Human resource

management
practice

Date of Submission: 16

th

February, 2014

Green Delta Insurance Company Ltd.

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Green Delta Insurance Company Ltd.

Letter of Transmittal
th

Date: 14 February, 2014

MD. Sajib Hossain
Lecturer
Department of Finance
University of Dhaka
Subject: A report on HRM practice of Green Delta Insurance Company Ltd.
Dear Teacher
With due respect this is to inform you that we are the members of the group of Department of
Finance, University of Dhaka. It is our pleasure to prepare a report on HRM practice as required
by you as part of our Human Resource Management Course. Course No. F-308. It is very
important for us to imply our theoretical knowledge on practical experience. We have chosen
Green Delta Insurance Company for our report. We have tried our best to reflect the real picture
of HRM practice followed by Green Delta Insurance Company Ltd and analyzed them to observe
their effectiveness to motivate the employees to ensure the ultimate goal of the organization.
We would like to request you to accept our report as qualified one for your course assessment
process.
Yours obedient
Md. Rakibul Hasan
On behalf of
Group no. .

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Green Delta Insurance Company Ltd.

Acknowledgement
Gratitude to all whose participation and cooperation has made possible to prepare the report on
Human Resource Management Practice of Green Delta Insurance Company Ltd. First of all we
would like to offer our gratitude to the Almighty for making our attempt successful to prepare the
report.
We are also very much grateful to MD. Sajib Hossain for his affective teaching style that helped
us to understand the practice of Human Resource Management in Bangladeshi organization. We
are also grateful to him for his support, care and constructive recommendations and suggestion to
prepare the report.
We are also very grateful To Md. Humayun Kabir,Executive Director &Zonal Head;Mrs.
Jebun Nahar,Assistant Vice President;Mrs Mahbub Ara,Senior Vice President of Green
Delta Insurance Company for cooperating with us by providing with access to their internal
policies and practices of Human Resource Management. It is invaluable for us to incorporate the
real practice of Human Resource Management followed by Green Delta Insurance Company Ltd.
It has helped us a lot to learn Human Resource Management in terms of Bangladesh in the eye of
a Bangladeshi company.
Though the practice of Human Resource Management is not well developed and structured in
Bangladesh. Very few companies follow structured Human Resource Practice in Bangladesh and
Green Delta Company is one of them.

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Green Delta Insurance Company Ltd.

Table of content
Table of Contents
Executive summery....................................................................................................................7
Introduction to Green Delta Insurance Company Ltd:........................................................8
Origin of the report:................................................................................................................... 9
Objectives:.....................................................................................................................................9
Scope of the Report:.................................................................................................................. 9
Methodology:..................................................................................... Error! Bookmark not defined.
Company Overview:.................................................................................................................11
Human resource management in Green Delta Insurance Company:........................... 12
Definition of HRM:................................................................................................................. 12
Staffing pattern and practices in GDIC :..........................................................................13
Employee practice:........................................................................................................... 13
Human Resources:............................................................................................................ 13
Management hierarchy....................................................................................................14
Core human resource activities:............................................................................................15
1.HR PLANNING & REQUSITION:........................................................................................15
2.Reqruitment process:....................................................................................................... 16
Selection procedure:.........................................................................................................17
Sample Recruiting yield pyramid for business executive post:.............................. 19
3. Employee orientation and socialization:..................................................................... 19
4. Training:..............................................................................................................................20
Types of specialized Training:......................................................................................... 21
5. Performance appraisal:................................................................................................... 21
6. Benefits and compensation........................................................................................... 22
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Determination of basic pay and financial incentives................................................ 23
Popular Benefit and incentive packages provided by GDIC.....................................23
promotion.................................................................................................................................... 24
Findings and conclusion.......................................................................................................... 25
The findings of the report:.................................................................................................. 25
Conclusion:.............................................................................................................................. 27
Bibliography................................................................................................................................28

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Green Delta Insurance Company Ltd.

