
support extended to the employee’s.

Level of employees Types of medical benefits Amount

  Hospitalization 50%

Office Management staff Surgery 75%

  Hospitalization 50%

Field staff Surgery 75%

Table: 4.6 Medical benefits

In case of hospitalization of the staff, spouse or two dependant child, in any recognized hospital
or clinic, the company will reimburse 50% of the hospitalization charges, which will include
bed/cabin rent, doctor’s fees and laboratory tests & medicine required during the period of
hospitalization. All other charges will be borne by the staff.
In case of surgery, the company will reimburse 75% of the total operation charges comprising of
surgeons fee, anesthetist’s fee & O.T. charges and cost of medicine related to the surgery.

Prior approval from the head of business is necessary before hospitalization or surgery. The
name of the patient and the name of the hospital/ clinic need to be stated while taking the
approval.

Department heads will approve advance against surgery for staff on a case- to-case basis.

Expenses for delivery under caesarean section will be reimbursed as per clauses 2.
Reimbursement of more than two children will not be allowed.

These rules will be subject to modification from time to time at the discretion of the company.

Normally, ACI does not allow treatment abroad, In case where treatment/ surgery are not sagely/
reliably available in Bangladesh, the ACI may consider allowing the individual to proceed
abroad for such treatment/ surgery. In such cases, the company shall be totally satisfied as to the
merits of the case on the basis of the best medical option available. All such treatment abroad
should be approved by the managing director before initiating the formalities.

The ACI will not be liable to pay medical charges for any facial or skin beautification such as
Rhinoplasty, Liposuction, Otoplasty, Blepharoplasty or laser/ lasik Surgery, Facelift, Cosmetics
dentistry/ tooth restoration, etc.

In case of treatment in the hospitals/ clinics which are not enlisted; the bills will be settled at the
rate of enlisted similar hospital/ clinic.

Leave:

 Entitlement:

All management staff will have the following leave entitlement in a calendar year:

Level of Employees Types of leave Days of leave

  Privilege Leave 24

Office Management staff Sick Leave 14

  Privilege Leave 24

Field staff Sick Leave 14

Table: 4.7 Leave

 Entitlement credit:

Full entitlement is credited from the succeeding years on the basis of leave earned in the previous
calendar year.

Privilege Leave is (PL) is credited after completion of one year service. However, there will be
proportionate entitlement from the date of joining to the end of that calendar year.

For staff leaving the company’s service, proportionate PL is credited.

Sick Leave (SL) entitlement begins from the time of joining proportionate to the remaining
period of the calendar year. Full entitlement is credited from the beginning of the following
calendar years.

PL is not normally granted before completion of one year of service. However, in special
circumstances managers my recommend leave for his subordinate and forward the application
form to the head of the department for consideration, if approved, such leave will be adjusted
from future entitlement when due.

It is not the policy of the company to grant leave without pay. Under extreme circumstances such
as study leave, staff may make representation to their department heads. Sanction of such leave
should be made in consultation of the HR Department.

Leave records for all management staff will be maintained by the HR department at the Head
office. In January every year leave balance will be sent to the respective management staff for
confirmation. On receipt of confirmation the leave application of the previous year will be
destroyed.

 Leave roster will be prepared by each department for every year and department Heads should
ensure that management staff under him are given leave as per roster.

Absence on account of “Hartal” will be adjusted from privilege Leave.

Leave Accumulation:

Leave may be accumulated up to maximum of 4 years entitlement for both office management &
field staff. Unutilized leave in excess of 4 years entitlement on 1st January shall stand lapse.

Leave lapsing on account of company’s business and therefore for no fault of the individual may
be allowed to be carried forward in addition to the maximum entitlement. Such accumulation
shall be allowed by the HR on recommendation by the respective department Head.

 Data analysis:

1.      Does human resource department properly contribute in your job?

 Particular Respondents percentage

Agree 11 55%

Strongly agree 7 35%

Neutral 2 10%

Disagree 0 0%

Strongly disagree 0 0%

Total 20 100%

Table: 4.8

Interpretation:

From the above graph, it is seen that 55% employees are agree, 35% employees are strongly
agree, they said that human resource department properly contributes in their job and 10%
employees are neutral.

Comment:

Most of the employees are said HR department properly contribute in their job.

2.      Are you satisfied with the levels of support that you normally get from HR department
when you face problems?

Particular Respondents percentage

Satisfied 9 45%

Strongly satisfied 5 25%

Neutral 4 20%

Dissatisfied 2 10%

Strongly dissatisfied 0 0%

Total 20 100%

Table: 4.9
Graph: 4.2 support to HR department

Interpretation:

From the above graph, it is seen that 45% employees are satisfied, 25% employees are strongly
satisfied, and 20% employees are neutral and 10% employees are dissatisfied.

