PREPARED BY

HIMADRI SHAKHAR
SARKAR
ID# 1935193090
EMBA PROGRAMME
NORTH SOUTH UNIVERSITY
PREPARED FOR
Dr. M. Nazmul Amin (NAM3)
HONORABLE FACULTY
EMBA PROGRAM
NORTH SOUTH UNIVERSITY

PURPOSE OF REPORT

RESEARCH This report has been done to

fulfill the requirement of EMB-602
project, Human Resource
REPORT ON “GLOBAL Management PREPARED BY
HIMADRI SHAKHAR
SARKAR
INSURANCE LIMITED” ID# 1935193090
EMBA PROGRAMME
EMB-602; HUMAN RESOURCE NORTH SOUTH UNIVERSITY

MANAGEMENT
PREPARED FOR
Dr. M. Nazmul Amin (NAM3)
HONORABLE FACULTY
EMBA PROGRAM
NORTH SOUTH UNIVERSITY
 Letter of Transmittal

Dr. M. Nazmul Amin,

Adjunct Professor,
North South University
Bashundhara R/A, Dhaka.
Date: 19th September,2020

Subject: Submission of the report on “Global Insurance Company” for the course EMB 601.

Dear Sir,

With deepest gratitude, I am presenting report on “Global Insurance Limited”. This report has
been made focusing on the objectives set by your instructions and has come up with some
reliable recommendation which, in future will help this company to go ahead. It can be assured
that the information provided here is free of plagiarism and any types of unfear means. All the
works given here from secondary sources, has been cited properly.

After all, it was a great opportunity for me to work on such an interesting project and gain real
knowledge on this financial industry. It is trusted that the investigation meets the requirements
set forth by your guiding principle and hence meet your expectations.

Sincerely,
Himadri Shakhar Sarkar
ID# 1935193090
EMBA Program
North South University

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 LIST OF ABBREBIATION

a) Bangladesh Bank – BB

b) Global Insurance Limited – GIL

c) Human Resource Management – HRM

d) Human Resource – HR

e) Health and Safety Management System- (HSMS)

f) Insurance Development and Regulatory Authority of Bangladesh – IDRA

g) Insurance Regulatory Authority - IRA

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 Table of Contents
Introduction...................................................................................................1
Overview of Insurance Industry in Bangladesh:........................................................2
Global Insurance Limited History and Present Position...........................................3
Current position of GIL at the market:.......................................................................3
Product and Service of GIL:.........................................................................................4
Competitors of Global Insurance Company:..............................................................5
Objective........................................................................................................6
Objective1: HRM problems and issues GIL is facing while operating in
Bangladesh..................................................................................................................................7
Bureaucracy.................................................................................................................7
Recruitment..................................................................................................................8
Selection......................................................................................................................8
Workforce and demography........................................................................................8
Motivation....................................................................................................................9
Training........................................................................................................................9
Illiteracy & scarcity of skilled labor..........................................................................10
Findings from objective 01:.......................................................................................10
Objective 2: HRM approaches to ensure strategic competitive advantages..........11
Strategic Human Resource Management (SHRM)....................................................11
Recruit Professionals with Experience......................................................................11
Training & Development...........................................................................................12
Performance Management & Appraisal....................................................................12
Health & Safety Management...................................................................................13
Findings from objective 02:.......................................................................................13
Objective 3: HRM challenges in the 21st century......................................................14
Going Global.............................................................................................................14
Responding to the market..........................................................................................15
Developing Human Capital.......................................................................................16
Embracing New Technology.....................................................................................16
Managing Change......................................................................................................17
Findings from objective 03:.......................................................................................18
Recommendation.........................................................................................19
Implementation of recommendation..........................................................................19
Conclusion....................................................................................................20
References....................................................................................................21

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 LIST OF FIGURES

Figure 1 Product and Services of Global Insurance Company.....................................4

Figure 2 Some Competitor of Global Life Insurance Limited......................................5
Figure 3 Objectives of Report...........................................................................................6

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 EXECUTIVE SUMMERY

Global Insurance Limited (GIL) is one of the leading insurance companies of

Bangladesh. This company is upgrading its worth and overall setup tremendously since the last

two years. Human Resources are the most important assets of an organization. The

accomplishment or breakdown of an organization is largely dependent on the capability of the

people working therein. Without positive and creative contributions from people, organizations

cannot progress and prosper. In order to achieve the goals or the activities of an organization,

therefore, they need to recruit people with requisite skills, qualifications and experience. While

doing so, they have to keep the present as well as the future requirements of the organization in

mind. If an employee has a clear idea about what they are to do, even the fact that what they

want to do in the future they will be able to eradicate their loopholes in the long run and be

efficient addition to the organization.

