Company profile

Shah Cement is the Industry leader & No. 1 brand in the country that continuously makes
significant contributions to the nation building process by way of quality products, services and
sharing expertise.

Shah Cement Ind. Ltd. is the largest Cement Producing plant in Bangladesh, with a capacity of
5.2 million metric tons per annum. It started its production on March 2002. The Plant uses
state-of-the art technology in all areas of its production & produces finest quality cement fit for
sustainable & durable construction. It is a unit of Abul Khair Group, one of the largest business
conglomerates in Bangladesh.

The cement plant situated at Mukterpur, Munsigonj.

Its high-tech bagging plant is capable of producing 3 lac packs per day; where packaging unit is
equipped with exclusively Star linger High tech Machinery. Shah Cement is the pioneer to use
stitch free bags- 'Micro Perforated AD Star Bag'.

Shah Cement Plant is equipped with both inbound & outbound logistic comprising of own
ocean going vessels, huge number of cover fleets, barges & bulk carriers & transit mixer trucks
for RMC supply in the market place just in time. To ensure 24 hours of uninterrupted power
supply to the factory, Shah Cement has its own power plant with the capacity of 17 megawatt. It
has its own testing laboratory fitted with the most modern equipment, where quality control is
carried out in every hour. Furthermore, it is also an auto quality control system that monitors
the grinding quality through a closed-circuit system.

Shah Cement's commitment to sustainable development, its high ethical standards in business
dealings and its on-going efforts in community welfare programmes have won it acclaim as a
responsible corporate citizen. Shah Cement's brand name is synonymous with cement and
enjoys a high level of equity in the Bangladesh market. It is the only cement company that
figures in the list of Consumer Prestigious Brands of Bangladesh

Shah Cement Ready-Mix, an associate of Shah Cement Ind. Ltd. started its journey on April,
2010 to contribute more in infrastructure development of the country

Shah Cement strongly believes that business is a priority & but social welfare is a responsibility.
Shah Cement has placed itself in a position to enrich the quality of life in Bangladesh and to
contribute for a better society. Shah cement firmly believes that customer satisfaction and
corporate responsibility are the way to build a better and brighter future, not only for itself but
also for the nation.

Products

 Shah cement special

Shah Cement Special adheres to the European standards i.e. EN 197-1:2003.

Shah Cement Special gets its unique characteristics by using high quality clinker, Fly ash, Slag &
Limestone.

Application

The distinct properties of Shah Cement Special make it suitable cement for
>> Underground Concrete Works.
>> High-rise building
>> Bridges & Flyovers
& all types RCC constructions, foundations & structures.
Practically all types of RCC works- residential buildings, mass concrete works, underground
concrete works, roofing and all types of plasters, masonry and tile fixing works.

Key Features of Functional Benefits

Generally OPC gains strength for 90 days, whereas Shah Cement Special continues to gain
strength much longer due to its pozzalonic and latent Hydraulic reaction. Its steady strength
gaining feature gives it extra advantage for durable concrete.

Durability and strength are not synonymous when talking about concrete. Durability and
strength are not synonymous when talking about concrete. Durability is the ability to maintain
integrity and strength over time. Durability depends on permeability, resistance to chemical
attack, resistance of cracking and general deterioration over time. Shah Cement Special builds a
concrete with higher density and lower permeability, which produces less voids; thus
contributing to the durability and lifetime of the construction.

As limestone is added in Shah Cement Special- plastering will look smoother, better and
attractive and easier finish ability. It has easier finish ability, higher compressive and flexural
strength. It has resistance to aggressive chemicals and more consistent plastic & hardened
properties.

 Shah cement popular

Key Features of Functional Benefits

For its pozzalonic activity Shah Cement Popular continues to gain strength much larger.

To improve the workability of Shah Cement Popular fly ash and limestone are added which
increases the workability of concrete significantly. Fly ash produces more cementitious paste
reduces the amount of water needed in a given slump and it also reduces the amount of sand
needed in the mix to produce workability

Easier to Mix

Shah cement popular reduces water demand of a concrete in a significant degree, for its fly ash
particles which work like bearing around coarse cement particles that makes concrete easier to
mix and place.
Lesser Bleeding: Bleeding means water gaining; it is a form of segregation in which some of the
water in the mix tends to rise to the surface of freshly placed concrete.

Shah Cement Popular is cohesive and has reduced bleeding capacity.

Protects Concrete

Shah Cement Popular improves corrosion and protection. By decreasing concrete permeability,
its fly ash can reduce the rate of ingress of water, corrosive chemicals and oxygen- thus
protecting steel reinforcement from corrosion and its subsequent expensive result. Fly Ash also
increases sulphate resistance and reduces alkali- silica reactivity.

 Shah cement Rmc

Shah cement ready mix concrete set up its first ready-mix concrete on gabtoli at April
2010. Today shah cement is known as the largest manufacturer of ready mix concrete in
Bangladesh and producing quality concrete from its modern plants located in gabtoli and
tongi.

Ready mix concrete is a specialized form of concrete from cement, sand, crushed stone
and water together with admixture. This manufacturing concrete comes straight from
the mixing plant in a freshly mixed and ready to use via transmit mixture. It can be used
for placing purposes immediately. Ready mix concrete is produced by elements that are
measured to the right amount through automatic computer control, maintaining the
quality and control effectively.

Services

 Value delivery network: They are committed to provide the quality product to customer
whenever & wherever they want.

The unique & efficient delivery network of Shah Cement made it possible for the company to
stand on its promise of “24 hours delivery”.

Shah cement is the pioneer for the service of “on-time on-site” delivery to its consumers.
This dedicated service is possible through the adaptation of most convenient support systems
using roadways, waterways & bulk carriers.

Delivery Support System Includes:

l Highest Numbers of Own covered Vans.

l Own ocean-going vessels for clinker/ raw materials handling.
l Adequate Bulk Carriers & portable silos
l Adequate numbers of Own fleet of barges,
l Exclusive distribution network throughout the country.

 CUSTOMER CARE
They offer a one-stop contact call center where customers can manage their business and find
fast, reliable service. They can place orders, make inquiries, review their order status, or request
technical assistance, all in one single call.

Shah Cement strongly believes that business is a priority & but social welfare is a responsibility.
Shah Cement has placed itself in a position to enrich the quality of life in Bangladesh and to
contribute for a better society. Shah cement firmly believes that customer satisfaction and
corporate responsibility are the way to build a better and brighter future, not only for itself but
also for the nation.

Major competitors of shah cement

Major players and competition: Currently, only 32 factories are in operation, including four
multinational companies. At present, 81% of the total market share is held by top ten
manufacturers. Among the top 10 cement market players in Bangladesh, 8 are local and 2 are
multinational. Multinational cement companies are facing intensive competition with local
companies which are grabbing the top slot of the industry by operating in economy of scale and
with deft marketing strategy. MNCs now hold only 25-30% of the total market share. As a result
of failure to penetrate market, two of the global cement group, UAE based Emirates Cement
and Mexico-based cement manufacturer Cemex has recently divested their Bangladesh
operations. However, completion of acquisition of Holcim by Lafarge Surma will reshape the
industry dominance in Bangladesh as both the companies already operates own business here.
After the completion of acquisition, Lafarge-Holcim has the 2 nd place in terms of market share.

Shah cement and its competitotors in the industry

Current position

Shah cement has still the highest market share in the country in terms of all other cement
industries. It is still the leading brand and the customer’s first choice among all other brands.
Shah cement faces closest threat from Lafarge-Holcim which has the 2nd place in terms of
market share. The completion of acquisition of Holcim by Lafarge Surma might reshape the
industry dominance in Bangladesh as both the companies already operates own business here.
Shah cement faces the greatest threat from Lafarge surma in terms of being the market leader
in the near future.

This is the market share of all the top industries in cement industry as published in September
2017.

Here, we can see the current position of shah cement and all the other cement brands.

Company name Market share

1) Shah cement 14 %
2) Lafarge holcim 11.8
3) Bashundhara group 9.1
4) Seven rings cmement 8.1
5) Heidel berg cement 8
6) Premier cement 6.6
7) Crown cement 6.6
8) Fresh cement 6.5
9) Akij cement 4.2

Objective 1: What are the HRM problems and issues Shah Cement industries limited in
Bangladesh are facing?

In shape of Excise Duty and other taxes Cement industry contributes around Rs.30 billion per
annum and around Rs.100 billion to the GDP annually. Around one lac people get employment
opportunity by this industry.

To create a profit the cement industry relies on construction jobs. As the cement industry
heavily relies on weather, two-thirds of cement production takes place between May and
October. To meet demand, Cement producers often use the winter months to produce and
stockpile cement. Another problem is cost of transportation. The cost of transporting cement is
very high and this keeps cement from being profitable over long distances. In other words,
transportation of cement costs more than the profit from selling it.

In Shah Cement industries limited Human Resource Management are facing various problems.
These are as follows:

Good Employee Selection

It is always a challenge for Human Resource Management to select good employees for the
organization. In Shah Cement industries limited, on employee selection process, Human
Resource Management faces some problems to achieve their objective.

To recruit people they use internal and external source. The internal source is promotion of
present employee and the external sources are collecting students from college or University,
selection institutions, job applicants, selection agency, newspaper advertisement and other
reliable sources.

The employee selection process basically starts with primary interview. In this step the
Company justifies worker’s size, face and features, energy in this step. Then they offer job
application from the applicant. It contains name of the applicants, applicant’s father name, job
experience, educational qualification, nationality, age, sex, religion, expected salary, character
certificate reference. Then the Psychological test which contains Intellectual test, Creative test,
Cognitive test, Personality test. Then the management arranges another Selection interview
with top management and other supervisors. They finish the procedure with final selection by
selecting the best employees for job.

Lack of Innovation and Technology Development

Worldwide Portland composite cement is more popular because of its manufacturing

technology as it requires less clinker. The manufacture of cement is a two-phase process. Firstly,
Clinker is produced. Most common methodology of producing clinker is to mix up calcareous
minerals such as chalk, limestone containing silica and alumina and heat up to 1450 degree
Celsius. After cooling it, clinker is formed.

Secondly, the clinker is ground with calcium sulphates and with industrial processes wastes such
as blast furnace slag, limestone and fly ash to produce Portland cement.

Depending on the way the raw materials are prepared before entering the kiln system there are
two basic types of clinker production processes exist:

 Wet method (use in Bangladesh)

 Dry method

Modern technology is required in cement industry as it helps the production section and
Human Resource Management section and this is also applicable for Shah Cement industries
limited. Due to the insignificant inflow of new and advanced technology into the industry,
thisindustry lacks innovation. This is a major problem of Shah Cement industries limited. It is
important for the cement industry to adopt modern and most advanced technology to improve
production efficiency and produce high-quality cement to meet the local demand and export
orders. For energy conservation and environmental improvement the industry should also
introduce new technology.

Salary and Wage

The salary and wage is the most challenging issue cause if it is not sufficient and satisfying for
the employees it may create problems for the company. Because of this issue Human Resource
Management is facing the problems of strike, number of closed factory, bad relation with
workers less productivity etc. Shah Cement industries limited is a well reputed company along
with goodwill of paying salaries and wages in a fare scale. With the basic salary they also offer
some other facilities. Those are Provident fund, Gratuity, Incentive Bonus, Festival Bonus,
Medicare, House rent, Leave allowance, Workmen Insurance, Festival allowance etc.

Frequent turnover of labor

If the rate of labor turnover is very high then the Human Resource Management department
may face various problems. Employee turnover and hopping to another job is unpredictable,
therefore to face this problem the HRM department of Shah Cement industries limited takes
some steps. To minimize turnover rate, optimum use of knowledge and skills Shah Cement
limited gives some facilities that can motivate employees. Those facilities are; financial
incentives, good salary, profit, non-financial incentives like as Medicare, job security,
participation in management and many more.

Rate of absenteeism

Absenteeism is when a worker is absent for work without any permission. The causes of
absenteeism may be available or not and if the causes of absenteeism are avoidable then it is
said the performance of Human Resource Management is very poor. In Shah Cement limited
most of the absenteeism is avoidable.

The causes of absenteeism are illness, impact of unfavorable working environment,

transportation, residential problem and negative attitude of management, transactional
problem and lack of job satisfaction.
By taking some steps this problem can be controlled:

 Better wages & salaries.

 To create worker safety & security.

  Incentive bonus select.

 No work no pay.

Lack of Research & Development

To improve the productivity, quality, efficiency, marketability as well as conducting feasibility for
producing new products, optimising cost of production and industry expansion there is no
institution in the private sector that could undertake research & development in the cement
sector. Without sufficient amount of research and development it is impossible to develop a
productive human resource.

So in the finishing line of this objective we can say that Cement industry is one of the fastest
growing industries in Bangladesh and it is also a highly potential industry for the economic
development of Bangladesh. They should be careful about the problems for the continuous
growth of the industry. Human resource is an asset for every industry. So the management
should give more importance to the human resource of the company and they should take
necessary steps to overcome these problems and ensure a sustainable growth for the cement
industry.

Shah Cement is one of the leading cement companies in Bangladesh but they have some HRM
problem in their organization like selection process, salary and wage related issues, turnover
rate, training and development related issues. That’s why they need to be careful to handle
these problems and ensure that the human resource of the company work effectively and
efficiently.

Employee Relation with Management

Building a good relation between employee &management is the main goal of Human Resource
Management. But in Shah Cement limitedthey do not have a good employee management
relation. Employees are not interested to enhance their interpersonal skill. Human Resource
Management faces this problem very often as it is one of the major problems in Human
Resource section of this company. HR managers are working on this issue to develop a good
relation between employee and management to achieve organizational goal.

Training and Development

Unskilled workers need training when they join any company and arranging various training
programs for those unskilled workers are the major activity of Human Resource Management
department. If Shah Cement limited Human Resource Management department does not
arrange any training program for improvement of the employees they will not be able to get
skilled worker. They implement some training and development process for their employees.
These are employees training program and executive training program.
The employees training program methods are:

 Induction Training.

 Supervisory training.

 Apprenticeship Training.

 Training center.

 On the Job Training

Other executive training program is as follows:

 Seminar

 Business Tour

 Job Rotation Method.

 Conference training

 Training course

 Internship

 Diploma training

Objective 2 : What sort of HRM approaches do you think need to be taken to ensure
ongoing competitive advantage?
The supply of clinker, which is the crucial ingredient raw material in cement, has a simultaneous
impact on the supply of cement. The prices of clinker internationally has fallen which should
provide the advantage of lower cost of production.

Shah cement has some strong competitive advantages over its rivals so it needs to focus on that
and capitalize those advantages. If it is able to do so this will ensure its growth. Some of Shah
Cement’s competitive advantages are-

 Large production capacity to meet customers need. Even if there is unexpected

rise in demand, there would be no sunk cost of installing new machines for
production.
 It has got the largest sales in the cement market.
 It measures its quality by using modern instrument in the laboratory.
 Shah has ISO certification of the recognition of standard management system
that evolves in the organization for committing to provide quality product and
service.
 Completely automated production system. This economizes on the production
cost where labor wages are a huge portion of the total.
 Shah Cement Industries Ltd. has been certified ISO 9001:2008 for its Quality
Management System (QMS).
 Distribution channel of shah cement is wide, it helps them to reach every
possible corner.
 Effective and efficient Sales and marketing department.
 The brand built over the last decade is a marketing success and recently
recognized by the Brand Forum as the Best Cement Brand of 2010.
 In order to share the successful marketing practice with the academics, Shah
Cement now joins hand with the world's leading Business Guru Philip Kotler.

The cement industry has high prospects for growth which is led by its efficiency. The production
process of the cement industry has been altered to a more simple and efficient method by using
the dry manufacturing instead of the wet one which is heavier and more time consuming.

Speaking of Shah Cement, we can say has a few advantages to be considered. Cement is an
integral part of the buildings that are raised by the construction industry. Every building requires
cement in its foundation. The cement businesses earn of about t$10 billion annually. Hence, it is
a growing business. Moreover, cement hardly has any flaws in itself as it is a hard material.
Complaints about product are also few. Lastly, regional distribution plants have made cement
widely available for both large scale and small scale buyers.
To focus more on the people can serve a competitive advantage to an organization. That’s
where the human resource department is vital. This department can select and retain the best
employees. Moreover, this function involves designing appropriate and effective training
programs. This is how any organization can differentiate itself from its competitors- by focusing
more on the productivity of workers to increase sales, which is achieved by a constituent role of
the human resource department.

By hiring expert professionals:

The skills and areas of expertise vary within the human resource department, and every level of
work within the function is important. Not everyone, for example, within the HR department
has the authority to hire, but they can participate through their own tasks and duties- like
design job descriptions and training programs, taking part in definition of salary levels- to end
up with the best employees. Furthermore, the hire of human resource specialists who have a
clear view and idea of the business’s strategic plan is important to shape the future business
success.

More responsibility should be assigned to the human resource function:

Instead of only assisting and advising, human resource department should more seriously
concentrate on a greater responsibility. Most often the HR department is told to perform job
analysis and recruit candidates to get new hires; they are not included while hiring candidates.
The practice of determining pay is not given to the HR professional. Shah Cement should listen
to, and involve an HR team of professionals; who would suggest and implement a more
established strategy for improvement, various personnel related problems, and better
performance overall.

HR should determine the training program:

Shah Cement can count on its Human resource department if it complies with the strategic
goals of the company. Besides defining employee jobs and required qualifications, an effective
HR department monitors the employees’ will to work, their morale, and other conduct that
needs to be improved or avoided. Then, an effective training program can be devised and
presented to the line supervisors and executive management for implementation.

Use HR tools and software to monitor employee performance:

HR department should implement software programs that track and rate employees who stand
out. Human resource managers can take the help of these programs at times for performance
appraisal that is, designing and providing employee reviews; to fairly compensate and promote
employees. This also further leads to designing and implementing a proper training and
development program for employee growth that leads to improved performance, which is at
the heart of a company’s competitive advantage.

Objective 3: What HRM challenges will Shah Cement Company face in the 21 th century?
Critically discuss.
The cement industry heavily relies on construction, starting from private to government level
construction jobs. In Bangladesh since the real estate business is at stake and the number of
construction works has lessened over the years, this possess a huge threat to all the cement
industry. At the moment the cement industry is on the verge of rising again. The demand for
cement has increased in both the local and foreign markets. It was observed that there was a 32
% growth in 2009 and 21% in 2010. It is said that the demand for cement will grow in the next
few years due to :-

1. Government is setting a huge number of construction projects, which will increase the
demand for cement.
2. Padma bridge, Flyovers and highways are being introduced which is going to bring a
huge impact in the cement industry.
3. Since the infrastructure construction works are increasing, the demand for cement will
increase. This is due to as there is no perfect substitute for cement.
4. According to recent study, 28% people in Bangladesh lives in urban areas and the
population growth is over 3.1 per thousand and many people are moving to the city
which means the demand for household users will increase and thus lift up the real
estate business. Hence the demand for cement increases.

Due to the real estate business going down, there is a huge gap between demand and supply.
This in turn affects the falling of prices and leading to excess supply. Some precautionary
measures should be taken in order to not face this downfall. There are some challenges that the
company might face, these are:-

Supply and demand of labor

As technology is advancing day by day, people are relying too much on it, but they cannot avoid
labor work as it is needed in all aspects. It provides a huge contribution to the economy of the
country. But the problem that may arise is the amount of unskilled labor in the future as the
skilled labor is interested to work in FMCG based MNCs. The cement industry are not taking any
necessary steps to attract the skilled labor, hence unskilled labor will increase in the future.

Company policy & practice

As the market is changing over the years, the policy and practice of an organization also
changes. These changes are taking place in order to adapt to the current nature of the business.
So the employee has to cope up and adapt to the changes that are taking place in an
organization. The organization should invest much time on the research in order to fully
implement it by testing it in a section and check whether the new changes are adaptable to the
employees or not.

Lay out of equipment

Technology has a taken a step in which it has made work much easier. Even though technology
enhancement has its advantages but it is not easy to operate. Without proper training and idea
it is difficult for workers to adapt to it. Industries are heavily dependent on it as it increases
production quantity. It’s important to have new technology to gain the competitive advantage
but it is a big challenge for the employee who will operate this and adapt to the frequently
changing modern technology.

Workforce Diversity

One of the biggest HRM challenge is the workforce diversification. Different people come from
different backgrounds based on religion, cultures, race and gender. In the modern world every
organization conducts business in other countries. So in order to compete globally, the
organization plots down certain policies and strategies according to their culture and
environment. As Shah Cement is exporting to other countries and in future they will look to
expand their market further so they might face this kinds of problems.

Employee retention challenges

One of the major challenges is the employee retention challenge. The organization has to retain
its talented and valuable employees in order to increase its growth and productivity. The
amount of skillful employees leaving should be lessened. Some challenges are

1. Some employees are not satisfied with the salary and hence are looking for a change
2. Proper screening should be done while recruiting as many of the employees does not
speak the truth about their experience and work efforts.
3. High expectations from the job in which the employees become dissatisfied and want
something for a change.
4. If they are not interested in works of the job, they might be bored and look for a change
 Proper recruitment system must be taken into consideration and a series of interviews such
as structured and behavioural should be conducted in order to fully understand the
employee. Since it’s a permanent job the screening process should be up to the mark and
different steps should be taken in order to understand the mental capability of the
employee.

HR effectiveness measurement

HR department 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. This shift is significant as it represents movements from
simply counting the number hired to determining the ROI of collective and individual hires on a
long term basis, going beyond measuring turnover, and this new approach considers bad
turnover and good turnover along with the overall cost of replacement hires. So while
measuring the effectiveness of HR the HR department needs to be aware of that, because if
they can’t measure the HR in a right way they won’t be able to find out the effectiveness of HR.

Competitor challenges

There is huge competition around the globe. In order to survive the market huge investments
should be made so that the barrier is high and not easy for other firms to enter the market. The
main competitors of Shah Cement are Lafarge holcim and bashudhara group. At present, 81% of
the total market share is held by top ten manufacturers. Among the top 10 cement market
players in Bangladesh, 8 are local and 2 are multinational Shah cement has a market leading
point of about 14% of market share, followed by Lafarge holcim with about 11.8% of the market
share. In 2010 many small local manufacturers like premiere, seven horses, crown, fresh and
king cement increased their sales drastically riding on their benefits of economies of scale due
to the aggressive marketing effort. Many customers are seeking to get cement at a low price. So
the numbers of Cement Company are offering low price for their customers. They are using this
in order to attract the customers and increase their sales. This puts pressure on the bigger
companies as price is an issue. Moreover due to the brand image, the highly developed
companies are making huge profits.

Government control and legislation

There are many cement companies in Bangladesh. Some of them are foreign firms doing
business in this country. Government changes in policy will bring huge impact in the cement
industries of Bangladesh. Since all of the raw materials such as limestone, klinker is being
imported from different countries. So any kind of import restriction or tax policy changes it will
be a disaster to the cement industry as a whole. This can cause a huge barrier and even cause
downfall of some of the cement factories. As shah cement also exports cement to india it can
also cause a barrier for them and will hamper the business.

Recommendation

Human resource management (HRM) is considered a decisive organizational resource that

supports an organization sustain its effective operation. It is an important area that influences a
number of employees' attitudes and behavior such as intent to leave, levels of job satisfaction,
and organizational commitment (Lee & Heard, 2000; Miah and Islam, 2017). Many studies
found that, Human Resource Management is one important function among other internal
functions. Hence it is observed that the organization needs to improvise existing HRM practices
that enhance overall organizational efficiency and productivity as well. Employee job satisfaction
increases organizational effectiveness thus reduces employee turnover. Trained managers may
be appointed by the management for the effective recruitment and selection process. Post-
performance appraisal to be carried out in the organization for betterment of employee
performance in the job. Organization need to implement integrated approach to talent
management offers adequate opportunities for professional growth and development, good
motivating pay package, exciting rewards and Social security measures (Babuand Reddy, 2013).
So organizations have to consider the human resource because these are very important for
betterment of the organization. In case of achieving organizational good its impact is not
necessary to mention.
The problems of Human Resource Management of Shah cement industries limited can be
removed by taking the following steps:

1. Shah Cement Industries limited can be minimized by ensuring proper Human Resource
Planning. The objective of human resource planning is to ensure the best fit between
employees and jobs while avoiding manpower shortages or surpluses. Therefore,
effective manpower estimation for Shah Cement can be beneficial for achieving overall
organizational goals.
2. Appoint skilled Human Resource Managers who will help the organization by selecting
competent employees for particular positions. Without competent employee for each
and every position an organization cannot run efficiently. Only a skilled HR manager who
has a vast knowledge in selecting employee is able to find out best employee for
particular positions. Shah Cement Industry limited should find out a skilled HR manager
who has work experience in cement industries to find out competent employee for each
position.
3. Ensuring proper selection process which is fair as well can minimize the problem of
Human Resource management of Shah Cement Industry limited. Selection process is
 important because of the production and performance value companies get by making
good hires and the high costs of replacing employees following bad hires.
4. Labor turnover is another issue to be improve. As we know, the efficiency, productivity
and effectiveness of the Organization are highly influenced by a competent and well-
experienced workforce. High employee turnover is a warning sign of low morale among
an organization’s workforce, which is one of the factors that affect the productivity of
the organization. Loyal employee, is the best asset for an organization. To enhance
efficiency and productivity Shah Cement’s labor turnover should be low.
5. Maintaining good relation between labor management and employee is very crucial for
Shah Cement Company limited. Relationships between employees and management are
of substantial value in any workplace. Strong labor relations can make for better
communication between employees and management, which helps to identify product
improvement ideas.
6. Healthy trade union also helps to remove Human Resource Management problems.
Trade Union basically regulate relations between workers and the employer and take
collective action to enforce the terms of collective bargaining. As a collective voice,
unions can have a positive effect on productivity.
7. HR Department should take training program for improvement of the employee. Training
effectiveness in cement industry is a critical aspect of the development of knowledge of
workforce. To survive in the globalized era, organizations need to continuously develop
the knowledge, skill and ability of their human resources throughout the year. Therefore,
well design training program for every employee of Shah Cement Company limited is
necessary to increase overall efficiency.

Conclusion

With the increase in the size and complexity of business organization, employee has become
the most important factor in business. Business needs people as owners, employees, and
consumers. Organizations need people to make them operated. An organization is nothing
without human resource. Of all the resources, the most important one is human resource,
because human beings play a dual role- as resource, as well as a motive force for all other
resources by manipulating them, by the way of developing, utilizing, commanding and
controlling. Bangladesh is a potential industrial country. It has a huge human power. Unskilled
labor is the main opportunity to develop an industry in this country. When this is skilled a huge
profit an economic development can be achieved easily. HRM is the track by which the country’s
organizational activities can be developed.

Shah cement is one of the foremost cement companies in Bangladesh. They are successfully
operating 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 conscious 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. In short, based on
above analysis Shah Cement should be more careful about the HR issues to compete the
competitive market.

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http://www.worldcement.com/sectors/cement/articles/Cement_Bangladesh_market.aspx

http://shahcement.com/rmc/scrmc.php