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1. ASSIGNMENT ON HUMAN RESOURCE
MANAGEMENT Practice In Bangladesh Sugar
and Food Industries Corporation
Submitted to
Mohammad Khasro Miah, Ph.D
Professor, School of Business and Economics.
North South University.
Submitted by:
Name ID
Asif Zobayer
Moha ad Azizul Isla
Papiya Rah a
SM Mohiuddi

2. 2
Table of Contents
SL. No. Content Page No.
1
Background of the Industry
05
1.1 Past History 05
1.2 Pakistan Period 05
1.3 Bangladesh Period 06
1.4 Facts and Figures 07
1.5 Performance of Sugar Industries in Bangladesh 08
1.6 Tax Payment of BSFIC 09
1.7 Success and Achievement in the Production of Sugarcane
2 Analyzing of BSFIC 11
2.1 Survey Report 13
2.2 Background History of Bangladesh Sugar and Food Industries
Corporation
14
2.3 Basic Organizational Chart of Sugar Mills 14
3 Organizational overview of BSFIC 16
3.1 Mission Vision and Company Goal 16
3.2 Strategically Imperative of BSFIC 17
4 Overall HRM Practices & Strategies of BSFIC 19
4.1 HRM Paradigm of BSFIC 21

3. 3
4.2 Recruitment and Selection Steps of BSFIC 22
4.3 Promotion and Practice at BSFIC 25
4.4 Training and Development Practice at BSFIC 25
4.5 Performance Appraisal and Management System at BSFIC 29
4.6 Compensation, Benefits, Pay Strategy Practices at BSFIC 32
4.7 Ethics, Justice and Fair Treatment Practices at BSFIC 33
5 Success and Achievement of BSFIC 36
6 Industry Overview and HRM Practice at BSFIC 40
7 Conclusion and Future Direction for BSFIC 45
Questions 48
References

4. 4
Letter of Transmittal
10th
March, 2016
Mohammad Khasro Miah, Ph.D
Professor, School of Business and Economics.
North South University.
Subject: Submission of Report on HRM Practice in BSFIC
Sir,
We submit here the report, which you have asked for and assigned us to prepare by following the
established layout of a formal report. It gave us an immense pleasure in presenting the Report
on ASSIGNMENT ON HUMAN RESOURCE MANAGEMENT Practice In Bangladesh Sugar
and Food Industries Corporation which was assigned to us as fulfillment of MBA degree
requirement. We consider ourselves very privileged to prepare this report under your guidance.
We believe will help us a lot to enrich our career in future.
Finally, thank you for your sincere & honest efforts to make us familiar with the terms & facts of
‘Human Resource Management” which has helped us to prepare a successful paper. Our efforts
will be valued, if this report can serve for what it’s been meant for & our assistance will be there
for any queries.
Yours sincerely,
Mohammad Azizul Islam 1513070660
Asif Zobayer 1512859060
Papiya Rahman 1513384660
SM Mohiuddin 1421213060

5. 5
Background History of Sugar Industries:
Bangladesh was popular for quality Sugar during the 16th century. East India Company used to
export large quantities of Sugar from this region in every year. Approximate volume of exporting
was 820,186 mounds (1 mound = 37.65 kg) in 1795 and 3,324,168 mounds in 1805. Production
of beet sugar caused decline in production of cane sugar and faced problem in declination
towards 1840. After that time this industry was affected seriously due to diversion of land to jute.
Under the British emperor, India could not produce enough quantity of Sugar to meet the
demand though it was continued to export sugar largely to different European countries. The
demand gap was fulfilled by importing mainly from Java.
Pakistan period:
After the partition of Bengal in 1947, East Pakistan inherited a small share of industries of
Bengal. East Pakistan got none of 108 jute mills, 18 iron & steel mills and 16 paper mills of
Bengal. Only 90 of Bengali 389 cotton mills, 10 of its 166 sugar mills and 3 of its 19 cement
factories fell in the territory of East Pakistan. The cement factory Chattak, Sylhet had to depend
on limestone supplied from Ashaam, India. The cotton mills of East Pakistan had to depend upon
imported raw materials. The 1951 census revealed that East Pakistan had 63,234 unskilled non-
agricultural laborers, 115,480 skilled laborers engaged in manufacturing sectors, 184,535 mining
and quarry workers and 121,522 professional persons. The manufacturing sector comprising
mainly of food, drink and tobacco processing units employed a total 602,875 persons (4.67% of
the total labour force), of whom 433,148 were involved directly in production process and
172,727 in subsidiary activities. There were a total of 360,603 cottage enterprises which
employed 949,074 persons. Of the manufacturing units only about 200 of the enterprises used
power.
The industrial development policy of the Govt. of Pakistan had the manufacture of arms and
ammunitions, hydroelectric power, railway wagons, telephone, telegraph and wireless reserved
for the state and encouraged the private sectors to come up with industrial ventures in all other
sectors. 24 industries including jute, textiles, silk and rayon were subjected to a central planning.

