COMPENSATION MANAGEMENT Compensation is a key factor in attracting and keeping the best employees and ensuring that organization has the competitive edge in an increasingly competitive world. The Compensation Management component enables one to differentiate between one’s remuneration strategies and those of his competitors while still allowing flexibility, control and cost effectiveness. It provides a toolset for strategic remuneration planning that reflects organization culture and pay strategies, and it empowers line managers within a framework of flexible budget control. Compensation Management allows one to control bottom-line expenditures and offer competitive and motivating remuneration, be it fixed pay, variable pay, stock options, merit increases, or promotion – in other words, total compensation. In brief, it includes     Create centralized and decentralized budgets Plan and administer compensation adjustments at the manager level Plan and administer compensation adjustments within budget Performing Job Pricing Define pay grades and salary structures to identify the internal value of jobs and positions in your organization  Administer long-term incentives. FEATURES Compensation Management comprises the following components: Job Pricing This component uses to store and manipulate results from external job evaluation systems, and data from external marketing surveys. This data can be used as a starting point for building salary structures associating with jobs and positions in the organization. This component allows identifying the internal worth of jobs and positions in the organization. Budgeting This component is used to allocate monetary amounts or non-monetary amounts, for example, a number of shares, to a particular department, subsidiary, or plant within the organization. It can also be used as a control mechanism to make sure to stay within the budget amount allocated. Compensation Administration This component is used to plan and administer compensation adjustments, such as salary increases, bonuses, long-term incentives either across the board or in accordance with the corporate compensation policy and eligibility criteria. This component also enables to distribute adjustments at the employee by allowing one to overwrite the prescribed adjustment manually. The additional employee information provided supports and facilitates the decision-making process. The control mechanisms built into the component warn immediately if the planning is inconsistent or has exceeded the allocated budget.

UNILEVER BANGLADESH
OVERVIEW, MISSIONS, PURPOSE AND PRINCIPLES

INTRODUCTION TO UNILEVER BANGLADESH Unilever started its onshore operations in Bangladesh in 1964 when its soap factory was set up at Chittagong. Unilever Bangladesh is market leader in 7 of the 8 categories it operates in, with 16 brands spanning across Home and Personal Care and Foods. Unilever Bangladesh’s operation provides employment to over 10,000 people directly and indirectly through its dedicated suppliers, distributors and service providers. 99.8% of Unilever Bangladesh employees are locals. We also have a large number of Company employees working abroad in other Unilever companies as expatriates. Doing Well by Doing Good
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Project Laser Beam – Bangladesh selected for pilot of Unilever-WFP led Public Private Partnership targeted towards eradicating child hunger and malnutrition. Global Hand washing Day – UBL, along with its partners, applied for Guinness Record for highest number of people (52,000) washing their hands together at a time Oral Health & Hygiene Awareness Programme – led by Pepsodent through school-based activations, covering 700,000 contacts in ’09 and targeting 2.5mln in ‘10 Lifebuoy Friendship Hospital - Launched in March 2002 in association with the humanitarian organization "Friendship”. Has a dedicated medical team on board and reaches to people who would not have access to proper medical facility. Approximately 200,000 people benefited till date

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Empowerment of Women
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Fair & Lovely Foundation gives empowerment training to women & scholarship to female students for IT education Worked with 23 NGOs and CARE Bangladesh to create sustainable business opportunities for rural women Over 2,500 Aparajitas (woman entrepreneurs) earn by selling UBL products.

