Aci Project (Sample)
Aci Project (Sample)
Aci Project (Sample)
Thank you so much sir, for giving us the opportunity to deal with this project of ACI Limited.
We have attained some practical knowledge through this project. We also gained some real life
example of Human Recourse Management. We would like to thank ACI Company for their nice
decorated website which helped us a lot. We also thank to Mr. for giving us some information
and time from his valuable &busy time. Moreover, thank you to all of our group members who
worked together very hard and showed their sincerity without any hesitation and difficulty.
Sincerely,
Name: Signature:
Ferdousi Mumu
Sanjana Haque
Page 1
Table of Content
9 Observation/Recommendation 20
10 Bibliography 21
Page 2
1. Summary of the Project
As we chose ACI limited for our project, we tried to find out the human resource management
system of the organization to know how they are managing their vast employees so easily. This
project is important because in today’s life human recourse is a must for every company. As
human recourse is so important so we should know the processes it is doing in their HR
department. The scope of this report is limited to some introduction of ACI Company and human
resource management. By completing this report we will know ACI Ltd’s background, HR
department’s philosophy, selection and recruitment process, training and development of the
employee, some benefits offered to the employees, provident fund and gratuity calculation and
lastly some observation and recommendation. Moreover, we will try to find out the benefits
offered to the employees of the firm in detail by which we can compare their benefits to other
company. We will also try to overview their probationary period or training and development.
As a group our thoughts are by doing the project we will be able to calculate the provident fund
and gratuity, which is not only important for ACI Company but also for any job.
Page 3
2. Background of the Firm
ACI was first established as the subsidiary of Imperial Chemical Industries (ICI) at the time of
East Pakistan in 1968. After the independence in 1971 the company has been incorporated in
Bangladesh on the 24th of January 1973 both as ICI Bangladesh Manufacturers Limited and as
Public Limited Company. This Company also acquired listing with Dhaka Stock Exchange
(DSE) on 28 December, 1976 and its first trading of shares took place on 9 March, 1994. After
that 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.
(Aci-bd.com, 2017)
Page 4
2.2.3. Agribusinesses: ACI Agribusiness is the largest integrator in Bangladesh in Agriculture,
Livestock and Fisheries and deals with Crop Protection, Seed, Fertilizer, Agrimachineries, and
Animal Health products. 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-bd.com, 2017)
In this competitive market like Bangladesh a company’s motive is not only to being profitable
but also to sustain. A company must focus both on its well management of financial assets and
keep satisfying its stockholders. The main strength of ACI Limited is use of the assets in
productive ways, well managed inventory and higher production capacity. In the bearish market
ACI Limited is offering very good return to the security holder which is encouraging more
investments. ACI Ltd. has enough financial strength to expand its business in future. They have
earned the faith of the investors with its transparent financial system and confirming the safe
return of their investment. In future ACI Limited will contribute more to the economy of
Bangladesh by expanding their business. (Islam, 2017) Some future directions are: raising the
standards of health care, always practicing good hygiene for freshness and cleanliness,
confirming better care for all to build a healthy nation, focusing on possibilities in technology -
building a better tomorrow, enthusiastic about the promise to ensure better nutrition, providing
clemency care for animals for their healthy life, making the life easier and shopping enjoyable -
getting the best value every day, improving lives with high tech advantages in sustainable
agriculture solution for the future. (Aci-bd.com, 2017)
Page 5
3. HR Department’s Philosophy & Future Direction
A company’s Human Resource (HR) specialists play an important for planning, recruiting,
training, acquiring, screening, interviewing, payroll, compensating employees, handling
employee relations, directing and coordinating the administrative functions of an organization.
HR department fulfills the tactical objectives of businesses. So HR department’s philosophy has
to be comprehensible about their employees. (Pearson e-textbook) The vision of ACI’s HR
department is to create a work-territory to enrich the productivity, creativity and innovation
through the devoted and dynamic people for accomplishing business excellence. Firstly they
identify the training needs and give their employees appropriate trainings to develop their
knowledge and skills at different sectors. The HR managers of ACI categorize their workers at
distinct areas to achieve future goals. The HR department demeanor the Leadership and Team
Building programs on a frequent basis. (Google.com, 2017) HR professionals engage employees
in different types of creative work process in order to enlarge their enthusiasm so that they can
bring customer satisfaction. By providing extra ordinary working environment they try to
achieve extreme level of efficiency in all of its operations and unleash the full potential of the
employees. They exhilarate the province for grasping and a personal career progression of its
employees based on their performances. They also inspire and promote their employees to work
on the betterment of the services provided to their suppliers and distributors. Their main goal is
to earn maximum satisfaction from their customers by serving them world class products along
with the well trained jobholders. They encourage their employees to make their own decisions by
putting them at some crucial situations to enhance the leadership skills of the employees.