Along with the theoretical aspects of these functions, this report provides an outline of

the human resource related problems that GIL is facing in 21 st century to be more competitive

and also discuss how to overcome with those problems. According to the GIL team work must be

emphasized for professional growth of employee and fetching better outcome for the

organization. Flexibility in working hour and timing along with team reward system will benefit

both the individual and the company.

Finally, from our research, we have observed some lacking of GIL and came up with few

recommendations for the improvement of GIL.

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 INTRODUCTION

Insurance is a vital element of market which plays great role in securing the economy
form small to large scale. The national insurance marketplace is one of the most noteworthy
sections of financial market, even for entire market by being the socio-economic apparatus and
wage earner of investment resources[ CITATION Fai20 \l 1033 ]. Insurance, a crucial financial
institution, covers losses of individual to national level in terms of death, accidents and damaged
properties[ CITATION Naz20 \l 1033 ].

Considering the protection in mini scale (i.e.- Protecting households and companies from
huge risks) to larger scale (i.e.- managing financial Burden on a government), the role of
insurance in an economy cannot be overelaborate. Insurance companies are great financial
institution, which is commonly known as risk taker. It comprises the transfer of the risk of
potential loss from one entity to another, in exchange for a risk premium. Furthermore, it’s role
in service-based economy for both advanced and emerging markets is notable[ CITATION Ull16
\l 1033 ].

To maintain an insurance company many things are important to maintain, and

maintaining the clients is a critical issue. Fascinating clients is a tricky issue and has lots of
variables. Attracting insureds depend on economic factors such as macroeconomic variables and
financial data of insurance companies[ CITATION Bat18 \l 1033 ]. In compliance with saving
reserve money by new insurance, domestic digital insurance has enormous scenarios which by
abolishing inadequacy, will assist both insurer and insurants[ CITATION EAS20 \l 1033 ].

Modern authenticity generates the essential circumstances and suitable executive forms
of risk supervision, concerning enterprises in corporate families with insurance organizations. In
turn, constructing an effective corporate insurance scheme in the insurance segment is a powerful
strength for optimistic modification, helping to upsurge the effectiveness of insurance businesses
and entice novel insurers, in specific motivating the growth of additional kinds of
insurance[ CITATION Mid20 \l 1033 ].

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Overview of Insurance Industry in Bangladesh:
The insurance companies have a history of almost a century in Bangladesh, which started
during British period. During 1947 to 19971, this business grew and had total number of 49
general and life insurance[ CITATION Ull16 \l 1033 ]. Being nationalized in 1972 with the
presidential order, the insurance companies in Bangladesh started its new journey and still now
this sector is struggling to gain a mature stage. According to the Bangladesh Bank (BB),
currently the number of insurance companies in Bangladesh are 62, where18are Life Insurance
Companies including 1 state owned and one foreign, on the other hand 44 General Insurance
companies where one state owned. The current insurance available in Bangladesh are Life
Insurance, General Insurance, Reinsurance, Micro-Insurance, Takaful or Islami Insurance
[CITATION Ban20 \l 1033 ].

The insurance companies are seen to follow incompatible marketing techniques for
business procurement, noticeable number of those concluded with high strategy laps. This sector
has not earned the faith of the general people yet. The significance of insurance as a financial
transitional is principally imperative in countries like Bangladesh with truncated levels of
financial saturation[ CITATION Ull16 \l 1033 ]. In Bangladesh the, the insurance sector is
highly competitive. The utmost factor that affects the performance of insurance industry is
extreme competition in non-life sector, mounting price of private insurance companies and the
increasing risk [ CITATION Ull16 \l 1033 ]. It is crucial to find out how investors can predict the
gains of insurance companies of Bangladesh[ CITATION Ull16 \l 1033 ].