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MISSIONS

In present world, Consumers are increasingly bringing their views as citizens into their buying decisions, demanding more from the companies behind the brands. They want companies and brands they trust. Unilever embraces these new expectations. Their heritage of good governance, product quality and long experience of working with communities gives them a strong base. They aim to build on this by taking the next step in transparency and accountability. Every day 150 million people in over 150 countries choose their products. Already, most of their brands give the benefits of feeling good, looking good and getting more out of life. Bertolli, for example, conjures up the Italian zest for life and Becel/Flora keeps hearts healthy. In the future, they believe their brands will do even more to add vitality to life. Their vitality mission will focus their brands on meeting consumer needs arising from the biggest issues around the world today – ageing populations, urbanization, changing diets and lifestyles. Unilever is in a unique position to understand the interrelationships between nutrition, hygiene and personal care. According to them, It is by bringing all this together that we can strive to contribute to quality of life and wellbeing - adding vitality to life. The long-term success of their business is intimately interconnected with the vitality of the environment and the communities in which they operate. The environment provides them with their raw materials and the ingredients they need to make our products. Healthy, prosperous communities provide them with a healthy, growing consumer base.

UNILEVER BANGLADESH- AT A GLANCE Over the last four decades, Unilever Bangladesh has been constantly bringing new and worldclass products for the Bangladeshi people to remove the daily drudgery of life. Over 90% of the country’s households use one or more of our products. Type of business Fast Moving Consumer Goods company with local manufacturing facilities, reporting to regional business groups for innovation and business results. Operations Home and Personal Care, Foods Constitution Unilever - 60.75% shares, Government of Bangladesh - 39.25% Product categories Household Care, Fabric Cleaning, Skin Cleansing, Skin Care, Oral Care, Hair Care, Personal Grooming, Tea based Beverages. Our brands Wheel, Lux, Lifebuoy, Fair & Lovely, Pond's, Close Up, Sunsilk, Taaza, Pepsodent, Clear, Vim, Surf Excel, Rexona, Axe, Dove, & Vaseline. Manufacturing facilities The company has a Soap Manufacturing factory and a Personal Products Factory located in Chittagong. Besides these, there is a tea packaging operation in Chittagong and three manufacturing units in Dhaka, which are owned and run by third parties exclusively dedicated to Unilever Bangladesh. Employees Unilever Operations in Bangladesh provide employment to over 10,000 people directly and through its dedicated suppliers, distributors and service providers. 99.5% of UBL employees are locals and we have equal number of Bangladeshis working abroad in other Unilever companies as expatriates.

THEME OF UNILEVER BANGLADESH

COMPENSATION MANAGEMENT OF HUMAN RESOURCES DIVISION IN UNILEVER

Unilever Human Resource is one of the best systems in Bangladesh. The strategy of Human Resource Division is followed Unilever strategy. The strategy that followed by HR’s is described below: Vision: Vision crystallizes our employee focus as the cornerstone of everything we do; to help our customers get the full benefit if communications services in their daily lives. It describes our ambition for future, sets a common direction across the group, and shall inspire all employees to imagine how they can contribute. Our values describe what behaviors are necessary to realize that vision. HR is a Critical Enable for Unilever Bangladesh Ltd in the pursuit of its strategic goals. HR is a key to ensuring An Organizations, that provides a competitive advantage by being simple, aligned and efficient. A Culture centered on the employee and characterized by diversity, generosity and an international mindset. Leaders, who have a passion for business, excel at empowering people and never compromise on ethical standards. People, who perform at the peak of their ability because they feel a sense of mission, accomplishment and growth.

HR POLICIES Probation: All employees recruited on a permanent basis must undergo a period of six months as probationary period to ascertain their capability and suitability for employment and would be judged with a performance appraisal at the end of 5th month. On successful competition of the probationary period employee shall be given a letter of confirmation. During probation period no benefit of provident fund or gratuity will accrue. And employee will be entitled to avail 50% of entitled annual leave during this period and seven days for medical leave during the period. During probation employment may be terminated by either party upon 24 hour notice and confirmed employees are required to give one month notice for resignation or should give up one month basic salary.

Working hours and holidays: Sunday to Thursday 9.00 am – 5.45 pm Lunch hour Friday and Saturday 1.00 pm- 1.45 pm Weekly holiday

Punctuality: Employees are required to arrive at work before 9.00 am and to disregard this will be treated as late and will be recorded in the Attendance Register accordingly. Similarity leaving the working place without authorized permission before 5.45 pm will be treated as indiscipline.

