Hr Practice in Ready Made Garments Industry
Term Paper: HR Practice In Ready Made Garments Industry (Panorama Apparels Ltd. & Millennium Garments Ltd. ) TABLE OF CONTENTS Executive Summary 5 Introduction 6 Methodology6 Scope & Limitation 8 Formal Report (Company A) 9 About The Company9 Size & Activities of HR Department 9 Their Overall HR Practice11 Recruitment 11 Selection 14 Training & Development 15 Compensation Policies & Practices17 Performance Appraisal21 Formal Report (Company B)22 About The Company22 Their Overall HR Practice22 Size & Activities of HR Department 23 Recruitment 24 Selection 24 Training & Development 24
Compensation Policies & Practices25 Performance Appraisal26 Findings27 Recommendation 29 Conclusion 29 Appendix 30 Executive Summary: In this term paper we tried to focus of the HR practice of RMG sector in Bangladesh. We conducted survey in two garments (Panorama Apparels Ltd. & Millennium Garments Ltd. )& we tried to find out their overall practice. In this study report, we have tried to include all the factors we thought essential for previously mentioned title. We have analyzed the factors based on managerial theories & managerial key functions with the proposed options. e also tried to find out there is any problem with our little HR knowledge we learned from this course. Introduction to the Report: This report is prepared as a requirement of the course “Human Resource Management We selected MILLENNIUM GARMENTS LTD & PANORAMA APPARELS LTD. working on these organizations we came to know various Kind of HRM practice which are use here. In this report we have followed the guidelines provided by the teacher. Here we have tasked not only the HRM practice but also the marketing, management, finance and operational area of the Company.
The broad objective of this report is to provide an overview of HRM practice in Garments Sector of Bangladesh. The specific objectives of this report are: • To provide Company overview • To provide market overview and analysis • To reveal operational, management and HRM planning. • Discuss all HRM practice Methodology: We conducted a sample survey with a questionnaire (see appendix) . We provided our copies of questionnaire among the random samples employees & workers & collected after they had filled it up with their comments.
To prepare this report we have collected data from different published materials. Then we have conducted a secondary study. After that we have prepared a questionnaire and took interview one of the executive serving in this Company. We also collect data from internet. This way we collected primary data. Thus we have used both primary and secondary report to prepare this report. With our survey & interview results we found some key points that are discussed in the next section. Scope & limitation: Actually we have collected information by primary and secondary data.
During collecting information we have faced some problems. When we went at garments, we had to wait many times for collecting information. And we search internet, internet speed is very low. Another point is that lab computer does not work properly. We have analyzed the factors based on managerial theories & managerial key functions with the proposed options & the events though few things might be omitted due to our limited knowledge & access of information. We are always prepared to provide any kind of information or documents to you on your demand.
Formal Report Company A (MILLENNIUM GARMENTS LTD. ) a) About the company Millennium Garments Limited was established with a vision to build a premium garments house to rival the finest in South East Asia. The Company was established in September of 1998 by purchasing and taking over an existing garments company which had been running since 1992. Millennium Garments Limited specializes in the manufacture of high quality men’s shirts. The company’s brand new machinery include highly specialized equipment needed in the productive’ of high quality shirts.
Millennium Garments also takes orders for padded quilted shirts ladies’ dress, pajama sets and robes. The company currently exports its garments to its customers in Canada, Germany, Belgium and Netherlands. Factory Product is 100% export orientated ready-made garments from woven fabrics, Production Capacity 150,000 pieces/month. 1223 employees are working in this organization the company is located in Delwar Complex (5th to 9th Floor) 26, Shahid Nazrul Islam Avenue, Dhaka 1203, Bangladesh. b) Size & activities of HR Department Human resource planning MILLENNIUM GARMENTS LTD. as a personal and administrative Department. MILLENNIUM GARMENTS LTD. is one of the biggest employers in Bangladesh. The total number of employers in Bangladesh. The total number of employees is 1,223. For the employees there is systematic in house training in home and abroad. To motivate the employees, along with salary and benefits the company provides various facilities like free meals , free transportation , 24 hour medical center , on site sports . A production and accommodation facility includes full time supply of safe drinking water, adequate lighting and ventilation facilities from sheet.
