Human Resources Management

Spring 2020
MBA 509
Sec: 2
Reserch Paper on

LafargeHolcim Bangladesh Ltd

Submitted to: Submitted by:

Dr. Nazmul Amin Majumdar Rajia Sultana
ID:1910720
 Letter of Transmittal

25th March 2020

Dr. Nazmul Amin Mjumdar
Human Resources Management
Faculty Member of School of Bussiness,
Independent University Bangladesh

Sub: A reserch report on HRM of LafargeHolcim Bangladesh Ltd.

Sir,

With due respect , I would like to inform you that I have completed
report on ‘Laferge Holcim’by answering with advice questions .It is
immense pleasure for me becouse I have successfully completed this
report by receiving your continues guideline as a supervisor.

I have endeavoced to prepare this report from my level best to

accumulate relevant and insightful information. If I am included any
wrong information in unconciusly please forgive me as your
student.It is a great experience for me to make this report .I have
tried to make the report compenhensively within the schedule time
and limited rescources.

You’re sincearly
Rajia Sultana
ID:1910720
Table of contents
1 Introduction:

1.1 Introduction
1.2 Objective of the report
1.3 Limitation
2 Bangladesh and Cement Industry

2.1 Background of Cement Industry in Bangladesh

2.2 Current Status of Cement market in Bangladesh
3 Organization and other details

3.1 History of Lafarge

3.2 Vision & Commitment
3.3 PRODUCT DETAILS
3.4 LHBL and competitors position in Cement Market
4 HRM AND LHBL

4.1 Human Resource Management in LafargeHolcim

4.2 Uses of HRM in LHBL
4.3 Advantages and Importance of HRM in LHBL
4.4 Recruitment Management System in LHBL
4.5 HR Recruitment Procedure in LHBL
4.6 Recruitment Procedure in LHBL
5 People Management Strategy
6 CSR of LHBL
7 HRM’s Issues facing LHBL

8 HRM approaches to ensure ongoing strategic competitive advantage

9 HRM challenges and Challenges will face by LHBL in 21 st century

9.1 Top ten Challenges in 21st century

9.2 Challenges will face by LHBL in 21st century
10. Conclusion

11 Recommendation

12 The implementation from Remarks

12 References
 1. Introduction:
LafargeHolcim is the leading global building materials and solutions company
serving masons, builders, architects and engineers all over the world. Group
operations produce cement, aggregates and ready-mix concrete which are
used in building projects ranging from affordable housing and small, local
projects to the biggest, most technically and architecturally challenging
infrastructure projects. As urbanization increasingly impacts people and the
planet, the Group provides innovative products and building solutions with a
clear commitment to social and environmental sustainability. With leading
positions in all regions, LafargeHolcim employs around 90,000 employees in
more than 80 countries and has a portfolio that is equally balanced between
developing and mature markets. And to maintain all this huge number of
employees they follow spefefic HR rules and develops it for the better benefits
of employee and company by obeying the industrial rules set by the
government. All the related HRM activities and issues are describe in this
report.
 1.1 Objective of the Report:

As being a student of IUB-Business School I must have to attend the course

HRM509; And it is a course requirement to submit a research report on advise
industry /company. So I have to submit my report as I advise to. The core
objectives of this report are: To know about the subject industry and company

Maximum information related to HRM in LHBL and their difficulties and

initiative related to present and future needs.

And Finally, to complete my MBA by presenting this report to my university

supervisor.

1.2 Limitation:
During writing this report I have to face some limitations. Those are enlisted here:

As we all are currently in home quarantine so I did not have chance to go to library and get
some related information about my research topic.

And another limitation is the LHC head office also declared general leave due COVID-19. So that
I couldn’t go there and the person in HR with whom I received an appointment which also
cancelled.

For this I manage some basic information over the phone from the HR person as I am an
outsider for him and I have to read lots of articles and reports in online to get information on
LHBL.

2. Bangladesh and Cement Industry:

2.1 Background of Cement Industry in Bangladesh

The development of cement industry in Bangladesh dates back to the early-fifties.