LEAVE Each permanent employee is entitled to the following leaves: Management General Manager DGM and AGM Senior Manager Manager Asst. Manager Executive Non-executive Annual Leave Entitlement 25 working days 22 working days 20 working days 18 working days 16 working days 14 working days 14 working days

50% of the entitlement of the annual leave can be accumulated or carried forward to the next service year and rest will be lapse if not availed. Medical Leave Employee medical leave entitlement is 14 days for all level of executives. Employee must have to produce medical certificate fo medical leave. There is no provision of accumulation of medical leave. Quarantine Leave This is a leave of absence from duty necessitated by orders not to attend office in consequence of the presence of infectious disease (e.g. Chickenpox, eye diseases & Hepatitis) in the person, family or household of an employee. Such leave can be granted by the authority up to maximum 15 working days. However, the employee concerned has to submit a medical certificate from a registered medical practitioner. Accidental Leave Employees who get injure by an accident occurred while on duty will be allowed accident leave with full pay for the period required for full recovery and become fit to join duties. If the accident causes partial or full disablement and te joining to duties is uncertain, then management will decide on accident leave. Maternity Leave

A female employee who has been employed for s period of not less than ninety days during the nine months immediately preceding her confinement shall be granted ninety consecutive days maternity leave on full pay. Maternity leave shall be granted after twenty eight weeks of pregnancy and application for maternity leave shall be made not less than two months prior to date on which it is desired that the maternity leave shall commence. Such entitlement applies for two times during her service with the company. Paternity Leave Male employees are entitled for 3 working days paternity leave. One employee can avail paternity leave up to two times during his tenure. Compassionate Leave Employees are entitled for 3 working days compassionate leave in case of death of their parents , spouse and children to cope up with the shock. Haji leave Only permanent employees (service length minimum two years) can take Haji Leave of 20 consecutive days (including the holiday) for holy Hajj with prior approval of the management. An employee can avail haji Leave once in his/her service tenure. Leave without Pay The company may grant an employee, as its discretion, no pay leave on important personal ground upon approval of the divisional head, provided that the employee has exhausted his/her annual leave. Functional Heads will approve such leave depending upon the circumstances. Compensatory Day-off An employee when requires to work on any weekly holiday or governmental holiday shall be given a substitute day off which should be taken within one month of the date or will be fortified. Employees may take day-off leave instead of any weekly or govt. holiday if he works on that day for at least eight hours(in one day). The leave must be taken within the following month and

necessary documents (attendance register) must be produced for the approval. On the other hand, the employees will not be entitled for day-off leave if they take holiday allowance for the day. Encashment of Annual Leave If any employee’s leave application is rejected for two times in a year, he will be eligible for applying for the leave encashment up to a maximum of 10 days. The encashment will be based only on Basic Salary. LANGUAGE English is the official language of Unilever. However employee dealing with customers can speak in Bengali if requires. ID card and Business card After joining, human resource division would issue ID card and Business card to each employee for ensuring security and proper identity. Only non-executives are not entitled to get business card. Salary and Benefits Monthly salary will be transferred to employee individual salary account on 25 th of each month with other allowances less deductions such as income tax, contributory provident fund etc. Each employee will receive a monthly payment statement detailing gross pay and deduction. Festival Bonus They usually awards two bonuses in a year on occasion of Eid/Christmas/, as festival bonus. The amount of bonus is normally equal to basic salary. Other Variable Bonus They are offering other variable bonuses like performance bonus (related with individual performance) and company performance bonus (special bonus for company

performance/success) to the employees. Soft Furnishing Allowance

This allowance is paid as a part of house maintenance of the staffs. Only Executive and above are entitled for the allowance. This allowance shall be paid on yearly basis at the end of the year (with December pay). Job Level To management Sr. Management Manager Asst. manager Executive Yearly Allowance (tk) 20,000 15,000 8,000 6,000 4,000