Executive summery
This report is an assigned job as a partial fulfillment of course requirement by honorable Course
teacher Mr. Sajib Hossain,Lecturer, Department of finance, Faculty of Business studies, University
of Dhaka. It is the optimum aggregated outcome ofabout 5HumanpupilsResource Management
Practice In Green Delta Insurance Company, one of the leading insurance companies in Bangladesh.
The goal of this report is to find out the Human Resource Practices GDIC.GDIC is committed to draw
the most talented and dynamic professionals from the available candidates. They consider their skilled
people as asserts for their organization. The main goal of GDIC is the continuous development of the
human resources (HR) through appropriate training and motivation.

Human organization activity is simply the act of getting people together to accomplish desired
goals. Any organization, whether new or old, small or big needs to run smoothly and achieve the
goals and objectives which it has set forth. For it develops and implements its own Human
Resource Management concepts. As such, the basic functions of HRM, broken down into six
different areas, allow for it to handle the strategic, tactical and operational decisions for the
organization. The six functions of HRM are: Planning, Recruiting, Selection, Socialization,
Training and Development, Performance Appraisal and Compensation. Being as a learning
organization GDIC mainly focus on recruiting efficient candidates for the vacant position. They
provide management various kinds of training like on the job training and off the job training,
basic training and advanced training etc. GDIC concentrates on employee development as well.
They provide appropriate compensation and benefits like basic salary, different kinds of financial
incentives, different types of bonus etc. we have are systemic and sound enough but yet there are some
problems like (few misunderstanding, lack
of appropriate training to reduce faults). Remove misunderstanding and provide training and
appropriate compensation when any accident occurs, authority should cooperate their employees
to the problems. we think that is the way they should follow to improve and expand its business.

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Green Delta Insurance Company Ltd.

Introduction to Green Delta Insurance Company Ltd:

Green Delta Insurance Company Limited (GDIC) is one of the leading private non life insurance
companies is Bangladesh. GDLC was incorporated in December 14, 1985 as public limited
company under the companiesacts1913.But the actual operation of the company started on 1

st

January 1986, with a paid up capital of BDT 30.00 million only. The shares of the company are
listed with both Dhaka Stock Exchange and Chittagong Stock Exchange as a publicly quoted
company.
In 1997, GDIC participated in equity investment to establish Delta Brac Housing Ltd. In 2005
GDIC sponsored joint venture consortium firm named Green Delta Aims Ltd. This year the
company also floated its very first subsidiary Green Delta Financial Services Ltd. a share
brokerage firm. At present the company has been operating its business through 36 branches
th

located at different strategically important areas of Bangladesh. Steeping its 25 birthday, Green
Delta Insurance Company Limited has now become a big family of 20 respected board members,
11 dedicated senior management members, 6oo+ committed staff, numerous valued clients and
thousands of esteemed shareholders with a paid up capital of BDT 408.24 million.
With the leadership of Mr. Nasir A Choudhury, Green Delta Insurance Company Ltd has been
leading the wind of change in the insurance industry of the country in terms of service standard,
innovative products and legislative restructuring.
With the slogan - duringMarches the last 25 years,withGDIC has been timehelping people in
the time of need, pulling all the steps when needed and has been proud to be a partner in
progress. Hence GDLC has achieved an excellent market reputation with the leading position in
the non life insurance business industry of the country.

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Green Delta Insurance Company Ltd.

Origin of the report:

The concept of the report originated from our course teacher MD. Sojib Hossain. He gave the
required instruction to prepare the report. Moreover we have visited the head office of the Green
Delta Insurance Company Ltd. to collect information about their internal policies regarding
Human Resource Policies. We have also consulted with the senior executives of the company to
learn about the recent trends in Human Resource Management.

Objectives
While preparing the report our objective was to know Human Resource Management practiced
in the organizations. We have observed Human Resource Management practices of Green Delta
Insurance Company Ltd. and prepared the report. The objectives of the study are as follows:

Learn HRM policies followed by GDIC Bangladesh

Identify ways to improve the HRM policies of GDIC

Suggesting strategies to improve the HRM policies of GDIC

Scope of the Report

We have prepared the report on HRM practice followed by the GDIC Bangladesh. Preparing the
report requires us to collect info about the internal affairs of an organization so we have to solely
depend on the information provided by the management of GDIC. Info about an o
HRM policies affects its strategic competency so the management was so much careful while
providing data to us and was unwilling info that is confidential. We have also collected
information from the official website of Green Delta Insurance Company Ltd.