Till 1990 about 95% of the country's demand for cement had been met through
import. Some enthusiastic entrepreneurs ventured into setting up cement plants
during 1997 to 2000 which opened a new era in this sector. Prior to inception,
Bangladesh used to import cement from global market. As new players entered
into the market with no participants, they tapped into the already existing huge
demand for cement. The dependency on import lowered in the following years.
Currently local producers and multinational companies have engaged in cement
production to fulfill the local demand.

2.2 Current Status of Cement market in Bangladesh:

Bangladesh is the 40th country in the world cement market now.

In the last seven years, the production capacity of the local cement companies
increased by 131 percent, while demand rose by 106 percent.At the end of 2018,
the production capacity stood at 5.80 crore tonnes, while the demand rose to as
much as 3.10 crore tonnes.Of the locally produced cement, the government uses
35 percent, commercial developer’s use 35 percent and individual-level small
buyers use the rest.
From 2011 to 2018, the per capita use of cement increased by 97 percent to stand
at 187kg. However, the country yet lags behind the world average of per capita
use of 563kg.
The nationalized Chhatak Cement Factory exported cement in 2000 for the first
time in the country's history. At present, there are 14 companies in the export
pipeline.In fiscal year 2017-18, cement worth around Tk100 crore was exported,
which was 17 percent more than in the previous year.

3. Lafarge and its Details:

 3.1 History of Lafarge
Joseph-Auguste Pavin de Lafarge founded the company Lafarge in 1833in
the city of Le Teil in France with the product of limestone. Gradually the company
expanded and acquired its first cement plant in 1987. Now it is operating its
business in 62 countries along with Bangladesh. Cement, construction aggregates,
asphalt and concrete are main products of Lafarge. Country wise these products
vary. “Anticipate needs to drive advances in construction methods” is the mission
of Lafarge Group. “Respect, Care and Rigor” are the solid values of Lafarge. The
employees of Lafarge throughout the world also believe in integrity, ethics,
courage, empathy, openness, commitment, performance, value creation, respect
for employees and local cultures, environmental protection, conservation of
natural resources and energy. The Group portfolio of businesses is as follows: •
Cement: 63.5%, • Aggregates and concrete: 35.9%, • Other: 0.6%. At present
Bruno Lafont is the Chief Executive Officer of Lafarge group. From the record of
2013, Lafarge has 64000 employees throughout the globe. In 2013, its sales were
15.2 billion Euros. It has 1636 production sites in different countries. Lafarge head
office is now in Paris, France. Lafarge built the first research center for building
materials where the employees are trying to develop their products without
hampering the environment.

3.2 Vision & Commitment of LHBL:

LHBL Vision:
To be the undisputed leader in building materials in Bangladesh through
• Excellence in all areas of operations with world class standards
• Harnessing our strengths as the only cement producer in Bangladesh and
• Sustainable growth that respects the environment and the community

LHBL Commitments:
• Offering highest quality of product and services that exceed our customer’s
expectation
• Giving our people an enabling environment that nurtures their talents and
opportunity to
give the best for the organization
• Contribute to building a better world for our communities
• Delivering the value creation that our shareholders expect

3.3 PRODUCTS IN
BANGLADESH:

Super Crete, the only Portland Limestone

Cement (PLC) brand in Bangladesh,
complies with BDS EN 197-1: 2003, CEM II/
B-L, 42.5N standard. Own clinker
production facility and usage ensure the
consistent quality of Supercrete Cement.  It
is an effective product for versatile concrete
solutions with a significant benefit for
construction cost savings. It also has an
aesthetic demand (Fair Face Surface) and a
priority recommended product by
construction professionals (Architect &
Engineers).

Holcim (Strong Structure), a Portland

Composite Cement (PCC) complies with
BDS EN 197-1:2003, CEM II/B-M (S-V-L),
42.5N standard. The usage of this type of
cement started from last few decades in
Bangladesh. Holcim (Strong Structure) is
suitable for all types of construction works
as raw material of concrete and mortar.
Being PCC types cement containing PFA &
slag, Holcim (Strong Structure) provides
long term strength development advantage
in concrete.
 

3.4 LHBL and other competitors position in Bangladesh market:

As many as 76 cement manufacturing companies have been registered,

but 2 large and small scale companies of them are producing cement as of
now. Of the 42 companies, seven are listed with the share market and four
are multinationals. Once the market was dominated by foreign companies
which are now facing intense competition with the local ones.