Shift Duty Allowance

Holiday Allowance Job Level Manager & Sr. manager 3-5 hours Tk. 300/ (per day) >5 hours Tk. 500/ (per day)

Salary Review Salary is received periodically with consistent with the living standard and competitive salary package offered by other multinational organization. Provident Fund and Gratuity The contribution in provident fund is 10% of basic salary from both sides. Employee will be eligible for company contribution after 5 years of the membership of the fund. Employee will also be entitled to a gratuity payment. Group Life Insurance Policy

Management has approved a group of life insurance policy under which, death, permanent partial disability and permanent total disability shall cover. And the insured amount for life is 36 times gross salary. Child Birth Benefit All regular employees are entitled for child birth allowance as per stated below: 1. Manager and above: (both employee and spouse) Tk. 15000 per delivery 2. Assistant manager and below: (both employee and spouse) Tk. 10000 per delivery Incumbent (regular employee) shall submit: 1. Birth certificate from appropriate authority 2. Claim form Hospitalization Fund policy All employees are entitled for the benefit (All permanent employees and their families, all probationers and their families and all contractual employees and their families including nonexecutives) as per the level of employment/Grade (family means spouse and children up t o25 years old.) Mode of benefits 1. Employee can claim for two hospitalization cost per year 2. Employee should take prior approval from head of Human Resources in advance in writing of any pre-planned hospitalization. In case of any emergencies, employee or any of his dependents should inform HR immediately. 3. Employee will pay the bills of hospitalization of his/her own and submit the bill copies and money receipts for reimbursement of the hospitalization expense. 4. In case of any overseas treatment, reimbursement shall be up to respective employee’s entitlement.

Hospitalization Expenses include

1. Consultation fees while admitted 2. Investigation expenses while admitted 3. Artificial Limbs, Eyes, Casts, braces or crutches 4. Post hospitalization physiotherapy up to two sessions 5. Rental or Wheel Chair or Hospital bed, if advised by physician 6. Ambulance service 7. Treatment by radiotherapy or chemotherapy 8. Preadmission treatment 9. Two follow up visits after discharge from hospital Claim Submission procedure for Reimbursement 1. All claims must be submitted to divisional head within 15 days after being released from hospital 2. Employees should settle the expenses themselves and apply for reimbursement attaching all original of payments with the claim form Supporting papers necessary for Hospitalization bill 1. Itemized original hospital bill for the total amount paid. Original voucher of consultant’s fee 2. Original Voucher of surgeon’s fee in case of surgery 3. Prescriptions of medicine used in the hospital along with money receipts of purpose 4. Original hospital discharge report/summary. Accommodation Allowances An employee who is required to travel out station on company business beyond a radius of 33 km from his office (within Bangladesh) and requires a stay of 24 hours or more shall be entitled for following claims: a. Hotel rental b. Rental without receipts.

Designation

Hotel Rental with Receipts

Hotel Rental without Receipts

Top Management Sr. Management Manager Asst. Manager Executive Non-executive

Actual cost single deluxe BDT 3000/ BDT 2500/ BDT 1800/ BDT 1400 BDT 600/

BDT 2000/ BDT 1500/ BDT 1200/ BDT 900/ BDT 700/ BDT 300/

Daily Allowances for overseas Travel An employee travelling outside Bangladesh, on company business shall be paid daily meal allowance as per stated below: Asia Europe/America/Japan/Hongkong and (USD) the rest of the world (USD) Top management 100 150 Sr. Management 85 120 Manager 70 100 Asst. manager 50 70 Executive 50 70 An employee traveling outside Bangladesh on company business shall be reimbursed on production of receipts for the airport charges, Tax and Transportation expenses. The mode of transport using hired vehicle must first be approved by the managing director. The airfare for such business trip shall be as follows: Designation Asia and Europe/America/Japan/Hong Kong the rest (Air fare) of the world (Air fare) Business Business Economy Economy Economy Economy Economy Economy Economy Economy Designation