The entire management process comprises the following units: Executive Management: The Managing Director, the CEO is the head of the Executive Management Team which comprises senior members of the Management Apparatus. Within the limits of delegated authority and responsibility by the Board of Directors, Executive Management operates through further delegation of authority at every echelon of the line management. The executive Management operates within the framework of Policy & Planning strategies set by the Top Management with periodic performance reporting for guidance.
The Executive Management is responsible for preparation of segment plans / sub – segment plans for every profit centers with budgetary targets for every items of goods & services and are held accountable for deficiencies, with appreciation for outstanding and exceptional performances. These operations are continuously carried out by the Executive Management through series of Committees, sub – Committees, Committees & standing Committees assisting the line management. Standing Committee: Standing Committee comprises the following committee: Audit Committee: • Internal Audit Committee ISO Audit Committee • Social / Environment Committee • Performance Evaluation Audit Committee Employment Relations Committee: • Remuneration Committee • Work Environment Committee • Performance Evaluation Audit Committee Management Committee: • Product Planning & Development Committee • Quality Control & Research Committee • Production & Inventory Management Committee • Export Promotion Committee c) Their Overall HR Practice: HR Practices of MILLENNIUM GARMENTS LTD. Recruitment Training Performance Management Labor relation Employee relation Job analysis Job design
Selection Development Incentives Benefits d) Recruitment Recruitment is the process trough which the organization seeks applicants for potential employment. Selection refers to the process by which it attempts to identify applicants with the necessary knowledge, skills, abilities and other characteristics that will help the company achieve its goals, companies engaging in different strategies need different types and numbers of employees. The strategy a company is pursuing will have a direct impact on the types of employees that it seeks to recruit and selection.
Source of recruitment There are two kinds of source Millennium Garments Ltd. uses for recruitment . They are 1. External source 2. Internal source. We try to discuss all relative sources which are used for recruitment in Millennium Garments Ltd. Internal source Millennium Garments Ltd. thinks that current employees are a major source of recruits for all but entry-level positions. Whether for promotions or for ‘Lateral’ job transfers, internal candidates already know the informal organization and have detailed information about its formal policies and procedures.
Promotions and transfer are typically decided by operating managers with little involvement by HR department. Job-posting programs HR departments become involved when internal job openings are publicized to employees through job positioning programs, which informs employees about opening and required qualifications and invite qualify employees to apply. The notices usually are posted on company bulletin boards or are placed in the company newspaper. Qualification and other facts typically are drawn from the job analysis information. Departing Employees An often overlooked source of recruiters consists of departing employees.
Many employees leave because they can no longer work the traditional 40 hours work week . School, child care needs and other commitments are the common reason. Some might gladly stay if they could rearrange their hours of work or their responsibilities . Instead, they quit when a transfer to a part-time job may retain their valuable skill and training. Even if part-time work is not a solution, a temporary leave of absence may satisfy the employee and some future recruiting need of the employer. External source When job opening cannot be filled internally, the HR department of MILLENNIUM GARMENTS LTD. ust look outside the organization for applicants. We discuss all the external source of recruitment at bellow: Walk-ins and Write-ins: Walk-ins are some seekers who arrived at the HR department of MILLENNIUM GARMENTS LTD. in search of a job; Write-ins are those who send a written enquire . both groups normally are ask to complete and application blank to determine their interest and abilities. Usable application is kept in an active file until a suitable opening occurs or until an application is too old to be considered valid, usually six months.
Employee referrals: Employees may refer job seekers to the HR department . Employee referrals have several advantages . Employees with hard –to –find job skill may no others who do the same work. Employee’s referrals are excellent and legal recruitment technique, but they tend to maintain the status quo of the work force in term of raise, religions, sex and other characteristics, possibly leading to charges of discrimination. Advertising Want ads describe the job and the benefits, identify the employer, and tell those who are interested how to apply .
They are most familiar form of employment advertising . for highly specialist requites, ads may be placed in professional journal or out of town newspaper in areas with high concentration of the desired skills. Example: General Manager- production (ref: PM) -Age: 28-35 years; Graduate with specialization in garment mfg technology from NIFT or equiv. -Minimum 10 years experience in similar position of a unit with a minimum of 1000machines. -Must have detailed hands on knowledge of industrial engineering. We offer competitive salary which is commensurate with experience and qualification.