Among the existing 42 market players, the cement industry is dominated by

only ten companies including two multinationals, holding around 80% of the
total market share, according to BCMA data. Of them, Lafarge Holcim got
the second place on the top-ten list through acquisition of Holcim by Lafarge
Surma.

According to a recent study by EBL Securities market share is given below:

 Market Share of 10 Leading Cement Companies
Confidence cement
Akij Cement 3%
5%
Fresh Cement Shah
8%
Cement
18%
Crown Cement
9%
Lafarge Holcim
15%

Premier Cement
9%

Heidelberg Cement Bashundhara

10% 12%
Seven Rings Cement
11%

4. HRM AND LHBL

4.1 Human Resource Management in LafargeHolcim:

HRM is the process of managing people in organizations in a structured and

thorough manner. This covers the fields of staffing (hiring people), retention of
people, pay and perks setting and management, performance management,
change management and taking care of exits from the company to round off the
activities. This is the traditional definition of HRM which leads some experts to
define it as a modern version of the Personnel Management function that was
used earlier.
We have chosen the term “art and science” as HRM is both the art of managing
people by recourse to creative and innovative approaches; it is a science as well
because of the precision and rigorous application of theory that is required.

4.2 Uses of HRM in LHBL:

 Human Resource Management is the function within an organization that focuses on

recruitment of, management of, and providing direction for the people who work in
the organization LHBL. It can also be performed by line managers.

 Human Resource Management is the organizational function that deals with issues
related to LHBL people such as compensation, hiring, performance management,
organization development, safety, wellness, benefits, employee motivation,
communication, administration, and training.

 HRM is also a strategic and comprehensive approach to managing Lafarge people

and the workplace culture and environment. Effective HRM enables Lafarge
employees to contribute effectively and productively to the overall company direction
and the accomplishment of the organization’s goals and objectives.

 Human Resource Management is moving away from traditional personnel,

administration, and transactional roles, which are increasingly outsourced. HRM is
now expected to add value to the strategic utilization of LHBL employees and that
employee programs impact the business in measurable ways. The new role of HRM
involves strategic direction and HRM metrics and measurements to demonstrate
value.

 The Human Resource Management (HRM) function includes a variety of activities,

and key among them is responsibility for human resources for deciding what staffing
needs you have and whether to use independent contractors or hire employees to fill
these needs, recruiting and training the best employees, ensuring they are high
performers, dealing with performance issues, and ensuring Lafarge personnel and
management practices conform to various regulations. Activities also include
managing your approach to employee benefits and compensation, employee
records and personnel policies. However, they should always ensure that employees
have and are aware of Lafarge personnel policies which conform to current
regulations. These policies are often in the form of employee manuals, which all
employees have.

 HRM is widening with every passing day. It covers but is not limited to HR planning,
hiring (recruitment and selection), training and development, payroll management,
rewards and recognitions, Industrial relations, grievance handling, legal procedures
 etc. In other words, we can say that it’s about developing and managing harmonious
relationships at LHBL workplace and striking a balance between Lafarge
organizational goals and individual goals.