Top management Sr. Management Manager Asst. manager Executive

Accommodation Allowance (overseas) An employee traveling outside Bangladesh on company business shall be paid accommodation allowances as per stated below: Designation Asia and rest of the world USD 75 USD 60 USD 45 USD 35 USD 35 Europe/America/Japan/Hong Kong

Top Management Sr. Management Manager Asst. Manager Executive

USD 100 USD 85 USD 65 USD 60 USD 60

Transfer Reimbursement The company shall pay a transfer allowance of Tk. 15000 for a married employee (executive and above) and Tk. 9000 for a single employee. Transfer allowance for non-executive is tk. 9000(married) and Tk. 6000 (single) respectively. Travelling allowances, meal allowances and accommodations allowances shall be paid according to company rules. Transport and Travelling allowances Employee authorized to use his/her vehicle in performing the duty, shall be reimbursed transport expenses: Description/Vehicle Motorcar Motorcycle Parking fees and toll charges Allowance Tk. 8/km Tk. 4/km Shall be reimbursed upon submission of receipt

Wedding Loan Interest free wedding loan for the confirmed permanent employee loan amount is 3 times gross salary (maximum amount of Tk. 100,000). Meal Allowances All confirmed regular employees are entitled for a monthly meal allowance as per thei job grade which is payable with their salary. Children Education Allowance All regular and confirmed employees are entitled for children education allowances up to maximum two children (age should be within 25 years). Allowance is payable with the monthly salary as per the employee job grade. Gratuity All confirmed regular employees are entitled for gratuity as per stated below: Years of service After 5 years After 8 years After 10 years Allowance 1 last drawn basis for each completed year 1.5 last drawn basis for each completed year 2 last drawn basis for each completed year

Long Service Award For all confirmed regular employees the reward will be with the form of gold medal worth different values relating with their frame: Years of Service After 5 years After next 5 years Reward 2 vhori Gold 3 vhori Gold

Leave Fair Assistance All regular employees are entitled for leave fare assistance on monthly basis per their job grade which is payable with their salary. One of the prime objectives of Unilever is to develop its individual employee’s career.

Carrier Development Through appraising their performance and providing with knowledge and skills through proper training and development programs. Induction After joining new employee is subject to attend an induction program. This program provides new employee with basis background information about employer, information about company rules and practices, organizations products and services. This new employee socialization program shall be conducted by HR division. Performance Appraisal To achieve the overall organization goal, each employee is assigned with his individual goals. A periodic appraisal is conducted with the view to monitoring employee performances and to find out the training need and developments of each employee. Good performances are awarded accordingly for their contribution to Unilever. Organizations Development Management gives immense emphasis on developing its human resources by allocating huge money with yearly training programs (both local and overseas training). Annual training calendar is drawn up consisting with the training need assessment of all members of the organization. Inhouse training is also arranged. Promotion A systematic promotion policy is followed in terms of promoting the deserving employees in line with the succession plan. Promotion is given to the employee when there is vacancy in the higher position and the employee has the required skills, experience to undertake the job. Up gradation is also awarded on the basis of performances and capability of the individuals. Motivation As motivation is a prime factor to job satisfaction, management is willing to take initiative by offering following schemes: Performance Bonus Performance bonus may be given to the good performers with accordance with the company rules and management discretion as recognition of ones performances throughout the year. Reward and recognition

Reward and recognition policy is introduced to award the outstanding performers for best employee of the year, best employee of the division, outstanding performers, best team performers and best support stuff. Safety and Security For conforming contingency or any possible accident in the work places, offices contains the fire extinguishers and first aid box and Unilever is in the brink of establishing a comprehensive safety and security policy for safeguard of our lives and properties as well. Punishments The measurement of punishment should be proportionate to the severity of the offence committed. The punishments could be as follows: 1. 2. 3. 4. 5. 6. Written warning Suspension without pay for a period not exceeding 7 working days Defer increment for a period not exceeding 2 years. Dismiss the employee without notice Termination Impose any other lesser punishment other than these.

