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Introduction
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.
Operational Head Quarter: 13 DilkushaC/A Dhaka-1000, Bangladesh.
Factory in Bangladesh: Mukterpur, Munsigonj.
Commercial production: March, 2002
Status of Company: Privet Limited Company
Business Type: Marketing, Manufacture & Export
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 AbulKhair 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

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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.

Achievement
Shah cement is a leading cement company in Bangladesh. They have got several achievement
for their contribution in country and for their service. Their contribution margin in the
national infrastructure building is strongly reflected by the growth of the sales of every
passing year. They are always trying to overhaul themselves.
Shah Cement became the highest selling cement brand of Bangladesh cement market in its
very inaugural year of operation. Shah Cement Industries Ltd. has been certified ISO
9001:2008 for its Quality Management System (QMS). Shah Cement Industries Ltd, started
export to India from February 2005.
Shah Cement is one of the shining examples of a Bangladeshi brand which became market
leader competing with the global giants. 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.

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Corporate Social Responsibility

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.
Some other initiatives that were taken by Shah Cement as follows:
1.

Awareness on "Women education and prevention on Acid crimes in 2003."

2.

Contribution to "ProthomAlo Helping Fund" for Acid victims in 2003."

3.

Donation to the "Sandhani National Eye Donation Society in 2004."

4.

Donation to the "Ahsania Mission Cancer Hospital Fund in 2005."

Products of Shah Cement

Regarded as the standard of quality in the Bangladesh Cement Industry, Shah Cement offers
both Ordinary Portland Cement & Portland Composite Cement in two categories suitable for
any kind of construction.

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In terms of quality, clinker plays the most vital role, which comes mainly from Thailand and
also from some other parts of Asia.
The finest raw materials through the quality grinding process ensure more strength, more
durability & more workability. We deliver our products both in Bags & Bulk Carriers.
Shah Cement got another category of product and that is Ready Mix Concrete. Ready-mix
Concrete is a specialized concrete from cement, sand, crushed stone, water together with
admixture. This manufactured concrete comes straight from the mixing plant in a freshly
mixed and ready-to-use state via transit mixer. And it can be used for placing purposes
immediately. Ready-mix concrete is produced with ingredients that are measured to the right
amount through automatic computer control, maintaining the quality and contents precisely.

Competitors of Shah Cement

There are lots of competitors around Shah Cemet ltd. But there are some major player and
they are, Heidelberg cement, Meghna Cement, Seven Circle Cement etc.

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Market Share
Market Share of Major cement companies
Market Share
Shah Cement

14.2%

Heidelberg Cement

9.3%

Meghna Cement (MCML-King)

7.4%

Seven Circel BD Ltd.

6.9%

Lagarge Suma Cement Ltd.

6.7%

Holcim BD Ltd.

6.4%

Unique Cement (fresh)

6.1%

Mi Cement (Crown)

4.9%

Premier Cement

4.0%

Akij Cement

3.7%

Royal Cement

2.9%

Bashundhara Cement

2.8%

Objective
1. HRM Problems and issues currently Shah Cement is facing.
2. Approaches need to take to ensure ongoing competitive advantage.
3. HRM challenges will face in 21st century.

Human Resource Management Practice of Shah Cement

Shah Cement Human Resource Department

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Human resource management (HRM) is making the best possible use of individuals for
achieving the organizational objectives. The definition was developed in late twentieth
century; thereafter employee motivation and job satisfaction came under focus instead of
mere rational administration (Hartel, Fujimoto, Strybosh and Fitzpatrick 2007).
Human resource department in Shah Cement exist to help people and organization reach their
goals. Along the way, they face many challenges arising from the demands of the employees,
the organization, the society. The domestic and international environments are the particularly
turbulent because of the growing challenges also result from ever changing laws, especially
laws that address the need for equal employment opportunity. Within these constraints, the
human resource department of Shah Cement must contribute to the organizations bottom
line in ways that are both ethical and socially responsible.

Functions of Human Resource Division

Shah Cement has a fully functional Human Resources Division (HRD) supported by
manpower. The HRD of Shah Cement performs the following functions:

Selection and Recruitment.

Training and Development of Employees.

Compensation and Benefits Planning.

Promotion Planning.

Making Reward and Recognition Policies.

Policies for Resignation or Termination from Services.

Employee Gratuity Fund Policy Formulation.

Employee Provident Fund Policy Formulation.

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Employee Welfare Fund Policy Formulation.

Recruitment Process
Recruitment is defined as a process that seeks and obtains potential job applicants in
sufficient numbers and quality in order to fulfil the available work positions, as well
asmeeting the organizations requirements and expectations (Shen & Edwards, 2004).
For the recruitment Shah Cement use the following process.
Direct Recruitment:
Shah Cement has a CV Bank in HRD. In direct recruitment the HRD short list the CVs
from the CV Bank or collect the CVs that referred by the employees of Shah Cement for
direct interview for the specific selected post.
Through Advertisement
Sometimes the HRD of Shah Cement cant able to short list CVs for specific post from
their CV Bank. In this situation the HRD advertise of recruitment in specific post
mentioning the job description with the minimum requirement that the applicant should
have for the post. And collect CVs which are being specified according to the
requirement that has been published in the advertisement. After that the CVs will be short
listed and the recruitment procedure will go according to the direct recruitment process.

What are the HRM problems and issues facing Shah Cement Company?

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The problems that I found are on gender discrimination, training, lack of succession planning,
lack of empowerment, decentralized human resource division employee & worker
relationship, organizational environment, grievance, job satisfaction.
Lack of Recruiting Process
Recruiting Process, human resource planning, and selection policy of Shah Cement is not
standard because the manager of HRD is not capable to apply the various HRM function. In
the selection and recruiting section, the HRD of Shah Cement dont provide proper job
description in the circular. The job description for the particular position doesnt give
precisely in the recruitment circular rather its been told verbally in the interview panel.
Interview Board
The Shah Cement doesnt have proper interview board. Moreover there are rumors like the
candidates they call, they are not evaluated by their academic record or their performance, but
they are selected in the panel by the reference of the cement company employees or the
senior level personnel in the Shah Cement which is unethically wrong.
Gender Discrimination
The company does not accurately follow the performance appraisal. There is being occurs
some discrimination, nepotisms are exercised. In many situations, women employees have to
face gender discrimination in terms of promotion and for this reason, they are in the position
of glass ceiling. As a result, employees with same efficiency are given different score by
different author.

Lack of Succession Planning

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Succession Planning involves having senior executives periodically review their top
executives and those in the next lower level to determine several backups for each senior
position. This is important because it often takes years of grooming to develop effective
senior managers. But the organization has not focus yet such a succession planning.
Some employees say that extra work load in a regular basis is a common criteria of the
organization. This is the reason, the company sometime loss employees attractiveness.
HR Division
Only the head office contains HR division and all the HR activities are controlled from the
head office. For this reason, when sometimes any HR problems raised employees have to
wait for a long time to solve it. Moreover, this department is not too structured. Training
evaluation systems are not properly used or maintained.
Training
Employees training is not arranged frequently basis. As they are one of the leading company
in Cement area in so Shah Cement needs to arrange training programmes regularly.
Lack of Empowerment
Empowerment is a management practice of sharing information, rewards and power with
employees so that they can take initiative and make decisions to solve problems and improve
service and performance. In Shah Cement, lack of empowerment is visible among employees
at managerial levels.
The company is trying its best to design its HR department and function on that extent where
it can be more flexible for the employees and increase job satisfaction which can enhance
employee performance. As long as the General Administration is also tagged under the HR
Department so some administrational decision also taken by the HR like allotting cars,

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keeping record of bills and allotments, legal decisions etc. The focus is not only to define the
HR policies and practices and how they are aligned but also to determine whether the
functions are working as a replica or not.

What sort of HRM approaches do you think need to be taken to ensure

ongoing strategic competitive advantage?
According to resource-based view organizations can attain competitive advantage with the
help of value created by them which is exceptional and perfectly inimitable (Baker, 1999).
Sources like economies of scale, technology, natural resources etc. are often considered vital
towards achieving competitive advantage but resource based view states that these can be
easily imitated. In this backdrop HR practices may prove to be a major cause of sustainable
competitive advantage (Lado& Wilson, 1994).
Recruiting Process
The company have both External and Internal recruitment process. External recruitment
requires when any new post open or company need to fill its manpower. In Internal
recruitment, company can choose from its existing employees or call the headhunters for
suitable person for the position. Now, for both the categories, the interviewee had to face
written test, Viva and aptitude test. These tests are conducted by the department heads,
general managers, and sometimes by the CEO. In every interview board there is a HR official
who is the common part of the recruitment. But there are some corruptions happening, like
recruitment is done on the basis of Reference! Think this need to be changed immediately for
the ethical betterment of the company.

Standard Pay Structure

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The manager of HRD should establish the standard pay structure for the all levels of
employees of the organization in order to reduce the high turnover of employees.
Maintaining Data
The Company needs to maintain the data and has to update them as per requirement. For
maintaining data, the company used Employees information system software by which they
can maintain the related information as for example designation, department, personal
information, date of joining and resign, promotions, facilities etc. HR also can input the bills
according to the employee by the software. The manual way of maintaining data: files are
still available in the company but these needs to be automated. Though I heard they are
working with the software but mostly done manually. Technically they need to advance more.
Training
Training should be formulated in consultation with the training division in the central level
and mid-level. Arrange proper training for the employee. After training evaluation program
must be considered in significance.
Succession Planning
Make succession planning. A careful and considered plan of action ensures that the least
possible disruption to the persons responsibilities and therefore the organizations
effectiveness.
Work Environment
The working environment is quite good for the employees. The company tried their best to
provide their best. But, as the satisfaction level varies employee to employee so there may be
some employees who think that company can provide more. The facilities have proper
ventilation facility, canteen, and mosque, enough restrooms for both male and female

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employees and workers. There is also a garden where employee can take rest or entertain
themselves. For the drivers, there is a place where they can entertain themselves by watching
television or taking nap. Usually, the employees need to stay 10 hours in the facility.
Decentralized HRD
The Human Resource Divisions control must be structured. It should not be in a centralized
way, because it makes the activity of the HR activities very slow. Decentralizing the HR
division will sure make a great difference.
Increase empowerment
The extent of empowerment enjoyed by people at various levels of the organization enables
each employee from the very bottom to the top, to contribute to the overall momentum of the
companies.
There has been an issues that, the drivers can get into the office more frequently without any
notice or proof. So, an identity card for the employees driver need to give so that the
administration can monitor any illegal things. After all they are not the employees!

What HRM challenges will Shah Cement face in the 21st century?
There many challenges to HRM in 21st century like decentralization, staff mobility, drain
toPrivate sector, work force, corruption. Over the last two decades there has been an
unprecedented increase in the number of organizations. Those who are not able to keep pace
with the changes are destined to lose the race. The international movement of labor that has
been concomitant with such expansion of international business has meant that issues
associated with the management. Dimensions of workplace diversity include, but are not
limited to: age, ethnicity, ancestry, gender, physical abilities/qualities, race, sexual
orientation, educational background, geographic location, income, marital status, military

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experience, religious beliefs, parental status, and work experience. This shift in philosophy
has to be ingrained in the managerial framework of the HR Manager in his/her planning,
organizing, leading and controlling of organizational resources.
Shah Cement may face some barriers in the 21st century to run their business effectively and
efficiently. The prospect challenges of Shah Cement as well as some recommendations are
given below:
The HRM practices are not satisfactory level in Shah Cement Company Bangladesh that
leads poor satisfaction of employees. Employees are dissatisfied about human resource
planning. Shah Cement should have the right process to forecast the demand and supply of
human resources, to estimate the external supply and to match proper demand and supply.
Working environment is always an important variable of employee satisfaction. Congenial
working environment provides additional satisfaction toward work; conversely, irrigative
working environment creates problem to do the work simply. However, in the 21st century if
employees are not satisfied with their working environment the productivity level will
decrease as well as the company may face unrest. It is recommended that Shah Cement
should ensure proper working environment for their employees.
The organization may also face barrier if they found dissatisfaction among employees on
compensation policy. It is suggested that Shah Cement should maintain a structure for
compensation policy to grab and retain valuable human capitals.
Therefore, this study suggests that Shah Cement should develop proper human resource
policy and give emphasis on proper human resource practices to enhance the satisfaction of
their employees and building them effective human resource.

Recommendation

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As a suggestion, the company must focus on as practical. The company needs some strategy
as efficient. I believe that recruitment process can be stricter, less gender discrimination, more
employee empowerment. Though it looks strict but internally some unethical activity goes on
as I mentioned. Apart from that, data maintenance should be more careful and technological
updates have to be there. Shah Cement has got everything like, technologies and all, but there
performance towards those activities seems not satisfactory. Proper training has to be there
for any sort of up gradation. And finally, the security system has to be specific; after all its a
Cement company.

Conclusion
Human Resource Management always acts to bring out effectiveness, to
develop quality and to also meet all the demand of the work force. In doing this
recruitment and selection is one of the pillars of HRM, performs both of the
company and for the employee. Shah Cement plays a vital role in the industry
as well as in the national economy. Healthy growth is likely to encourage the
cement companies to introduce newer research products, while at the same time
maintaining a healthy competitiveness. So, it is a great responsibility for Shah
Cement cement to concentrate on quality product and quality service to take this
industry further success.

References

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Hartel, C.E.J., Fujimoto, Y., Strybosch, V.E., and Fitzpatrick, K. (2007), Human
Resource Management: Transforming Theory into Innovative Practice, Frenchs Forest,
NSW:Pearson Education Australia.
Baker, D. (1999). Strategic human resource management: performance, alignment,
management. Library Career Development, 7(5), 5163.
Lado, A. A., and Wilson, M. C. (1994). Human resource systems and sustained
competitive advantage: A competency-based perspective. Academy of Management Review,
19(4), 699727.
Mcginnicle, J.P., Jameson,S.M.,(2000). HRM in Hotels: focus on commitment.
Employee relations journal, 22(4),403-422.
Shen, J., & Edwards, V. (2004). Recruitment and selection in Chinese MNEs. The
International Journal of Human Resource Management, 15(4), 814 835.
Annual Report of Shah Cement
Research Report: Cement Sector of Bangladesh, IDLC Finance LimitedDate: April
05, 2011.