HRM 301

Case Study

Group Member ID
1. Muhaimen Hasan 1620007
2. Mohammad Faisal Adnan 1511173
3. Kamruzzaman Majumder 1530218
4. Nazmul Alam Nayeem 1520514

Course Title: Introduction to Human Resource Management

Course ID: HRM 301
Section: 3 Submitted to,
Semester: Summer 2017 Ms. Sariat Rafa Khan
Independent University, Bangladesh. Lecturer, School of Business
Date of Submission: 27th July 2017 Independent University, Bangladesh.

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 Salary and Compensation Problem
Of
Dhaka Palli Bidyut Samity

Keywords: Salary, Compensation, Increment, Delay, Turnover, Dissatisfied.

Abstract: Compensation and Salary is a critical area of human resource (HR) management,
and one that can greatly affect employee behavior. To be effective, compensation and Salary
must be perceived by employees as fair, competitive in the market, accurately based, motivating
and easy to understand. This case is rated as slightly challenging. Increment in salary is a very
important and a critical thing for an organization. After a certain amount of time Compensation
and Salary must be increased to keep employee satisfied, loyal and committed to the
organization, otherwise employee behavior can be affected highly.

Organization Background: Rural Electrification Association, first debuted on the basis of

concept "No losses" and "Customers are the real owner". Rural electrification activity is being
implemented in the proper use of domestic resources and utilization of foreign aid, and it has
been working for rural socio-economic development. On October 31, 1977, the Rural
Electrification Board was formed through an ordinance to implement rural electrification activity
and gradually started the program for electrification across the country. Under this program, 13
rural power companies were formed in the country and among them, Dhaka Palli Vidyut Samity-
1 became the first association on December 13, 1978 and started commercial distribution on
June 2, 1980. In this region, agriculture, The Dhaka Rural Electrification Association has been
playing a positive role in promoting industrial and commercial sectors and improving the
standard of life and public awareness.

Case: MD. Mehedi Hasan recently been promoted to HR Manager of Dhaka Palli Bidyut Samity.
After being promoted he found out a major problem in the organization. The problem is salary
and Compensation releated. In the organization, there is a policy or rule that every year the
salary or Compensation of all the employee will be increased based on their position. To keep
the employee motivated, satisfied, committed and loyal towards the organization this policy was
made.
The person who is in the position of a General Manager his or her Compensation is 78,200 tk.
After a year later his Compensation will be increased into 80,550 tk. The person who is an
Assistant General Manager his Compensation is 43,500 tk after a year later his or her
Compensation will be increased into 45,200 tk or the person who is a Computer operator his or
her salary is 21,200 tk after a year later that person salary will be increased into 22,050 tk.

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Now the problem is this that the organization is not maintain this increment policy properly.
Sometime the increment is delayed. For example, A Lineman who is an employee of an
organization his salary increment was meant to happen in January but it is happening on August
or September. It’s like 7 or 8 months late. For this problem, it is affecting the behavior of an
employee greatly. They are getting demotivated, they are not doing their work properly because
of their dissatisfaction towards the organization. They are not following the rules and regulation
of the organization. For all these reason organization is facing difficulties to achieve their
organizational goal. Sometimes employee is even leaving the organization. So, for this problem
employee turnover is happening.
Those who are in a higher position of the organization they are not leaving the organization
because they get a good amount of Compensation but those who are in a lower position they
are not satisfied of the delay of salary increment because their salary isn’t much. It is hard for
them to lead a decent life with the salary they get but if every year their salary increases a little
bit higher life will be easier for them to live and they will be happy and loyal to the organization.
If this problem continues than it will be very harmful for the organization. The organization won’t
be able to reach It’s organizational goal.

Option and Action: Employees are the most valuable asset to the organization. If the
organization doesn’t properly give the things what they need than it is so natural that they will
be dissatisfied. An employee becomes regular in his job after completion his probation period of
one year. Every employee has a right to get increment of salary every year. So, to make that
salary increment in time the Human Recourse authority needs to circulate an office order for the
salary increment in time. That means without delay and because of delaying of increment order
the problem keeps happening again and again.
So, the organization needs to be very sincere about this order because if the order circulates in
time this problem won’t happen again. So, the employee will be happy and will give his devotion
more in his job.

Conclusion: Human Recourse manager and HR section plays a very important role to the
organization. One of the most important function of an HR department is to coordinate benefits,
compensation, tax withholding and other wage-related items. An HR representative is generally
required to meet with new employees to carefully explain their insurance coverage and wage
information. For hourly employees, human resources is responsible for tracking time reports and
ensuring that employees are meeting their time requirements and are accurately reporting
hours. It is the responsibility of HR to make sure that the payroll system is always running
smoothly.
Good compensation, Salary increment, benefits and rewards scheme are very important because
the right compensation, Salary increment and benefits schemes ensure that hard-working
employees are rewarded fairly and in the most cost-effective way for the company. This in turn
then motivates employees to sustain their performance.
So, HR Department plays a very important role to the organization.

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Reference: http://www.dhakapbs1.org.bd/