6. 6
The Govt. created the Pakistan Industrial Development
Corporation (PIDC) and Pakistan Industrial Finance
Corporation (PIFC) to promote industrialization. PIDC
made significant
contribution in the establishment of industrial units in
sectors such as jute, paper board, cement, fertilizer, sugar,
chemicals, textiles, pharmaceuticals, light engineering and
ship building. The central Govt., however, followed a
discriminatory policy. It favored West Pakistan in
industrial development and drained resources from East
Pakistan for the purpose. It also directed most of
Pakistani external resources to the cause of industrial development of West Pakistan. Non-
Bengalis dominated the list of entrepreneurs coming up with new industries ventures in East
Pakistan. Local capital hardly got opportunity to flourish. The central government had control
over product pricing to such extent that products growth or manufacture in East Pakistan was
sold in the local market at prices higher than in West Pakistan.
In 1947 East Pakistan inherited only a few Sugar Mills located at the following regions-
The above Mills were able to crush 4, 4350 metric tons cane only.
Tons In 1947, Sugarcane occupied less than 1 percent of the cropped area. The East Pakistan
Industrial Development Corporation planned to establish 10 new Sugar mills to increase
production capacity to 1 million metric tons. But by 1956, only 5 mills could be established and
the production stood at 26,000 metric only.
Bangladesh Period:
Bangladesh has a domestic demand of 1.95 million ton of sugar in 2012, for a Population of
about 150 million, assuming 13 kg per capita consumption. But it Produces 0.08 million ton
domestically and imports 1.3 million ton, mainly from India. The rest of the demand-supply gap
is filled up by sugar produced in the 6/7 refineries in Bangladesh and gur/jiggery producers. The
Region Name Previous
Name
Rajshahi Gopalpur
Dinajpur Setabganj
Khustia Darshana
Dhaka Chittagong and
Arikhola
Mymensingh Kishoreganj

7. 7
sugar industries in Bangladesh are nationalized since the country’s independence. Due to
inefficiencies in management, mismatched demand and supply of raw materials, outdated
technology, low recovery-rate of cane-type used in the mills, the level of actual production is far
below installed capacity. The industries are running at a loss since the mid-1980s. The sugar
production in Bangladesh is not growing at a steady rate. The mills in Bangladesh are now
producing at an average rate of 9000 metric tons per year (during 2008 to 2012) which is much
below their capacity (above 40000 metric tons on average).
By way of farming and creation of employment the Sugar Industry plays an important role in the
entire economy of Bangladesh. Bangladesh Sugar and Food Industries Corporation (BSFIC)
initially produced Sugar, Biscuit, Vinegar, Vegetable oil and they had Ice Plant, Shrimp Plant
Tobacco Factory etc. Later on two Sugar Mills Kalachakra and Deshbondhu and small scale
plants are disinvested by the Government.
Facts and Figures:
Currently around 425,000 acres of land are under
sugarcane and the annual production is about 7.5 million
tons, of which only 2.28 million tons of Sugarcane is
used in Sugar Mills. Bangladesh now produces about
150,000 M.Tons of Sugar, 100,000 M.Tons of molasses
and 800,000 M.Tons of bagasse per year.
Recovery of Sugar from cane is also the poorest situation
in Bangladesh - only 7.4% compared to 9% in Indonesia,
12.3% in Cuba, 12.4% in Hawaii and 15.6% in Australia.
In 1980, the Sugar Industry employed 15% of the labor force and had 30% of the fixed assets of
the food industry as a whole. With 1.5% of world Sugar production, Bangladesh ranked 67th
among the 130 Sugar producing countries. There are 15 Sugar Mills in Bangladesh. The name of
the Sugar Mills are as Panchagarh Sugar Mills Ltd, Thakurgaon Sugar Mills Ltd,
Setabganj Sugar Mills Ltd, Shayampur Sugar Mills Ltd, Rangpur Sugar Mills Ltd,
Jaipurhat Sugar Mills Ltd, Rajshahi Sugar Mills Ltd, Natore Sugar Mills Ltd, North
Bengal Sugar Mills Ltd, Pabna Sugar Mills Ltd, Kushtia Sugar Mills Ltd, Carew and Co.
Country
Name
Per Acre
Yield of
Sugarcane
Bangladesh 15 Tons
Cuba 36 Tons
Indonesia 45 Tons
Australia 55Tons
Hawaii 70 Tons

8. 8
Ltd, Mobarakganj Sugar Mills Ltd , Faridpur Sugar Mills Ltd and Zeal Bangla Sugar
Mills Ltd. (source : http://en.banglapedia.org/index.php?title=Sugar_Industry )
The installed capacity of these mills was about 2,10,440 M.Tons. But the Mills could not work in
full capacity. The country’s total estimated annual demand of Sugar is 12, 00,000 to 14, 00,000
M. Tons.
From the field survey it is known that on the season of 2011-2012, the cane cultivation covered
an area of 169000 acres of land with a production of about 40 lacs tons. With deduction of
nearby 10 lacs tons cane (for chewing consumption and grafting preservation), about 30 lacs tons
should go to the sugar mills for manufacturing of sugar. But less than 50% of the cultivated cane
normally supplied to the mills.
(Source: http://en.banglapedia.org/index.php?title=Sugar_Industry)
It is mainly for the high price of “Gaur” in the market and the complexities in getting payment
of the supply of sugarcane to the mills.
Development and Growth of BSFIC:
 Performance of Sugar Industries in Bangladesh
 Success and Achievement in the production of Sugarcane at BSFIC:
Source: Bangladesh Sugar and Food Industries Corporation’s Annual Report
(http://www.bsfic.gov.bd)
Revenue Earning Graph of Sugar Industries from 1971-72 to 2011-
2012
Crushing
Season
1971-72
1972-73
1973-74
1974-75