4.3 Advantages and Importance of HR in LHBL:

 Meeting manpower needs: LafargeHolcim Cement needs adequate and properly

qualified staff for the conduct of regular business activities. Imaginative HRP is
needed in order to meet the growing and changing human resource needs of an
organization.
 Replacement of manpower: The existing manpower in LH is affected due to
various reasons such as retirement and removal of employees and labor turnover.
HRP is needed to estimate the shortfall in the manpower requirement and also for
making suitable arrangements for the recruitment and appointment of new staff.
 Meeting growing manpower needs: The expansion or modernization program
may be undertaken by the enterprise. Manpower planning is needed in order to
forecast and meet additional manpower requirement due to LH expansion and
growth needs through recruitment and suitable training programs.
 Meeting challenges of technological environment: HR is helpful in effective use
of technological progress. To meet the challenge of new technology existing
Lafarge employees, need to be retrained and new employees may be recruited.
 Coping with change: LafargeHolcim Cement HRP enables an enterprise to cope
with changes in competitive forces, markets, products, and technology and
government regulations. Such changes generate changes in job content, skill,
number and type of personals.
 Increasing investment in HR: An employee who picks up skills and abilities
becomes a valuable resource because an organization like LH makes investments
in its manpower either through direct training or job assignments.
 Adjusting manpower requirements: A situation may develop in LH when there
will be surplus staff in one department and shortage of staff in some other
department. Transfers and promotions are made for meeting such situations.
 Recruitment and selection of employees: HRP suggests the type of manpower
required in an organization with necessary details. This facilitates recruitment and
selection of suitable personnel for jobs in the LH. Introduction of appropriate
selection tests and procedures is also possible as per the manpower requirements.
 Placement of manpower: HRP is needed as it facilitates placement of newly
selected persons in different departments as per the qualifications and also as per
the need of different departments. Surplus or shortage of manpower is avoided and
this ensures optimum utilization of available manpower of LH.
 Training of manpower: HRP is helpful in selection and training activities. It
ensures that adequate numbers of persons are trained to fill up the future vacancies
in the LafargeHolcim Cement They have arranged training such as COBC training,
google apps training for the improvement of the employees.

4.4 Recruitment Management System in LHBL:

Recruitment management system is the comprehensive tool to manage the
entire recruitment procedure of an organization. It is one of the technological
tools facilitated by the information management systems to the HR of
organizations. Just like performance management, payroll and other systems,
Recruitment management system helps to contour the recruitment procedure
and effectively managing the recruitment.

The features, functions and major benefits of the recruitment management

system are 4 explained below:

Structure and systematically organize the entire recruitment procedure.

Recruitment management system facilitates faster, unbiased, accurate and

reliable processing of applications from various applications.

Helps to reduce the time-per-hire and cost-per-hire.

Recruitment management system helps to incorporate and integrate the various

links like the application system on the official website of the company, the
unsolicited applications, outsourcing recruitment, the final decision making to the
main recruitment procedure.

Recruitment management system maintains an automated active database of the

applicants facilitating the talent management and increasing the efficiency of the
recruitment procedure.

Recruitment management system provides and a flexible, automated and

interactive interface between the online application system, the recruitment
department of the company and the job seeker.

Recruitment management system helps to communicate and create healthy

relationships with the candidates through the entire recruitment procedure.

The Recruitment Management System (RMS) is an innovative information

system tool which helps to sane the time and costs of the recruiters and
improving the recruitment procedure.

4.5 HR Recruitment Procedure in LHBL:

1. Client need assessment

 Define objectives and specifications

 Understand client’s business and culture
  Understand the job/position specifications
 Understand roles and responsibilities of the prospective candidate
 Develop a search plan and review with the client

2. Candidate Identification

 Identify target sources

 Extensive organization mapping, research & database search of the profile
 Provide status report to client about the available talent pool

3. Candidate assessment and Presentation

 Screen and evaluate candidates

 Personal Interviews with Candidates wherever possible – assess skills, interest
level and cultural fit
 Discuss the shortlist with the client and send resumes

4. Candidate interview, selection & Presentation of Offer

 Facilitate interviews with the client

 Obtain feedback
 Participate in decision making process
 Provide inputs on candidate’s desired compensation

5. Closure & Follow up

 Negotiate offer acceptance

 Execute Reference check, Compensation & Job Level Discussions
 Coordinate Joining Formalities and on boarding as per predefined date
 Closing review to understand client’s level of satisfaction.

HR Telephonic Interview Questions for LHBL:

 Tell me about yourself?

 Tell me about your job profile?
 How much current CTC, you’re getting in current organization?
 How much you’re expecting form new organization?
 How the notice period you required if you are selected?
 Why did you want to resign from your previous job

4.6 Recruitment procedure of LafargeHolcimBangladesh:

According to Edwin Flippo, “Recruitment is the process of searching for
prospective employees and stimulating them to apply for jobs in the
Organization.” Recruitment is a continuous process whereby the firm attempts to
develop a pool of qualified applicants for the future human resources needs even
though specific vacancies do not exist.