(Aci.aero, 2017) They give highest priority to the dignity of each individual. They believe in
devolution and empowerment so they set leadership position in each segments of their company
to reach their goals easily. Another objective ACI’s HR department is to strengthen labor
relationship and they do this by organizing different social events such as badminton tournament,
cricket tournament, family day etc. Because they believe that employees are the backbone of a
firm so strengthening the bondage among the employees will bring a profitable outcome to the
firm. They also carry out their recruitment and selection, manpower planning and succession
planning process based on the modern HR policies and procedures. They believe in quality
instead of quantity so their performance appraisal is based on the combination of qualitative
Page 6
characteristics and Balanced Score Board. They also motivate their employees with their
providing alluring facilities like car loans, performance bonus, festival bonus, leave fear
assistance and workers profit participation fund at different times within a year. They also have
the premium benefit policies in terms of the provident fund, gratuity and hospitalization. (Aci-
bd.com, 2017) ACI’s HR professionals’ future direction is to improve the organization’s
production management system by coordinating vast number of employees prosperously. They
will always try to follow up their employee performances. Their vision is to monitor their
strategic process regularly so that they can achieve their goals successfully and also can attain
highest level of customers’ reimbursement. They want to make ACI one of the leading and
sustainable companies in Bangladesh. Their motto is to enrich the quality of life of people
through responsible appeal of skills, knowledge and technology. Their HRM wants to meet their
mission of achieving highest excellence through quality by meeting, understanding, accepting
and exceeding customer’s gratification. (Termpaperwarehouse.com, 2017) ACI believes that
their Human Resources are the asset for the organization so with their proper knowledge and
skills they will always put the right people at the right place to reach the future goals of their
company. Due to their HR’s fair philosophy their company has reduced employee turnover.
(@acibd.com)
Page 7
In ACI, Selection process of appraisement and evaluation of job applicants which start from
collection of CV from the job applicants and finishes up with final decision who should in
particular sector. ACI Company also uses variety of various measurement methods of selection
process.
The selection processes of ACI Company ltd. format are given below:
Step: 1 Collecting of Application: ACI company Ltd. Collects the application from many various
sources with huge number of application forms. The number is resumes are received for different sectors
or position from various sources over last 3 years is as follows:
Number of CV received
Source: (Office record of ACI)
Step: 2 Screening and Short-listing Applications: It is the vital stage of screening and short-listing of
the received CV/Resumes which are collected from different sources. This task is done primarily by HRD
Page 8
and they send it into the liable dept. that has the empty positions. The responsible dept. again backtrack a
number of resumes from the resumes sorted by HRD. Among them a limited number of applicants for
next step named written test are selected. To screen and short the CVs Company follows some process
which is given below:
Step: 3 Written Test: After selecting the desirable candidates, HRD arranges the written test. The
Written test is a regular part of the ordinary selection process. It is rite for maximum positions. The top
management of ACI believes that the written test before the interview process has proved to be efficient
and a necessary tool to select the eligible candidates. The written test has conducted in terms of
knowledge about required fields. The candidates are called for the Preliminary (first) interview based on
their performance in the written test. However, on agreed basis HRD make the question patterns place
and time of written test. The candidates having above 60% marks only are eligible for next interview.
Step: 4 Selection Interview: The interview process is a three-tier one. A preliminary interview is
conducted which follows the “Elimination method”. After that, the second interview takes place with a
very few number of candidates. Then they finally selected person is called for the final interview. The
interview time is kept convenient for the candidate, especially if she/he was working elsewhere at the
time of interview. The shortlisted candidates must fill up an employee information form before the
interview.
Step: 5 Employment Decision: If the candidate has no problem with the stated terms and conditions of
the job and the organization mentioned and discussed in the final interview, he/she is offered an
application blank. The application blank is a standard format of employee-information that includes all
the information the organization needs regarding the personnel. The candidate has to fill this blank and
submit this to the company along with a CV.
5. Recruitment process
Page 9
In ACI, recruitment is not about filling jobs that are currently vacant it is about making a
continuous, long-term investment to build a high-quality workforce capable of accomplishing the
organization’s mission now and in the future. The entire process of recruitment depends on the
level and job responsibilities of a particular position. ACI conducts two forms of recruitment
namely Internal Recruitment and External Recruitment. Internal Recruitment is the process
of identifying and attracting applicants from among individuals already holding jobs with the
organization. On the other hand, external recruitment is the process of identifying and attracting
job applicants from outside organization. When a position is created or become vacant, ACI first
tries to fill up the position internally. If there is no suitable internal candidate the organization
goes for external recruitment. The company follows the subsequent steps to recruit candidates for
different positions:
Step: 1 Step: 1
Manpower Planning Job Analysis
Step: 2
Requisitions
Step: 3
Sourcing
Internal Internal
Page 10
6.1. Probationary Period: Probationary period is the assessment period where the works of a
new employee is closely evaluated. According to the recent labor law of ACI the probationary
period of unskilled workers is 1-2months. Probation period of companied executive officers,
deputies, HR managers, chief accountants etc are around 6 months. They are usually evaluated
on the basis of their hourly training sessions like 4-6hrs trainings a day. The probationary period
holders are given six extra skill development trainings and based on the performance they are
scored. Before the start of the period the new employees need to sign in a legal agreement. This
tells that during the probationary period month employees are given partial salary or no salary
and also they can be terminated any time by the employers. It is also clarified that any sort of
absenteeism can dismiss the employees from work. (@interview)
Training and development is a voluntary and compulsory process where the formal, ongoing
efforts made by organizations to increase the skills and level of performance of the employees
through a variety of educational methods and programs. It is an important tool for a diversified
company like ACI in order to ensure their employees can work on different sectors. ACI is
focused of increasing the bandwidth of employees by transforming their human capital to
accomplish business excellence. They want to be one of the leading performers in the long run so
in order to win the present and future challenges they have designed their training sessions with
variety of programs by operating creativity, agility, skill diversity, flexibility, IT development to
achieve future goals. Their aim is to offer outstanding services to their valuable customers and
they do this by comparing their industry practices with the external environment, based on the
best performances they set up a benchmark and implement the proficiency management
program. ACI has designed department- wise training programs with enormous and spontaneous
efforts in order to meet the ever changing needs of the company. ACI provides both in- house
and external trainings to the employees so that they can cope with the competitive business
world. After each training session they evaluate and follow up their employees.(Aci-bd.com, 2017)
In-house trainings: In the in- house training ACI design their strategic learning roadmap which
consists of some basic trainings on IT, social training and alignment, value training on both
Page 11
existing and new recruitments within the organization. (Aci-bd.com, 2017)
i) On the job ACI provides this training to their new employees in order to enhance their
training skills, efficiency and build relationship with the employers. Mid-level
managers of different sectors are in charge of this training which helps the
new employees to be familiar with the work environment. Their objective is
to provide their employees a real life work experience which serves their
culture of describing their job training session as “ Transformation to
Professional’
ii) Job Rotation Job rotation is an important tool for the better understanding of the diversified
business of ACI. This job rotation is done by ACI’s senior Hr managers who
indentifies and selects the qualified and potential employees and send them to
Different departments on daily or weekly basis on order to gain versatile skill
& experiences.
iii Day long ACI provides this day long training sessions for the development of IT sector.
) trainings Whenever they install or bring new machines their Hr department arrange a
day long training program to let their employee know about the hardware and
software
iv) Monthly ACI usually organizes monthly seminars to let their employees to know about
seminars their new launch and promotional activities. They also disclosure the
probability of the upcoming treats that the company might face from their
competitors and make defensive plans in order to counteract such treats. ACI
also prioritize their employee suggestions and based on it they take particular
action. These seminars also reveal their employees performances throughout
the month and clarifies their expectations from the upcoming events.
v) Strategic ACI also design strategic learning roadmap for few short-term goals. This
learning consists of customized learning strategies for each of the employee clusters of
road-map their business divisions, which is based on a shared vision.
vi) HR ACI provide their employees e-learning training sessions since they have
Information widespread branches all over the country. This makes easier for their
System employees to stay connected and can learn at any time irrespective of their
(HRIS) location. They can instantly communicate with the subject matter experts for
any sort of review and advices. This e-learning process is faster and cost
Page 12
P
F
"
S
x
)
(
U
,
R
D
C
A
M
I
'B
T
y
m
v
c
l
w
k
h
a
g
b
t
n
f
i
d
.
e
s
o
r
u
p efficient for ACI company.
External trainings: It is provided to ensure the best return from the development programs.
(Aci-bd.com, 2017)
b. Festival bonus and mobile phone policy: Festival bonuses are offered to the employees
during major occasions such as Eid, Christmas, employees of ACI at least get 15% bonus
Page 13
that is added to their salaries. Employees’ get a fixed amount of money for mobile phone
bills, often sale’s officers get an official mobile phone for communication purpose and costs
are paid by the company.
c. Medical facility: ACI is providing medical facilities to all its employees to a certain extent
for employee’s family as well. The company bears the medical expense of employees
however they don’t give any direct money as expenses. Every employees are getting at least
10% of their basic salary as medical treatment.
d. Loan and Incremental facility: ACI has collaboration with 12 banks such as standard
chartered, HSBC, BRAC bank, City bank etcetera to provide loan facility to employees
because of ACI’s good brand image employees’ often get loan with low interest rate.
However, ACI provide loan facility only to managerial level employees. Employee’s
performances are evaluated on June-July basis and based on key performance indicator
(KPI) best employees’ are offered incremental facility on loans which means they’ll have
access to additional funding.
e. Leave fair assistance Bonus: Employees are given special 5 days leave bonus to spend
quality time with their beloved ones. For managerial level ACI offers foreign trips and
expenses are bear by the company but for entry level managers the company doesn’t offer
such trips. Company also gives 14 days annual off for every employee. If they don’t use that
leave they will get 94 days payment allowance when they left the job.
f. Performance and sales bonus: ACI Company also offered performance based performance
based career progression. For this reason employees do their job with more passion and
enthusiasm. Performance bonuses are given to sales manager and employees basically when
they can reach a certain goal set by the department. The range of performance bonus is at
least 5,000-20,000 TK however it may vary department to department. Sales bonus is given
to employees at the end of the year based on company’s profit.
Page 14
g. Compensation and benefits package: 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.
i. Human rights:
To support and respect International Human Rights within the company's sphere of
influence.
To make sure that their own corporations are not complicit with Human Rights
Violation.
Page 15
j. Labor:
To end discrimination in the workplace.
Abolition of child labor.
The right to collective bargaining and recognition of freedom of association.
To eliminate the use of forced and compulsory labor.
k. Provident Fund: A range of ACI’s employee’s basic salary is given in the table below:
ACI has provident fund facility for their employees. The contribution of provident fund is 10%
of the basic salary from both sides. That means company give 10% as their provident fund and
other 10% cut out from their basic salary. If a employee works there for 5 years they will get the
full amount but if they work less than 5 years then he/she will get only 10% provident fund
which is cut down amount from their basic salary. They will not receive another 10% from
company.
Provident fund Policy-
Page 16
1-4 years 10% (Cut down from basic salary)
m. Gratuity policy: Every employee get their gratuity fund when they left the work place.ACI
follows the following gratuity policy-
If an employee gets basic salary 40000tk during his retired or resignation period the calculation
of the gratuity will be as follows-
Scheme 1: If his length of service is 8 years he will get half of basic salary
8*20,000=160,000(this scheme will be applicable valid up to 11 years & 11 months)
Scheme 2: If his length of service is 12 years he will get full of basic salary
12*40,000=480,000(this scheme will be applicable valid up to 15 years & 11 months)
Scheme 3: If his length of service is 16 years he will get double of basic salary
16*80000=1280000(this scheme will be applicable valid up to 16 years & above)
Page 17
8. Provident fund calculation & gratuity calculation
Example:
Executive basic pay – 20000
This scheme will be followed if the employees work for 5 years or more
1st year 2nd year 3rd year 4th year 5th year
Employee Employee Employee Employee Employee
contribution contribution contribution contribution contribution
=(2000*12) =(2200*12) =(2420*12) = (2662*12) =(2928.2*12)
=24000 =26400 = 29040 =31944 =35138.4
Employer Employer Employer Employer
Employer contribution contribution contribution contribution
contribution =26400 = 29040 = 31944 = 35138.4
=24000
Total =48000 Total=52800 Total =58080 Total= 63888 Total = 70276.8
If an employee quits the job within 1-4years = 10% (cut down from the basic salary)
Page 18
Employee contribution= 48000+52800+58080+63888= 222,768
Employer contribution = (222768*10%) = 2227.68
Total Provident fund =222,768 +(222,768-2227.68)=443,308.32Tk
Example:
Page 19
=42,871*8
=342,968 Tk.
9. Observation/ Recommendation
ACI limited is already doing a fine job managing their HR department in the best possible way
And their results are backing this claim as they are current in the top 2 in their business sectors.
ACI manages to deal with the employee problems effectively which ensures employees’
Satisfaction and company’s success and thus has made the organization one of the leading
company in our country. If they keep on going on this track soon they are going to overcome
Their competitors and get the top spot.
Recommendation:
ACI should provide some facilities for executives.
Most of the benefits such as loan, leave fair assistance are given to mid-level managers so
ACI should provide some facilities to lower level employees.
Should give more attention in recruiting since there are fewer god candidates.
They should also include better salary scale so that no candidates leave the company.
Being such a big organization, they should chase for greater heights just like Google by
Making it international.
Page 20
10. Bibliography:
Page 21