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Green Delta Insurance Company Ltd.

Methodology
We have developed our HRM knowledge from our text. We have gone through articles related
with HRM from various sources such as newspap and personnel development institutions. We have also
collected data from GDIC corporate office
through our visiting and through our personal observation. So the report is a combination of
primary and secondary data.

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Green Delta Insurance Company Ltd.

Company Overview
Our Vision
Our vision is to mature into a sustainable, coherent organization, raise competitiveness to the
highest level in the insurance industry, maintain high profitability & balanced quantitative
growth and exceed customers expectations by corporate identity and creative corporate culture.

Our Mission
Our mission is to create shareholders value through customers commitment to excellence.

Our Strength
Constant pursuit of suitable strategies has made the company the leading insurer of Bangladesh
for over two decades.

Our Belief
We believe that client must stand at the center of our all activities. We have the ability to
optimally fulfill the clientsneedsbased on risk management with minimum cost and personalized
services

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Green Delta Insurance Company Ltd.

Core Values

Human resource management in

Green Delta
Insurance Company
Definition of HRM
Human Resource Management refers to the process, policies, philosophies, and practices that are
carried out to manage the personnel aspect of an organization. It includes the procedures and
strategies a company had to follow to manage its personnel efficiently and effectively to ensure
the overall benefit of the organization. The basic functions covered by the HRM activities
includes, determining the nature of the job, planning the labor need of the organization,
recruiting the employees, selecting job candidates, orienting the new employees, training them,
determining their wages and salaries, providing incentives and benefits and evaluating the

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Green Delta Insurance Company Ltd.

employee performance. Moreover it is also the job of HRM to maintain good relationship with
the employer and the employee.

Staffing pattern and practices in GDLC

Employee practice
Green Delta Insurance Company Ltd. is committed to providing equal opportunities to all
employees irrespective of their gender, race, nationality, ethnic origin, religion. GDLC is an
inclusive employer and values diversity in its employees. These commitments extend to
recruitment and selection, training career development, flexible working arrangement, and
promotion and performance appraisal.

Human Resources
The corporate goal of GDLC is to improve staff engagement by measuring and responding to the
following:

How positively staff members view and therefore speak of the organization

How likely the staff members are to stay with the organization

Their willingness to exert extra effort to achieve business success

As GDIC introduces new and improved ways of conducting business, it continues to provide the
necessary support to staff in order to manage change effectively. It credits the strength of the
people for the organizations success. Their understanding of the strategies and goals as well as
their satisfaction with the organization.

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Green Delta Insurance Company Ltd.

Management hierarchy
Chairman
Vice Chairman
Director
Managing Director
Additional Managing Director
Dedeputy Managing Director
Exicutive Director
Vice President
Assitent Vice President
First Assistant Vice President
Senior Officer
Officer
Junior Officer
Assistant Officer

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Green Delta Insurance Company Ltd.

Core human resource activities

HR
PLANNING&REQUIS
ITION

SELECTION

BENIFITS AND
COMPENSATIO
N

APRISAL
AND
EVALUATI
ON

ORIENTATION

TRAINING

1. HR PLANNING & REQUSITION

Human resource planning is a process through which the Green delta insurance company
anticipates future business and environmental forces.
GDIC usually forecast their personnel needs based on their mission, strategic goals and
objectives & technological and other changes resulting in increased productivity Human
resources planning assess the manpower requirement for the company future period of time.
Although there are several methods to predict personnel needs, but they use managerial judgment
because it gives the more real world scenario for personnel needs. They think that the other

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Green Delta Insurance Company Ltd.

methods cannot give the accurate situation of the personnel needs. These are basically graphical
methods, which cannot measure the actual personnel needs. But managerial judgment method
depends upon the change in productivity, market conditioned.
Demand for personnel: GDIC determines demand for personnel by following three terms:
1. Expense ratio
2. Revenue trend
3. Departmental requirement.

Supply of personnel
GDLC have more preference for internal candidates rather than outside sources for underwriter
and executive posts, for field level job they prefer outside source of candidates. But determining
the outside supply of candidates is an unambiguous process indeed.

2. Recruitment Process
For recruiting and selecting purpose, GDIC has differentiated the process into two individual
segments. Those are listed below:

a) Entry level recruitment process

i. Need assessment
ii. Budget analysis(advertisement &recruitment cost)
iii. Selection of promotional media
iv. Initial screening
v. Written test
vi. Panel interview
vii. Final selection
viii.

Orientation / Induction

ix. Placement
x. Follow up

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Green Delta Insurance Company Ltd.

b) Upper level recruitment process

i. Need assessment
ii. Source selection (internal or external)
iii. Competence evaluation
iv. Informal interview
v. final selection

Selection procedure
The selection process of any company does not appear as it is in the first instance. It has to be
tested over and over again until it can be reasonably perfected. The same is the case with the one
followed at GDIC. The selection process starts when there is a vacancy or a job opening in the
organization. The department in which the position is available first sends a requisition to the HR
department. This is done by filling out a prescribed form, which contains a general, description
of the post and skills required to perform it. Based on this information and by collecting further
data from the concerned department, the HR people formulate a detailed Job Profile. This
includes the job description, work activities, work context, etc. and also the job specifications
which indicates the human qualities needed. The department provides the HR manager with a
detailed list of minimum qualifications, experience, special skills, knowledge level, personality
characteristics, etc. to help them design and carry out the selection process.
After the job profile for the particular position is formulated, the decision has to be made
whether recruitment should be done from internal or external candidates. If the choice is to
promote or transfer one of the existing employees into the new post, the company follows rating
system. It is important to know that through this the company can select the ones who are ready
or suitable to be short-listed as candidates. Once this is done, they are interviewed and
background checks of their personal files are made to see if any further training is required. If
everything is in order, the best person for the job is selected.
The other option available is recruiting from external candidates. As mentioned earlier, the
company performs market surveys on a regular basis, which helps them decide on this option.

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Green Delta Insurance Company Ltd.

There are more steps to be followed here. Once the decision to hire externally is made, approval
of the HR director must be taken. The probable external sources of selection are :

Newspaper Advertisement: an advertisement is published in all the leading newspapers of

the country as well as any local ones of the related cities. This ad includes
information of the position open and qualifications needed to apply for it. Also it
indicates how, where and by when to apply.

Employee referrals: for GDIC Employee referral means using personal contracts to locate
job opportunities. It is commendation from a current employee regarding a job
applicant.
Website advertisement: GDIC publishes advertisements for entry and mid level
candidates in different job related websites like bdjobs.com

Reference: GDIC prefers strong reference for rehiring approach.

While the applications are coming in, the work of HR department does not stay static. They
have another important step underway. This is the formation of the Board of Interviewers who
will conduct the panel interview for the final selection of the candidate. This board ordinarily
consists of at least three members. The interview board follows both the structured and
unstructured way of interviewing.
They are the Director(s) of the concerned department(s) where the job(s) is available, the
Director of HR and one independent representative from any of the other departments to give
the decision process more objectivity.
The initial screening process that all applicants have to undergo involves a written test that is
designed by the company itself to examine their aptitudes and knowledge. Through this,
applicants are short-listed down to 15 candidates. The number can be more depending on the
requisite number of openings or instruction of the concerned department. These candidates are
subject to the panel interview made by the board formed earlier. This is like any other interview
of its kind and involves a face-to-face question-answer and conversation session between each
of the candidates and the board. The questions are fairly uniform, meaning different members
ask all candidates the same or similar questions. However, it is not entirely strict or inflexible.
If the interviewers feel the need, they let the interview go on in different directions with the
flow of topics. At the end of this process, the candidates are once again
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Green Delta Insurance Company Ltd.

short-listed to the top 3 to 5. The panel then sits down and discusses about the chosen
candidates. The final decision is made regarding the post(s) and the suitable one is selected

Sample Recruiting yield pyramid for business executive post

new
hires (8)
offers
made(1
0)
candidate

s
inerviewed(
15)

candidates invited(15)
leads generated(25)

3. Employee orientation and socialization

Generally the HR department arranges which provides employee new employees with
basic background information about the organization, information they need to perform
their job, their job description or so on. It is called a socialization process. It helps to cope
with new environment very easily and it minimizes reality shock. GDIC provides an
orientation program for its new employees, where the important personnel of the
company introduce the company rules, regulation and policies of the company. In GDIC
employee handbook is available to all employees. The content of the handbook covers
the key topics

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Green Delta Insurance Company Ltd.

covered in an orientation session for new employees. They rotate horizontally for 1 month period
within various departments.

4. Training
To train the employees whether they are new or old, at first the HR department collects the
related information from each respective department about the employee performance. Then,
they evaluate the performance and try to identify whether the training is needed right at this
moment or not, which is the decision making phase of training process. In this regard, they have
two options, one is on-the-job training and the other is off-the-job training. On-the-job training is
demonstration related that is initially applied to the entry level employees. But for further
training and development, this demonstration-related training is not sufficient. So for such cases,
the company prefers off-the-job training. For this type of training, they take help from external
sources such as: Bangladesh Insurance Academy They also participate in various training
workshops. But they do not send trainees as a group. They usually send employees to training
sessions based on their professional individual demand that is required for their respective jobs.
For special type of training programs are arranged when special kind of problem arises. GDIC
generally arrange a general training program for 3 months in its head office, then they decide the
special training need for each employees and according to the demand the arrange specialized
training programs .sometimes employees are sent abroad for professional training program to
gain competency and expertise in relevant fields.

Training need determination process

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Green Delta Insurance Company Ltd.

Environment
Analysis(consideration of
external factors like
economy,law Etc)

Organizational Analysis(resource Avaiablity

Check)
Operational Analysis(expected Behaviour
From An Employee)
Individual Anlysis(expected Skills From An
Employee)
Training Need(Gap Between Expected And
Actual Behavoiurs And Skills)

Types of specialized Training

Technical Training
Management Training
Safety Training
Occupational Health
General Training (Management, Accounts, Sale etc.)
Social Skill Training
Refresher Training
Workers Education Training

5. Performance appraisal
The organization views the system as year round process. Every employee at GDIC is being
evaluated once in a year. And employees are evaluated when their working period is more than
six month. It has three types of performance appraisal form, these are top level, mid-level and
entry level, as all the employees cannot be evaluated in same manner. The reason for having the
performance appraisal system is to evaluate them from different aspects and find out their
strengths and weakness and provide them chances to improve them in order to perform more

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Green Delta Insurance Company Ltd.

effectively. There are different component of the performance appraisal system namely
performance planning, performance monitoring and performance development and annual
appraisal each of those are inter related and integrated with each other. But the whole
performance is measured by Goals set by participative management approach and performance is
evaluated quantitatively against those previously set objectives gnerally the set goals are
company target profit and target premium. In case of decision regarding promotion the company
appraisal system is repeated in every three years. The company has a rating committee comprised
of
Departmental head

Board of directors
Executive directors
Internal verification group.

6. Benefits and compensation

Compensation
GDLC generally provides two types of compensation

Direct financial payments: It covers salary, wages, bonous, commissions

Direct payments: It covers financial incentives like employee health fund, employers paid
insurance premium tee.

Salary management
GDIC has a fixed salary structure for every position but because of the increase in standard of
living in society, they adjust salary of the employees once a year. The adjustment of the salary is
usually done in July. It is the responsibility of HR department to adjust the salary and to carry out
all related formalities. While adjusting the salary beside confirmed employees the non-confirmed
employees are also brought in to consideration. HR department calculates and adjust the new
approved salary. After that they send one letter to the employees so that they can be aware of
their new adjusted salary and another copy to the accounts so that the salary of the employees
can be adjusted.
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Green Delta Insurance Company Ltd.

There are 16 levels of employees in GDIC and increment level is fixed for each of the level. In
every level employees can get 16 increments, sometimes based on the performance salary of the
employee can be increased more than once in a year. HR department is accountable for the
calculations. When the new salary is adjusted HR departments sends letter to every employee to
their department and one copy to the Accounts for adjusting new salary structure.

Determination of basic pay and financial incentives

Salary is based on the following categories

For underwriting level officers general Pascal and performance basis is followed
For professional and executive level salary is based on the discretion of Board of
Directors.

For business development (field) officer level salary is based on net premium.

There are several steps involved in determining pay rates in GDIC. They are
1. Conducting salary survey: GDIC conducts a survey aimed at determining prevailing
wage rates. It provides specific salary and wage rates for specific jobs through Formal
written questionnaire surveys.
2. Job evaluation: GDIC performs job evaluation through ranking the jobs, classifying the
jobs in different categories and comparing the jobs with each other.
3. grouping the jobs in different pay categories
4. Calculating pay rates for each group.

Popular Benefit and incentive packages provided by GDIC

Supplementary pay benefit

Festive bonus
Profit bonus
Premium commission
Insurance benefit

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Green Delta Insurance Company Ltd.

Vacation and leave benefit

Travel benefit
Medical benefit
Retirement benefit

Promotion
Just like any other organization promotion is one important aspect of HR in GDIC. Promotion in
GDIC is given once in three year to earnest employees. In Every three years in the month of
November employees are assessed by their supervisor and the employees with outstanding
performance are recommended to be promoted. The assessment is reviewed by the HR
department. All of their promotion is performed in the same manner. For GDIC seniority never
gets preference for decision regarding promotion, rather the expertise level gets the preference.

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Green Delta Insurance Company Ltd.

Findings and conclusion

The findings of the report
During our working on the Human Resource Management of Green Delta Insurance Company
Limited we have found the following things.
1. GDIC believes in fair recruitment process for their employees. They try their best to
make sure that the recruitment process fair and transparent.
2. Their first priority is on selecting the right person for the right position. In order to do
that they make sure that each department has right number of employees to make the
organizational chart an effective one.
3. The entire Human Resource Department is very well designed and organized complying
with the chain of command within the organization and the number of employees are small
enough to save cost and large enough to make the organization an effective one

4. They emphasized in research and development that means they are continuously
upgrading the work process through technology as well as paying enough to meet
the demand of the employees
5. Competence gap between the employees is noticeable. There is a discrepancy between
the standard and the actual work performance of the employees.
6. Compensation and benefits in GDIC is very attractive and it is above the industry
average.
7. Employee turnover is very low because of the attractive salary and compensation package
and as a result their estimation about new employee requirement does not vary very much
and helps to increase the employee competencies.

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Green Delta Insurance Company Ltd.

8. The company not only arranges a job for the employees but also takes care of their
career development that increases the employee commitment towards the organization.
9. The company believes in the slogan that W the problems of their employees also.

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Green Delta Insurance Company Ltd.

Conclusion
Green Delta Insurance Company is not only an insurance company but something more than
this. It is a problem solving company. With the passage of time it has become the most
successful insurance company in the country by maintaining the required rules and regulations
and the trends in its industry.
In insurance industry in Bangladesh it has brought a revolutionary change in insurance
business. By providing good solution to the problems of people it has also ensured employment
opportunity for thousands of people in the country. It also has maintained its affiliation with the
international insurance authority to ensure international standards in insurance business and has
introduced a new milestone in the insurance business in Bangladesh. The wide ranges of
products offered by GDIC not only have established the organization as number one in its
industry but also have reignited the interest and trust of people in insurance business and secure
their personal property and wealth.
It is the GDIC that is growing on a high scale and itsHuman Resource Department that contributes
mostly to its growth. The Human Resource Department made it possible to ensure the employment
opportunity for thousands of people from all over the country. It is good to see

that the most of the contemporary issues in today hope that GDIC will be continued with its journey and will
become the representing brand of
Bangladesh in insurance industry.

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Bibliography
1. Books:
Human Resource Management
-Garry Dessler
2.

Websites

http://humanresources.about.com/od/glossaryh/f/hr_management.htm

http://www.green-delta.com/home.php

http://en.wikipedia.org/wiki/Human_resource_management

https://www.shrm.org/Pages/default.aspx

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