The need for recruitment may be due to the following reasons:

 Vacancies: due to promotions, transfers, retirement, termination, permanent

disability, death and labor turnover.
 Creation of new vacancies: due to growth, expansion and diversification of
business activities of an enterprise.
 In addition, new vacancies are possible due to job re specification.

Identifying the vacancy:

The recruitment procedure begins with the human resource department receiving
requisitions for recruitment from any department of the company. These contain:

 Posts to be filled
 Number of persons
 Duties to be performed
 Qualifications required

Preparing the job description and person specification.Locating and developing

the sources of required number and type of employees (Advertising etc.).

Short-listing and identifying the prospective employee with required

characteristics.

Arranging the interviews with the selected candidates. and Conducting the
interview and decision making.

All the recruitment steps showing in below chart:

 1 Employee Requisition From collection from designated department

Take sign of ERF from HRD and send to Tanshia Rahman Executive assistant for CEO's approval.
2

Post advert for the position on bdjobs/newspaper/social media.

3

Collect CV for the position.

4

Initial CV screening from HR dept. in complicance with the ERF requirement

5

Send the initially shortlisted CV to the designated dept. for furthur sorting
6

Collect the finally shortlited CV from the dept

7

Talk to the dept. how they want the recruitment process to be done (e.g. written test, viva,
8 assessment centre etc.)

Fix a date with the desired interview medium and call candidates.
9

Book conference room for the interview

10

Primary interview will be held by Head of Department & Sr. Manager - HR if any party is
11 unavailable they will designate someone to take the interview.

After primary interview collect the interview assessment from from the interviewers and check
12 if the assessment form is filled up properly

Take a date from HRD and the other Functional Director's time and date for final interview.
13

5.People Management Strategy OF LHBLs HRD

Based on department need, LHBL recruits highly qualified employees. For

recruitment they collect resumes, sort out those based on education and skills.
Then call “sort out” candidates for aptitude test and interview. After that second
phase of interview is taken by the directors and finally recruit the best employee
for the company. After recruiting employees, LHBL provide special training for
each employee. Some general training is given to all employee.
  Training on Company Policy
 Guidance on Behavioral
Expectations
 Training on Health and Safety
 Training on VAT and TAX
 Communication Training

Evaluation of employees:

Every year the employees are evaluated by Key Performance Indicators (KPI).
For individual employee KPI is given fixed at the starting of the year. The whole
year, performance is evaluated in two ways:

Management and Leadership Skill: How good the employee is managing the

work environment, how the employee is performing safety measures and how
well in leading team members.

Functional Skill: How efficiently the employee is performing own job

responsibilities Based on these two skills final evaluation is done. If any
employee has lacking on any area, special training is arranged for that employee.

Health and Safety:

“Safety is priority” with this motto LHBL serves its stakeholders. All employees of
Lafarge must have to follow the safety rules. They are provided special training
on safety so that each stakeholder’s life can be secured. Lafarge goal on safety
is -zero accidents, incidents or occupational illnesses.

6. Corporate Social Responsibilities:

LafargeHolcim Bangladesh Limited (LHBL) believes that business is a priority, but

social welfare is a responsibility. Thus, the Company has undertaken wide ranging
CSR activities around its plant at Chhatak and its quarry in Meghalaya. Whether it is
through responsible business operations and environmental management or
through community development initiatives in the area of education, healthcare,
employment and infrastructure development, LafargeHolcim Bangladesh Limited is
committed to ensure sustainable development of the economy, community and
environment. Below job they are doing as CSR:

 MEETING HEALTHCARE NEEDS

 ENLIGHTENING COMMUNITIES THROUGH EDUCATION
 EMPOWERING COMMUNITIES THROUGH EMPLOYMENT AND INCOME GENERATION
 DEVELOPING LOCAL INFRASTRUCTURES
  PROTECTING THE ENVIRONMENT
 DEVELOPING THE COMMUNITIES OF MEGHALAYA

7.Problems facing in HRM of LHBL

Challenges Facing the Redesign of HR at Lafarge Maintaining the Change Management
While Lafarge faced a number of issues in 2002, the most important concern was how to
sustain the internal change process. Lafarge's large-scale acquisitions in China, India, South
Korea, Indonesia, Malaysia, Philippines, and Blue Circle stirred some concerns about the
difficulties of working across difference cultures, different languages, and different mind-
sets.