Comment:

Most of the employees are satisfied with the levels of support that normally get from HR
department when they face problems.

3.      Are there any short term/ long term disabilities/facilities available in your organization?

Particular Respondents percentage

Agree 11 55%

Strongly agree 9 45%

Neutral 0 0%

Disagree 0 0%

Strongly disagree 0 0%

Total 20 100%

Table: 4.10

Interpretation:

From the above graph, it is seen that 55% employees ate agree & 45% employees are strongly
agree they said short term/ long term disabilities available in organization.

Comment:

Most of the employee said short term/ long term disabilities are available in organization.

4.      How do you rate your company’s incentive systems?

Particular Respondents percentage

Excellent 0 0%
 Very good 2 10%

Good 4 20%

Average 14 70%

Poor 0 0%

Total 20 100%

 Table: 4.11

Interpretation:

From the above graph, it is seen that 70% employees said that organization incentive systems are
average, 20% employees said it is good, 10% employees are said it is very good.

Comment:

Most of the employees said that organization incentive systems are average.

5.      Are you satisfied with the compensation benefits and plans provided to you?

Particular Respondents percentage

Satisfied 6 30%

Strongly satisfied 2 10%

Neutral 3 15%

Dissatisfied 9 45%

Strongly dissatisfied 0 0%

Total 20 100%

 Table: 4.12

Interpretation:

From the above graph, it is seen that 45% employees are dissatisfied with the compensation
benefits and plans provided to their, 30% employees are satisfied, 15% employees are neutral,
10% employees are strongly satisfied.
Comment:

Most of the employees are dissatisfied with the compensation benefits and plans provided to
them selves.

6.      Does your organization provide the TA/DA?

Particular Respondents percentage

Agree 16 80%

Strongly agree 4 20%

Neutral 0 0%

Disagree 0 0%

Strongly disagree 0 0%

Total 20 100%

 Table: 4.13

Graph: 4.6 TA/DA

Interpretation:

From the above graph, it is seen that 80% employees are agree, 20% employees are strongly
agree.

Comment:

Most of the employees said that organization provide the TA/DA.

7.      Are you satisfied with the TA/DA offered to you by your company?

Particular Respondents percentage

Satisfied 6 30%

Strongly satisfied 1 5%

Neutral 0 0%
 Dissatisfied 13 65%

Strongly dissatisfied 0 0%

Total 20 100%

 Table: 4.14

Interpretation:

From the above graph, it is seen that 65% employees are dissatisfied, 30% employees are
satisfied with their TA/DA, and 5% employees are strongly satisfied with their TA/DA.

 Comment:

Most of the employees are dissatisfied with the TA/DA offered to their organization.

8.      Are you satisfied with the insurance coverage’s offered to you?

Particular Respondents percentage

Satisfied 5 25%

Strongly satisfied 2 10%

Neutral 0 0%

Dissatisfied 13 65%

Strongly dissatisfied 0 0%

Total 20 100%

 Table: 4.15

Interpretation:

From the above graph, it is seen that 65% employees are dissatisfied, 25% employees are
satisfied with the insurance coverage offered to them, and 10% employees are strongly satisfied.

Comment:

Most of the employee dissatisfied with insurance coverage offered to them.

9.      Do your organizations provide the life insurance facility?

 Particular Respondents percentage

Agree 15 75%

Strongly agree 5 25%

Neutral 0 0%

Disagree 0 0%

Strongly disagree 0 0%

Total 20 100%

Table: 4.16

Interpretation:

From the above graph, it is seen that 75% employees are agree & 25% employees are strongly
agree, they are said that organization provide the life insurance facility.

Comment:

Most of the employees are agree about the organization provide the life insurance facility.

10.  What types of insurance facilities offered to you by your company?

Particular Respondents percentage

Individual insurance 2 10%

Group insurance 18 90%

Any other 0 0%

Total 20 100%

Table: 4.17

Interpretation:

From the above graph, it is seen that 90% employees said that organization provide group
insurance facilities to the employee, 10% employees said that organization also provide
individual insurance facilities offered to their employee.
Comment:

Most of the employees said that organization provide the group insurance.

11.  Do your organizations provide the medical facilities?

Particular Respondents percentage

Agree 13 65%

Strongly agree 7 35%

Neutral 0 0%

Disagree 0 0%

Strongly disagree 0 0%

Total 20 100%

Table: 4.18

Interpretation:

From the above graph, it is seen that 65% employees are agree, they said organization provide
the medical facilities, 35% employees are strongly agree with the scenario.

