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Analysis of Human Resource Policies and Practices of

Aftab Automobile Limited

SUBMITTED TO:
Mr. Sheikh Abdur Rahim

Director & Lecturer

School of Business Studies

Southeast University

SUBMITTED BY:
Md. Shahnewaz Khan
ID: 2020110000001
Course Name: Human Resource Planning
Subject Code: 425
Sec: 1
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Executive summary
Aftab automobile limited is one of the largest and renowned automotive industry. It’s a sister
concern company of NAVANA group that is also renowned company in Bangladesh. Aftab
automobile company assembling TOYOTA, Land cruiser, Hino bus. These are Highly acceptable
in our country. AAL in listed Dhaka stock exchange Dhaka Stock exchange in 1987 and
Chittagong stock exchange in 1996.The mission of the AAL is giving quality full product and give
after sales service and the vision is become a one the leading automobile company in
Bangladesh. AAL has many strengths because it's a sister concern It of NAVANA group. Aftab
Automobiles is following differentiation strategy A company that competes by offering unique
products that are widely valued by customers is following a differentiation strategy, product
differences might come from exceptionally high quality, extra ordinary service, innovative
design, technological capability or an unusually positive brand image.
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Table of Contents

1. Introduction 4

2. Mission and Vision 5

3. Policies and Practices 6-9

4. Conclusion 9

5. References 10
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Introduction:
In automotive industry in Bangladesh manufacturing auto rickshaw and locally design three
wheeler motor vehicle. There are number of vehicle assembling industry in Bangladesh these
are Pragoti motors, Bangladesh machine tools factory Aftab Automobile industry, TATA motors
Bangladesh, Walton Hi-tech industry etc. These industries are effective assembling high quality
cars, truck, buses, motor bike etc. Aftab Automobiles Limited (AAL), a sister concern of NAVANA
Group, is a famous organization in automobile marketing in Bangladesh. The only vehicles
automobile company assembling TOYOTA Land Cruiser Prado, HINO Bus, HINO Mini Bus/ Truck
for Bangladesh market since 1981.Its only vehicle assembling company of the private sector in
Bangladesh and enlisted in the Dhaka Stock exchange in 1987 and Chittagong stock exchange in
1996. This is a modern, flexible & the most efficient assembly plant in Bangladesh with annual
capacity of 1,200 units (per shift) of jeeps, pickups, four-wheelers, minibuses, mini-trucks, bus,
and truck chassis. Aftab Automobiles has automotive battery (from small little cars to big
Lorries, trucks, buses etc.) plus Ips and Ups. Actually this company established for assembling
cars and

Head office: 125/A MOTIJHEEL COMMERCIAL AREA DHAKA, 1000 BANGLADESH

Factory: FOUZDERHAT HEAVY INDUSTRIAL ESTATE CHITAGONG, BANGLADESH

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Mission:

Mission of the aftab automobile is "WE GIVE YOU THE QUALITY, QUALITY GIVES YOU THE
GUARANTEE" and that is, "BECAUSE WE CARE FOR YOU" and for which we offer our customers
a very special personalized after sales-service with absolute and non-compromising "QUALITY"
with "CONFIDENCE’’

Vision:

1. Global business has changed rapidity so Aftab automobile worked hard to adapt to
change.
2. We want to produce high efficiency cars and bus for our country.
3. AAL dedicate their service for our nation throughout their participation.

Goal:

As a largest private automobile company Aftab automobile company in Bangladesh has a

goal. Their goal is 'To be the No. 1 in the transport sector of the Country. That's why they
are working from 1981 and delivering high efficiency HINO bus all over the Bangladesh.
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Policies and Practices

 Human resource and skill requirements related to the emerging trends in the industry

Several emerging trends are seen in the Automotive Industry in Bangladesh. These
trends will in turn give rise to the corresponding human resource and skill
requirements. For example, more number of electronics engineers will be needed to
work on the increasing electronic content of vehicles, design engineers will need to
work on complicated engine designs, and design as well as manufacturing personnel
will be needed for hybrid vehicles. Similarly, personnel to work on the emerging
regulatory trends will be needed – for example, design engineers will need to have
advanced knowledge of emission and safety regulations. This will also lead to increasing
human resource and skill requirements at the supplier’s end.

 Increasing cost of human resources due to the advent of foreign players

With the advent of foreign players in the OEM space and with the demand-supply
situation w.r.t. skilled human resources in the Automotive Industry in Bangladesh being
as it currently is, personnel currently employed at OEM’s / Tier I suppliers are found to
be “industry-ready” and they are thus being attracted by the foreign players into their
Proceedings of the 1st International Conference on Industrial and Mechanical
Engineering and Operations Management (IMEOM), Dhaka, Bangladesh. © IEOM
Society International fold. Thus a major challenge currently being faced by OEM’s / Tier
I suppliers, is retaining their skilled employees, thus leading to increasing cost of human
resources.
 Increasing recruitment of graduate engineers

A recent trend seen in the Automotive Industry in Bangladesh is the recruitment of BSc
graduates at the same level as Engineering varsities or diploma engineers. It is observed
that BSc graduates are able to adapt to the manufacturing environment and learn
quickly – they need to be given the same amount of training (6 months to one year)
that is generally provided to fresh BSc or diploma engineers. Also, the attrition of
diploma engineers for higher studies is not found in BSc graduates. Going ahead, as the
Auto Industry further focuses on the design and development function, science
graduates may also be required in the design and development field (e.g. chemists /
physicists may be required in companies that produce castings / forgings).
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 Shortfall of human resources in vehicle design and styling functions

Styling of vehicles is a key competitive advantage for OEM’s, but at the same time
styling and design capabilities are significantly lacking in Bangladesh – this is why most
auto OEM’s in Bangladesh depend upon design houses abroad for styling of the vehicles
being developed by them. With the increase in product development activity in
Bangladesh, the need for developing design capabilities in the country is increasing
dramatically. This is also being driven by the need for developing vehicles as per the
tastes of fast growing local and Asian markets. The Bangladesh’s OEMs over the years
have set up in-house design centers for enhancing their capabilities to develop products
to suit customer choices which are fast changing. The global OEMs have also felt the
growing need for developing vehicles as per local requirements and have started
setting up design houses in Bangladesh. The focus on developing vehicle design
capabilities in Bangladesh is driving the need qualified manpower with the requisite
capabilities. Availability of qualified and talented vehicle designers is being considered
as one of the biggest bottlenecks in designing vehicles in Bangladesh. The supply side is
also currently limited, with the Master in Design course being offered by some
Engineering college. However, in order to build competencies of global levels,
continuous availability of a large pool of qualified and talented designers will be
necessary.

 Increase in human resource requirements for vehicle financing and vehicle insurance

Vehicle financing and vehicle insurance are underlying support systems for the
Automotive Industry in Bangladesh and these may be considered as the enablers of
growth of the Automotive Industry. The enabler segments are associated with
providing indirect employment to personnel in the Auto Industry.

 Increasing proportion of women in the workforce

The Automotive Industry in Bangladesh is characterized by maximum proportion of the

workforce being male. Women employed in the Auto Industry in Bangladesh, are
mainly employed in functions such as design, HR, finance and in support office
functions. This has primarily been the case due to the low availability of women who
take up courses such as mechanical engineering in college. Companies, especially auto
OEM’s and Tier I suppliers, are making a conscious effort to increase the participation of
women in the workforce, including in the core operations function. Whether or not
women will participate in the operations workforce though, remains to be seen.
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 Skills that will be required due to the upcoming