Aligning with the overall business strategy of the company of growth and performance,

the key challenge for HR, according to the Vice President, HR is to support
international growth keeping in mind the professional and technical skill sets required by
the Group. Huge effort has been put in place to hire the right people and improve their
international capability. Encouragement and reward mechanisms are in place for both
career and personal development through promoting, training, and coaching. The effective
linkage between HR and business strategy is being constantly maintained and upgraded by
means of the HR action plan at the corporate level. The HR action plan states the business
needs of the individual HR business units. The cumulative plan of the different HR business
units throughout the globe is reviewed to form the three-year action plan to match with the
mid and long-term strategy of the company. The momentum of change leads to the creation
of divisions. But sometimes it is felt that the role of the corporate HR and the division HR
are somewhat diffused. Better integrating mechanisms between the corporate HR and the
division HR are being debated. One of the senior vice presidents reflected that overall the
HR policies and practices of the Lafarge Group are excellent and can perhaps not only be
compared to the best in the industry but to the best companies in the world. What remains
to be done is quick diffusion and implementation of those policies and practices.
Substantial steps have been taken in the HR redesign process like the use of dual language
within the Group. The common background of engineering or technical education of most
of the top-management team was in itself a language of sorts. Extensive internal and
external communication within the Group and above all Lafarge's continuous policy of
respect and care for its employees could serve as a path to manage the transition and
transformation of Lafarge from a local French cement company to a global leader.
 8. HRM approaches need to be taken to ensure ongoing strategic
competitive advantage:

The primary principle of strategic human resource management is to improve

business performance and uphold a culture that inspires innovation and works
unremittingly to gain a competitive advantage. It's a step above
traditional human resources and has a wider reach throughout the organization.

 Previous parts of this paper have obviously shown the position of resources
and competencies as the main factors that determine
 the sustainable innovation process besides being the main source in
creating the competitive advantages of a firm. In order to gain
 it, both role and functions of strategic HRM must be aimed to create and
manage the organizational competencies so that firm is
 able to adjust its resources with the environmental changes as necessary.
 Above all, the way a firm defines and integrates the dynamic competency
into the strategy and practices of HRM, especially in
 recruitment and selection process, training and development, performance
management, and compensation system that aligns the
 attitude and competency of the employees with the purpose of firm, is the
most important thing
 Previous parts of this paper have obviously shown the position of resources
and competencies as the main factors that determine
 the sustainable innovation process besides being the main source in
creating the competitive advantages of a firm. In order to gain
 it, both role and functions of strategic HRM must be aimed to create and
manage the organizational competencies so that firm is
 able to adjust its resources with the environmental changes as necessary.
 Above all, the way a firm defines and integrates the dynamic competency
into the strategy and practices of HRM, especially in
 recruitment and selection process, training and development, performance
management, and compensation system that aligns the
 attitude and competency of the employees with the purpose of firm, is the
most important thing
  Previous parts of this paper have obviously shown the position of resources
and competencies as the main factors that determine
 the sustainable innovation process besides being the main source in
creating the competitive advantages of a firm. In order to gain
 it, both role and functions of strategic HRM must be aimed to create and
manage the organizational competencies so that firm is
 able to adjust its resources with the environmental changes as necessary.
 Above all, the way a firm defines and integrates the dynamic competency
into the strategy and practices of HRM, especially in
 recruitment and selection process, training and development, performance
management, and compensation system that aligns the
 attitude and competency of the employees with the purpose of firm, is the
most important thing

In order to gain it, both role and functions of strategic HRM must be aimed to
create and manage the organizational competencies so that firm is able to adjust
its resources with the environmental changes as necessary.

 internal capabilities and core competency: LHBL is the company with

enormous number of employee with multicultural and different position
holder some are technical and some are Intellectual, some are Contract
base and Some are administrative and large number are labor. HR team
taking care the internal capacity and core competency of company and
human assets for achieving business goal
 recruitment and selection process: HRD giving special concern to
complete recruitment procedure on time and include perfect candidate in
perfect time in perfect position offering proper package.
 Performance management and compensation system: To improve staff
performance and balance proper development for present and future
requirements they maintain KPI and PA process to evaluate their
performance and prepare standard compensation while require.
 Training and Development: To meet future requirements and develop
company standard they taking continues training and developing program
on technical and personal skill development and management and
leadership program
 9.HRM CHALLENGES AND CHALLENGES IN 21ST CENTURY FOR
LHBL.