Comment:

Most of the employees said that organization provide the medical facilities.

12.  How would you rate the type of pension/retirement plan provided to you?

Particular Respondents percentage

Excellent 0 0%

Very good 0 0%

Good 5 25%

Average 11 55%

Poor 4 20%
 Total 20 100%

Table: 4.19

Interpretation:

From the above graph, it is seen that 55% employees said ACI pension/ retirement plan is
average, 25% employees said that ACI pension/retirement plan is good, 20% employees said that
ACI pension/retirement plan is poor.

Comment:

Most of the employee said that ACI pension/ retirement plan is average.

13.  Are you satisfied with your current salaries?

Particular Respondents percentage

Satisfied 2 10%

Strongly satisfied 0 0%

Neutral 1 5%

Dissatisfied 17 85%

Strongly dissatisfied 0 0%

Total 20 100%

Table: 4.20

Interpretation:

From the above graph, it is seen that 85% employees are dissatisfied with their current salaries,
10% employees are satisfied with their current salaries, and 5% employee are neutral position.

Comment:

Most of the employees said that they are dissatisfied with their current salaries.

14.  Are you satisfied with your work environments?

Particular Respondents percentage

 Satisfied 12 60%

Strongly satisfied 3 15%

Neutral 0 0%

Dissatisfied 5 25%

Strongly dissatisfied 0 0%

Total 20 100%

Table: 4.21

Interpretation:

From the above graph, it is seen that 60 % employees are satisfied with their work environments,
15% employees are strongly satisfied with their work environments, and 25% employee are
dissatisfied with their work environments.

Comment:

Most of the employees are satisfied with their work environments.

Major findings:

     From the analysis it has seen that employees are not satisfied with the organization‘s
incentive systems.

     ACI compensation related benefits and packages are not sufficient.

     Most of the employees are dissatisfied with the TA/DA offered by their organization.

     In the analysis it has seen that most of the employees are dissatisfied with the insurance
coverage offered to them.

     ACI Limited only provides the group insurance facility but does not provide any individual
insurance facility.

     From the analysis I found that ACI pension/ retirement plan is average.

     With the organization’s current salary structure, maximum amount of the employees are
dissatisfied.

 Conclusion:
ACI Limited is one of the leading conglomerates in Bangladesh, with a multinational heritage. In
BD ACI Limited has been doing corporate business and soundly maintaining social
responsibilities. The agenda of this company earning profit, creating job opportunity, though
trade and commerce. Achievement of ACI Limited is beyond description. Maintaining
Government rules and regulations ACI Limited always try to contribute on national G.D.P and
G.N.P. not only local business but also internationally. ACI follows most of the compensation
practices and policy. They always try to contribute to employee satisfaction and given to
employees all types of compensation benefits. It has always been a dream to be able to work for
a highly reputed company and my dream was fulfilled for three months as I was conducting my
internship in ACI Limited. It has been an amazing experience for me as I completed my
internship as well as my first job from such an incredible organization. In this company, interns
are not treated as guests for three months. We are actually involved in real time projects where
our inputs and contributions are highly appreciated and necessary. During my internship or my
first job, I was exposed to many works which I never thought of even doing. As I have Human
Resource Management as my major so working under the department of HRM was really great
to me. Therefore I must acknowledge the fact that there are countless number of things that I
learnt during my internship about how the company operates, its day to day activities, problems
that occur every day and how to resolve them effectively and efficiently. No matter where I
work, I’m confident that I will be able to apply my learning and knowledge in any organization.

 Recommendations:

     The organization should ensure standard incentive policy to their employees for their high
level of satisfaction.

     The organization should increase its compensation related benefits which are provided to the
employees.

     The organization should put more concentration on TA/DA which offered to their employees.

     The organization should provide effective/acceptable insurance coverage to their employees.

     ACI Limited should also provide individual insurance benefit along with group insurance.

     The organization’s pension/ retirement plan should be modified in favor of their employees.

     The organization may increase current salary structure of their employees.

Bibliography:

Books:

“Compensation management in a knowledge- Based world”, Henderson I. Richard, 10th edition,

Jun24, 2005.
“Strategic compensation- A human resource management”, Martocchio J. Joseph, 6th edition,
Jan21, 2010.

Reports:

Ø ACI Limited annual report 2009.

ØACI Limited annual report 2010.

ØACI Limited annual report 2011.

Ø ACI Limited Statistical report 2011.

Websites:

Ø www.aci-bd.com

Ø www.google.com

Ø www.scribd.com