If you aspire to an exiting and rewarding career, send your detailed resume, quoting your present and expected salaries to jobs. Internet Now today no body thinks anything without internet. So MILLENNIUM GARMENTS LTD. give their advertisement at internet. Example:www. bdjobs. com , www. millennia-bd. com e) Selection: The HR department informed us that their tests of selection are valid by for their own garments. They usually test cognitive abilities for higher officials & test of motor abilities for workers . They also work simulations. After successful reference checks the HR Department selects employees. ) Training & Development Training is a process of learning a sequence of programmed behavior. It is application of knowledge. It gives people an awareness of the rules procedures to guide their behavior. It attempts to improve their performance on the current job or prepare them for an intended job. Development is a related process. It covers not only those activities which improve job performance but also those which bring growth of the personality; help individuals to the progress towards maturity and actualization of their potential capacities so that they become not only good employees but better men and women.
In organizational terms, it is intended to equip person to earn promotion and hold grater responsibility. There are many types of method practices in MILLENNIUM GARMENTS LTD. we discuss that method at bellow: On the job training On the job training is a training that shows the employee how to perform the job and allows him or her to do it under the trainer’s supervision On the job training is normally given by a senior employee or a manager like senior merchandiser or a manager. The employee is shown how to perform the job and allowed to do it under the trainer’s supervision. Job rotation
Job rotation is a training that requires an individual to learn several different some in a work unit or department and performer each job for a specified time period. In job rotation, individuals learn several different job within a work unit or department. One main advantages of job rotation is that it makes flexibilities possible in the department. When one employee like junior merchandiser absence another merchandiser can easily perform the job. Apprenticeship training Apprentices hip training provides beginning worker with comprehensive training in the practical and theoretical expect of work required in a highly skilled occupation.
Apprenticeship program combined of the job and classroom training to prepare worker for more than eight hundred occupation such as computer operator, sewing technician. Length of selected apprenticeship courses of MILLENNIUM GARMENTS LTD. Occupation length (months) 1. Quality control manager 13 2. Quality control officer 15 3. Cutting Astt. Manager 7 4. Packing Astt. Manager 7 5. Ware house Astt. Manager 5 6. Production officer 3 7.
Sewing technician 5 8. Sewing Supervisor 5 Classroom training Classroom training is conducted off the job and probably the most familiar training method . It is an effective means of imparting information quickly to large groups with limited or no knowledge of subject being presented. It is useful for teaching factual material, concepts principle other theories . portion of orientation programs, some expects of apprenticeship training and safety programs are usually presented utilizing some form of classroom instruction.
More frequently however, classroom instruction is used for technical, professional and managerial employee Development of the human resources The long term development of human resources as distinct from training for a specific job is of growing concern to HR departments of MILLENNIUM GARMENTS LTD. Through the development of current employees the department reduces the company’s dependents on haring new workers . if employees are developed properly the job openings found throw HR planning are more likely to be filled internally promotions and transfers also show employees that they have a career not just a job.