9.1 Today’s Top 10 Human Resource Management Challenges

in Cement Industry:

Due to the fluctuating economy as well as local and global advancements, there are many
changes occurring rapidly that affect HR in a wide range of issues. In the Survey of Global
HR Challenges: Yesterday, Today and tomorrow, conducted by PricewaterhouseCoopers on
behalf of the World Federation of Personnel Management Associations (WFPMA), several
challenges for human resource management were revealed. This survey, which concluded
that “despite national and regional differences, there was remarkable unanimity,” disclosed
the following top 10 human resource management challenges:

Challenges are showing below:

Sl Challenges
1 Change Management
2 Leadership Development
3 HR Effectiveness Measurements
4 Organizational effectiveness
5 Compensation
6 Staffing: Recruitment and ability of skilled local
labor
7 Succession planning
8 Stuffing: Retention
9 Learning
10 Benefit cost: Health and welfare

9.2 HRM challenges LHBL will face in the 21st century:

1. Change Management

One of the main challenges that face an organization is the change management. As with
any change in the workplace, changes in technology may be seen as a threat and may result
in anxiety and even resistance among employees. In this case the HR department should
find solutions and ways to assure the employees of their worth and meaningful place
within the organization .
The most important part of this is-the revolution of technical support and not available of
technical labor or leader locally within the require time. As Bangladesh peoples have less
concern to make them up to date and train themselves for future need. So it will be a big
challenge for LHBL.

2. Leadership Development
As the second of the biggest challenges for human resource management, leadership
development needs to be a critical strategic initiative. HR professionals are faced with
being expected to provide the essential structures, processes, tools, and points of view to
make the best selection and develop the future leaders of the organization. In the Lafarge
Holcim HRD already doing to program on leadership but leadership development has been
identified as a critical strategic initiative in ensuring that the right employees are retained,
that the culture of the organization supports performance from within to gain market
position, and that managers are equipped to take on leadership roles of the future so that
the organization is viable in the long term.”
3.Talent Retention:

talent retention can be the greatest human resource challenge in the future. Employees at
work respond through Maslow’s Hierarchy of Needs. Once they are safe, well paid, they
look for more meaningful value at work, so they job hop their positions.

4. HR Effectiveness Measurement

How can improvement happen without the right tools to measure HR effectiveness? As
with many other areas of business, this profession also needs to be able to measure results
in terms of transaction management, as well as in terms of the positive influence on
business. “Utilizing metrics to determine effectiveness is the beginning of a shift from
perceiving HR’s role as purely an administrative function to viewing the HR team as a true
strategic partner within the organization,” the WFPMA says. “In fact, the next section
reports that survey participants believe a critical future issue for HR will be organizational
effectiveness – again supporting HR’s critical role as a strategic partner to management.”

This world federation also notes that, “Where HR departments have traditionally focused
on measuring their own effectiveness, there is an evolving recognition that they can
provide organizational value by measuring the effectiveness of the entire business
organization. The shift is significant as it represents movement from simply counting the
numbers hired to determining the ROI of collective and individual hires on a long-term
basis. Going beyond measuring turnover, this new approach considers ‘bad’ turnover and
‘good’ turnover along with the overall cost of replacement hires.”
10. CONCLUSION:

The human resources department of a company is its backbone and serves as the
functional center of an organization. It operates in both the forefront and behind the scenes
as it is involved with every aspect of the business.
At the end of the 21th century, we do realize that investment in human capital will yield
higher returns than any other capital. Researches have shown that the human part in an
organization makes up for approximately 80 percent of the organization’s value, so good
Human Resource Management is very important.
However as we move forward in time, there can be little doubt that human resource
management faces some greatest challenges and limitations.
In the last two decades, many organizations have internationalized their operations which
has led to the international labor movement resulting in meaningful issues associated with
the management of human resources.LHBL should always be ready for future challenges
and they are following good protocol in HRM that’s make LHBL different from other cement
company.