9. 9
2009 2013 Percentage
Increase
Sugar Cane Production 237756 3456390 45.38%
Farmer who got bank loan 58476 76048 30.11%
Axis
Title
Production of Sugar Cane, Comparison of Year 2009 & 2013
In 2009 the Sugarcane
production was 237756 M. tons
and in 2013 it was 3456390.
That means the percentage
increased 45.38% in 2013. This
was a great achievement for this
Industry. Also in the year of
2013, farmers have got a
good amount of bank loan
from.
Source: Bangladesh Sugar and Food Industries Corporation’s Annual Report
(http://www.bsfic.gov.bd)

10. 10
Analyzing of Bangladesh Sugar and Food Industries Corporation
(BSFIC)
SOURCE:http://www.usajobs.xyz/search/company/sugar-foods-corporation-jobs-in-rockmart.html
Features Figure
Year of Establishment 1972
Growth Observation Depressive
Strength of the Company
The company has their Sugarcane farmers. The number of
these farmers is 5 lacs. They produce Sugarcanes and supply
these to the Company.
Total Workforce 16,592
Number of Local and Foreign Employees ( if any) No foreign employees, all employees are Bangladeshi
Citizen.
Officer
Head Office Mills Grand Total
162 828 990
Staff (Permanent) Head Office Mills Grand total
108 5883 5991
Worker (Permanent) - 4162 4162
Staff (Seasonal) - 2899 2899
Worker (Seasonal) - 2550 2550
Total Managerial and non-Managerial Employees
General Managers(GM) Non Managerial Employees
60 16532
Employees and Business Increase % ( last 10 years) 2224
Total Export to Foreign Country No Foreign Export
Core import items (last 5 year) Sulphar, Sugar, Anticline, Flocculent, Flavors, Boiler
Tube, Centrifugal Liner, Dosing Pump.
Foreign investment ( if any) With Interest Without Interest
197855852 268669634
Install capacity 2,10,0000 MT

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Description of the Table:
The above table represents some basic information about the company. The total number of
employees is 16592. The breakdown of the employees is given in details. The entire workforce
has been divided into three categories which are officer, staffs and labors. Also there are seasonal
and regular workers. Growth observation of the company is really depressive. The strengths of
the company are 5 lacs farmers, who produce the Sugarcane near the Mill zone area and supply
these to the Sugar mills. In here there are no foreign employees, all the employees are
Bangladeshi. The permanent workers of the Mills are 828 and in Head office it is 162. The
number of General Managers is 60 and last 10 years 2224 employees are increased in this
Industry. BSFIC does nor export Sugar in any country rather it imports some core items, these
are Sulphar, Sugar, Anticline, Flocculent, Flavors, Boiler Tube, Centrifugal Liner and Dosing
Pump. This Industry is a heavy industry in our country and its install capacity is 2,10,0000 MT.
Background History of Bangladesh Sugar and Food Industries Corporation
(BSFIC):
Bangladesh Sugar & Food Industries Corporation (BSFIC) emerged as a single corporate body
from 1st
July 1976 through merger of two separate corporations is Bangladesh Sugar Mills
Corporation (BSMC) and Bangladesh Food and Allied Industries Corporation (BFAIC) which
was formed under the presidential order No 27 of 26 March 1972. On that time there were 68
numbers of Industries like Sugar Mills and different types of Food Industries which were under
the control of BSFIC. According to the Government policy medium scale Industries like Food
and Tobacco had been disinvested and large and heavy Industries like Sugar Mills kept under
Government control which looks after BSFIC.
At present 15, Sugar Mills one Engineering Institution, one Business Center (Shipping Office in
Chittagong) and one named Bangladesh Cold Storage is now under BSFIC. BSFIC is under the
control of Ministry of Industries.

12. 12
Managing Director
General
ManagerFactory
Gereral
ManagerAdministration
Gereral manager
Finance
General Manager
Agriculture
Basic Organizational Chart of Sugar Mills:
There are 15 Sugar Mills under BSFIC. Every Sugar Mill has four distinctive divisions. Those
are Factory division, Finance division, Admin. division and Agriculture division. Each of this
division has one General Manager (GM). The person who is headed over the entire Mill is called
Managing Director (MD). The organizational chart of the mill is as follows:
Figure: Basic organizational Chart of the Sugar Mills
Organizational overview of
Bangladesh Sugar and Food Industries Corporation (BSFIC)
Mission, Vision and Company Goal:
BSFIC is a state run corporation. Like other organizational entity they have also their own
mission, goals and vision.
Mission of BSFIC:
To satisfy the customers through resourceful, pioneering and ethical practices while meeting the
diverse expectation of other stakeholders.

13. 13
Vision of BSFIC:
To be an environment friendly, stakeholder centric, innovative, professionally managed,
integrated sugar refining company with low cost global technologies producing range of value
added products.
Goals of BSFIC:
The goals of BSFIC are given below:
1. Production of high yielding content Sugarcane in Mills zone through extension activities.
2. Maximize production of Sugar by optimum utilization of installed capacity of the sugar
mills and thereby save hard earned foreign exchange.
3. Maintain stable price of Sugar in the domestic market through efficient marketing.
Strategically Imperative of BSFIC:
BSFIC helps the government to make policy in respect of sugar procurement, production,
distribution and maintain stable price for the benefit of general consumer.
BSFIC has been categorized into Short Term Strategic Imperative and Long Term Strategic
Imperative. Let’s have a look on those:

14. 14
Overall HRM Practices of Bangladesh Sugar and Food Industries
Corporation (BSFIC)
Organizational Chart of BSFIC

15. 15
HRM Paradigm of BSFIC:
Each and every company has their key and unique strategy. BSFIC has some unique attributes
both positive and negative also. Under the HRM paradigm the unique strategies of this
corporation are given below:
HRM Department of BSFIC
Recruitment and
selection Process
atBSFIC
Takes the exam in
Bengali
Question pattern is MCQ
Fair oral interview
Promotion practice
Employees have to
wait for 5 years
Some employees have to
wait 3years for
promotion
Performance and
Appraisal
Some gets rewards
within a very short time
But some have to wait
for a long time because
of bureaucracy
Training and
Development
Fortunate employees are
Sent to Japan and India
only
After the training the
employee gets promotion
Ethics, Justice and Fair
treatment policy
Employee and labor
relation is very good
CBA agent tries to reduce
the conflict among
employees and labors
In the Mill zone area if the labor have
any provisions about their particular
rights then it is taken seriously
Compensation, Benefits and Pay strategy
of BSFIC
Not attractive
compensation strategy
Pay scale is not good
Only the higher level of
employee gets benefits

16. 16
Explanation of the Flow Chart:
For recruitment and selection purpose the unique strategy of BSFIC is to take the written exam in
Bengali. The question pattern is MCQ. The interview style is MCQ. For promotion practice
BSFIC follows a lengthy process. The employees have to wait at least 5 years for promotion but
for the first class officer, BSFIC provides promotion after the 3years of their job. Performance
appraisal system is not so good. This type of government office basically does not follow the
appropriate system for giving rewards. But if an employee keeps remarkable activities then he
must be rewarded by the corporation. For training and development practices, BSFIC gives the
opportunity to the regular and active employees. On the other hand, fortunate employees are sent
to abroad and after the training program they get promotion. Compensation and Benefits of
BSFIC is not so good. If the employee or labor face trouble or occur severe accident then this
corporation provides compensation benefits. This corporation is very much loyal fair and ethical
to the employees and labors. It uses some tricks and maintain direct communication with the
labors and employees, so there is no chance to arise any conflicts among them.

17. 17
Recruitment and Selection Steps
at BSFIC:
For Recruitment and Selection purpose
BSFIC is well managed corporation. As a
government company it tries to select
good and intellectual hard worker
employees. The recruitment and selection
process of BSFIC is done into 5 different
step
Explanation of the Five Different
Steps of BSFIC:
1. This step consists of two
processes which are arising of the
requisition and investigating the
requirements. There are different
departments at BSFIC. When one
department requires an incumbent
and arises the issue is known as
arise of the requisition. After the
HR investigation the department gets an overall idea.
2. After the investigation the HR department of BSFIC shares the issue with the entire HR
department of BSFIC. Then the department talks with the respective head of the
department to identify the key issues and ready for posting the job.
3. For publishing the job circular, BSFIC uses different sources like Newspapers,
bdjobs.com etc.
4. CV collection, scrutinize and shortlist them is the first step of step 04. Then they call the
candidates for written test. In terms of short listing of the CVs they prefer good academic
qualification and renowned universities of the candidates. No discrimination is there in

18. 18
terms of sex or religion. Age limit for joining in the organization is 30 years however for
the freedom fighter quota is it 32 years.
5. Finally when the candidates pass the written test, results are published into their website
http://www.bsfic.gov.bd/ and successful candidates are called for oral interview.
Position vacant (which is suitable for the first class officer) required 1st
Class in both
Honors and Master level or CGPA above 3:00.
Promotion & Practice at BSFIC:
After the job tenure of 5 year one gets promotion. But from the company analysis it is found that
BFIC is not following the rules of procedure in terms of promotion. As a result labor unrests are
taking places. On the year of 2011 workers also protested against it.
From the report of Daily Star 2012 it is known that on the year of 2011 workers and officials of
15 sugar mills under Bangladesh Chemical Industries Corporation (BCIC) formed a human chain
demanding promotion, time scale and increased facilities. Held near Ishwardi Rail Gate, they
also held a protest rally at the venue. The speakers said that the assistant Sugarcane development
officers at 15 Sugarcane Mills of the country did not get time scales in last 25 years. (Workers,
employees of 15 sugar mills agitate, 2011).
Training and Development Practice at BSFIC:
Bangladesh Sugar and Food Industries Corporation (BSFIC) is committed to provide an
organizational environment where a personnel can develop himself by continuous learning,
growth and also personal success. Training and development is a process which make an
employee more self-reliant, optimistic and responsibilities towards his works. BSFIC also
provides this opportunity to the employees and make better performance and outcomes from
them.

19. 19
Training method of BSFIC:
From this Graphical representation the training process of BSFIC is depicted:
Diagram: Training Process of BSFIC
The Training features of BSFIC:
To help the employees perform more effectively in their jobs
To prepare the employees for future growth and advancement by providing
supervisory and other management programs.
To building effective work teams through developing staff communications and
interpersonal skills.
To inculcate a sense of dedication to highest quality
To keep an employee up-to-date with changes those affect the business
environment.

