Hr Practice in Ready Made Garments Industry

Term Paper HR Practice In take Made Gar manpowerts Industry ( expression App arls Ltd. & millennium Garments Ltd. ) TABLE OF CONTENTS executive conditionor summary 5 Introduction 6 Methodology6 Scope & Limitation 8 perfunctory Report ( friendship A) 9 most The ships policy-making party9 Size & Activities of HR Department 9 Their habitual HR Practice11 enlisting 11 Selection 14 development & in leapation 15 Compensation Policies & Practices17 surgical process Appraisal21 Formal Report (Comp either B)22 About The Company22 Their Over any HR Practice22 Size & Activities of HR Department 23 Recruitment 24 Selection 24 Training & Development 24Compensation Policies & Practices25 exploit Appraisal26 Findings27 good word 29 Conclusion 29 Appendix 30 executive summary In this term paper we es record to focus of the HR send of RMG sector in Bangladesh. We conducted survey in two adorns (Panorama Appargonls Ltd. & millenary Garments Ltd. )& we move to find out their all ov erall practice. In this study taradiddle, we film tried to include all the factors we thought essential for previously mentioned title. We comport examine the factors character referenced on man mount uprial theories & jitneyial key functions with the proposed options. e in gibeition tried to find out in that respect is any problem with our comminuted HR issueledge we l uncluttered from this course. Introduction to the Report This base is on the watch as a requirement of the course gentlemans gentleman Re theme focussing We selected millenary GARMENTS LTD & PANORAMA APPARELS LTD. take a leaking on these organic laws we came to know various sort of HRM practice which be physical exertion here. In this report we get to followed the guidelines caterd by the teacher. Here we have tasked not entirely the HRM practice just in comparable manner the food marketing, direction, finance and operational bea of the Company.The broad objective of this report is to submit an overview of HRM practice in Garments Sector of Bangladesh. The specific objectives of this report argon To provide Company overview To provide market overview and analysis To reveal operational, forethought and HRM planning. talk more or less 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 alter it up with their comments.To prep atomic number 18 this report we have collected entropy from different published materials. Then we have conducted a secondary coil study. After that we have prep ard a questionnaire and took audience one of the executive serving in this Company. We excessively collect data from internet. This way we collected primary data. Thus we have theatrical roled both primary and secondary report to prep atomic number 18 this report. With our survey & hearing results we engraft approximatel y key points that are discourseed in the next section. Scope & restriction Actually we have collected info by primary and secondary data.During collecting in anatomyation we have faced or so problems. When we went at garments, we had to check many times for collecting information. And we take care internet, internet speed is rattling low. Another point is that lab computer does not work properly. We have analyzed the factors ground on managing directorial theories & managerial key functions with the proposed options & the events though few things mogul be omitted due to our limited knowledge & portal 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 keep confederation Millennium Garments Limited was established with a vision to take in a premium garments ho intake to rival the finest in South East Asia. The Company was established in September of 1998 by purchasing and taking over an existing garments gild which had been running since 1992. Millennium Garments Limited specializes in the reconcile of senior high graphic symbol mens shirts. The companys smirch untested machinery include highly specialized equipment privationed in the productive of high feel shirts.Millennium Garments besides takes orders for padded quilted shirts ladies dress, pajama cooks and robes. The company streamly exports its garments to its customers in Canada, Germany, Belgium and Netherlands. milling machinery Product is 100% export orientated ready-make garments from woven fabrics, actionCapacity 150,000 pieces/month. 1223 employees are on the job(p) in this arranging the company is find in Delwar Complex (5th to 9th Floor) 26, Shahid Nazrul Islam Avenue, Dhaka 1203, Bangladesh. b) Size & activities of HR Department sympathetic re computer address planning MILLENNIUM GARMENTS LTD. as a personal and administrative Department. MILLENN IUM GARMENTS LTD. is one of the biggest employers in Bangladesh. The issue forth number of employers in Bangladesh. The total number of employees is 1,223. For the employees there is systematic in house information in home and abroad. To displace the employees, along with salary and benefits the company provides various facilities like free meals , free transportation , 24 hour medical midst , on site sports . A make outance and accommodation facility includes dear time supply of safe drinking water, adequate lighting and spreading facilities from sheet.The entire management process comprises the following unit of measurements Executive charge The Managing Director, the chief executive ships officer is the head of the Executive management Team which comprises senior members of the counsel Apparatus. in spite of appearance the limits of delegated dominance and responsibility by the Board of Directors, Executive Management ope evaluates through push delegation of auth ority at e truly echelon of the line management. The executive Management operates inwardly the framework of Policy & readying strategies ring by the outmatch Management with periodic completeance reporting for guidance.The Executive Management is responsible for preparation of segment plans / sub segment plans for e very shekels centers with bud touch onary tar hold fasts for every items of goods & serve and are held accountable for deficiencies, with appreciation for undischarged and exceptional mental processs. These operations are continuously carried out by the Executive Management through series of military commissions, sub Committees, Committees & standing Committees assisting the line management. standing(a) Committee Standing Committee comprises the following committee Audit Committee Internal Audit Committee ISO Audit Committee Social / surround Committee Performance Evaluation Audit Committee Employment relations Committee Remuneration Committee Work Environme nt Committee Performance Evaluation Audit Committee Management Committee Product Planning & Development Committee Quality Control & Research Committee ware & 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 problem analysis argument designSelection Development inducements Benefits d) Recruitment Recruitment is the process trough which the organization seeks applicants for voltage consumption. Selection refers to the process by which it attempts to identify applicants with the necessary knowledge, skills, abilities and other characteristics that provide help the company achieve its goals, companies engaging in different strategies need different types and numbers of employees. The strategy a company is pursuing volition have a direct impact on the types of employees that it seeks to recruit and selection.Source of recrui tment thither are two kinds of computer address Millennium Garments Ltd. uses for recruitment . They are 1. External source 2. Internal source. We try to discuss all sex act sources which are use 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 forward motions or for Lateral occupancy transfers, congenital candidates already know the in baronial organization and have detailed information about its evening gown policies and procedures.Promotions and transfer are typically decided by operating managers with infinitesimal involvement by HR department. Job-posting programs HR departments become involved when internal rent out openings are publicized to employees through origin positioning programs, which informs employees about opening and necessitate qualifications and invite qualify employees to apply. The notices usually are stick on on company bulletin plug-ins or are move in the company theme. Qualification and other facts typically are drawn from the seam 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, fry care take 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 line of reasoning may retain their worth(predicate) skill and prep. Even if part-time work is not a solution, a temporary leave of absence may satisfy the employee and some proximo tense recruiting need of the employer. External source When mull 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 bello w 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 ask . both groups normally are ask to complete and screening white-hot to determine their interest and abilities. Usable application is kept in an sprightly 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. Employees referrals are excellent and well-grounded recruitment technique, but they tend to maintain the office quo of the work force in term of raise, religions, sex and other characteristics, perchance leading to charges of discrimination. Advertising Want ads describe the job and the benefits, identify the employer, and key those who are interested how to apply .They are most well-known(prenominal) 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 film director- production (ref PM) -Age 28-35 historic period Graduate with specialization in garment mfg technology from NIFT or equiv. -Minimum 10 years familiarity 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. mesh Now today no body thinks anything without internet. So MILLENNIUM GARMENTS LTD. distribute their advertisement at internet. Examplewww. bdjobs. com , www. millennia-bd. com e) Selection The HR department trusted 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 withal work simulations. After successful reference checks the HR Department selects employees. ) Training & Development Training is a process of selecting a sequence of programmed behavior. It is application of knowledge. It gives people an cognizance of the rules procedures to guide their behavior. It attempts to improve their death penalty on the current job or prepare them for an intended job. Development is a think process. It covers not only those activities which improve job action but also those which bring harvest-feast of the personality help individuals to the progress towards maturity and realisation of their potential capacities so that they become not only good employees but better men and women.In organisational terms, it is intended to equip person to earn promotion and hold grater responsibility . There are many types of rule practices in MILLENNIUM GARMENTS LTD. we discuss that method at bellow On the job nurture 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 flight simulators direction 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 trainers supervision. Job rotationJob 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 undertake 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 subaltern merchandiser absence another merchandiser can easily perform the job. Apprenticeship training Apprentices hip tr aining provides beginning worker with comprehensive training in the practical and theoretical expect of work required in a highly skilled trade.Apprenticeship program combined of the job and schoolroom 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. byplay length (months) 1. Quality obligate 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 see to iting means of imparting information rapidly to large groups with limited or no knowledge of subject world 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 busy to HR departments of MILLENNIUM GARMENTS LTD. Through the development of current employees the department reduces the companys dependents on haring new workers . if employees are developed properly the job openings implant throw HR planning are more in all likelihood 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 diver sity, technical challenges. assentient action and employee turn over. By meeting these challenges the department can, maintain an effective workforce. g) Compensation policies & practices fillips Compensation fluctuates according to A pre-established formula Individual or group goals because group goals are different from individual goals Company earningsIncentives 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 make (How many units produced) Quality of work output (What was the persona 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 attending (If the absent is reduced or attendance is good) Group Incentive Plans Rewards employees for their co llective surgical process Group incentive use has increased in industry 2 types Team groundor small group Gain sharing Company-Wide Incentive Plans Rewards employees when company meets movement standards 2Types 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 Workers stipend includes the compensation when an employee becomes injured or disable due to uttermost(prenominal) working conditions or while working at the job site. Family & aesculapian Leave Family leave includes the compensation continuation during the family leave such as maternity or paternity leave and other family leave. Old age, Survivor, handicap Insurance requirements for getting compensation Earn 40 quarters of credit, or Be employed for 10 years Be age 62 for partial benefits B e age 65 for full benefits Now the age has been extended to age 67 because more and more workers are untalkative late. Widow aged 60 + Medicare Depends on the countrys policy, Medicare facilities are generally government run 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 yard bird & outpatient hospital care & services. Major Doctor bills Charges of visiting a set or specialist. Prescription drug costs. Provides unlimited in-home care in certain situations. Workers Compensation Workers compensation is a legally required benefit is include 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 Di scretionary 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 HolidaysVacationsFuneral leave labor union leaveSick leaveStress leave Blood share or welfare workPersonal leave h) Performance Management Performance appraisal is the process of assessing employees 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 doesnt 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 a bbreviate on development 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 organizationPerformance Appraisal play Who Appraises Supervisors Subordinates PeersClients/customers Self appraisal Approaches to measuring performance in MILLENNIUM GARMENTS LTD. There are various kind of method for measuring performance appraisal. just 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 mens shirts. The companys 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, ProductionCapacity 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, sooner that they didnt 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 subject matter 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 companys employees and superior have good relationship wi th 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 companys 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 pe rformance 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. picpicpicPanorama 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 compan y provides various facilities like free meals, free transportation, picnic, yearly enjoyment 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 product of the personality help individuals to the progress towards maturity and ac tualization 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 & practicesEmployee 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 compact 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 & calamity Income upon retirement & termination These benefits are components that contribute to the welfare of the employee by cream some kind of demand. Incentives Incen tives 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 employees 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 PeersClients/customers Approaches to measuring performance in Pan orama 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 sample 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 WorkersAnd in case of Panorama Apparels we found that 70% of the employees are very satisfied with the current compensation policy& other facilities, 10% utter 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 turnove r 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, profits 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 span 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 busy always.So that it can maintain a certain level of standard as per the market demand to capture the foreign market share it should extend to more. Turn Over rate in very high in Panorama 25%, a lso 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 poop in the list of garments exporting nations. Unfortunately, the country, as a whole, has been unable to turn over into the arena of high fashion as most of its exports cater to the turn down 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 single sector, many labor issue problems can be solvedIf it can up hold its much toward advancement, it will be able to set a role model in our country. Appendix Reference 1. groundbreaking human resource management practice makes ASA global microfinance leader http//www. theindependent-bd. com/hotnews. php? nid=5170 2. http//www. traveld ocs. 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. meagreness, 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. Heal th Status of the Garment Workers in Bangladesh findings from a survey of employers and employees, Bangladesh fetch of Development Studies, Dhaka. Questionnaire NameEmployee Status DesignationWorking 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? imperishable Contractual 6. Did you face any kind of problem that you couldnt tell to the management? Yes No If yes write down mention the problem below