The employee benefits from increased continuity in operations and from employees who fail a greater commitment. HR department is also an effective way to meets several challenges including employee obsolescence, international and domestic diversity, technical challenges. Affirmative action and employee turn over. By meeting these challenges the department can, maintain an effective workforce. g) Compensation policies & practices : Incentives Compensation fluctuates according to – A pre-established formula – Individual or group goals because group goals are different from individual goals – Company earnings
Incentives adds to base pay It controls costs because the employee is being paid for his/her extra effort and for the benefits brought to the organization. & Motivates employees Incentive Pay Categories Individual , Group, Company-wide Individual incentive plans – Quantity of work output (How many units produced) – Quality of work output (What was the quality of the product or service being produced or served) – Monthly sales (How much sales was generated) – Work safety record (How many hazard or errors are being reduced. – Work attendance (If the absent is reduced or attendance is good) Group Incentive Plans Rewards employees for their collective performance • Group incentive use has increased in industry • 2 types – Team – based or small group – Gain sharing Company-Wide Incentive Plans • Rewards employees when company meets performance standards • 2 Types – Profit sharing plans – Employee stock option plans Legally required benefits of MILLENNIUM GARMENTS LTD. • Social Security – Social security benefits include the general benefits like unemployment insurance & benefits, old age insurance, and Medicare facilities. • Workers’ Compensation Worker’s compensation includes the compensation when an employee becomes injured or disable due to extreme working conditions or while working at the job site. • Family & Medical Leave – Family leave includes the compensation continuation during the family leave such as maternity or paternity leave and other family leave. • Old age, Survivor, Disability Insurance requirements for getting compensation: – Earn 40 quarters of credit, or – Be employed for 10 years – Be age 62 for partial benefits – Be age 65 for full benefits – Now the age has been extended to age 67 because more and more workers are retiring late. Widow aged 60 + Medicare Depends on the country’s policy, Medicare facilities are generally government services to citizens. Organizations add some value to Medicare facilities. In some countries Medicare is financed together by employees’ tax, employers and the government. Provided insurance coverage for – Hospitalization – Covers inpatient & outpatient hospital care & services. – Major Doctor bills – Charges of visiting a doctor or specialist. – Prescription drug costs. – Provides unlimited in-home care in certain situations. Workers’ Compensation Workers’ compensation is a legally required benefit is included in the compulsory disability laws of many countries. Mostly, employer is seen liable regardless of the fault. • Workers’ compensation claims – Injury – Occupational disease – Death • Workers’ compensation benefits – Medical services – Disability income – Death benefits Discretionary Benefits • Discretionary benefits are judgment based benefits that the organization provides to its employees. These benefits are not legally required benefits but enhances organizational culture and corporate image. • Benefits include: – Protection programs Pay for time not worked – Other services Pay for time not worked • Holidays• Vacations• Funeral leave • Marriage leave• Sick leave• Stress leave • Blood donation or welfare work• Personal leave h) Performance Management Performance appraisal is the process of assessing employee’s past performance, primarily for reward, promotion and staff development purposes. Performance appraisal (is) a process that identifies, evaluates and develops employee performance to meet employee and organizational goals. Performance Appraisal doesn’t necessarily use to blame or to provide a disciplinary action.
Previous management theories used to view performance appraisal as a stick that management has introduced to beat people. Performance appraisals are now more clarified and they concentrate on developing organizational strengths and employee performance. Purpose of Performance Appraisal in MILLENNIUM GARMENTS LTD. To review past performance To assess training needs To help develop individuals To audit the skills within an organization To set targets for future performance To identify potential for promotion To provide legal & formal justification for employment decision To diagnose the hidden problems of an organization
Performance Appraisal Process Who Appraises • Supervisors • Subordinates • Peers• Clients/customers • Self appraisal Approaches to measuring performance in MILLENNIUM GARMENTS LTD. There are various kind of method for measuring performance appraisal. But we get information that MILLENNIUM GARMENTS LTD. uses only three type of performance method. These are at below: 1. 360- degree feedback 2. Experience based. We describe those at below: 1. 360-degree feedback One currently popular methods of performance appraisal is called 360-degree feedback.
With this method managers peers, suppliers or colleagues are ask to complete questionnaire. The questionnaire is generally lengthy. 2. Experience based MILLENNIUM GARMENTS LTD. measures the performance of employee by experience. For example MR. X has been working in MILLENNIUM GARMENTS LTD. for three years and MR. Y has been working in MILLENNIUM GARMENTS LTD. for two years. So MILLENNIUM GARMENTS LTD. favor MR. X for his more experience. Company B (Panorama Apparels Limited) a) About the company Panorama Apparels Limited was established to build up a profit and export.
The Company was established in 1991 by purchasing and taking over an existing garments company. Panorama Garments Limited specializes in the manufacture of high quality men’s shirts. The company’s brand new machinery includes highly specialized equipment needed in the production of high quality shirts. The company currently exports its garments to its customers in USA and Europe. The garments Product are export orientated as well as local market base ready-made garments from woven fabrics, Production Capacity 280000 pieces/month. 550 employees are working in this organization he company is located in Gazipur. ) Their Overall HR Practice Their overall HR practice started in 1995, before that they didn’t have any separate HR department. HR manager control the garments to do better in future. HR manager takes final decision regarding employee recruiting, screening, training, rewarding and appraising. On the basis of our report we can say that their hr practice is very much effective. Recruitment & Selection: The HR department uses their own tests for recruitment & Selection. Training: they have training centre for the new employees. If any employees join in this company they need some basic training.