Medically Boarding Out When an employee is incapable either physically or mentally to undergo his job, management may discharge him/her from service upon recommendation of the govt. medical board. Retirement Optional Retirement Male 50 years Female 45 years Compulsory Retirement Male Female 58 years 58 years

EMPLOYEE SATISFACTION Employee satisfaction is the terminology used to describe whether employees are happy and contented and fulfilling their desires and needs at work. Many measures purport that employee satisfaction is a factor in employee motivation, employee goal achievement and positive employee morale in the workplace. Employee satisfaction, while generally a positive in an organization, can also be a downer if mediocre employee stays because they are satisfied with work environment.

The factors effects employee satisfactions are following: A. Organization development factors 1. Brand of organizations in business field and comparison with leading competitor 2. Missions and vision of organization 3. Potential development of organizations B. Policies of compensation and benefits factors 1. Wage and salary 2. Benefits 3. Rewards and penalties C. Promotions and carrier development factors 1. Opportunities for promotion 2. Training program participated or will do 3. Capacity of career development D. Work task factors 1. Quantity of task 2. Difficult level of task. E. Working conditions and environment factors 1. 2. 3. 4. Tools and equipment Working methods Working environment Working environment

F. Corporate culture factors 1. Relationship with coworkers 2. Level of sharing etc. G. Competencies, personalities and expectations of employer’s factors 1. Competencies and personalities of employee are suitable for job 2. Expectations of employers are suitable for policies of organization

Some other factors related with the employee satisfactions are given below: 1. Interesting works

2. Appreciation of work 3. Job security 4. Good wages 5. Promotion and growth 6. Good working conditions 7. Personal loyalty 8. Tactful discipline 9. Sympathetic help with problems 10. Preferred incentives 11. Flexi-timing 12. Telecommunicating 13. Company paid vacations 14. Accident and health insurance benefits 15. Retired benefits etc. 16. ANALYSIS AND FINDINGS Strength: The main strength of Unilever HR Division is the authority to work. They have authority to maintain the employee properly. The employees from different division have proper respect for HR division. This respect was gained by HR division. Weakness: Still Bangladesh has lack of enough HR personnel in the marker. It is important to have employee, who understand HR and can work according to HR needs. Opportunity: It is a huge organization consisting a large number of employees. HR division has to look all types of employee. They can work in several sectors along with those employees. Very few Bangladeshi organizations have this kind of have this kind of opportunity. An additional thin is they also have enough financial resource for successful implements of HR policies. Threat: It is also very difficult to handle with such a gigantic number of employees. It is very normal that any process can be bewildered when there is not enough internal resources. Sometimes the total process can be injudicious.

CONCLUSION From the above discussion we can easily understand that Unilever is one of the largest companies in Bangladesh. Over the last four decades, Unilever Bangladesh has been constantly bringing new and world-class products for the Bangladeshi people to remove the daily drudgery of life. Over 90% of the country’s households use one or more of their products. Unilever Operations in Bangladesh provide employment to over 10,000 people directly and through its dedicated suppliers, distributors and service providers. 99.5% of UBL employees are locals and they have equal number of Bangladeshis working abroad in other Unilever companies as expatriates. It is found that the Human Resource practice, recruitment and selection process, employee satisfaction and relations at Unilever are very developed and effective one. The most important key source factor of Unilever is its efficient human resource. It is using the state of the art technologies and continuous monitoring to ensure its products quality. The day-to-day management of affairs of the Company is vested with the Management Committee which is subjected to the overall superintendence and control of the Board. Their operating model is designed to deliver faster decisions. Their corporate purpose sets out their aspirations in running business. It’s underpinned by their code of business Principles which describes the operational standards that everyone at Unilever follows, wherever they are in the world. The code also supports approaching to governance and corporate responsibility.