In Bangladesh, “Shadharan Bima Corporation” and “Jibon Bima Corporation” are the
only government insurance companies, who has the monopolistic power to control the insurance
industry as all the government organization manage insurance issues only with this two
organization. No private insurance company has the ability or authorization to deal with any
government organization. Beside the government insurance companies, the private insurance
companies perform various amenities such as facility designing, fixing contract and policy,
promotion and vending, guaranteeing, rating, provision and other services and prerogative
clearance. This industry does market in diverse range where the level and deepness of marketing
alignment fluctuates.

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Global Insurance Limited History and Present Position
Global Insurance Limited is a private sector non-life insurance company in Bangladesh.
It establishes in 23rd April in 2000 with all type of general insurance service. GIL is making its
all information or document from hard to soft version since last two years. GIL has connected
with directly with the Insurance Development and Regulatory Authority of Bangladesh (IDRA)
in recent years and all their information as well as the policies are monitored by the IDRA. For
example, if some clients are taken or reduced IDRA will see this from their server. IDRA takes a
quarterly charge from Global Insurance Limited for monitoring this and as a reward it
automatically informs the client about their insurance auto renewal through messages at the
clients mobile or other electronic media.

There are several international companies for which GIL is working for where JB BODA
is one of them. GIL cannot work in direct insurance but this can work in international level in re-
insurance. Those companies get services from GIL in lower cost than the government ones, so
for any type of claim settlement, they prefer GIL or any other private insurance companies. For
the marine insurance policy, this company follows international rules and regulations
implemented form London. Marine insurance is the one and only insurance for which GIL works
in international.

Current position of GIL at the market:

Few years back the position of GIL was not that strong at the market. Since 2018 the
scenario changed drastically. Now this is one of the top ten companies at the market. If the
current growth rate continues, this organization hopes to be in top five list of insurance
companies in the market. The most earning source is the marine insurance. This is done with the
help of bank, so the procedure is easier; on the contrary, the fire insurance is unpredictable and
has a chance of getting cheated by the client.

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Product and Service of GIL:

Aiming at the customer’s necessity the GIL has been trying to transact multi type of
general insurances. Notable product and services can be summarised as bellow-

AUTOMOBILE ENGINERING
MARINE INSURANCE
INSURANCE INSURANCE

CYCLONE
FIRE FLOOD
INSURANCE INSURANCE
INSURANCE

Figure 1 Product and Services of Global Insurance Company

Furthermore, this organization is targeting to present non-traditional micro insurance

scheme to provide protection to Small and Medium Enterprises (SME) at lower premium. The
company’s strategies are generous indentures unrestricted from limiting circumstances and the
premiums charged are stringently moderate consistent with utter sanctuary.

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Competitors of Global Insurance Company:
It has mentioned earlier that the GIL currently holding the position of nearly top ten
insurance companies of the country. So, its competitor are the companies who are holding good
place at the market. Some of the competitor of the GIL are -

Figure 2 Some Competitor of Global Life Insurance Limited

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 OBJECTIVE

The main objective of the study is to take a synopsis of Global Insurance Limited’s
human resource management system. The specific objectives can be noted as-

To find out the HRM problems

and issues that Global Insurance
Limited has been facing.

To suggest the HRM approaches

that is needed to be taken to
ensure ongoing strategic
competitive advantage.

To identify the challenges that

Global Insurance Limited will
face in the 21st century.

Figure 3 Objectives of Report

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Objective1: HRM problems and issues GIL is facing while operating
in Bangladesh
The business environment in Bangladesh is not same and flexible unlike the developed
countries of the world. While operating an insurance company, various troubles and issues can
be faced. Global Insurance Limited, might face so many difficulties in several sections in Human
Resource management. Some of them has been pointed out bellow.

Bureaucracy
The eminence of human resource has notable consequences on organizational
performance. Knowledge and expectiveness are the key factors of defining HR excellence and
bureaucratic behavior has substantial impact on efficiency of organization
performance[ CITATION Sam16 \l 1033 ].The recruitment and selection process are extremely
bureaucratic which goes through a difficult process and consumes lots of time. In this system
single decision cannot be taken by an individual whereas it requires having the guideline and
suggestion from the chain of command. Bit in this process we sometimes see bureaucratic
behavior.

Nepotism is not a sin but if we look at this from a different view point, we know at the
back of our mind that it is unethical as well. The main reason why this is at the top most of the
human resource management problem is when we deal with people fairness plays a curial role if
employees see that they are working hard every single day in spite of that another person who
didn’t move a muscle got promoted will be harmful. If out of 5 candidates during an interview 2
have been personally recommended by a senior then this puts the interviewer in a tight spot to
show partiality toward this person. For company like GIL this type of bureaucratically problem
are the daily affairs. People from lower level cannot reach the higher level to tell their problem
also discriminations occur because of favoritism while hiring an employee. In Bangladesh many
people got job and promotion because of their higher-level lobbing rather than their skill and
experiences. By empowering employees and decentralizing the structure can help to tackle some
of the current issues.

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 Recruitment
Recruit the right personnel for the right post is one of the important roles that HRM plays
in an organization. Sometimes the advertisement for the recruitment is limited, that’s why many
individuals miss the opportunity to apply just because of information. Sometimes the websites
are not up to date with the job vacancies it only opens a link to apply, where even the position is
not present. The job posted for recruitment are quite vague and despite the fact that it gives an
idea of what is expected, you still have to second guess what else are expected to be done if in
case a person gets the job.

GIL has also some problem in recruit process as the websites are not up to date and they
also give few advertisements in few newspapers so efficient candidate sometime misses the
opportunity to apply. Also, the job analysis and are not done and job description is not
satisfactory which creates problem in recruiting as well as while working in the organization
after recruitment.

Selection
The inclusive objective of HRM is to guarantee to achieve success of organization
through people which can be gained by two practices and strategies of HRM, recruitment and
selection of job candidates[CITATION Geo13 \l 1033 ]. For this selection, the proper techniques
are important. The ordinary testing system for hiring employee might not be sufficient for any
organization.

The GIL needs to develop some creative and smart system to judge and select the
righteous personnel for the post. Setting a standard and sticking to it might not be ideal, the
market is dynamic change is inevitable, so it is the duty of the human resource management to
see that norms are followed but that this same norm does not become a hurdle for the company.

Workforce and demography

Fifty years from now women working for a firm seemed like a taboo subject however
that has changed and now we can see more women participation in the workforce. In this
country, most of the topmost positions are filled by men, and especially in the insurance industry,
the number of men in higher positions are more noticeable.

Page | 8
 Just employing women in the workforce is not enough, they need to be trained and
developed so that they can be transformed into an asset for the firm, not a liability. Equity will
lead to equality, so providing certain benefits to a segment that comprises half of the population
and yet been kept under a rock, shall not be consider harmful. The mindset of the people is
changing however the rate is quite slow and the patriarchal way of thinking is ingrained in our
brain which can be hard to eradicate. The approach can be that not to have posts assigned for a
particular gender but rather go for capabilities of the individual and training to fill a position, not
based on whether you wear sari or trousers.

At GIL the ratio of male and female is quite different. The female working at the head
office is nearly 15-20% even though having similar opportunity for male and female. GIL
considers female as a great part of human capital. At the desk job the female number is
satisfactory but at the marketing part, the number of male and female is very different

Motivation
Gratified and Motivated employees have dedicated tactic on organizational objectives
and these employees requires similar attitude from the organization to achieve their objective too
where HR plays great role to meet the needs of both[ CITATION VAR17 \l 1033 ].

The mental health of the employees is an important part for any organization same as
GIL, this not only includes the one who work at the factory but involve those people doing the
desk job as well. The people who are doing the intellectual work like the GIL are also included,
they have to deal with stress to meet target and also take care of the other nitty-gritty details in
the head office. A good salary and even hefty bonuses are not sufficient to keep people tied to an
organization if they burn out and cannot give their hundred percent.

Training

Training is one of the most crucial things that tremendously influence the employee in
terms of motivation and many other aspects. Training helps employees to be engrossed in the
organization. Training and development are the organized effort from the organization to
enhance the employee’s competence, skills and knowledge related to their work[ CITATION
Mul15 \l 1033 ]. Training and development have encouraging influence on the employee and the

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organization[ CITATION Mul15 \l 1033 ]. Furthermore, training excels employee morale which
helps to come out with expected outcome for the organization[ CITATION Kan18 \l 1033 ].

Training will not only improve the knowledge of the employees but also increase the
human capital for the company in the long run, if people see a future prospect they are surely to
stay. GIL provides training to its employee based on the need and based on the work they ate
performing.

Illiteracy & scarcity of skilled labor

In spite of having lots of job vacancies, still many of the employee in this country cannot
manage a job due to lack of proper or specific skill. It is said that the quality of higher education
is falling down and that is mentioned as a reason for not finding specific or dream job or the
employee.

The majority of university’s in Bangladesh is focused on giving education using the aged
old methods that have been used as a result some people have to unlearn and then relearn all the
new thing from scratch. The GIL human resource management has to see to it that the employees
been hired match the organization and are not a burden for it.

Findings from objective 01:

After analyzing the above objective, we can discover several HRM problems and issues
GIL is facing while operating in Bangladesh.

GIL motivates both male and female to work in their organization. Predominately the number
of females working at this institution is very low, but GIL encourages female to apply for any
post. At the head office the number of female working is nearly 8 (approximately 16%) whereas
the number of male employees is 49 (nearly 84%). Most of the employee of GIL is trained form
the Bangladesh Insurance Academy (BIA) and after working into a specific section, the
employees are trained based on the work need. The employees are gone through different short
courses related to work and those short courses are taken from the GIL itself and also form
different university. The GIL needs to develop some creative and smart system to judge and
select the righteous personnel for the post. GIL has also some problem in recruit process as the
websites are not up to date and they also give few advertisements in few newspapers so efficient
candidate sometime misses the opportunity to apply. The mental health of the employees is an

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important part for any organization, so GIL also tries to motivate their employee by providing
smart salary and bonus.

Objective 2: HRM approaches to ensure strategic competitive

advantages.
Competitive advantage means any factors that allow a company to differentiate its
product or service from those of its competitors to increase market share [ CITATION Des20 \l
1033 ]. Relying on your human resource department to recruit the best employees, design
appropriate and effective training programs and institute successful retention programs can give
the company a competitive advantage. While competitors struggle with maintaining an
experienced and motivated workforce, the company can focus more on productivity and
increased sales when the HR department plays an integral role in the workforce development.

Strategic Human Resource Management (SHRM)

Formulating and executing human resource policies and practices that produce the
employee competencies and behaviours the company needs to achieve its strategic
aims[ CITATION Des20 \l 1033 ]. Strategic human resource management is the practice of
attracting, developing, rewarding, and retaining employees for the benefit of both the employees
as individuals and the organization as a whole.

Global Insurance Company HR departments also practice strategic human resource

management and they do not work independently within a silo; they interact with other
departments within an organization in order to understand their goals and then create strategies
that align with those objectives, as well as those of the organization.

Recruit Professionals with Experience

Human resource professionals vary in the kinds of skills and experience they bring to a
job. Many are administrators proficient at processing payroll and executing benefits programs,
but have little more leadership status than your clerical workers. An organization can upgrade
HR department to include recruitment specialists who also understand company’s strategic roles
and can play an integral part in shaping business success. Maybe your source of competitive

Page | 11
advantage is operational effectiveness. Skilled employees, who find ways to reduce internal
costs, can increase operating margins. A strong internal culture – one marked by high employee
morale and engagement, can increase productivity, and ultimately, increase profits.

In GIL the executive-level human resource professionals help to design job descriptions
and training programs, advise organization HR on where to find the best candidates, and
participate in defining salary levels that will result in the best new hires. The process of finding
and hiring the best-qualified candidate (from within or outside of an organization) for a job
opening is a timely and cost-effective manner for GIL.

Training & Development

Training the buzz word in competitive market environment, which differentiate human
capital form good to great, hence, this help in gaining short- and long-term success[ CITATION
THE13 \l 1033 ]. Training is an organized learning to enhance practical knowledge, skills and
behaviours. Technically training involves change in attitude, skills or knowledge of a person
with the resultant improvement in the behaviour. For training to be effective it has to be a
planned activity conducted after a thorough need analysis and target at certain competencies,
most important it is to be conducted in a learning atmosphere. Typically, organizations prepare
their training calendars at the beginning of the financial year where training needs are identified
for the employees. This need identification called as ‘training need analysis’ is a part of the
performance appraisal process. On the other hand, employee development is the combination of
formal education, job experiences, relationships, and assessment of personality & abilities to
help employees prepare for the future of their career.

Development implies opportunities created to help employees grow. Many organizations

choose certain employees preferentially for programs to develop them for future positions. This
is done on the basis of existing attitude, skills and abilities, knowledge and performance of the
employee.

Most of the employee of GIL is trained form the Bangladesh Insurance Academy (BIA)
and after working into a specific section, the employees are trained based on the work need. The
employees are gone through different short courses related to work and those short courses are
taken from the GIL itself and also form different university. In order to retain the best employee

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and take the best competitive advantages from the market GIL should organize effective training
and development program for their employees.

Performance Management & Appraisal

When human resource professionals are involved in designing and providing employee
reviews, they can help to find spot talent and advise organization on how can they best groom
employees for promotions. Performance management is the supervision and oversight of
employees, departments, and organizations with the objective of seeing that milestones and
objectives are reached in an efficient and effective manner. Companies use performance
appraisals to give employees big-picture feedback on their work and to justify pay increases and
bonuses, as well as termination decisions. They can be conducted at any given time but tend to
be annual, semi-annual or quarterly.

To enjoy the full competitive advantage GIL should properly run the performance
management process and follow a standard performance appraisal system. To obtain the
objectives and goals of the company as well as to ensure the best employee in the workplace
performance management and appraisal is much important.

Health & Safety Management

A health and safety management system (HSMS) is a systematic approach put in place by
an employer to minimize the risk of injury and illness. It involves identifying, assessing, and
controlling risks to workers in all workplace operations. An effective HSMS is a key component
of any business; its scope and complexity will vary according to the type of workplace and the
nature of its operations. An HSMS is a set of plans, actions and procedures to systematically
manage health and safety in the workplace that is actively endorsed by a committed employer to
achieve provision of a safe and healthy workplace and the prevention/reduction of illness and
injury equally for employees and contractors.

Refurbishment Projects provides a better understanding of alteration, refurbishment and

renovation of projects and their uniqueness in terms of health and safety
management[ CITATION Olo20 \l 1033 ]. If GIL is able to fulfil the health and safety
requirement that is suggested by the regulatory authority then employee will feel safe and sound
and will be more productive at work.

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 Findings from objective 02:
While competitors struggle with maintaining an experienced and motivated workforce,
the company can focus more on HRM approaches to ensure strategic competitive advantages to
be more competitive in the market. GIL to ensure more competitive advantaged are taking some
initiatives such as- Global Insurance Company HR departments practice strategic human
resource management to create strategies that align with company’s objectives to find the more
competitive edge. To enjoy the full competitive advantage GIL should properly run the
performance management process and follow a standard performance appraisal system to obtain
the objectives and goals of the company. Furthermore, the employees are gone through different
short courses related to work and those short courses are taken from the GIL itself and also form
different university in order to retain the best employee and take the best competitive advantages
from the market. In GIL the executive-level human resource professionals help to design job
descriptions and training programs, advise organization HR on where to find the best candidates
to become more competitive.

Objective 3: HRM challenges in the 21st century.

Going Global
When organization cross the base country or the country in which it formed with product,
services and people to expand business in a new geographical location beyond your border is
called going global. This is considered as a big challenge for any industry especially for
insurance company. Global Insurance Limited is not planning to going global overnight. If this
interest grows in near future, obstacles like GST (Good & Service Tax) will have to face with
many other issues. Furthermore, the geographical problem may arise in the context of the
environment, culture, market demand of the people mainly related to their product and its
compliance with others. In terms of employees being sent abroad what types of benefit and other
allowance they will be paid will be crucial as a person facing discrepancy may like to leave
rather than shifting to another county.

Going global can be described in two ways-

1. Product or services
2. Employees

Page | 14
 Product or services: In terms of product and services if an organization want to going
global, organization need to think about that the product and services are ready or not to grab the
overseas market. For Global Insurance Company, if they are interested to business in
international level, it might be very challenging for the company in terms of product and
services.

To elaborate, for an insurance company those are operating in Bangladesh like Global
Insurance Company, has a limited number of services available. But if they want to do it at the
developed countries, they might have to expand the areas of services. In developed counties, they
provide insurance services for a very simple thing (like mobile) to very big thing (like a Big
Ship). So, to stay competitive, Global Insurance Company has to offer the similar type of
services with some lower rate to survive in the market.

Employee: When someone physically go or cross the broader with product and service it
is a big challenge for any insurance company to maintain that employee because marketing
manager of insurance company who is working in local level gets little benefit and
compensation. But when that individual works abroad, he/she will get the same salary but the
company must have to increase the compensation like the allowance for housing, foods,
transportation etc.

Responding to the market

It is very much important to change organizations rules and regulations based on the
market needs and demand since staying rigid in a market that is dynamics might not be good for
an organization. An organization can respond to the market in-terms of product and services and
employees.

i. Product and service:

When a company introduce a product in the market for a long time, thy need to think
about the responsiveness of the market about their product in-terms of customer needs, demand
and expectations. For example, back in 1965, there was a market dominating product “Tibbot
Snow” which has very good quality and dominated the market for more than 30 years. Though
the market segment changes for this product, this was not changed a bit considering the trends.
For the last 60 years the company didn’t even change the packing of the product. So, they are not

Page | 15
in a dominating condition right now which clearly indicated that they didn’t respond to the
market.

For insurance companies, it is important to introduce new services based on peoples need
and maintaining the pace of the developed world. The Global Insurance Limited is also trying to
maintain the customer demand but still this is not sufficient. They need to be more updated.

ii. Employee:

Compensation to the employee is a very important decision because getting lower

payment can force them to move into another organization. Without skilled and trustworthy
employee, running a big organization is very difficult. For example, in Grameenphone and in
Banglalink the HR executives are paid 50k plus salary where in Teletalk the employees get way
less than that. That’s why employees are not willing to do work with those company.

So, to sustain in the market with a competitive position, any organization must go with
the pace of other company. At the insurance industry, there is a huge competition. So, to sustain
in the market the insurance companies need to consider the salary of the other insurance
companies to have excellent employee. If they cannot provide enough salary, they might lose the
skilled employee.

Developing Human Capital

Human capital is a vigorous component for the competitiveness of any country and
amongst the greatest parts of investment for economic and social development[ CITATION
Mac11 \l 1033 ].Now in 21st century most of the organizations are providing a visible career
growth and so that people get excited about a particular company. And as a lot of foreign
companies are now starting their business in Bangladesh and those companies are providing
highly attractive benefits, GIL might find it challenging to attract and retain qualified employees
in the long run.

This is considered as a big issue for any organization (by considering that organization
must have employee retention policy). When any organization develop the employee’s skill and
capability through training, their experience and quality will be excelled and they will go for
“Kangaroo Jumping”. That means they will go or search for new job with better salary and
facilities.

Page | 16
 Embracing New Technology
Using new technology is a big challenge, because immediate auto machine will be there
and people will be unemployed. It is possible for European counties or other developed countries
but might not be applicable labour intensive or citizen intensive countries like Bangladesh.
Bangladesh is a densely populated country with higher number of people. It is difficult for this
country to embrace new technology rapidly. May be the economic indicators seems green if this
country goes for new technology but the social indicator will be different. When a country or a
big organization go for new technology, there is a possibility that huge number of people will be
unemployed. So, embracing that new technology might result in fetching crime.

The emergence of technology in insurance industry is a recent phenomenon which profits

both the company and the client provided the digitization is not overestimated[ CITATION
Fai20 \l 1033 ]. Furthermore, technological advancement in this sector enhances the quality as
specific approaches to each client in all level which results in widening insurance products and
settlement mechanisms[ CITATION Fai20 \l 1033 ]. Issues arises when organization introduce
new technology or new business model, people resist even though in business, the resistance is
considered as a natural phenomenon. Organization should overcome the resistance to gain
success.

Problems are seen in electronic insurance system in Russia which caused by inadequate
preparation of the population [ CITATION EAS20 \l 1033 ]. This necessitates proper solution
and like single system electronic policies[ CITATION EAS20 \l 1033 ]. Global Insurance
Limited is trying to adopt technology to offer world class service to its customers but still it is in
the formation level. It is noted that the technological advances can increase efficiency as well as
reduce production cost.

Managing Change
With time the global workforce is increasingly being diverse hence, discrimination owing
to this can affect the morale of the employee as well as the performance. We have seen a huge
discrimination in GIL when it comes to gender. It is important in 21st century to give equal
priority to female employees. The glass ceiling needs to be shattered and the concept that this is a
male dominated industry needs to be changed with actions rather than words only. Women and

Page | 17
minorities are entering the workforce in record numbers. Forward looking business are coming to
terms with these facts and capitalizing on the strengths of diversity.

Ethics and legal issues are also recovering greater attention in today’s business
environment. More and more, business is realizing the benefits of behaving and
responsibly[ CITATION Mon93 \l 1033 ]. In future if GIL wants to develop business in other
countries, they might face this type of social challenge which they must tackle. Dealing with the
21st century challenges the first thing that needs to be done along with taking these measures is
also to make a budget, in order to contain cost.

Findings from objective 03:

st
In the 21 century Global Insurance Limited also need to face human resources
management challenges to operate their business. Global Insurance Limited is not planning to go
global overnight. If this interest grows in near future they have to think about their services, as
they have a limited number of services available. So, if they want to do it at the developed
countries, they might have to expand the areas of services. Also, Bangladesh is a densely
populated country with higher number of people. It is difficult for this country to embrace new
technology rapidly. May be the economic indicators seems green if this country goes for new
technology but the social indicator will be different and it became challenging in 21 st to cope up
with. Furthermore, we have seen a huge discrimination in GIL when it comes to gender. It is
important in 21st century to give equal priority to female employees. The glass ceiling needs to
be shattered and the concept that this is a male dominated industry needs to be changed with
actions rather than words only. If GIL wants to develop business in other countries, they might
face this type of social challenge which they must tackle. Now in 21st century most of the
organizations are providing a visible career growth and so that people get excited about a
particular company and also foreign companies are started their business in Bangladesh and
offering attractive benefits, which GIL might find it challenging to attract and retain qualified
employees in the long run.

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 RECOMMENDATION

It is expected form Global Insurance Limited that this organization would-

 Conduct job analysis to hire the right person for the particular post

 Hire employee form internal and external source to ensure using potential of good
employee and give priority to female employee as a development programme

 Offer more training to excel employee’s skill and enhance motivation

 Consider employee as asset and offer them proper career planning opportunity

Implementation of recommendation
 HRM must conduct job study, job specification and job description to find
requirements furthermore, to hire right employee form inside and outside the organization to the
right post

 Training must be given considering individuals situation and company requirement.

The female employees who have potential to flourish must be incorporated. Retention
programme will stop growing kangaroo syndrome and shift to another company.

 If an employee has a clear idea about what they are to do, even the fact that what they
want to do in the future they will be able to eradicate their loopholes in the long run and be
efficient addition to the organization. Using of mentor or coach to guide them in their career will
be beneficial for the employee and the organization as well.

 Team work must be emphasized for professional growth of employee and fetching
better outcome for the organization. Flexibility in working hour and timing along with team
reward system will benefit both the individual and the company.

Page | 19
 CONCLUSION

In this country, proper HR is not practiced in the insurance sector, therefore the
employees are not satisfied with compensation package, followed by reward and motivation,
career growth, training and development, management style, and job design (Nazim-ud-Din,
2020). Furthermore, insurance companies in Bangladesh should pay wisely to its employee and
provide meaningful work tasks and maintain co-worker relationship to have expected working
environment (Nazim-ud-Din, 2020).The comprehensive long-term corporate insurance system
ensures the financial stability of an enterprise by implementing cost-effective insurance
protection against risks that carry a menace to business, personnel health, and property interests,
shareholders and investors[ CITATION Mid20 \l 1033 ]

Global Insurance Limited plays vital role in the industry as well as in the national
economy. Healthy growth is likely to encourage the insurance companies to introduce newer
services, while at the same time maintaining a healthy competitiveness. So, it is a great
responsibility for Global Insurance to concentrate on special and quality service to take this
industry towards further success. Since every organization is ensure of quality people acquiring
their services, developing their skills, motivating them to high level of performance, and
ensuring that they continue to maintain their commitment to the organization are essential to
achieving organization objectives.

This insurance is successfully running their business in Bangladesh, and behind their
success one of the reasons is efficient and effective human resource department who utilize the
resources wisely to get the best output from them. Though some problems are present in the
Human resource department they will come up with a solution and utilize their human resources
in more effective and efficient manner. And for the future challenges in 21st century they need to
be aware of that also. As the competition is raising day by day so in recent future there might be
greater competition from the competitors, so they need to do the forecasting and planning more
wisely so that they can cope up with the changing situation and handle the challenges carefully.

Page | 20
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