20. 20
The Duration of the Training is as follows:
For training purpose the employees are mostly sent to
Japan and India. The tenure of training for the employees is
different. Based on their needs the training programs are
arranged. One year, six months, 15days etc are the duration
of the training program of BSFIC.
Source: Survey Report
The entire Training scenario of BSFIC is categorized into the following manner-
1. Need Assessment
2. Training Administration of BSFIC &
3. Measuring Performance of the Training
The first step in training is the Need assessment. This process focuses on detecting and solving
problems. BSFIC starts with this purpose to identify if there is a need for any training and the
nature of the content of the training program this means how and which way the training would
be conducted. This first step of training determines the relevant of training to employee’s jobs
2009-10 2010-11 2011-12 2012-13 2013-14
Total 435 296 514 182 83
Sent to abroad 5 6 6 5 8
Internal Training 400 290 508 177 75
Training and Development Statistics
Training
Period
Year Month Days
Duration 1 6 15

21. 21
What actually their employees are doing
Whether they are fulfilling their duties and responsibilities or not
Whether they have achieved their target or not
To evaluate the employees performace and motivation
Provides rewards, promotion, increment based on the overall performance
and how it will improve the performance. It also addresses the organizational problems and then
distinguishes the training needs with an objective to identify an appropriate training need which
will link to improve job performance with BSFI’s goals and bottom line.
After the first step of training the next step comes, that is Training Administration. This
Department carries out all the BSFIC’s administration tasks of the training in co-ordination with
the departmental supervisors, employees and at the same time with the trainer who will be or is
in charge of providing the training program.
The last step is about measuring the performance of the Training Program. This measurement
analyze whether the pre-determined objectives are fulfilled or not. This evaluation process also
helps to find out the flaws of the entire training process.
Performance Appraisal & Management System of BSFIC:
Bangladesh Sugar and Food Industries Corporation (BSFIC) follows the performance appraisal
system to develop their organizational capacity. BSFIC evaluates their employees on the basis of
their performance. Mainly they evaluate what the employees are given as a target and what they
have achieved.
Bangladesh Sugar and Food Industries Corporation (BSFIC) evaluates their
employees because they want to know the following features:
Figure: Features of BSFIC’s Performance appraisal system

22. 22
This company mainly followed 2 types of Performance Management System. They
are:
Employee Performance Evaluation-
Yearly (Done Once in a Year):
The total evaluation breakdown is given
below:
1. For part A: According to 6 Evaluation
Factor there will be total 300 (6X50)
marks. For the each factor given marks
will be multiplied with the given points.
2. For part B: Here are total 100 marks.
Marketing & Sales Department will give
only marks according to the given criteria.
Other Department will give marks
according to the departmental job
description. Here have to write given
target and the achievement. For the each
factor given marks will be multiply with
the given points.
3. For Part C (For Self Evaluation) and
calculated the total marks out of 500 by
the employee. In Supervisor’s Evaluation
Employee
Performance
Evaluation-
Yearly (Done
Once in a Year)
Employee
Excellence
Performance-
Quarterly (Done
4 times in a
year)
Performance
Appraisal &
Management
System of BSFIC
Self-Evaluation 400
HR & Admin 100
Total Evaluation
Marks 500
For 5 Points (90-100): 4
Increments +
Promotion
+Incentives
For 4 Points (80-89): 3
Increments +
Promotion
For 3 Points (70-79): 2
Increments
For 2 Points (51-69): General
Increment
For 1 Point 50 or below 50: No
Increment will be
given.

23. 23
for Part C there will be 100 marks which will be given by HR & Admin Department.
After that it will be calculated in % (percentage)
4. For the final rate the employee will get reward or punishment according to his/her
performance. Here is the breakdown-
For promotion purpose BSFIC’s rule is employees have to work at least 5 years within the
organization neither cannot get the promotion, only get the increment and incentives.
Compensation, Benefits, Pay
Strategy Practices at BSFIC:
Bangladesh Sugar and Food Industries
Corporation (BSFIC) are now following
the national pay scale 2009. The grading is
categorized into 20 different sections
according to the designation. In this pay
scale the highest salary is Tk 40000 which
was Tk 23000 on the previous pay scale.
The lowest salary is TK 7740 TK which
was Tk 4310 on the previous scale.
Source: Bangladesh Sugar and Food
Industries Corporation’s Pay Scale
Article
Previous Now following
Grade Payscale (2005) National Payscale (2009)
TK TK
1 23000 (Fixed) 40000 (Fixed)
2 19300-700X4-22100 33500-1200X5-39500
3 16800-650X8-20700 29000-1100X6-35600
4 15000-600X8-19800 25750-1000X8-33750
5 13750-550X10-19250 22250-900X10-31250
6 11000-475X14-17650 18500-800X14-29700
7 9000-405X16-15480 15000-700X16-26200
8 4700-365X16-13240 12000-600X16-21600
9 6800-325X7-9075-EB-
365X11-13090
11000-490X7-14430-EB-540X11-
20370
10 5100-280X7-7060-EB-
300X11-10360
8000-450X7-11150-EB-490X11-
16540
11 4100-250X7-5850-EB-
270X11-8820
6400-415X7-9305-EB-450X11-
14255
12 3700-230X7-5310-EB
250X11-8060
5900-380X7-8560-EB415X11-
13125
13 3500-210X7-4970-EB-
230X11-6940
5500-345X7-7915-EB-380X11-
12095
14 3300-190X7-4630-EB-
210X11-6940
5200-320X7-6930-EB-345X11-
10450
15 3100-170X7-4290-EB-
190X11-6380
4900-290X7-6930-EB-320X11-
10450
16 3000-150X7-4050-EB-
170X11-5920
4700--265X7-6565-EB-290X11-
9745
17 2850-130X7-3760-EB-
150X11-5410
4500-240X7-6180-EB-265X11-
9095
18 2600-120X7-3440-EB-
130X11-4870
4400-220X7-5940-EB-240X11-
8580
19 2500-110X7-3270-EB-
120X11-4590
4250-210X7-5720-EB-220X11-
8140
20 2400-100X7-3100-EB-
110X11-4310
4100-190X7-5430-EB-210X11-
7740

24. 24
Different Provision Regarding Labor and Employees:
i. If any of the labor or officer died on the job he or she will be entitled to get the salary of
3600 months.
ii. If a labor gets injured, depending on his injury he will be entitled to get BDT one lacs.
In case his injury is permanent he will get one lacs 25 thousands taka.
Provision regarding Gratuity:
If any employee is entitled for retirement gratuity will be paid. The provision for gratuity is this
the year he has continued his service with the company, will be entitled twice of the basic salary
of those years counted.
For example if the service year is 30 years then the gratuity will be 30X2 = 60Months X Basic
Salary.
Provision Regarding Provident Fund:
For the provident fund the following structure is followed:
Contribution of the government Contribution of the employee
10% 10%
Ethics, Justice, Fair Treatment Practices at BSFIC:
At Bangladesh Sugar and Food Industries Corporation (BSFIC) the management and the
organization plays an important role in terms of employees as well as for the labors. The
management tries to maintain a good Human Resource Management policy in different HR
practices and labor relations.
Bangladesh Sugar and Food Industries Corporation are good enough for practicing the ethics
justice and fair labor relationships into the corporation. The employee relations in BSFIC are

25. 25
handled by the prescribe set of rules. We can define it as a code of conduct for an ethical,
justified fair treatment policy.
However, in case of conflict BSFIC has also a set of policies which is given below:
a) Negotiation: The labors and the managers of BSFIC of different department discuss and
try to identify the problems.
b) Fact Findings / Arbitration: A neutral person from inside or outside from BSFIC
analyzes the conflict and recommends his findings to resolve the problem and settle the
issue.
c) Group Discussion: If there is any disputes arises the CBA (Collective bargaining agent)
leaders resolve the issue by discussing with the concerned authority.
In the Mill zone area there are some problems among the employees and labors. But BSFIC is
very judgmental and ethical and sympathetic for the labors and employees treatment. Through
the group discussion with the labor leaders or collective bargaining agent they try to resolve the
conflicts. On the other hand, BSFIC maintain the employee hierarchy system and if the
employees have any problems he or she can submit their proposals to the corporation.
Trade Analysis of BSFIC: Employment through by-product based industries and trade
and commerce there are about 5.00 million people who are directly or indirectly benefited by the
Sugarcane cultivation. The sugar mills act as a center of development in the respective areas of
the country and BSFIC help the Government to make policies in respect of sugar procurement,
production, distribution and maintained stable price for the benefit of general consumers. BSFIC
has a little amount of share in the market.

26. 26
Explanation of the Growth: The above graph
states that the sugar industry has grown in a steady way
and thus surviving very smoothly overcoming all the
obstacles in the industry. The datas are being collected
from the annual report and the trade growths are visible
from it. Below is the table of the datas.
(Source: http://www.bsfic.gov.bd/site/view/annual_reports/
Success and Achievement of BSFIC:
Events Year Percentage of
growth
2009-2010
(MT)
2012-2013
(MT)
Production of Sugar 62203 107123 72.27% ^
Production of spirit 43.48 50.65 16.49% ^
Production of foreign
liquor
6.57 9.90 50.68% ^
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
1991 2001 2014
Foreign Liquor (MT)
ChitaGur (MT)
Spirit (MT)
Sugar (MT)
Sugarcane (MT)
Development Growth of Sugar Industry
Years 1991 2001 2014
Sugarcane
(MT)
1078018 1369026 1562351
Sugar (MT) 78793 98355 107123
Spirit (MT) 29.67 40.38 50.65
ChitaGur
(MT)
24798 28873 58738
Foreign
Liquor (MT)
5.57 6.35 9.92

27. 27
Success and Achievement of BSFIC in Terms of Implementation of the Plans:
There are also some development plans which can be categorized as follows-
i. Finished Development Plans
ii. Ongoing Development Plans
iii. AKNEK approved development plans
The three categorizes of development plans of BSFIC are given below:
Finished Activities Projected Outcome from
these developments
Application of these
developments
Establishment of the
Centrifugal machine in seven
sugar mills
Developed the Quality Sugar In seven Sugar mills nine
Centrifugal Machine have
been established
Establishment of organic bio
fertilizer plant
Making fertilizer from the
wastage of sugar
One organic bio fertilizer
plant has been established
Establishment of BMR
Faridpur Sugar mills Limited
Production and a consistent
capacity of production
develops
1 boiler, 1 shredder and 1
aviar has been established
Ongoing Projects Projected Outcome
from these
Developments
Application of these
Developments
Power Turbine, Diesel
Generator and Boiler
establishment plan
Production and a consistent
capacity of production
develops
Disel
Generator
Sugarmill
Boylar
Power
Terbine
In 4
Sugarmills
In 1
Sugarmill
In 2
Sugarmill

28. 28
AKNEK approved
development plans
Projected Outcome from
these developments
Application of these
developments
Accessories buying for
Thakurgaon Sugar Mills
To increase the capacity of the
production of Sugar
In seven sugar mills nine
Centrifugal Machine have
been established
Success and Achievement of BSFIC in Terms of Implementing Information
technology:
Previous Event 2013
The website http://www.bsfic.gov.bd/ was
static and lack of many information. As a result
investors as well as other people were not able
to reach the information.
The website http://www.bsfic.gov.bd/ was
updated and a dynamic site has been made.
DOS Based operating system as there to
compute the workings of accounts section.
On the year of 2013 the system is changed and
customized software is used to calculate pay
roll, provident fund facilities and dealer
management.
No website was there for the mills On the year of 2013 one website has been
made http://www.carewcobd.com/ this
website is a good resource for the foreign
investors.
(Source: http://www.bsfic.gov.bd/site/view/annual_reports/

29. 29
Success and Achievement of BSFIC in terms of Human Resource Management:
(Source: http://www.bsfic.gov.bd/site/view/annual_reports/
Explanation of the Chart:
From the chart we can understand that on the year of 2010 and 2013 appointed people were the
highest, compared with other year 2009 and 2011. On the year of 2013 no 1st
and 2nd
class officer
is appointed at Bangladesh Sugar and Food Industries Corporation. Now the total workforce has
increased. In fact the HRM practices in this corporation are changing now. The competitive and
hard worker people are increasing in this sector. And the total HRM practices in this corporation
are good enough. All the sections are maintained by this corporation in an efficient way. So now
the employees are increasing day by day in this sector. And 2013 is the most successful year for
BSFIC in this HRM sector
Industry Overview and HRM Practice at BSFIC
Industry Overview and HRM Practice at BSFIC:
Bangladesh is one of the populous countries in the world. So, it is easily understandable that
supply of manpower for both public and private enterprises operating in Bangladesh will not be a
problem at all. However this does not match with the real life scenario. Despite having sufficient
2009 2010 2011 2012 2013 Total
1st Class Officer 23 105 50 60 0 238
2nd Class Officer 5 24 9 6 0 44
3rd Class Officer 24 208 58 138 224 662
4th Class (including labor) 49 77 89 82 142 439
total 101 414 206 286 376 1383
Axis
Title
HRM Recruitement from 2009-2013

30. 30
supply of manpower, in our country most of the state owned enterprise especially the Sugar
industries disappointed us. These state owned enterprises are failed to ensure expected
performance compared to private business entities. They had carried out many researches and
many researchers found that a positive relationship of human resource practices with the
operational as well as organizational performance of business enterprises. In this company
analysis I have found one of the major causes of being a non-profitable of BSFIC may be the
inappropriate and not standard HRM practices in this sector.
Human Resource practice has a direct impact on the employees. So the organization where it is
practiced can have a positive or negative outcome based on the practice. There are some
important outcome might need to get success such as company commitment, trust in
management, higher levels of effort and involvement , and also need lower inclination for
employees to leave company. But this company’s HRM sector is not enough strong though it is
an asset and very old Industries but the improvement of this company is very slow and not
appreciated yet. So it is clear that to make this company more profitable and if the authority
wants more development of this company then the overall HRM system should be changed.
For collecting the information from this industry, I have to visit there and I talked with the
current HR Director of this company named Mr. Rafiqul Islam, he told me that the
mismanagement of this industry and the lack of knowledge about HRM and lack of practices of
HRM at the same time incompetency in technology sites of the employees makes this company
lagging behind and makes the employees more frustrated. The government is still now following
the typical pay scale in this price hiking period and the promotion and compensation strategies
are not good enough. So the employees are not motivated enough and the total management is
really pessimistic. From his conversation it is clear enough that the employees are not motivated
enough from any sector and like the private company here is no competition.

31. 31
1989
-90
1990
-91
1991
-92
1992
-93
1993
-94
1994
-95
1995
-96
1996
-97
1997
-98
1998
-99
1999
-00
2000
-01
2001
-02
2002
-03
2003
-04
2004
-05
2005
-06
Series1 245.4 -95.9 -656 -829 -253 78.89 -379 -659 -386 -1306 -1118 -1352 -1181 -972 -595 -176 661.6
Axis
Title
Analysis of the industry
Industry Analysis:
Bangladesh has a domestic demand of 1.95 million ton of sugar in 2012 for a population of about
150 million, assuming 13 KG per capita consumption. But Bangladesh produces .08 million
domestically and import 1.3 million ton, mainly from India. The rest of the demand supply gap is
filled up by the sugar produced in the 6/7 refineries in Bangladesh.
The sugar industries in Bangladesh are nationalized since the country’s independence. There
were some fact for the loss of sugar industries in Bangladesh, they are inefficiencies in
management, mismatched demand and supply of raw materials, outdate of require technology
etc. The industries are running at a loss since the mid-1980s.
Source: Annual report of BSFIC- 2006
After this period the BSFIC did not include the production capacity, so it was not possible to
include the rest of the year’s production capacity rate in here.

32. 32
Analyzing the Data of BSFIC:
From the above data we see that the mills of Bangladesh were making losses consistently
from the beginning of the 1990s. So, BSFIC mills is under threat in future production
because, the continuous loss and reduction of sugarcane production. The high cost of
production in the Sugar Industry in Bangladesh can be attributed for two main reasons-
1. Bangladesh’s sugar growing regions are characterized by many smallholder farmers,
which reduce scale economies in production and contribute to low yields.
2. The machineries in the mills are outdated, and the management is inefficient.
Sugar’s Contribution to Employment and Output:
Sugar Occupies a vital rules in the industrial sector of Bangladesh. It directly and indirectly
employs over 5 million people. It also contributed .74% of agricultural GDP in 2010 as per
Bangladesh Sugar Research Institute. It uses up .17 million hectare of the nation’s cropland.
Although production of cane has increased at 2.9% over the past three decades, sugar
production is now going down.
Sources of Sugar in Bangladesh:
Sugar which is consumed in Bangladesh comes from three main sources-
1. Domestically grown sugar which is milled by Bangladesh Sugar and Food Industries
Corporation
2. Private sector sugar refiners import raw sugar and process it
3. Imports of refined Sugar
According to different personnel of BSFIC the private refineries dominant the sugar industry
of Bangladesh and a major portion of market share is captured by them. BSFIC has a little
amount of share in the market.

33. 33
Conclusion and Future Direction for BSFIC
From the analysis of state owned Sugar Industry in Bangladesh, it is clear that this Industry is
not a successful and profitable sector. One of the main reasons is internationally
uncompetitive production price. Also the sugar industry of Bangladesh has become
significant drain on the public purse, with a high opportunity cost (in terms of budgetary
needs).
BSFIC data revealed that it has been making losses consistently. BSFIC mills is under threat
in future production because, the continuous loss and reduction of sugarcane production.
Now the government of Bangladesh is running these mills with proper subsidization for two
reasons -
1. To give support to the agricultural livelihoods, In Bangladesh more or less two
million people are directly involved in sugar production and another 3 million people
are involved indirectly. It is a great matter of concern that many jobs in this sector
which are fundamentally unsustainable and has an uncertain future.
2. During the month of Ramadan BSFIC penetrates the market with much of its stock so
that the price of the sugar can be controlled. On that time the consumption of sugar
increases greatly. Importing white sugar and releasing it onto the market at Ramadan
time, the government of Bangladesh could achieve the same outcome with price
controls, thereby saving on the subsidies required to keep the sector alive, and freeing
up the government budget for other purposes.
(SOURCE:http://www.odi.org/sites/odi.org.uk/files/odi-assets/publications-opinion-
files/6058.pdf)
Privatization of the mills:
The government of Bangladesh is in the process of privatizing several Sugar mills. There is
no evidence which can indicate that the association or disassociation of the government can
make these mills profitable. Furthermore it could be that a privately run industry would
generate more profit. Even if it did not it may be that there are other crops that could be
grown instead, in which Bangladesh could be internationally competitive, which would be a
good alternative.

34. 34
From the company analysis and understanding the following suggestions are for BSFIC-
1. By allowing the private sector to take over if internationally competitive domestic
production is viable the government of Bangladesh should disengage from sugar
production, If the government want to continue with this sector resources should be
allocated so that the sugar industry can have a better growth prospects.
Source: http://www.odi.org/sites/odi.org.uk/files/odi-assets/publications-opinion-
files/6058.pdf
2. Removing the stringent bureaucratic rules from BSFIC can make this organization
profitable.
3. Implementing state of the art technology in different Sugar mills can make them
competitive. The old machineries are not kept in good order due to lack of money as
the mills are not profitable. But without this up gradation the situation will never
change.
4. Untrained workers, poor payment structure and no work incentive are some basic
problems in the HRM practices at BSFIC. All these needs to be addressed and sorted
out.
5. In terms of Sugar Industry the lack of national self-sufficiency, there is a tendency of
importing. The government has the mechanism to utilize the Sugar Mills at its
maximum level though for unknown reasons proper initiatives are not taken.
So it is clear that the bureaucratic problem and mismanagement in HR sector makes
this heavy and large industry into losses.

35. 35
Discussion Questions
1. Do you think that there are scopes for people to work on the sugar mills if
government takes necessary steps to make this sector profitable?
2. As a group you have studied a lot more about the HR practices of BSFIC. From
your study and findings in which section of HRM practices need a reform of
BSFIC?
3. From question one, we have already understood that Sugar industry has a good
potentiality. If so then can you identify one prime reason why the mills are is loss
stage?
4. Technology is changing the world very rapidly. Is it possible to use advance
technology in these mills and bring a change on the overall scenario?
5. Performance appraisal is one of the tools to motivate the employees; do you think
BSFIC is using that tool effectively to motivate those employees of the
corporation?
6. What kinds of supportive activities are carried out from the mill authority for the
sugar cane suppliers as sugar cane is the prime source of producing sugar?
7. What do you think that is the training program is appropriate for the
employees? Are they properly motivated from here?
8. Do you think that for selection and recruitment purpose they need to be
upgraded and their process should be moderated?
9. The Compensation and pay scale is not good of BSFIC. Do you think that
government should stop this typical pay scale and compensation strategy?
10. What do you think about the ethical and fair treatment of BSFIC towards its
employees and labors?
11. Do you think that the overall HRM practice at BSFIC is good enough? If not,
what is their basic problem?
12. Sugarcane farmers also part in the HRM practices of BSFIC. If they are
properly motivated they will increase the productivity. From your research and
study what are the demoralizing factors for the farmers in terms of producing
sugar cane?
13. How important is that to get feedback from the employees regarding the HRM
practices in different sugar mills which are under BSFIC?

36. 36
14. Do you think compensation and rewards have profound effect on the
operational performance of BSFIC?
15. What other suggestions would you like to give for the better of Sugar Industry?
References:
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practices on operational performance: recognizing country and industry differences”,
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 Asif Khan, M., (2010) “Effects of Human Resource Management Practices on
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 Dessler, G.
o The Strategic Role of Human Resource Management

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o Bibliography: Dessler, G. (2014) The strategic role of human resource
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priority basis. Paper presented in the Research Extension Workshop/2004 held in
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 Hassan, M. M. (2003) Problems of sugar mills and remedial measures. Article
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o The Daily Ittefaq. 28 February ( 2004) p. 8.