11. Recommendations:
o Lessons for Redesigning the HRM Function Clearly, the implications of the Lafarge
case study turn around the ability to redesign the HRM function and align it to the
overall business strategy of the organization. Notwithstanding the limitations of the
study, the present study holds a number of lessons that are potentially important for
researchers and practitioners, who are, or will be, trying to redesign HRM functions
in the years to come.
o Thus, the first implication of this study is that deep top-management commitment
and constant communication of that commitment are the key links to transform
philosophies (mission, vision, goals, and business strategy) into practices.
o The second implication focuses on the importance of alignment or fit of the
redesigned HR strategy with the overall business strategy of the organization. HRM
function at Lafarge has been successfully redesigned to fit the overall ambition of
Lafarge (Principles of Action).
o The third implication of the case study is that HR must design and redesign effective
methods to anticipate business needs and provide strong leadership. Finding the
right balance between corporate, divisional
o The fourth implication focuses on the effort of the organization to expand the role of
HR to that of a strategic partner and a change agent, without sacrificing the
 traditional role of HR (administrative expert and employee champion). This finding
is supported by the studies of Ulrich (1997) and later Becker and Huselid (1999).

o As a corollary to the fourth implication, the fifth implication reinforces the role of
HR in change management and explains how HR can redesign itself and the
organization to create a culture that supports the change process and spearheads
the change momentum.

o The sixth and the final implication follows from the resource-based view which
argues that having unique, inimitable resources and the effective deployment of
these resources are key to achieving sustained competitive advantage (Barney,
1991). Competitive advantage through people and culturally entrenched HR
practices is difficult to achieve and even more difficult to sustain, but once achieved,
it is not easy to duplicate
o Here it is important to mention that redesigning the collective competencies of an
entire HRM function is a Herculean task that requires the effective cooperation of
the line managers, credibility of the redesign process, willingness of the HRM
department to actively pursue the redesign process. As any change process suggests,
generating short-term wins to consolidate gains and produce more change anchors
the new approaches in the culture (Kotter, 1995).

12. Implementation from Remarks:

 Recommendations for specific and differentiated selection systems for different

professions and specializations have been given. A new national selection system for
psychiatrists, anesthetists and dental surgeons has been proposed within the United
Hospital.

 Lafarge’s successful redesigning of its HRM function speaks consistently of top

management’s commitment toward change and constant internal and external
communication with its stakeholders regarding the change process. The
philosophies at Lafarge (Principles of Action and The Lafarge Way) have been
successfully transformed to HRM practices.

 In the recent years, Lafarge has shown a considerable development with an

essential increase of its profits. On the human side, employees have shown an
enormous progress in terms of their performance at work.
 According to a recent survey that was conducted in the company by the HR
department, employees have shown a satisfactory result in trems of their
motivation and satisfaction in their jobs. The HR department is becoming closer to
the employee; it assists him/her from the recruitment phase till their integration
into the company.
 To do that, Lafarge has implemented a system called Performance Appraisal System
PAS which can be used by the appraiser once a year to assess the performance of the
employees. In this context, the company uses the behaviorally-anchored rating
scales which measures the performance of the employee depending on their
behaviors. This method can be useful for feedback purposes, but it might point out
particular things that an employee could do differently. In this case, a problem of
deficiency arises. Behaviorally-anchored scales are a time consuming because in this
technique, managers need detailed information regarding the actions of their
employees, but gathering such data can be quite time-consuming. In this case, it
would be better if the Lafarge Hr department uses some objective measures as the
performance tests which are useful when it is difficult to gather data, which is the
case in a multinational company.
 Lafarge competes for the best people in the labor market. It recruits national and
international profiles and select from the pool the ones who respond to the profile
requirements. In this phase, the HR uses competency based interviewing techniques
where the interviewers ask questions targeting specific skills or competencies.
However, this technique can be seen as a too rigid tool which presents many
difficulties to the employee. The employee can have difficulties expressing
themselves and in most of the time, candidates have less chance to ask questions
about the job. To avoid that, I think that the best technique to be used for the
selection phase is to combine the competency based technique.

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