Performance Management: when any employees perform well then they get some rewards from company. It is manage by HR manager. Employee relation: in this company’s employees and superior have good relationship with each other. Employees also respect their superior. Employees have also good relationship with their same level. Job analysis: the HR manager doing job analysis by employees performance and he also gives some duties to employees. Job design: The HR manager also design job structure which is most appropriate for the company to achieve the company’s goal. Incentives: they provide some incentives for employees. ) Size & activities of HR Department Management: The entire management process comprises the following units: Executive Management: The executive management is special employment agencies retained by employers to seek out top management talent for their clients. Within the limits of delegated authority and responsibility by the Board of Directors, Executive Management operates through further delegation of authority at every echelon of the line management. The executive Management operates within the framework of Policy & Planning strategies set by the Top Management with periodic performance reporting for guidance.
Management Committee: In this garments management committee is very much conscious about Product Planning, quality control, production inventory and export promotion. The garments try to improve their product quality and innovate new products and services what they did before now they are improving very much day by day. Management committee plays very helpful role to reach theirgoal. [pic][pic][pic]Panorama Apparels ltd. Human resource management Human resource management Mr. Abdul Ohab is the human resource manager of this garment.
The policies and practices involved in carrying out the people or human resource aspect of a management position, including recruiting, screening, training, rewarding and appraising Human resource planning Panorama Appeals Ltd. has a personnel management and administrative Department. The total number of employees is 550. For the employees there is systematic in house training in home and abroad. To motivate the employees company provides various facilities like free meals, free transportation, picnic, yearly entertainment facilities, on site sports . nd also salary pay within 5th – 8th day of each month. d) Recruitment: They recruit employees by taking interview. They follow some sources to recruit employees which are – i) Internal source ii) External source e) Selection: the board of directors selects the employees by taking interview. The board of director collects the information from the HR manager. f) Training & Development The company arranges some training and development programs in every year. It is application of knowledge. It gives people an awareness of the rules procedures to guide their behavior.
It attempts to improve their performance on the current job or prepare them for an intended job. Development is a related process. It covers not only those activities which improve job performance but also those which bring growth of the personality; help individuals to the progress towards maturity and actualization of their potential capacities so that they become not only good employees but better men and women. Method of training and development program: a) On the job training b) Job rotation c) Apprenticeship training d) Classroom training g) Compensation policies & practices
Employee benefits & services were formerly known as fringe benefits and these benefits were primarily the in-kind payments employees receive in addition to payments in the form of money. In addition to paying employees fairly and adequately for their contributions in the performance of their jobs, organizations assume a social obligation for the welfare of employees and their dependents Employees benefits are usually inherent components of the non-compensation system are made available to employees that provide: – Protection in case of health & accident Income upon retirement & termination These benefits are components that contribute to the welfare of the employee by filling some kind of demand. Incentives Incentives is very much helpful for motivating employees. Incentives add to base pay. It controls costs because the employee is being paid for his/her extra effort and for the benefits brought to the organization. Incentive Pay Categories -Individual -Group -Company-wide h) Performance Appraisal: Performance Appraisal means evaluating an employee’s current and/or past performance relative to his or her performance standards.
Performance appraisals are now more clarified and they concentrate on developing organizational strengths and employee performance. Purpose of Performance Appraisal in Panorama apparels LTD To set targets for future performance To identify potential for promotion To provide legal & formal justification for employment decision To diagnose the hidden problems of an organization Performance Appraisal Process: They conduct the performance appraisal interview twice a year. Who Appraises • Supervisors • Subordinates • Peers• Clients/customers Approaches to measuring performance in Panorama apparels LTD.