Inspection and Maintenance Regime Mandatory inspection and maintenance

regulations, including vehicle scrapping norms for old vehicles since they contribute to
a larger portion of carbon dioxide emissions are expected to come into being in the
near future. These norms will help implement stricter safety and emission regulations
and will in turn lead to employment in certain new areas covering the vehicle scrapping
chain. For example, the role of car dealers will diversify as they will additionally serve as
intermediaries between the customer and the scrapping industry. There will be an
increased need for dismantlers, scrap dealers and vehicle cutters and the absolute
number of these units as well as the employment at existing units will correspondingly
increase. Other agencies involved will include OEM’s, insurance agencies, RTO’s etc.
and these agencies will need separate personnel for vehicle scrapping related work or
will need to train their existing personnel specifically for this purpose.

 Multi-product integrated dealerships and the corresponding need for multi-skilled

sales and service personnel

Proceedings of the 1st International Conference on Industrial and Mechanical

Engineering and Operations Management (IMEOM), Dhaka, Bangladesh. © IEOM
Society International Currently in Bangladesh, OEM’s have their own dealerships that
sell cars of only of one particular OEM - thus a Tata passenger car dealer is an exclusive
Tata dealer and will not sell passenger cars of, say, Hyundai. This situation is expected
to undergo a change in the near future, with multi-brand car sales dealerships setting
up base. Carnation Auto plans to retail new as well as used cars of different brands
under the same roof. Such an initiative is expected to bring about a sea-change in the
way cars are sold currently by making available one-stop solutions to customers and
also allowing them to compare new cars at a single location. Such an initiative is
expected to lead to the need for multi-skilled sales and service personnel who are able
to sell as well as service multiple car models and brands with the same efficiency. 6.9
Organized used car industry The used car industry in Bangladesh has traditionally been
unorganized, and has been characterized by small players buying and selling vehicles
and direct seller-to-buyer interaction. This scenario is already changing, with the advent
of players such as Maruti True Value and Mahindra First Choice. The organized used car
market provides several advantages to the end-customer - since vehicles purchased by
used car dealers are thoroughly tested and valued accordingly, customers can be more
sure of the quality of the product bought from used car dealers as against from
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unorganized players. The further proliferation of used car dealerships is also expected
to expand the need for certain skill sets in the industry – for example, a greater number
of personnel are in demand for testing, inspecting and valuing used cars, sales
personnel are expected to not only sell used cars but also to aid in purchasing used
cars, drivers are required for test-driving used cars, etc.

 Additional training of service personnel

With the aim of increasing personnel efficiency, a vigorous personnel-training program

could be implemented on a periodic basis. Such an implementation presumably would
decrease rework and excessive “work in process”. These decreases would then improve
utilization of resources, reduce waiting time of the customers, and thereby improve the
overall productivity, labor efficiency, and customer satisfaction.

 Hiring additional service personnel

The number of bays cannot be increased due to space constraints, but in this scenario
additional employees would be hired on a permanent basis. From a deterministic
spreadsheet model, the investigators identified major repairs as the bottleneck; an
additional employee already having the required skills to undertake such repairs could
be hired. With the help of the additional worker, the process would presumably flow
more smoothly than before, and this alternative should also reduce excessive WIP as
well as overburden on employees. It could also be expected to improve customer
satisfaction by reducing waiting times.
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Conclusion
This paper provides an empirical review of HR Policies and practices and in the automotive
context. It also suggests that managing with a high-involvement orientation is associated with
positive consequences for individuals and organizations within the automotive industry. The
results from this study provide support for the role of employee level psychosocial outcomes as
mechanisms between HRM practices and employee performance, supporting an idea that is
often discussed but rarely tested in the literature. These results need to temper by the fact that
this meta-analysis was based on a relatively small number of studies in one industrial sector,
thereby limiting the generalizability of the model. In addition, this paper is not espousing the
view that technologically-focused systems are of little value in automotive industries, but rather
that taking a more humanistic approach to how they are implemented may benefit all parties
involved. The results offer guidance to researchers and practitioners interested in researching
and managing the human side of automobile manufacturing.
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