There are various kind of method for measuring performance appraisal. But we get information that Panorama apparels LTD. uses only two type of performance method. These are at below: 1. 360- degree feedback 2. Experience based. Findings: We conducted simple random sampling both in Millennium Garments & Panorama Apparels. We also used direct observation method to collect the data. After that we used statistical analysis. We found that 80% employees of Millennium are satisfied, 10 % not satisfied & 5 % refused to say any comment [pic] Fig1. 1 Satisfaction Level of Millennium Garments Workers
And in case of Panorama Apparels we found that 70% of the employees are very satisfied with the current compensation policy& other facilities, 10% said that they are not satisfied & 20% said refused to make any comment. [pic] Fig1. 2 Satisfaction Level of Millennium Garments Workers [pic] Fig1. 3. Turnover rate of Millennium & Panorama With the last five years data we founf that turnover rate is higher in Panorama Apparel that of Millennium Garmnts. Panorama Apparels use 75% of internal source (e. g. employee referrals) & 25 % from External source (e. g. Advertising, Internet etc. ) for job recruitment. pic] Fig1. 4 Recruitment source of Panorama Apparels Ltd. On the Other hand Millennium Garments use 40% of internal source & 60% from External source for job recruitment. [pic] Fig1. 5 Recruitment source of Millennium garments Ltd. Recommendation: From the analysis with the organization structure of Millennium Garments Ltd. we have seen that p of super vision is too large. A number of departments report directly to the general manager. If the number were less the efficiency and productivity of the organization might be increased. Quality control department should remain prompt always.
So that it can maintain a certain level of standard as per the market demand to capture the foreign market share it should strive more. Turn Over rate in very high in Panorama 25%, also employees talked openly about their dissatisfaction which indicates that they have to redesign about incentive policies. Conclusion: Bangladesh is a hotbed of garments manufacturing, now ranking fourth in the list of garments exporting nations. Unfortunately, the country, as a whole, has been unable to break into the arena of high fashion as most of its exports cater to the lower end of the clothing hierarchy.
The flourishment of any industry requires combined efforts and co-operation from several parties. Social, political and macro economic environment play pivotal role in this regard. Through successful HR management practice in this respective sector, many labor issue problems can be solvedIf it can up hold it’s much toward advancement, it will be able to set a role model in our country. Appendix: Reference 1. Innovative human resource management practice makes ASA global microfinance leader http://www. theindependent-bd. com/hotnews. php? nid=5170 2. http://www. traveldocs. com/bd/economy. htm . Apparels Bulletin, link- http://www. apparel. com. bd/2008/09/pay-salary-arrears-and-eid-bonus-timely/ 4. Afsar, R. , 1998. Poverty, Work, Health and Sexual Behaviour of Women and Men in Garment Factories in Dhaka, Bangladesh, ACTIONAID, Bangladesh. 5. Ahmad, I. , 1996. Basic Labour Laws of Bangladesh, 2nd edition, Ferdous lqbal, Dhaka. 6. Arifin,J. (ed. ), 1994. Readings on Women and Development in Malaysia, Population Studies Unit, Kuala Lumpur. 7. BGMEA, 1998a. ‘BGMEA meets garment sector trade union leaders regularly’,BGMEA Newsletter, 9(1):9. 8. Bhattacharya, D. and Rahrnan, M. , 2000.
Bangladesh Apparel Sector: growth trends and the post-MFA challenges, Paper presented at the National Seminar on Garment Industry in Bangladesh: Economic and Social Dimensions, Dhaka, 21-22 January. 9. Nuruzzaman, A. K. A. M. , 1999. Human Rights and Garments Industry, Programme for Research on Poverty Alleviation, Grameen Trust, Dhaka. 10. Paul-Majumder, P. , 1998. Health Status of the Garment Workers in Bangladesh: findings from a survey of employers and employees, Bangladesh Institute of Development Studies, Dhaka. Questionnaire: Name:Employee Status: Designation:Working Hours: 1. How long you are working in this company?
More than 5years More than 2 years 2. How much time you spend here i. e. working hours? 6 Hrs 8 Hrs other 3. Are you satisfies with current facilities & incentives? Yes No No Comment 4. Does your company conduct fire drill every year? Yes No 5. Is your employment on permanent basis or contractual basis? Permanent Contractual 6. Did you face any kind of problem that you couldn’t tell to the management? Yes No If yes write down mention the problem below: