hrm policies and total functions practices for corporate organizations

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Human Resource Management Policy

& Functions Practices within

corporate organizations of Bangladesh

in context of “SM Group of

companies”.

Thesis Report of Rejaul Abedin, P.MBA (HRM), Roll # PE-3230810, BIHRM of 74



Declaration

I hereby declare that the thesis report on “Human Resource Management Policy & FunctionsPractices within Corporate Organizations of Bangladesh in context of “SM Group of companies”

is submitted in partial fulfillment of the requirement of the degree of Professional Master of Business Administration (P.MBA) to Bangladesh Institute of Human Resource Management(BIHRM) under the guidance and supervision of Mr. Jashim U. Ahmed, Faculty Member of BIHRM, Dhaka, Bangladesh.

The report is a record of independent work carried out by me and is not submitted for the award of any other degree, diploma, fellowship or other similar title or prizes.

Rejaul Abedin

Roll# PE-3230810, Date: 27th

October’ 2010

Acknowledgement

All praises to Almighty Allah, the most gracious and the most merciful; without His blessing Icould not have completed this report. At first, I would like to thank SM Group for allowing me todo internship for the P.MBA program. I would like to thank Honorable Managing Director Mr.Syed A.K. Anwaruzzaman & Mrs. Anwara Begum, Honorable Director of SM Group for giving

me the opportunity to work in SM Group. Without their help & kind approval it would have not been possible for me to join here. I convey my gratitude to my supervisor at BIHRM, Mr. JashimU. Ahmed, Faculty member for helping me all the way during my intern period with hisinvaluable advices & his all support in finalizing the thesis. I am deeply indebted to Mr. BiplobKr. Chowdhury AGM (Admin & HR), Mr. Sayeef Ahmed, Sr. Manager (Accounts & MIS) & Mr.Rafiqul Islam, Astt. Manager, Admin & H.R and Muhammad Rezaul Karim (Rana) & Ms.Sharmin Akthar (Shati), Executive, Admin & H.R. for her friendly co-operation. I also extend mysincere thanks to Mr. Javed Imtiaz Ahmed, Principal, BIHRM & Mr. Masud Siddiki,Administrative Manager, BIHRM for his encouragement and support me to prepare the report. Myspecial thanks goes to those respondents who had given me their valuable time from their busyschedule by attending the survey and shared opinion through in depth interview to enrich this

report. Last but not least whom I would like to thank is the whole Admin & HR department of SMGroup for their warm and friendly behavior to me during my intern days.




Executive Summary/Abstract

Human Resource (or personnel) management, in the sense of getting things done through people.Human Resource Management is the part of the organization that is concerned with the ‘People’dimension. HRM deals with the people working in the organization. HRM encompasses thoseactivities designed to provide for and co-ordinate the human efforts, so that they can contribute toachieve the goals of the organizations. It is a process of acquisition, development, motivation andmaintenance of human resources of an organization. Admin & HR Department is the force, whichdrives industrial and organizational work in a fruitful way. My thesis report is on the “HumanResource Management Policy & Functions Practices within Corporate Organizations of Bangladesh in context of “SM Group of companies”. This report will help to get the practical ideaof Human Resource Management Policy & Functions Practices within Corporate Organizationsand its implementation in real life work. The thesis report is limited with the following chapters.

Chaper-1: Introduction, is the preparatory part of the report. Here I have discussed about theorigin of the report, Scope, Objective, methodology and the limitations of the report.

In chapter-2: General overview of company, I have discussed about the background & the raisinghistory of SM Group, its mission, vision, comparative market positing, competitors analysis & aswell as SWOT analysis etc.

Chapter-3: Company Committee & Centralization, comprises with the company executivecommittee/Board of directors descriptions of functional departments such as Admin & HR Department, Purchase/Procurement Department, Marketing & Merchandising Department,Commercial Department, Accounts & Finance Department & Legal Department & centralizationof the company etc.

Chapter-4: Contain overview of SM Group Admin & HR Department, Major functions of Admin& HR Department, Organogram of Admin & HR Department, No of employees working at

Admin & HR Department.

Chapter-5: Human Resource Management Policy I its overall Functions, The theoreticalknowledge as well as the HRM Policy & panning of SM Group, Organogram/ OrganizationalStructure of SM Group, sources of recruitment, Job analysis & description, Job design, JobChange, Training & development, Job rotation, Promotion & transfer policies of employees,Wages & salary, Incentives & compensation administrations, Motivations, Job evaluations, jobsatisfaction & morale, rewarding, performance appraisal, Maintenance of Human Resources suchas code of conduct , disciplinary actions, providing workers benefit, social security, ensuringhealth & safety, hygiene working environment, Medicare, maternity benefits, canteens,Integrations of Human Resources I.e. negotiations with T.U & CBA, Grievances Handling

Procedures, Research over personnel activities, HR Accounting, HR Auditing, HRIS & so on.

Lastly in the Chapter-6 : contain findings & analysis, recommendations and conclusions, bibliography/references are drawn chronologically.


Chapter- 1 Introduction



→ 1.1 Origin of the report: The thesis/internship provides the students to link their theoreticalknowledge into practical fields. In this connection, I am supposed to conduct a research andsubmit in the form of a report in accordance with the company’s interest as well as the academicrequisition. Hence, this report is proposed and assigned by the & approved by the professional

supervisor Mr. Jashim U. Ahmed, Honorable Faculty Member of BIHRM, Framgate, Dhaka,Bangladesh. I have tried my level best to present my experience of the practical orientation in thisreport. This report has been prepared with the organizational attachment at SM Group’s corporatehead office situated in Gulsha-1, Dhaka, Bangladesh.

→ 1.2 Scope & Objective of the study: This study aimed at providing practical knowledge onoverview the Human Resource Management Policy & Functions Practices within corporateorganizations like SM Group, Bangladesh. It also helped the way of gathering more practicalknowledge about Joint Venture Company as well as Group of Companies in Bangladesh.

This report has been conducted in SM Group of companies. This covered the way for the author

of the report to get familiarized with the activities of Joint Venture Company/ Group of Companyin the arena of Admin and HR for the first time indeed. Core purpose of preparing the report is:

• To Provide Company overview.• To provide market overview & analysis.• To reveal operational, management and HRM policy & Functions Practice.• To know & discuss the Human Resource Management (HRM) Policy & Functions

Practice of SM Group of companies.• To know the management ability of SM Group of companies.• This study covers the HRM policy & Functions Practice of SM Group of companies along

with some recommendations to improve the HRM policies & Functions of SM Group of companies.

→ 1.3 Methodology of the study: To prepare this thesis report I have collected data fromdifferent published materials. Then I have conducted a secondary study. After that I have prepareda questionnaire and took interview on the top executive serving in this company. I also collectdata from internet through various web-sites. Thus I have used both primary sources/data(Conversation with the officials of SM Group, Interviewed & Observation from the totalinternship period) and secondary sources/data (Various reports of SM Group, SM Group web-sites, Several text books, internet browsing etc) to prepare this thesis report.

→ 1.4 Limitations of the study: I was really unable to collect enough information from dueto their official restrictions. During the time of conducting the report, the problems were asfollows:• Many things were so confidential & secret from view point of organization that I was not

entitled to access there that caused some difficulties.• Limitation of the time was one of the important factors that it couldn’t possible to get

depth knowledge.




• Sufficient records, publications, facts and figures were not available which have narrowed

the scope of real analysis.• Hesitation and refusal of the respondents caused also one of the limitations.• There were auditors who worked and watched during internship period which caused

inconvenience in data gathering & processing.

→ 2.1 Background of the company

SM Group is a large business conglomerate engaged in domestic and overseas business,started industrial operation by setting up one joint venture Knit Composite industry under the umbrella of SM Knit in Bangladesh in the year 2001. As a part of natural growth of business operation, we are now spread over from retailing Fashion Wear to the Housing

business.

They achieved the award of “Best Workers’ Friendly Knitwear Industry for 2008 & 2009”from BKMEA and Ministry of Labour and Employment.

SM Group started its journey towards composite knit garments industry in the year of 2001, Factory at Shirir Chala, Bhabanipur, Gazipur and Corporate Head Office: H#SE 4,Rd#137, Gulshan-1, Dhaka-1212, Bangladesh. It’s a Joint Venture Company having itslinkage with U.A.E., Lebanon, Sudan and Bangladesh.

→ 2.2 Company Profile/Chronology

Awards

Mr. Syed A.K.Anwaruzzaman Heartfelt congratulation to Mr. Syed A.K.Anwaruzzaman,Managing Director of SM Knitwears Ltd for achieving the award of “Best Workers’Friendly Knitwear Industry for 2008” selected by the Ministry of Labour andEmployment.

Mr. Syed A.K.Anwaruzzaman, Managing Director of SM Knitwears Ltd. Receiving the

crest from Mr. Anwarul Iqubal, Honorable Advisor of Ministry of Labour andEmployment.

Heartfelt felicitations to Mr. Syed A.K.Anwaruzzaman, Managing Director of SMKnitwears Ltd for achieving the award of “Commercially Important Person (CIP) 2008”selected by the Internal Resources Division, Ministry of Finance.


Chapter- 2 General Overview of Company



Mr. Syed A.K.Anwaruzzaman, Managing Director of SM Knitwears Ltd. Receiving thecrest from Mr. A.B. Mirza Md. Azizul Islam, Honorable Advisor of Ministry of Finance &Planning.

Name of the companies: SM Knitwears Limited,SM Knitting Industries Limited

SM Style LimitedMarina Property (Bd) Ltd.SM Carton & Accessories Ltd.SM AgroSM AbashonMeridian Spice Castle Chinese Restaurant

And overseas:Abdullah Al-Zabbi Building Materials Est. DubaiDubai Steel Manufacturing Factory, SudanSiji Insulation & Construction, Dubai

1. SM Knitting / Knitwear Ltd.

They have completed BMRE program in the recent past in our Knit Composite industryand main features are given below:

Production Capacity = 1 million pc knit garmentsExport Value = USD 2.50 million/monthUSD 2.50 x 12 = USD 30 million/year.

Man-Power= 3000 persons, Net Worth = TK 500 million, Major activities = Knitting,Dyeing, Printing, Embroidery, Brushing, Washing, Garments, Carton Manufacturing

2. SM Style Ltd.

(A company engaged in marketing Fashion wear brand ‘SMARTEX’ under SM Group)

Major activities = Retailers of Fashion Wear under the brand name - “SMARTEX” =Garments making = Whole Sale Operation Number of Showrooms = 7 (including 1 whole sale outlet)

3. Mart XL Buying Ltd.

Major activities = Export of local Garments to European market Export Value = USD 2million / year Outlet in = France.

Typical knitwear products such as T-shirts, polo shirts, knit underwear, and knittrousers etc are made in two processes, namely knitting fabrics from yarn, and makinggarments from knit fabrics these are available at Mart XL Buying Ltd.


http://smknitwear.com/NewWebsite/images/stories/newcompanypic/f-7.JPG

http://smknitwear.com/NewWebsite/images/stories/newcompanypic/f.JPG

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4. Ashalaya Housing & Developers Ltd.

This is a Housing project of 500 acre under the project name “Purbachal Central ViewCity” situated near the Purbachal project of Rajuk. Land procured 200 bigha which isunder development now. So far 600 plots are sold, out of 1700 plots.

5. SM Aabashon Ltd.

Housing project of 1000 acre land under the project name “Dhaka Village.” Location isvery nearer to the above “Purbachal Central View City” project. 30 bigha lands already procured and now under development stage. Gradually more land will be procured andsales will start from January 2009.

6. Marina Property (BD) Ltd.

A Real Estate company having vast landed area in Bhaluka, Mymensing to be developedfor various sites to facilitate amusement centre as well as holiday resort as detailed below.It may undertake different construction projects like making apartments, holiday homesetc. in Dhaka city and adjoining areas.

7. SM Agro

The Group management has decided to diversify its present business activities in the fieldof agriculture to contribute to the national economy. At the beginning, they shallconcentrate their activities in 3 pieces of land of 25 bigha, 15 bigha and 7 bigharespectively in Gazipur district and will be extended in near future in Hobiganj district or elsewhere in Bangladesh. They already employed a good number of professionalagriculturists to run the projects.

Other than the cultivation, we are planning to go for Floriculture, Horticulture, Forestry,Herbal Garden, and Fruits Garden and so on. Moreover contract-growing production in

case of Rice can also be done by establishing co-operatives in the rural areas of Bangladesh.

Year of establishment: 2001, Business Activity: 100% Export – Oriented CompositeGarments Industry. Project Address: Shirir Chala, Bhabanipur, Gazipur. And Baipail,Savar, Dhaka. Corporate Address: H#SE 4, Rd#137, Gulshan-1, Dhaka-1212, Website:www.smknitwear.com

Company Status: Joint Venture Company, Production Floor Space: 250,000 SFTCapacity: Knit Fabrics-16 (Sixteen) Tons/Day, (Knitting Including RIB & Collar, Cuff)Dyeing & Finishing -16 (Sixteen) Tons/Day, Garments- 1.25 Million Pcs/Month, Having,

32 Sewing Lines, Sales Turnover: 20.00 Million US$/Year (Per Annum Projection),Manpower Strength: 3000 Personnel, 60 -90 Days after receipt of workable L/C.

Upcoming-projects

1. SM Foundation Ltd. (Proposed)

The foundation will be a socio-economic organ of SM Group to formulate Contributions,grants, scholarship and hospitalization facilities to the common mass to develop their lifestyle and livelihood.




Educational Institution like Medical College with Hospital will be established, under theflagship of this foundation to benefit the society as a whole. A lot of projects will beincluded under the foundation in the near future.

2. SM Spinning Ltd. (Proposed)

Having 50,000 spindles and investment of TK 200 croreProposed site: Bhaluka/Ratanpur Market: In House consumption for our knit composite industry and/or local outside sale.

3. SM Home Textiles Ltd. (Proposed)*

There exists a very bright prospect for marketing of Home Textile products in theEuropean market. Pakistan and India have no GSP facility in the European market for Home Textile products and as such its yearly growth rate in the last financial year was19%.

4. SM Amusement Centre*

Main features: Very unique project in Bangladesh like Amusement centre for family, BoatClub, Holiday Resorts, Farm House, Swimming Pool, and Health Club & Gym etc. spreadover a vast area

** Moreover S M Group has the following facilities for smooth operation.

o Own stand by Generator to run full factory.o Fire protection system.o Sufficient volume of water reservoir at underground & overhead.o Quality electrical cable with siemens circuit breakers used in MDBs & SDBs.o Separate toilet for male & female workers.o Sufficient lights are provided in all the working areas.o Sufficient ventilation is provided by installing ceiling fans, exhaust fans & large

windows.o Factory premises are always kept neat & clean.o Floors are fitted with tiles so that it remains very clean and worker can walk bare

footed without any difficulties.o We do not have any child labor.o Doctor & Nurse are provided to take care of workers healtho Transport facilities for workers.o Canteen for workers.

COMPLIANCE:




SM Knitwears Ltd. comply according to the core standard of social compliance of the followingorganization

• BSCI audit approved by ITS• Audit by C & A (Mondial) compliance team

• Audit by H & M compliance team• Audit by Li & Fung compliance team• Audit by New wave compliance team• Audit by BKMEA & ILO joint compliance team• Certified by (Certificate # 0005) NUK on social compliance• Audit by Bureau VERITAS (MTL) in favor of LEA Sports Wear Ltd. (UK)• ETI audit approved by ITS• Our factory is Okeo-Tex Standard 100 Product class 1 certified.

2.2.1 Business Operation

SM Group operating multi-typing business such as Composite Knitwear (Garments), BuyingHouse, Land & Property business, Carton & Accessories, Agro, Builders & Constructions etc. Itsoperating financial results given in the Para 2.2.3 respectively.

2.2.2 Vision & Mission of the company

“Total customer satisfaction by providing quality products with best service standards”.

Mission

Stated above that SM Group is a large business conglomerate engaged in domestic and overseas

business, started industrial operation by setting up one joint venture Knit Composite industryunder the umbrella of SM Knit in Bangladesh in the year 2001. As a part of natural growth of business operation, they are now spread over from retailing Fashion Wear to the Housing business. Details are enumerated below: Their management policy is to establish business andindustry those are Social & Buyers’ complied and environmental friendly. Recently they achievedthe award of “Best Workers’ Friendly Knitwear Industry for 2008 & 2009” from BKMEA andMinistry of Labour and Employment.

2.2.3 Operating financial Result of SM Group & its business



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The company’s operating financial results, as compared to the previous year, are summarizedhereunder:

P A R T I C U L A R SYear 2007 (Taka)SM Knitwears

Ltd

Year 2008 (Taka)

SM Knitwears Ltd

Year 2007 (Taka)SM Knitting Ind.

Ltd.

Year 2008 (Taka)SM Knitting Ind.

Ltd.

Turnover (Sales) 82,60,551.00 64,13,797.00 15,36,060.00 50,69,408.00Cost Of Goods Sold 75,71,47,386.00

78,96,66,167.00 27,18,85,802.00 29,51,89,374.00

Gross Profit 12,76,67,173.00

26,84,50,315.00 1,08,89,281.00 2,89,05,254.00

Operating & Financial Expenses 6,46,97,072.00 10,27,74,461.00 5,33,43,359.00 5,46,05,209.00Operating income/Profit 12,76,67,173.0

026,84,50,315.00 1,08,89,281.00 2,89,05,254.00

Other Income(Income fromExport)

80,04,26,035.00

1,02,75,08,853.00 --------------------- --------------------

Cash Incentive Income 2,42,80,290.00 17,48,399.00 26,38,699.00 5,40,850.00Income from Sales (Local) 1,83,211.00 2,24,45,433.00 25,41,36,918.00 31,84,84,370.00Income from Sub Contract 1,84,414.00 --------------------- --------------------- --------------------

Miscellaneous Income 6,11,830.00 96,594.00 6,46,656.00 3,48,270.00Interest Income (Interest onInvestment)

------------------- 97,864.00 1,92,461.00 10,89,721.00

Other Factory Overhead 52,73,333.00 54,13,156.00 27,46,158.00 29,59,700.00FTY General Expenses 64,70,383.00 65,35,625.00 6,58,240.00 9,69,599.00

Net Profit/Loss (BT) 6,35,81,931.00 16,64,70,312.00 -4,16,14,961.00 -2,42,61,964.00Income Tax ExpensesUD, Customs, BGMEA Exp

10,61,047.003,75,191.00

2,52,384.004,82,715.00

20,000.001,95,000.00

2,12,578.003,68,536.00

Reserves 9,42,06,218.00 9,42,06,218.00 -2,57,35,272.00 -2,57,35,272.00

Source: Data from SM Group Financial Software from Accounts & Finance Department (HO).

As the operating & financial expenses, operating income/Profit, Net Profit (BT) & others data has been shows the actual features of the company, procurement strategies and favorable export pricesin the international market.

→ 2.3 Comparative Market positioning

The comparative market positing of SM Group might be vary from the position of one to tenth incomparisons with other local competitors.

2.3.1 Competitors Analysis

History of Development of Knitwear of Bangladesh

The RMG business started in Bangladesh in the 70s but it was then merely a casual effort. Thefirst consignment of knitwear export was made in 1973 and the first consignment of wovengarments was made in 1977. Though started later, but it was the woven sector that first dint a spotin the




export pie of Bangladesh. In 1981-82 thecontribution of woven garments in the totalexport was 1.10%. Afterwards it is a story of

sustained success for the Bangladesh RMGsector. Within a decade the contribution of woven to the export basket became 42.83%(1990-91) and the knitwear sector'scontribution was 7.64% (1990-91).

Graph 1: Changes in combination of Export Products over time

The entrepreneurs of the knit sector stepped forward with their expertise in the late 80's. Withtheir earnest efforts they were able to export US$ 14.84 million in 1989-90. Out of this US$ 12.22million was exported to EU and US$ 2.02 million was exported to US. The trend continued in theknit sector because of the market access opportunity provided to the LDCs under the GeneralizedSystems of Preference (GSP) benefit.

This is the rejuvenated beginning of the epic story of Bangladeshi knitwear sector RMG sector that in true sense has been able to massive industrialization in a sustainable way with effect on all probable human development aspects which is the encouraging part of the story.

The growth of knitwear sector is increasing at an increasing rate. The cumulative average growthrate of the sector is 27%. And it is continuously grabbing a more portion in the export pie of Bangladesh. This is mainly attributed to the facilities provided under the EC GSP and ROO. Theknitwear sector is heavily driven by these favorable policies and took the opportunity to develop astrong backward linkage for the sector.

Table 1: Comparative Statistics of Knit Wear & Woven Wear

Volume in Million US$

Year Knitwear Woven Wear Total Export

Volume % change Share inBD

Export

Volume %change

Share inBD

Export

RMG Bangladesh

89-90 14.84 0 0.77 609.32 29.34 31.67 624.16 1923.7090-91 131.20 784.00 7.64 735.62 20.73 42.83 866.82 1717.55

91-92 118.57 -9.62 5.95 1064.00 44.64 53.36 1182.57 1993.90

92-93 204.55 72.51 8.58 1240.48 16.59 52.06 1445.03 2382.89

93-94 264.14 29.13 10.42 1291.64 4.12 50.97 1555.78 2533.90

94-95 393.26 48.88 11.32 1835.09 42.07 52.85 2228.35 3472.56

95-96 598.32 52.14 15.41 1948.81 6.20 50.20 2547.13 3882.42




96-97 763.30 27.57 17.28 2237.95 14.84 50.65 3001.25 4418.28

97-98 940.31 23.19 18.22 2843.33 27.05 55.09 3783.64 5161.20

98-99 1035.36 10.11 19.49 2984.81 4.98 56.18 4020.17 5312.86

99-00 1269.83 22.64 22.08 3082.56 3.27 53.59 4352.39 5752.20

00-01 1496.23 17.83 23.14 3364.20 9.14 52.02 4860.43 6467.30

01-02 1459.24 -2.48 24.38 3124.56 -7.12 52.20 4583.80 5986.0902-03 1653.83 13.34 25.26 3258.27 4.28 49.76 4912.10 6548.44

03-04 2148.02 29.88 28.25 3538.07 8.59 46.54 5686.09 7602.99

04-05 (upto March)

2051.30 38.12 33.64 2676.84 3.77 43.90 4728.14 6097.12

Source: Export Promotion Bureau

EU is the main export region of Bangladeshi knitwear constituting 83% (US$ 1780.57 million) of total knitwear export in FY 2003-2004 followed by USA (11%, i.e. US$ 236.79 million).

This has become possible because it cansatisfy the ROO of EU as value additionis higher (75%) in this sector. After theadoption of the guidelines for theapplication of the scheme of generalizedtariff preferences by EC knitwear exportfrom Bangladesh to EU rose precipitously. The two-statransformation requirement of ROO in1999 boosted market penetration in EUfurther; it contributed a growth of

101.19% since 2000-2001.Graph 2: Knitwear Export to Major Markets

Bangladesh RMG sector has successfully passed some critical tests and is now sailing with twomasts: knit and woven. The sub-sectors are now in healthy competition among themselves to takethe role of leadership within the country.




In FY 2003-04, knitwear for the first timeexceeded woven wear and became theleader in terns of quantity exported with91.6 million dozens. The amount of woven export was 90.49 million dozens.

Knitwear is still leading in terms of quantity exported and is widening the gapday by day. The present difference infavor of knitwear is 18.85 million dozensIn FY 2003-04, the contribution of twoRMG sub-sectors were as follows:

Graph 3: Comparison of Export Quantity

Woven Garments 47% and knitwear 28%. In a period of just 9 months (up to March FY 2004-05)the figures have changed dramatically, the share of woven garment to the country's export has

reduced to 43.90%, on the other hand the share knitwear has increased to 33.64%. It indicatesclearly that the knitwear is performing well in both ways. In the first 9 months of FY 2004-05 thescenario is as under:

knitwear export increased by US$ 566.15

National export increased by US$ 676.19

Therefore the contribution of knitwear in national export increase is 83.73%

Contribution of the Knitwear in Bangladesh

In the development history of Bangladesh, RMG sector contributed a lot in terms of employmentgeneration, involving women in the formal sector, increased substantial export earnings etc. Onesignificant aspect of the RMG's contribution in the development is the human development aspect.The sector contributed a lot in the following areas:

√

√

Women empowerment

Reduce Child Labor √ Gender equality

√ Improved health & nutrition

√ Reduced child marriage√ Reduced infant mortality

The development in the sector also contributed a lot in the growth and development of the backward linkage industry of the country.

Knitwear sector’s unique contribution is in the growth and development of the backward linkageindustry of the country. Country’s total background linkage industry in the RMG sector has




almost entirely flourished based on the knitwear industry. Knitwear industry is entirely supportingthe spinning, fabric, and dyeing industry of the country. A good number of printing factories aretotally dependent on knit sector as well.

Strength of Knitwear Sector of Bangladesh

Competitive wage rate together with easily trainable workforce, entrepreneurial skill, expandingsupply side capacity, and government policy support helped to translate the comparativeadvantages into competitive advantages. The core strength of the knitwear sector is its backwardlinkage. The entrepreneurs of the sector not only increased their stitching capacity overtime butalso invested in the allied industry to augment the overall capacity of the total sector with thesame pace. Over the period of time knitwear sector gradually became almost self sufficient infabric and yarn. This improvement has become possible because of the integrated growth of spinning factories in line of the growth of country's stitching capacity and increased need of theyarn and fabric.

As the export increased in the knitwear sector, the capacity of backward linkagealso gradually increased accordingly. Theresult is local suppliers can provide 90% of the total fabric requirement of the sector.The growth of spinning mills also steppedwith the growth of knitwear exports. In1993-94 total number of spindles was 1.38million that supplied 10.70 million KGyarn. In 2003-04 the number almost tripledand it became 3.77 million that supplies

239.00 million KG yarn. As of now thetotal investment in the backward linkage inknitting, dyeing and spinning industry ismore than US$ 4.90 billion.

Graph 4: Comparative Consumption & Local Supplyof Fabric & Yarn

Comparative Structure of Gross & Net Exports of Bangladesh (FY 2003-04)




Graph 5: Structure of Gross Export Graph 6: Structure of Net Export

Though woven is the highest contributor (47%) in terms of gross & net export earnings, but knit becomes the most significant component if we consider net export with a share of 32%. But in2008 -2009, the contributions of knitwear in national export earnings is 41%.This has resulted

because of the backward linkage industry that has grown over time which helped the knitwear sector to have the higher value addition and there fore a much higher net retention rate.

Year 1994 2000 2004 2008

Value Addition: 50% 70% 75% 75%

Net Retention: 40% 55% 60% 61%

Graph 7: Year wise knitwear export and net retention

Table 2: Year wise knitwear export and net

retention

Year Total Export Net Retention

94-95 393.26 157.3095-96 598.32 253.6996-97 763.30 335.8597-98 940.31 443.8398-99 1035.36 530.1099-00 1269.83 695.8700-01 1496.23 837.8901-02 1459.24 828.8502-03 1653.83 965.8403-04 2148.02 1271.63

04-05

05-06

06-07

07-08

2819.47

3816.98

4553.60

5532.52

1691.69

2290.19

2732.16

3319.51

Advantages of Bangladeshi Knitwear Sector

√ knitwear is a near self-sufficient sector in all respect; currently Bangladeshi knitwear manufacturing companies aresupplying 90% of the knit fabric requirements of the sector.

√ Local yarn suppliers provide around 75% of the total requirement of the sector.

√ We have more than 250 composite factories; besides the composite units many garments have their own dying andfinishing units. A separate dying and finishing industry also has grown up over the time to support the sector.

√

Good capacity exists in the sector.

Capacity is increasing at a good rate to cope with the future demand of this sector.




√ Bangladeshi knitwear is almost unbeatable in price advantages.

√ Bangladesh provides not only a cheap labor force which is unbeatable but they are also unparallel in stitching capabilityand skill at our level.

√Bangladeshi knitwear is exported to 90 countries of the world. But the EU and the USA are the major importer.

Cost of Some Key Production Factors¹

1. The labor costs² incurred in the Textile Industry is the lowest compared to its competitors.

Thailand: $1.00/Hour India: $0.60/Hour Indonesia: $0.40/Hour

Sri Lanka: $0.45/Hour Vietnam: $0.40/Hour Pakistan: $0.40/Hour

China: $0.35/Hour Bangladesh: $0.25/Hour

2. Energy cost³ in Bangladesh is lower compared to India and Pakistan

Pakistan: $0.08/KwH India: $0.095/ KwH Bangladesh: $0.07/ KwH

¹ Figures may vary depending on the data sources² Adapted from ‘The Readymade Garment Industry of Bangladesh' by Hafiz G. A. Siddiqi,

UPL, Dhaka, 2004³ Source: Ministry of Commerce

Name of the competitors: Aboni Knitwear Ltd, Leader Knitwear Ltd., A-One Knitwears, A.K.Knitwear Ltd., B.R. Knitting Mills, Balaka Knitwear & Garments (Pvt) Ltd., Capital KnitManufacturing Ltd., Dana Knit Composite Ltd., Elegance Knitwears Ltd., etc and many moreknitwear companies are competing with SM Knitwear in domestic sides. And in the foreign(Global market) there are so many competitors from Asia pacific region such as China, India,

Srilanka, Vietnam, Indonesia, Pakistan, Thailand etc. and countries from the rest of the world.

SM Knitwear Ltd. is facing an intense competition because there are many competitors in theindustry searching for Market share. The main competitors are India, Sri Lanka, Bangladesh,Fareast, Hong Kong, Taiwan, Turkey and Spain. Substitutability the demand of this type of knitwear brand is high because there are number of brands in the International market.Substitutability as a product is also high because there is a substitute for Knitted shirts like dressshirts.

Despite above, where the competitors only captured Asia pacific & Europe countries there SMGroup covered the whole Europe region & Belgium, Germany, and USA & Latin Americas

market, list of the buyers are appended below: LIST OF BUYERS :

o Buyers C&Ao Sainsbury’s, UK o M&S Modeo Lasha Sports inc. USAo V&D




o KIK, Germanyo Lidl, Germanyo Henric Lorenz, Germanyo Bay City, Germanyo Donnay, Belgiumo Madona, Germanyo Other

→ 2.4 SWOT analysis of SM Knitwear industries of SM Group

Highly experienced and qualified professionals run the projects. Management is fully dedicated toefficient and effective control towards attaining best quality in production, export shipment inorder. Manpower strength in main line production is run by the trained operators/supervisorsheaded by highly skilled and competent Textile Engineers and production Manager. Independentsample unit is equipped with modern infrastructure. Sample unit is headed by a skilled sample in-charge to provide any kind of styles within scheduled time frame. We maintain strict in-lineinspection during production and we practice Total Quality Management (T.Q.M) System.

SWOT analysis means the analysis of strength, weakness, opportunity and threats. For SMKnitwears Limited and SM Knitting Ind. Ltd. It is given below:

Strength: SM knitwear Ltd. is a rapidly expanding company. Standing it journey in 2001 it hasalready doubled the net turnover by the year of 2006. All the units of the factory enjoy highly of machinery are imported from China, Turkey, Korea, Taiwan, Japan, England, Spain, Brazil, Italy,and USA. As a result it can maintain a smooth production. Well trained human resources areanother strength of the company. They train up their key personally in the country and abroad. Sothat the company can get some competitive advantages over the competitors. The HRM practice isalso remarkable.

Weakness: There are too many departments under the super vision of the general manager whichcan cause low productivity due to large span of super vision.

Opportunity: There are bright opportunities for the company in the overseas market. If it is cancommunicate well and capture a significant market portion in Europe and Germany, Belgium andUSA market. It can get scale of economic.

Threats: Knitwear industry is a comparatively not new in our country but the size of the industryis still growing. SM Knitwear Ltd. is one of the fast movers in this sector. Besides in home,industrial conflicts/disputes from workers arise every now & then so, the concerned also shouldtake positive initiative to mitigate the problems with promptness. Also should maintain a better

industrial relationship with respective industry & the government for any business related issues.The authority has to keep in mind that they are now in the competitive position in home andabroad market unless the management does not produce products through the TQM (Total qualitymanagement), Computer Aided Designing (CAD), Computer Aided Spreading (CAS), Computer Aided Manufacturing (CAM) as well as to ensure reasonable prices in comparison among other competitors, otherwise risks may be arise from the future operations.


Chapter- 3 Company Committee & Centralization



→ 3.1 Company Executive Committee/Board of Directors& Investors

SL.NO. Name & Address Designation Nationality

01 MR. SYED A. K. ANWARUZZAMAN Managing Director Bangladeshi

02 MRS. ANWARA BEGUM Director Bangladeshi03 Mr. S.A.K. EKRAMUZZAMAN Director Bangladeshi04 MR. ABDULRAHMAN YOUSEF Director U.A.E.

ABDULRAHMAN ALBIGISHI Director U.A.E.05 MR. GHASSAN JACQUES JEAN KHAYAT Director Lebanese06 MR. FARAH ABDELMAGID FARAH Director Sudanese

→ 3.2 Descriptions of Functional Department of SM Group

Functional Departments of SM Group

1. Administration & H.R Department

2. Purchase/Procurement Department3. Marketing & Merchandising Department4. Commercial & C&F Department5. Accounts & Finance Department6. Legal Department

Each & every departments are generally engaged with their own activities such as Administrationand H.R Department involved works of Procurement/Acquisition, Development, Compensation,Motivation, Maintenance, integration, Record, Research, IS & Audit of Human Resource(s) andso on. Purchase/Procurement Department involved in the works of purchasing & procuring of materials, Marketing & Merchandising Department consists tasks like product promotion,marketing & merchandising linkage with buyers, commercial and C & F Department concerned

with export and import of goods & services along with commercial activities, Accounts & FinanceDepartment focuses on acquiring profitability & solvency as it’s the key issue for any businessorganization also it involves with keeping & maintaining its day to day business operationalrecords through IT & manually, making annual budgets ,allocating all kind of payments to thestaffs & managers, Conducting internal audits, looking after all the expenses & revenues,companies books of accounts, preparing monthly, yearly reports & along with financialcontrolling tasks, Legal Department serves in the area of legal affairs, legal cases etc.

→ 3.3 Centralization of the company

The company delegation of authority is decentralized. This is understood by the fact that everylevel manager is given the opportunity to make decisions whenever needed. If the complexity

arises, in such type issues directly handled by the company superiors with consultation hisexecutive body.

→ 4.1 Major Functions of Admin & H.R Department: Admin & HR Department of SM Group performs variety of activities. Such as:


Chapter- 4 Overview of SM Group HR Department



• Maintain the daily attendance• Leave and holidays• Advertisement at newspaper/job websites for hunting professional employee(s)• Receiving job application & C.V(s)• Selection of the candidate(s)/ Short listed of deserving candidate(s)

• Interview call/ Calling for an interview (Written/Oral)• Determination of terms of conditions for recruitment such as Job Title, monthlysalary, job responsibility, duty station, probation, termination, restrictivecovenants, rules & regulations etc.

• Issuing Appointment letter • Recruiting and orientation & placement• Training & career development (Apprenticeship & probationary training, on the

job training, off the job training etc)• Memo (Internal/External)• Record keeping of personnel file(s)• Show Cause notice, evaluation the answer, opportunity given for hearing (Self Defense)

• Develop as well train up the employees• Asserting smooth workflow in the organization• Evaluate the performance of the employees• Providing increment, Incentives, Promotion, demotion & transfer etc.• Supervise the factory workers• Demand management of labor • Offer attracting compensation and benefit packages for the employees• Reviewing Employee(s) welfare benefits• Ensuring social security, Medicare, health & safety, hygiene working environment• Provide intrinsic benefit• Review the salary structure

• Review and propose the upcoming budget• Perform the administrative activities for smooth functioning.• Create a good working environment• Code of conduct• Implemented the disciplinary action such as suspension, discharge, dismiss,

termination etc.• Handle the industrial relation• Overall functions of Admin & HR (Procurement/Acquisition), Development,

Compensation, Motivation, Maintenance, integration, Record, Research & Audit of Human Resource(s) and so on.




→ 4.2 Organogram of Admin &H.R Department

→ 4.3 No of employees working under Admin & H.R Department

A total no of seven employees Including General Manager & one Astt. General Manager and an Astt. Managers are working under Admin & H.R Department in its corporate HeadOffice, Gulshan-1, Dhaka and ten employees working in HR department at its Factorylocated at Gazipur.

→ 5.0 Human Resource Management

Human Resource management is a part of management which concern with present/existing people and prospective/coming people of an organization.

HR Management is hiring maintenance and firing in an organization which is engaged withRecruitment, Maintenance, Training & development, Integration (Trade Union, Combination etc),Compensation & Discipline.

The term human resource refers to the people in an organization. Human resource management isconcerned with people dimensions in management. When managers engaged in human resourceactivities as a part of their job, they seek to facilitate the contribution; people make to achieve an

organizations strategies and plans. Human resource management encompasses those activitiesdesigned to provide for and co-ordinate the human efforts, so that they can contribute to achievethe goals of the organizations.

HRM is seen by practitioners in the filed as a more innovative view of workplace managementthat the traditional approach. Its techniques force the managers of an enterprise to express their goals with specificity so that they can be understood and undertaken by the workforce and to provide the resource needed for them to successfully accomplish their assignments. As such,


General Manager (Admin & H.R)

Astt. General Manager (Admin & H.R)

Senior Executive (Admin & H.R)

Executive (Admin & H.R)

Executive (Admin & H.R)

Office Executive (Admin)

Astt. Manager (admin & H.R)

Chapter- 5 Human Resource Management Policy & its overall Functions



HRM techniques, when properly practices, are expressive of the goals and operating practices of the enterprise overall.

The goal of human resource management is to help an organization to meet strategic goals byattracting, and maintaining employees and also to manage them effectively.

Human resource (or personnel) management, in the sense of getting things done through people.It’s an essential part of every manager’s responsibilities, but many organizations find itadvantageous to establish a specialist division to provide an expert service dedicated to ensuringthat the human resource function is performed efficiently.

“People are our most valuable asset” is a cliché which no member of any senior managementteam would disagree with. Yet, the reality for many organizations is that their people remain

• under valued• under trained• under utilized• poorly motivated, and consequently

• perform well below their true capabilityAs organizations vary in size, aims, functions, complexity, the physical nature of their product,and appeal as employers, so do the contributions of human resource management. But, in most theultimate aim of the function is to: “ensure that at all times the business is correctly staffed by

the right number of people with the skills relevant to the business needs”.

Part-1 (Procurement/Acquisition of Human Resources)

→ 5.1 Human Resource Policy & Planning of SM Group

Human Resource Policy: Human resource policies are important if your company wants to

implement consistent human resource policies, procedures and solutions. Company HumanResource policies should have professionally written, or available for immediate usage whenever required. In that context SM Group has already been established a written document through PDFformat in English & Bengali Version with detailed regarding HR policies & others relatedinformation’s on the part of employer to the employees are included elaborately. Why Companies Need HR Policies

Straight-forward, clear and concise HR policies are important for a number of reasons. Failing toimplement policies leaves your company open to legal challenges, grievances and lawsuits,especially if you inconsistently apply your human resources policies and your pay structure /

system. Grievances and lawsuits lead to:

• Increased costs that affect your profits• Increased turnover • Negative morale


http://www.absolutehrsolutions.com/hrpolicies.html

http://www.absolutehrsolutions.com/hrpolicies.html



Such as your company will avoid these problems if you implement hr policies, procedures and jobdescriptions and you can easily do this with the effective meeting with head of organizationregarding establishing HR policies.

Human resource policies are systems of codified decisions, established by an organization, to

support administrative personnel functions, performance management, employee relations andresource planning.

Each company has a different set of circumstances, and so develops an individual set of humanresource policies.

Purposes of HR Policies

HR policies allow an organization to be clear with employees on:

• The nature of the organization

• What they should expect from the organization• What the organization expects of them• How policies and procedures work• What is acceptable and unacceptable behavior • The consequences of unacceptable behavior

The establishment of policies can help an organization demonstrate, both internally and externally,that it meets requirements for diversity, ethics and training as well as its commitments in relationto regulation and corporate governance. For example, in order to dismiss an employee inaccordance with employment law requirements, amongst other considerations, it will normally benecessary to meet provisions within employment contracts and collective bargaining agreements.

The establishment of an HR Policy which sets out obligations, standards of behavior anddocument disciplinary procedures, is now the standard approach to meeting these obligations.

HR policies can also be very effective at supporting and building the desired organizationalculture. For example recruitment and retention policies might outline the way the organizationvalues a flexible workforce, compensation policies might support this by offering a 48/52 payoption where employees can take an extra four weeks holidays per year and receive less payacross the year.

Developing the HR Policies

HR policies provide an organization with a mechanism to manage risk by staying up to date withcurrent trends in employment standards and legislation. The policies must be framed in a manner that the companies vision & the human resource helping the company to archive it or worktowards it are at all levels benefited and at the same time not deviated from their main objective.

Human Resource Planning Policies of SM Group:

Human Resource Planning is the process of estimations human resource needs for achievinghuman resource and organizations goals. It is the process through which organizational gorals are


http://en.wikipedia.org/wiki/Human_resources

http://en.wikipedia.org/wiki/Resource_(economics)

http://en.wikipedia.org/wiki/Risk

http://en.wikipedia.org/wiki/Human_resources

http://en.wikipedia.org/wiki/Resource_(economics)

http://en.wikipedia.org/wiki/Risk



translated into objective. At SM Group, they believe that Human Resources give the company asignificant competitive edge in terms of knowledge and experiences. Along the line up adoptingnew innovative & advanced technologies for its high-tech manufacturing plant, the companycontinued to draw talented and dynamic professionals of the industry, as well as, takingconstructive steps in developing the skills of the human resource pool.

SM Group has a personnel & administrative department. SM Group one of the biggest employersin arena of Knitwear industries in Bangladesh. The numbers of employees are nearly 6,000. For the employees there is systematic in house training in home & abroad. To motivate the employees,along with salary and benefits the company provides various facilities like free meals, freetransportation, 24 hours medical center, on site sports. Production and accommodation facilitiesinclude full time supply of safe drinking water, adequate lighting and ventilation facilities fromsheet. → 5.2 Organogram of the company/Organizational Structure


Chairman

Managing Director

Directors

Finance Controller & Com an Secretar

General Mana er Admin General Mana er (Mkt . & Merchandisin

Astt. General Manager (Admin)

Astt. Mana er Admin

Sr.Manager (Accounts & MIS)

Deputy Manager (Commercial)

Manager (Mktg. & Merchandising)

Manager (Purchase)

Manager (Legal)

Sr. Executive (Admin)

ExecutiveAstt. Manager (Accounts)

Treasurer

Sr. Executive (Accounts)

Manager (Commercial

Executive(Commercial)

Executive (Mktg. & Merchandising)

OfficeExecutive

Astt. Treasurer



→ 5.3 Human Resource Recruitment & Selection process in SM Group

Recruiting is the process of searching the potential job candidates in order to fill up the vacant position of the organization and selection is the process of choosing the best candidate among theavailable candidates. The candidates who are successfully perform the job.

5.3.1 Sources of Recruitment

SM Group follows both the internal and external sources of recruitment. In case of internal sourcethey mainly follow-promotion, transfer and job rotation and in case of external source they follow – advertisement, employment agency etc.

In case of recruitment and selection SM Group considers the following process: Need Assessment

SM Group take need assessment to identify in which sector, it is needed to recruit the employeefor achieving their target and goals. In their assessment they have to realize that they need humanresource (HR) in the following situation- vacancy in existing post(s), market expansion, increasein production capacity, Launching new product, introducing new system.

Recruiting options: Internal

Current employees are a major source of recruits the employees but entry-level position. Internalsource are included-promotion, transfer, job rotation, friends and relatives of existing employees.Here promotion and transfer are typically directed by operating Admin & HR manager with littleinvolvement by the HRD.

External When job opening can not be filled internally, the HRD must look outside organizationfor expert employees. External source included- advertisement through own websites, job sites, inthe daily newspapers, factory boards, employment agencies, and campus recruiting. Usually theyconsider the advertisement for their external recruiting. They mainly provide the notice of available job in Bengali and English dailies.

Screening and short-listing Applicants

The responses to the advertisements are sorted and screened. The CVs as well as the coveringletters are judged. Experience, educational degree, computer literacy etc are the basis of judging

the candidates application.

Written Test It is the most important and effective tool for judging the candidates. The written testincludes IQ test, behavioral competencies, and communication skills. The selection interview is aformal, in depth conversation conducted to evaluate an applicants acceptability. They can beadapted to unskilled, skilled, and managerial and staff employees. They also two-way exchangeinformation: interviews learn about the applicant and the applicants learn about the employer.


Executive(Accounts



Reference checking & medical check-up are the some remaining techniques for judgingcandidates.

Offer/Confirmation letter When the candidates satisfy the Human Resource Recruiting Board,then the board shall provide offer letter to the candidates.

Orientation/Induction Through orientation/Induction SM Group apply this to introducing thenew comers or new employees with its work unit/department, rules and regulation, culture, norms,value, believe and exposure to all important functions and locations of the company and so forth.

Follow up For make the employee more effective and efficient human resource departmentcontinuously interacts with the new entrants assisting to cope up with the work environment, wokculture, peer groups etc. In this stage the management tries to help the employee to get settledher/his problems in the job, work environment and workplace –culture.

→ 5.4 Job Analysis & Job Description

Job Analysis: Job analysis is a systematic exploration of the activities within a job. It is a basictechnical procedure one that is used to define the duties, responsibilities and accountabilities of a job. Also it describes works & personal requirements of a particular job.

6(Six) methods of job analysis: i) Observation ii) Individual Interview method iii) GroupInterview method iv) Structures Questionnaire method v) Technical Conference Method vi) DiaryMethod

And Job Description: Job description is a written statement of what the jobholder does, how it isdone & why it is done. It should accurately portray job content, environment & conditions of

employment. I) Job Title ii) the duties to be performed iii) the distinguishing characterizes of the job iv) The authority & responsibility of the job holder.

1. List of duties 2. List of responsibility 3. Reporting relationship 4. Working condition 5.Supervisory responsibility

Job Specification: ………. States the minimum acceptable qualifications that the incumbentmust poses to perform the job successfully. Job specification identifies the knowledge, skills

& abilities needed to do the job effectively (Doing the right thing at right cost) & efficiently(Doing the right thing).

→ 5.5 Job Design: Job design is the process of structuring work and designing the specific work

activities of an individual or group of individuals to achieve certain organizational goals.

Introduction

The nature of work and its organization has interested managers, economists and social scientistsfor as long as people have been employed by others to engage in productive activity. (See sectionon scientific management.)Managers have largely been interested in maximizing output from available resources.


http://www.accel-team.com/scientific/index.html

http://www.accel-team.com/scientific/index.html



Economists and social scientists have raised questions about the organization of work in relationto issues of the individual and society in general. The aims of this section are to:

• Define selected terms applicable to job design and work organization• Examine the aspects of traditional thinking applicable to job design and work organization• Propose alternative factors to be considered that take cognizance of employees needs• Generate some ideas on how these factors may be applied in work situations in existing

and new organizations• Stress the importance of fitting the work to the worker, in order to achieve the productivity

benefit

Job Design Defined

Job design and work organization is the specification of the contents, method and relationships of jobs to satisfy technological and organizational requirements as well as the personal needs of jobholders. N.B. A full glossary of terms appropriate to job design and work organization can be found in theJob Design section of the PDF (which you can purchase by clicking on the 'Purchase PDF' icon.)

The job design process

In this section we will consider ways in which the design criteria proposed in the previoussections can be employed in the design process.

Attention will be given specifically to the psychological needs of workers and how they may be

met. The technical aspects of design in which the normal techniques of industrial engineering andorganization and methods are employed will not be considered here.

First Step

The first step in the design process is to specify the design principles to be applied in the particular situation. This first step requires those responsible for the design to form a view aboutthe

• skills,• abilities,• needs and• motivation of job incumbents.

The simple questionnaire Characteristics of the Typical Employee PDF (available in the PDFversion,) can be used to elicit the views held by the members of the design team and help informulating an acceptable model of human behavior.




The particular results shown could be collected from a project group charged with designing/redesigning a new/ existing facility in a company. The team could comprise members of management and supervision. At the design stage no operatives had been recruited.

Considerable initial differences will be apparent in the opinions held by members of the team and

considerable time will need to be spent in elaboration and debate.

Second Step

The next stage involved completing the questionnaire Ideal Job Characteristics of the TypicalEmployee (contained in the PDF version of this article.) The result, should be, agreement over the principles to be applied in the design of jobs and work organization in a particular situation.

Earlier we introduced the concept of minimum critical specification of jobs to tasks in the designof group activity. This approach enables the group to make decisions about the methods andorganization of work.

Along with this there should be an examination of sources of performance variation in the worksystem and a questioning of who should be responsible for monitoring and regulating the system.

A process defects analysis can assist in this process. In carrying out this analysis the stages in the process have to be identified initially. Then sources of variances are listed relating to each stage.The relationships of sources of possible variances to problems at later stages in the process can beshown in the matrix form. (Suggested pro forma is contained in the PDF version of this article.)

Process defects analysis can identify the problems introduced in one stage of a work process flowcan have an impact on the operations at later stages. Those involved in compiling the analysischart considerably improve their understanding of the total process. This, however, would be asecondary benefit of the chart.

The main benefit came about through rethinking the allocation of responsibilities and the stepstaken to make the process/ system more responsive, thereby reducing losses.

In the design process we have now looked at means for deciding the criteria to be adopted indesigning jobs and work organization. We have also seen a method for identifying key decisionsin the operation of the work system.

Final Step

Finally, a means for comparing alternative job and work organization designs is presented. This isin the form of a checklist which covers the areas of work content,

• work organization,




• working conditions,• social opportunities and• career opportunities.

The method is illustrated in the Analysis of Job Design and Work Structure proforma, (containedin the PDF version of this article) where an example of an analysis of clerical work is presented. If the work in this section of this organization is expected to change, then the job design / workorganization project team would use the analysis proforma. This would then form the basis of adiscussion document for the project team and for consideration of feasible alternatives.An analysis of the proposed jobs, or those to be redesigned can be carried out, so as to form a basis for discussion with the project team and later consideration of feasible alternatives.

In the Job Profile Design Summary for an invoice clerk (contained in the PDF version of thisarticle ) career opportunities and work organization were assessed particularly poorly. The workcontent also scored below average. Jobs being replaced by the new systems could be engineered tooffer greater opportunities for job holders in this position.

The design team now has a method for looking at broader aspects of the job beyond thosenormally considered in financial appraisals. They are in a better position to consider theimplications on and for employee motivation of the proposed changes as well as considering other options.

→ 5.6 Job Change: A worker’s job may change following his promotion, demotion, transfer or separation from the company’s point of view, job changes serve four useful purposes: i) they helpin improving the organizational structure ii) they maximize employee effectiveness iii) the helpmanagement in adjusting to changes in operations. Layoffs & transfers & to some extent

promotions & demotions are used in adjusting company operations to changing economicconditions. Iv) they plays as tools of disciplinary action. Demotions & layoffs are sometimes usedto punish a worker for the cause him a loss of status & earnings.

Part-2 (Development of Human Resources)

→ 6.1 Training & Career Development of SM Group:

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 improves job performance but also those which bring growth of the personality; help individuals to the progresstowards maturity & actualization of their potential capacities so that they become not only goodemployees but better men and women. In organizational terms, it is intended to equip person toearn promotion and holt grater responsibility.




There are many types of method practices in SM Group. We discuss that method at below:

6.1.1 Executive & Management Development:

Executive Development:

Executive development is the whole of activities aimed at developing the skills and competenciesof those that (will) have executive positions in organizations. While "executive" and "manager"and "leader" are often used interchangeably, "executive" is commonly used to signify the top 5%to 10% of the organization.

While it is typical to find organizations that have dedicated corporate training & development people and processes, it is not always the case that an organization will have a dedicated executivedevelopment set of activities. In some organizations (typically large multi-nationals), there is aseparate executive development team, in other organizations executive development is handled as

one of many activities by the larger corporate training group, and in yet other scenarios there is noexecutive development activity to speak of.

In contrast to other corporate training & development activities, which have as their core purposeto build tactical skills for employees, executive development plays a different role for theorganization. Indeed some executive development is conducted for the purpose of building tacticalskills (sometimes referred to as "hard skills" such as business fundamentals- finance, marketing,operations and also "soft skills" such as communication and team building), yet executivedevelopment is also used to evaluate future potential future executives as well as a mechanism for the CEO and the executive team to cascade their strategies, goals, and even elements of the cultureto the rest of the management team and ultimately the organization. In the best of cases, executive

development not only helps an organization execute its key strategies, it can also help provideinput to the strategy creation process. In this way, executive development is much more strategicthan typical corporate training & development which is used for most employees of anorganization.

Management Development:

Like personnel management, management development too can be termed as a part of O.D.(Organizational Development). IT has the limited aim of improving only the sub-part of thesystem, viz., management performance and management succession. A good managementdevelopment program is very helpful for success of O.D. program and a good O.D. program can

provide the necessary environment to make management development programs successful.Objectives of Management Development:

• To improving the decision-making skills of executives,• To improving the inter-personal skills of executives, and• To improving the executive’s knowledge.


http://en.wikipedia.org/wiki/Organisation

http://en.wikipedia.org/wiki/Organisation



The long term development of human resources as distinct from training for a specific job is of growing concern to HR departments of SM Group. Through the development of currentemployees the department reduces the company’s dependents on haring new workers. If employedare developed properly the job opening found through HR planning are more likely to be filledinternally promotions and transfers also employees that they have a career not just a job. The

employee benefits form increases continuity in operations and form employees who fail a greater commitment.

HR department is also an effective way to meets several challenges including employeeobsolescence, international & domestic diversity, technical challenges. Affirmative action andemployee turn over. By meeting these challenges the department can. Maintain an effectiveworkforce.

Organizational Team Training and Development

SM Group work with managements of organizations here in the Bangladesh and overseas to

improve the performance of their staff and to address poor motivation symptoms. They use asimple process, with simple techniques to transform performance and motivation, in whatever workplace we are contracted into.

In their organization (in whatever sector,) there are obvious benefits to all the stakeholdersinvolved, when the creativity and potential locked up in their staff is unleashed. They shall provide immediate solutions for them to address the underlying reasons behind poor performanceand engagement.

Employee education, training and development

In general, education is 'mind preparation' and is carried out remote from the actual work area,training is the systematic development of the attitude, knowledge, skill pattern required by a person to perform a given task or job adequately and development is 'the growth of the individualin terms of ability, understanding and awareness'.

Within an organization all three are necessary in order to:

• Develop workers to undertake higher-grade tasks;• Provide the conventional training of new and young workers (e.g. as apprentices, clerks,

etc.);• Raise efficiency and standards of performance;• Meet legislative requirements (e.g. health and safety);• Inform people (induction training, pre-retirement courses, etc.);

From time to time meet special needs arising from technical, legislative, and knowledge needchanges. Meeting these needs is achieved via the 'training loop'. (Schematic available in PDFversion).




The diagnosis of other than conventional needs is complex and often depends upon the intuition or personal experience of managers and needs revealed by deficiencies. Sources of inspirationinclude:

• Common sense - it is often obvious that new machines, work systems, task requirementsand changes in job content will require workers to be prepared;

• Shortcomings revealed by statistics of output per head, performance indices, unit costs,etc. and behavioral failures revealed by absentee figures, lateness, sickness etc. records;

• Recommendations of government and industry training organizations;• Inspiration and innovations of individual managers and supervisors;• Forecasts and predictions about staffing needs;• Inspirations prompted by the technical press, training journals, reports of the experience of

others;• The suggestions made by specialist (e.g. education and training officers, safety engineers,

work-study staff and management services personnel).Designing training is far more than devising courses; it can include activities such as:

• Learning from observation of trained workers;• Receiving coaching from seniors;• Discovery as the result of working party, project team membership or attendance at

meetings;• Job swaps within and without the organization;• Undertaking planned reading, or follow from the use of self–teaching texts and video

tapes;• Learning via involvement in research, report writing and visiting other works or

organizations.So far as group training is concerned in addition to formal courses there are:

• Lectures and talks by senior or specialist managers;• Discussion group (conference and meeting) activities;• Briefing by senior staffs;• Role-playing exercises and simulation of actual conditions;

• Video and computer teaching activities;• Case studies (and discussion) tests, quizzes, panel 'games', group forums, observation

exercises and inspection and reporting techniques.Evaluation of the effectiveness of training is done to ensure that it is cost effective, to identifyneeds to modify or extend what is being provided, to reveal new needs and redefine priorities andmost of all to ensure that the objectives of the training are being met.




The latter may not be easy to ascertain where results cannot be measured mathematically. In thecase of attitude and behavioral changes sought, leadership abilities, drive and ambition fostered,etc., achievement is a matter of the judgment of senior staffs. Exact validation might beimpossible but unless on the whole the judgments are favorable the cooperation of managers inidentifying needs, releasing personnel and assisting in training ventures will cease.

In making their judgments senior managers will question whether the efforts expended have produced:

• More effective, efficient, flexible employees;• Faster results in making newcomers knowledgeable and effective than would follow from

experience;• More effective or efficient use of machinery, equipment and work procedures;• Fewer requirements to implement redundancy (by retraining);

• Fewer accidents both personal and to property;• Improvements in the qualifications of staff and their ability to take on tougher roles;

Better employee loyalty to the organization with more willingness to innovate and accept change

6.1.2 On the Job Training: On the job training is a training that shows the employee hoe to perform the job and allows him or her to do it under the trainer’s supervision. On the job trainingis normally given by a senior employee or a manager like senior merchandiser of a manager. Theemployee is shown how to perform the job and allowed to do it under the trainer’s supervision.

6.1.3 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 jobrotation, individuals learn several different jobs within a work unit or department. One mainadvantages of job rotation is that it makes flexibilities possible in the department. When oneemployee like junior merchandiser absence another merchandiser can easily perform the job.

6.1.4 Apprenticeship & Probationary Training: Apprentice training provides beginning worker with compressive training in the practical and theoretical expect of work required in a highlyskilled occupation. Apprenticeship program combined of the job and classroom training to prepareworker for more than eight hundred occupation such as computer operator sewing technician,Sewing supervisor, Production officer, cutting astt. Manager, packing astt. Manager, QualityControl Manager etc.

Probationary training: Initially SM Group offers 6 (Six) months probation period for the newcomer/employee, after the probation period shall have been confirmed as permanent employeewith admissible benefits. Classroom training & on the job training shall be there at SM Group for the employee.




6.1.5 Promotion policies of SM Group: Initially SM Group offers 6 (Six) months probation period for the new comer/employee, after the probation period shall have been confirmed as permanent employee with admissible benefits i.e. Salary re-fixed, Promotion (If any). During the probation period or after the probation period if management satisfied & pleased upon his performance, management may treat his/her to the superior position or in the same position

applied for at the time of application.

The actual decision about whom to promote, and whom to fire can also be among the mostdifficult, and important, a manager has to make. For every organization promotion is extremelyimportant, when the process based on merits and skills of the employee. On the other hand amajor problem of promotion is discrimination and favoritism.

6.1.6 Transfer policies of employees: Transfers are not an unmixed blessing from themanagement’s point of view also. Every transfer involves cost. Grievances arise. And finally thetransferee has to be induced afresh into new work team.

A transfer implies a lateral movement of an employee in the hierarchy of position with the same pay and status.

Types of Transfers: 1. Production transfers, 2. Replacement transfers, 3. Versatility transfers, 4.Shift transfers, and 5. Remedial transfers.

Part-3 (Compensation of Human Resources)

→ 7.1 Wage & Salary Administration: The basic purpose of wage & salary administration is to

establish and maintain an equitable wage & salary structure. Its secondary objective is theestablishment and maintenance of an equitable labor-cost structure. The wage & salaryadministration concerns with the financial aspects of needs, motivation and rewards.

Where, the word ‘Salary’ defined as fixed periodical payment to a person doing other than manualor mechanical work. The payment towards manual or mechanical work referred as wages. Wagesare commonly understood as price of labor. The word pay refers to the payment for services donewhich include salary as well as wages.

→ 7.2 Monetary Incentives: Monetary incentives are such type of incentives where incentiveshas been paid through financially such as an amount to be pay in regard to his/her individual performance or after achieving his work target.

→ 7.3 Compensation Administrations: is a segment of management or human resourcemanagement focusing on planning, organizing, and controlling the direct and indirect paymentsemployees receive for the work they perform. Compensation includes direct forms such as base,merit, and incentive pay and indirect forms such as vacation pay, deferred payment, and healthinsurance. Compensation does not refer, however, to other kinds of employee rewards such as


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recognition ceremonies and achievement parties. The ultimate objectives of compensationadministration are: efficient maintenance of a productive workforce, equitable pay, andcompliance with federal, state, and local regulations based on what companies can afford.

The basic concept of compensation administration—compensation management—is rather

simple: employees perform tasks for employers and so companies pay employees wages for the jobs they do. Consequently, compensation is an exchange or a transaction, from which both parties—employers and employees—benefit: both parties receive something for givingsomething. Compensation, however, involves much more than this simple transaction. From theemployer's perspective, compensation is an issue of both affordability and employee motivation.Companies must consider what they can reasonably afford to pay their employees and theramifications of their decisions: will they affect employee turnover and productivity? In addition,some employers and managers believe pay can influence employee work ethic and behavior andhence link compensation to performance. Moreover social, economic, legal, and political forcesalso exert influence on compensation management, making it a complicated yet important part of managing a business.

The main purposes of the Workers Compensation Administration (WCA) is to minimize theadverse impact of work-related injuries on the employees and employers of the territory by providing greater access to the WCA program in a manner that is sensitive, responsive, andeffective...to ensure efficient processing and resolution of claims and disputes...and to ensure proper payment of compensation benefits along with necessary medical coverage andrehabilitation assistance to employees injured on the job, or to their dependents in case of death.

Workers Compensation is an insurance program that provides medical and disability benefits for work-related injuries and diseases. If injured on the job, an employee's medical treatment costs

will be paid by the policy until able to return to work. Workers' Compensation protects bothemployees and employers. Each covered employee has a right to benefits if injured on the job. Inreturn, the worker forfeits the right to sue the employer for job-related injuries. All employersmust obtain coverage by purchasing an insurance policy through the Insurance company Fund.

Executive compensation elements

There is also need for constant search of new ideas in this respect. The essentials of an effectivecompany-wide executive compensation scheme are: sound salary-base structure, severalfundamental compensation devices and considerable flexibility in its application.

The five basic elements (Ellig (1982)) of executive compensation are:

• salary,• short-term incentives,• long-term incentives,• employee benefits and• perquisites.


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Any plan for executives should take into account the following factors:

• Executives perceive others as working less and paid more.• Appearance of a reward as important a factor as the reward itself.•

Flexibility, but not at the expense of discretion.• Performance rating should support the pay action.• Correcting one inequity may lead to yet another.• A decision once announced is difficult to modify.• An arithmetic increase in the number of people involved results in a geometric increase in

the time required to reach agreement.Motivating for high performance can cost a lot of money. Not everyone can be motivated bymoney alone, however much. Incentive pay plans should be designed (Ivancevich (1983)) notonly to reward good performance but also to minimize the negative side-effects, such as conflictand grievance. At times it is difficult to develop a valid, equitable and acceptable means of

performance. Many pay plans fail because of either not being suited to the particular situation or because of poor implementation. It is essential to consider the following aspects before designinga pay plan to motivate performance:

• preference of individual employees;• size of pay rewards for high performance;• method of motivating individual job performance;• subjective

They have pointed out earlier that for effective and sustained motivation, the reward must be prompt and immediate. The example of Foxboro has been quoted. In its early days, the company's

very survival depended on technical innovation. Late one evening (Peters & Waterman (1982)) ascientist walked into the president's office with a working prototype. The president wasdumbfounded by the elegance of the solution and sought to reward him immediately and on thespot. Rummaging through the drawers of his desk, all he could find was a banana and this had tosuffice. This was the forerunner of the 'gold banana' concept, a very apt and fitting reward.Likewise, Thomas Watson Snr. had made a practice of writing out a check on the spot for anyunusual achievement that he observed.

Part-4 (Motivation of Human Resources)

→ 8.1 Motivations: Motivation comes from Latin word “Moveree”, which means “to move”.

To satisfy his own needs through financial & non financial incentives (Recognition, Appreciation)& to achieve objectives.

The Basic Motivation Process:

Needs ------ Drives.........> Incentives/Goal

Motivations mean the willingness to do something, conditioned by the action’s ability to satisfysome need.




Employee motivation

To retain good staff and to encourage them to give of their best while at work requires attention tothe financial and psychological and even physiological rewards offered by the organization as acontinuous exercise.

Basic financial rewards and conditions of service (e.g. working hours per week) are determinedexternally (by national bargaining or government minimum wage legislation) in many occupations but as much as 50 per cent of the gross pay of manual workers is often the result of localnegotiations and details (e.g. which particular hours shall be worked) of conditions of service areoften more important than the basics. Hence there is scope for financial and other motivations to be used at local levels.

As staffing needs will vary with the productivity of the workforce (and the industrial peaceachieved) so good personnel policies are desirable. The latter can depend upon other factors (likeenvironment, welfare, employee benefits, etc.) but unless the wage packet is accepted as 'fair and

just' there will be no motivation.

Hence while the technicalities of payment and other systems may be the concern of others, theoutcome of them is a matter of great concern to human resource management.

Increasingly the influence of behavioral science discoveries are becoming important not merely because of the widely-acknowledged limitations of money as a motivator, but because of thechanging mix and nature of tasks (e.g. more service and professional jobs and far fewer unskilledand repetitive production jobs).

The former demand better-educated, mobile and multi-skilled employees much more likely to beinfluenced by things like job satisfaction, involvement, participation, etc. than the economicallydependent employees of yesteryear.

Hence human resource management must act as a source of information about and a source of inspiration for the application of the findings of behavioral science. It may be a matter of drawingthe attention of senior managers to what is being achieved elsewhere and the gradual education of middle managers to new points of view on job design, work organization and worker autonomy.

Employee Motivation: Theory and practice

The job of a manager in the workplace is to get things done through employees. To do this themanager should be able to motivate employees. But that's easier said than done! Motivation practice and theory are difficult subjects, touching on several disciplines.

In spite of enormous research, basic as well as applied, the subject of motivation is not clearlyunderstood and more often than not poorly practiced . To understand motivation one mustunderstand human nature itself. And there lies the problem!


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Human nature can be very simple, yet very complex too. An understanding and appreciation of this is a prerequisite to effective employee motivation in the workplace and therefore effectivemanagement and leadership.

These articles on motivation theory and practice concentrate on various theories regarding human

nature in general and motivation in particular. Included are articles on the practical aspects of motivation in the workplace and the research that has been undertaken in this field, notably by Douglas McGregor (theory y), Frederick Herzberg (two factor motivation hygienetheory,) Abraham Maslow (theory z, hierarchy of needs), Elton Mayo (HawthorneExperiments) Chris Argyris Rensis Likert and David McClelland (achievement motivation.)

Why study and apply employee motivation principles?

Quite apart from the benefit and moral value of an altruistic approach to treating colleagues ashuman beings and respecting human dignity in all its forms, research and observations show thatwell motivated employees are more productive and creative. The inverse also holds true. Theschematic below indicates the potential contribution the practical application of the principles this paper has on reducing work content in the organization.

Motivation is the key to performance improvementThere is an old saying you can take a horse to the water but you cannot force it to drink; it willdrink only if it's thirsty - so with people. They will do what they want to do or otherwisemotivated to do. Whether it is to excel on the workshop floor or in the 'ivory tower' they must bemotivated or driven to it, either by themselves or through external stimulus.


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Are they born with the self-motivation or drive? Yes and no. If no, they can be motivated, for motivation is a skill which can and must be learnt. This is essential for any business to survive andsucceed.

Performance is considered to be a function of ability and motivation, thus:

• Job performance =f(ability)(motivation)

Ability in turn depends on education, experience and training and its improvement is a slow andlong process. On the other hand motivation can be improved quickly. There are many options andan uninitiated manager may not even know where to start. As a guideline, there are broadly sevenstrategies for motivation.

• Positive reinforcement / high expectations• Effective discipline and punishment• Treating people fairly• Satisfying employees needs• Setting work related goals• Restructuring jobs• Base rewards on job performance

These are the basic strategies, though the mix in the final 'recipe' will vary from workplacesituation to situation. Essentially, there is a gap between an individual’s actual state and somedesired state and the manager tries to reduce this gap.

Motivation is, in effect, a means to reduce and manipulate this gap. It is inducing others in a

specific way towards goals specifically stated by the motivator. Naturally, these goals as also themotivation system must conform to the corporate policy of the organization. The motivationalsystem must be tailored to the situation and to the organization.

In one of the most elaborate studies on employee motivation, involving 31,000 men and 13,000women, the Minneapolis Gas Company sought to determine what their potential employees desiremost from a job. This study was carried out during a 20 year period from 1945 to 1965 and wasquite revealing. The ratings for the various factors differed only slightly between men and women, but both groups considered security as the highest rated factor. The next three factors were;

• advancement• type of work• company - proud to work for

Surprisingly, factors such as pay, benefits and working conditions were given a low rating by bothgroups. So after all, and contrary to common belief, money is not the prime motivator. (Thoughthis should not be regarded as a signal to reward employees poorly or unfairly.)

8.1.1 Motivational McGregor’s theory X & Y:


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Traditional theory 'X'

This can best be ascribed to Sigmund Freud who was no lover of people, and was far from beingoptimistic. Theory X assumes that people are lazy; they hate work to the extent that they avoid it;they have no ambition, take no initiative and avoid taking any responsibility; all they want issecurity, and to get them to do any work, they must be rewarded, coerced, intimidated and

punished. This is the so-called 'stick and carrot' philosophy of management. If this theory werevalid, managers will have to constantly police their staff, whom they cannot trust and who willrefuse to cooperate. In such an oppressive and frustrating atmosphere, both for the manager andthe managed, there is no possibility of any achievement or any creative work. But fortunately, aswe know, this is not the case.Theory 'Y' - Douglas McGregor

This is in sharp contrast to theory 'X'. McGregor believed that people want to learn and that workis their natural activity to the extent that they develop self-discipline and self-development. Theysee their reward not so much in cash payments as in the freedom to do difficult and challengingwork by them. The managers job is to 'dovetail' the human wish for self-development into theorganizations need for maximum productive efficiency. The basic objectives of both are therefore

met and with imagination and sincerity, the enormous potential can be tapped.

Does it sound too good to be true? It could be construed; by some, that Theory 'Y' management issoft and slack. This is not true and the proof is in the 'pudding', for it has already proved its worthin the USA and elsewhere. For best results, the persons must be carefully selected to form ahomogeneous group. A good leader of such a group may conveniently 'absent' from groupmeetings so they can discuss the matters freely and help select and 'groom' a new leader. Theleader does no longer hanker after power, lets people develop freely, and may even (it is hoped)enjoy watching the development and actualization of people, as if, by themselves. Everyone, andmost of all the organization, gains as a result.

8.1.2 Herzberg’s Motivational –hygiene theory: A theory of motivation that where one ismotivated by intrinsic factors, not by extrinsic factors. Herzberg asked people to describe, indetail, situations in which they felt exceptionally good or bad about their job. These responseshave to be tabulated and categorized. Frederick Herzberg investigated the question, “What do people want from their jobs?”

8.1.3 Maslow’s hierarchy of need theory/ “Z” Theory:

Theory 'Z' - Abraham Maslow

This is a refreshing change from the theory X of Freud, by a fellow psychologist, AbrahamMaslow. Maslow totally rejects the dark and dingy Freudian basement and takes us out into thefresh, open, sunny and cheerful atmosphere. He is the main founder of the humanistic school or the third force which holds that all the good qualities are inherent in people, at least, at birth,although later they are gradually lost.

Maslow's central theme revolves around the meaning and significance of human work and seemsto epitomize Voltaire's observation in Candide, 'work banishes the three great evils -boredom, vice








and poverty'. The great sage Yajnavalkya explains in the Brihadaranyaka Upanishad that by goodworks a man becomes holy, by evil works evil. A mans personality is the sum total of his worksand that only his works survive a man at death. This is perhaps the essence of Maslow's hierarchy of needs theory, as it is more commonly know.

Maslow's major works include the standard textbook (in collaboration with Mittlemann),Principles of Abnormal Psychology (1941), a seminal paper, 'A Theory of Human Motivation'(1943) and the book, Eupsychian Management (pronounced yew-sigh-keyan) published in 1965.Maslow's theory of human motivation is, in fact, the basis of McGregor's theory 'Y' brieflydescribed above. The basic human needs, according to Maslow, are:

• physiological needs (Lowest)• safety needs;• love needs;• esteem needs; and• self-actualization needs (Highest)

Mans behavior is seen as dominated by his unsatisfied needs and he is a 'perpetually wantinganimal', for when one need is satisfied he aspires for the next higher one. This is, therefore, seen

as an ongoing activity, in which the man is totally absorbed in order to attain perfection throughself-development.

The highest state of self-actualization is characterized by integrity, responsibility, magnanimity,simplicity and naturalness. Self-actualizers focus on problems external to themselves. His prescription for human salvation is simple, but not easy: 'Hard work and total commitment todoing well the job that fate or personal destiny calls you to do, or any important job that "calls for"doing'.

Maslow has had his share of critics, but he has been able to achieve a refreshing synthesis of

divergent and influential philosophies of:

• Marx - economic and physical needs;• Freud - physical and love needs;• Adler - esteem needs;• Goldstein - self-actualization.

→ 8.2 Job Evaluations

In case of job evaluation, the various component factors have to be isolated and evaluated for

purposes of inter-job comparison. Each factor is assigned a rating on the basis of a scale agreed beforehand by the union and the management joint committee. The total rating for each job thenforms the basis of wage structure. However, there must be a base level, representing, in effect, the'minimum wage', depending on the nature of work and the geographical area. In some cases and insome countries these are stipulated by law. A typical, though somewhat broad, list of job factors isas follows:

• working environment;








• physical characteristics;• mental characteristics;• extent of responsibility;• training and experience.

In case of managers, the factors are:

• responsibility;• expertise;• human relations.

Merit rating

Merit rating has been used as an indicator of performance. Each employee is rated, typically asexcellent, good, average or poor, in respect of the following abilities:

• communication;• human relations, including leadership and motivation;• intelligence;• judgment;• knowledge.

The rating, unfortunately, tends to be carried out purely mechanically and it carries a heavy bias of the rater who may be too lenient, may not be objective and may also have favorites or otherwise inthe group being rated.

Employee evaluationAn organization needs constantly to take stock of its workforce and to assess its performance inexisting jobs for three reasons:

• To improve organizational performance via improving the performance of individualcontributors (should be an automatic process in the case of good managers, but (aboutannually) two key questions should be posed:

• what has been done to improve the performance of a person last year?• and what can be done to improve his or her performance in the year to come?).

2

To identify potential, i.e. to recognize existing talent and to use that to fill vacancieshigher in the organization or to transfer individuals into jobs where better use can be made of their abilities or developing skills.3 To provide an equitable method of linking payment to performance where there are nonumerical criteria (often this salary performance review takes place about three months later andis kept quite separate from 1. and 2. but is based on the same assessment).




On-the-spot managers and supervisors, not HR staffs, carry out evaluations. The personnel role isusually that of:

• Advising top management of the principles and objectives of an evaluation system anddesigning it for particular organizations and environments.

• Developing systems appropriately in consultation with managers, supervisors and staff representatives. Securing the involvement and cooperation of appraisers and those to beappraised.

• Assistance in the setting of objective standards of evaluation / assessment, for example:• Defining targets for achievement;• Explaining how to quantify and agree objectives;• Introducing self-assessment;• Eliminating complexity and duplication.

Publicizing the purposes of the exercise and explaining to staff how the system will be used.Organizing and establishing the necessary training of managers and supervisors who will carry outthe actual evaluations/ appraisals. Not only training in principles and procedures but also in thehuman relations skills necessary. (Lack of confidence in their own ability to handle situations of poor performance is the main weakness of assessors.)2 Monitoring the scheme - ensuring it does not fall into disuse, following up on training/jobexchange etc. recommendations, reminding managers of their responsibilities.Full-scale periodic reviews should be a standard feature of schemes since resistance to evaluation /appraisal schemes is common and the temptation to water down or render schemes ineffectual isever present (managers resent the time taken if nothing else).

Basically an evaluation / appraisal scheme is a formalization of what is done in a more casualmanner anyway (e.g. if there is a vacancy, discussion about internal moves and internal attemptsto put square pegs into 'squarer holes' are both the results of casual evaluation). Most managersapprove merit payment and that too calls for evaluation. Made a standard routine task, it aids thedevelopment of talent, warns the inefficient or uncaring and can be an effective form of motivation.

→ 8.3 Job Satisfaction & Morale: Job satisfaction: The term “job satisfaction” refers to anemployee’s general attitude toward his job. Locke defines job satisfaction as a “pleasurable or positive emotional state resulting from the appraisal of one’s job or job experiences”. There are 3(Three) major theories of job satisfaction, viz., 1) Herzberg’s Motivation-Hygiene Theory, 2) Need fulfillment Theory, 3) Social reference-group theory.

Morale: The term “morale” refers willingness to strive for the goals of a particular group.According to Blum, morale is “the possession of feeling of being accepted by and belonging to agroup of employees through adherence to common goals and confidence in the desirability of these goals”.


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→ 8.4 Rewarding the productive Employee: Employee Rewards

Introduction

The previous section dealt with motivation theory and practice. There is no doubt that motivationis the crux for good performance, but there is no clear cut answer to the question of how tomotivate. The previous pages gave a glimpse of the answer through various theories and practices.

Money is a factor in motivating people and this section concentrates on this.

Employee reward systems are discussed in general and later in specifics in terms of payment byresults. Various schemes for financial motivation are also described.

Money is important!

This is, perhaps, saying the obvious. But it still needs to be said, for a perusal of the previous

section may give the impression to the contrary, at least judging from Maslow's concept.Refreshing as it is, if the theory was completely valid then, at least in affluent countries, economicincentives should have lost all their force. This we know is not correct.

According to Peter Drucker (1974) 'there is not one shred of evidence for the alleged turning awayfrom material rewards... Antimaterialism is a myth, no matter how much it is extolled.' In fact,they are taken so much for granted that their denial may act as a de-motivator. 'Economicincentives are becoming rights rather than rewards.'

There is no doubt that we live in a money-motivated world. Any amount of human relationscannot compensate for a lack of monetary reward. If the reward is right, good human relations will

give that extra zest to a team, motivating them to give of their best efforts. Insufficient monetaryreward cannot be compensated by good human relations.

Even dedicated footballers do not think of the honour of playing for England, they merely pay 'lipservice' to it; the financial rewards of playing for their clubs far exceed those received from playing from their country. Cricketers and rugby players no longer play for their own country butopt for the 'highest bidder'. Professional tennis players have refused to play at Wimbledon, the'Mecca' of lawn tennis, because the rewards were not attractive.

It is no different in the industrial world. Strikes for better salary and rewards do still occur. Allthis despite the claim of psychologists that security is the prime need of a person, as indicated inthe previous section. Has the sense of values changed with time? But we are not concerned herewith the philosophical angle, but with hard facts of life in a commercial world.

Self-motivation can go only so far and it needs to be constantly reinforced by rewards. In particular, merit must be measured and rewarded regularly, if it is to be encouraged and sustained.The 'gold banana' in Foxboro has its origin in just an ordinary banana which one of the pioneerscould muster on the spur of the moment when he discovered extraordinary performance by one of the employees (see next section.)


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Employee rewards

Motivating executives

We discuss this subject separately, since there is an indication from various surveys (see previoussection) that the blue-collar and white-collar workers do not attach the same importance to

financial incentives. This is probably more due to differing value system of the two, rather thanthe importance each attaches to the money per se.

Properly used, money can be a motivating factor, but little money may have no effect (Crystal(1970)). To achieve motivation of executives, therefore:

• reward should be meaningful; and• reward should vary with performance.

The concept is simple, but its implementation is not easy. However, the job is well worth trying.To be effective, the reward should be 'tailored' to each individual, but only as part of the total

compensation concept. It is essential (Moore (1968)) to develop an overall program within whicheach compensation package must be individualized.

Employee rewards

Performance related pay

Reward can act as the 'catalyst' for improved performance and better productivity. But reward, assuch, is not enough and in any case it is not a substitute for good management. Rather, it is a partof management. Certain basic criteria are essential for rewards to be effective. These include:

• Reward should be quick.• Reward should be significant.• The goals and rewards must be; known, understandable, and attainable.• Reward must be distinctly and directly related to performance.• Reward should be irrevocable.• Reward should be compatible with job measurement.

If the reward plan is seen to be unfair and unrealistic, for example promotion on the basis of seniority or favoritism, it may have a definitely negative effect as a motivator. For rewards to be

effective, they have to be generous and significant as noted above, hence they must be structuredto attain a proper balance of motivating people to purpose and at optimum effort.

Rewards are generally reckoned to improve productivity by somewhere of the order of 20 to 30 per cent. This is nearly twice as much as that attained by goal-setting or job-redesign. But eachincentive or reward system is likely to have value under certain conditions only. Hence to beeffective, the rewards must be 'tailored' and changed to suit the specific conditions. There is nomagic formula for all situations and at all times.






Productivity is usually but erroneously associated only with the workshop floor. But total productivity which ultimately determines the profitability of the entire organization is the sumtotal of the productivity at various levels right up to the CEO.

For if the workers are not given the right materials at the right place and at the right time, their

productivity will suffer due to no fault of theirs. The manager, therefore, plays a vital role in the productivity of the workers and team.

One can even go as far to say that productivity is the only reason for the existence of the manager.Individually the manager may be considered nonproductive, in that he or she does not contributedirectly to the production, but is responsible for integrating the work of his or her team into a total productivity effort, Thus, a manager can increase productivity indirectly by aiding to producemore, and here too, financial motivation plays a major role.

Reward systems

The financial rewards are basically of three types:

• profit sharing;• job evaluation; and• merit rating.

Profit sharing

Profit sharing could be on a macro basis or on a micro basis. The former relates to the entirecompany as a whole and the latter to a particular section or group dealing with a particular activityand/or product. On a macro level, it would be difficult to identify and reward outstanding

performance. This is possible on a micro level by treating the particular activity as a cost and profit center by itself. This is easier said than done, since overheads and other common serviceshave to be charged and this cannot be done completely objectively. The cost allocation in suchcases is somewhat arbitrary and the profit will therefore not be a true reflection of the performanceof that particular group or activity.

Money is certainly a motivator and a major one at that. Success of companies such as of Microsoft, IBM and other such tech companies is certainly, at least to some extent, a result of such motivation. There are, of course, other factors particularly job satisfaction as shown in the previous section.

Rewarding employees financially does improve levels of employee motivation and thus improves productivity, which ultimately shows up in the 'bottom line', and part of the increased profits must be circulated back to the workforce responsible for it.

Some of the schemes for reward systems and payment by results have are briefly discussed. Thenovel Glacier project and the Scanlon plan are briefly described. There is no such thing as the'best scheme'. It must be formulated and 'tailored' to each specific case.




8.4.1 Financial and Non Financial Rewards:

Financial and non financial rewards I once had an interesting conversation with theowner/manager of a clothing manufacturing company. He operated a large and successful business, principally supplying uniforms for the corporate market. He was surprised by some of

his workers. They worked on a piece work rate (paid per item) and some of the very efficient staff did not produce as much as they were capable of. They worked hard at the start of the pay period, but then they tapered off. He expected them to work hard the whole time, as they were paid bywhat they produced - the harder they worked, the more they were paid. He expected that the extramoney reward would motivate them. Motivation is a complex concept. Remuneration is alsocomplex. Individuals react in different ways to pay schemes. A simple explanation for the clothingworker behavior is that they did not work just for the money. They enjoyed the workingenvironment and the social interaction it provided. They liked to have work, to be employed, andyes they needed a certain level of income. But once they achieved that, the pressure to work hardwas reduced. Given that the actual work task was quite monotonous and repetitious, it was notsurprising that they exhibited this behavior. Drastic work design was required. People think that

money is a motivator. It does have an effect, but motivation involves far more. Sales people arethe classic example. Most are on performance based schemes. But what is one of the main themessales and marketing consultants write about? You guessed it - how to motivate your sales team!Consultants would not need to write motivation articles if financial reward alone worked. Equityin compensation practices Positive effects come from good Financial and non financial rewards. Itis very important to have a well managed remuneration system in place. Fair and reasonablereward is essential and very important for good morale. I believe strongly in the equity theory of motivation. Simply put, the theory states that people have to believe that their pay is equitablewith others. When they compare their salary and benefits with their colleagues and co-workers,they must believe that they are being fairly compensated. If they believe their compensation is notequitable, they become very de-motivated and their work performance suffers. Financial and non

financial rewards.I subscribe to the theory that states it is the nature of the work that is important. Financialcompensation is an element, the importance of which increases when the compensation received isnot appropriate. Non-financial rewards can be very important for their long-term effect. Too manyemployees are "disengaged" from their employment*. It is again time for many organizations and business to look at their human resources and management practices. The figures quoted beloware quite disturbing. Summary Management should ensure that their organizations and businessesare using the full range of Financial and non financial rewards available to them. An over-relianceon financial compensation may lead to ongoing problems. Dr. Shailesh Thaker renownedmanagement guru, human potentiality, philosopher, author and motivator in India, offers

HR/HRD Training, Leadership Workshops, Management Training, CEO Training and businessconsulting services through Knowledge Inc.

Non-monetary rewards should form one important part of a complete employee recognition program along with monetary rewards. Each motivates employees differently. Non-monetaryrewards can be used for either individual or team rewards.

Research shows that employees some employees are primarily motivated by financial rewards,


http://www.101rewards.com/employee-recognition-program.html


http://www.101rewards.com/index.html



http://www.101rewards.com/index.html



and will dramatically improve their performance to achieve such rewards. On the other hand,some other employees may see motivating others with money as vulgar, and are disincented bysuch offers. This second group of employees is more likely to be motivated to improve their performance through the use of non monetary rewards such as being thanked publicly at adepartmental function, having lunch with the head of the organization, or receiving an extra day

off. The desired outcome of rewards and recognition programs is to improve performance. Non-monetary recognition can be very motivating, helping to build feelings of confidence andsatisfaction. An American Society for Training and Development (ASTD) report on employeeretention research identified consistent employee recognition as a key factor in retaining top- performing workers.

This site is devoted to providing you with links to articles and other resources on the topic of non-monetary rewards and recognition to improve employee motivation and performance. Below is alist of free rewards articles, grouped by category. Many of the articles have been reviewed by our editors and assigned a 1 to 5-star rating along with a brief sentence describing the focus of thearticle or other resource.

8.4.2 Incentives (Company Incentive Plans):

Incentive Compensation plans: Incentive pay categories:

1. Individual incentives (Individual incentive plans pay off for individual performance. Popular approaches include piecework plans, time-savings bonuses, and commissions). Performance

measure: For example, quantity of work out put, Quality of work output, Monthly sales, Worksafety record etc.

2. Group incentives (Each of the individual incentives we described can also be used on a group basis. That is, two or more employees can be paid for their combined performance). Performance

measure: For example, customer satisfaction, labor cost savings, material cost savings, reductionin accidents, service cost savings etc.

3. Company-wide/Organization wide Incentives (The goal of organization wide incentives is todirect the efforts of all employees towards achieving overall organizational effectiveness. Thistype of incentive produces rewards for all employees based on organization wide cost reduction or profit sharing). Performance measure: For examples, Rewards employees when company meets performance standards.

→ 8.5 Performance Appraisal System of SM Group

“Performance appraisal is the systematic evaluation of individual with respect to his or her performance of the job & his or her potential for development.”

“It is a formal structured system of measuring and evaluating an employees job related behavior and outcomes to discover how & why the employee is presently performing on the job & how theemployee can freeform more efficiently & efficiently in future so that the employees theorganization & the society all benefit”.




SM Group evaluates its employee’s performances in a dual way i.e. (1) Performance EvaluationSheet and (2) Assessment Form. Two Forms are as follows:

Sheet/Form 1)

PERFORMACE EVALUATION SHEET

From ……….to…………2010 Name :Designation :Date of Joining :Present Salary :Proposed Salary:

Observation Area Excellent Very Good Good Average Poor a) Attendance b) Behavior c) Disciplined) Work

Abilitye) Punctuality

Comments by the Departmental Head:

----------------------- ---------------------- ----------------Departmental Head Recommended By Approved By

Sheet/Form 2)

ASSESSMENT FORM

SM GROUP Name & Designation: Name of work Station:

The Basic Information:

Date of Joining

PresentSalary

LastAppraisal(Period)

LastIncrement

& Date

Performance PreviousExperience

Educational& ProfessionalQualification

ProposedIncrement

ProposedSalaryAfter

Increment

Remarks




Point out the following of an individual for the review period:

Assessment Criterion Total Marks out of 100

KnowledgeConfidentiality

Ability to learnPunctualityRelationship with co-workersObedienceDependabilityTechnical AdvancementInter Personal SkillInitiativeInterest in assigned taskTotal

Each part contains 10 marks.

Comments of supervisor……………………………………………….

Comments of Head of Department…………………………………..

Part-5 (Maintenance of Human Resources)

→ 9.1 Disciplining the problem Employee/Code of Conduct/Misconduct:

Misconduct/Punishment Procedures/Process of action:

1. FIR 2. Show Cause 3. Answer Evaluation 4. I.O (Inquiry Office)/I.C. (Inquiry Committee)5. Hearing (Self Defense) 6. Report/Charge Sheet 7. CEO Announcement

Misconduct:

1. Wrong Information 2. Misbehave 3. Theft 4. Bribe 5. Riotic behavior 6.Fraud 7. Habituallate 8. Habitual absent 9. Insubordination 10. Leakage of information 11. Activitiesagainst organization

Types of Discipline Problems: Attendance Problems, On-the –job behaviors (Infractions of thecompany rules), Dishonesty, Outside activities ( Where employees engage in outside of their work, but which either effect their on-the-job performance or generally reflect negatively on theorganization’s image).




Misconduct is behaviour that an employer deems inappropriate for an employee. It usuallyrelates to an employee's conduct during working hours. There are varying degrees of misconduct, ranging from minor misconduct or serious (gross) misconduct.

The relevance of misconduct is that an employer may, in certain circumstances after

following appropriate procedures, dismiss an employee because of misconduct. Once anemployee has one year's continuous service he has protection from being unfairly dismissed.The misconduct of an employee, however, is a potentially fair reason for dismissing anindividual, subject also to the employer carrying out the dismissal in a fair manner.

It is important that employers have a set of disciplinary rules and procedures which set outstandards of conduct at work. Otherwise an employee may not know what is expected of him,also it may hamper an employer from taking steps to discipline (or punish) the employee.Most employers will either have a disciplinary procedure policy or provision in their contractsof employment explaining what will not be acceptable behaviour. In some industries theremay be an emphasis on certain characteristics, for example what may be viewed asunacceptable behaviour for a police officer may not be misconduct for those in other careers.

If an employee commits an act of gross misconduct an employer has the right to dismiss theemployee without notice.

However, it should be noted that gross misconduct does not mean that the employee can bedismissed on the spot; there is still an obligation for the employer to investigate allegationsand carry out any dismissal in accordance with a fair procedure.To ensure that disciplinary rules operate effectively, it is advisable for employers to ensurethat the workforce is not just aware of the rules but if possible is involved in the making of therules. It is not possible to define all the areas which could constitute gross misconduct,however, they can include:• fighting• theft from the employer or colleagues• fraud or falsifying work documents• accessing and/or distributing pornographic emails or websites• deliberately damaging company property• serious bullying or harassment• bringing the employer into serious disrepute• serious infringement of health and safety rules• serious failure to follow reasonable instructions.

As can be seen from the list above the common theme is that it must be an action that has a

serious impact or consequence.Employees should be made aware, either in their contract of employment or in disciplinary procedures what are the likely consequences if they break the guidelines the company has laiddown in relation to their conduct.Employers must be consistent. If other employees have previously committed the sameoffence but have not been dismissed it may be difficult to justify dismissal on a subsequentoccasion.




Types of Misconduct

1. Is rude or offensive, or assaults or even threatens to assault or attempts to assault.2. Has disregard for the circumstances and concerns of the public in performing his official

duties and in the making of decisions affecting them.3. Discriminates on account of race, gender, ethnic or social, religion, color, sex, age,

disability, political persuasion, conscience, belief, culture or language.4. Uses his position in the public service to promote or to prejudice the interest of any political party.

5. Conducts himself in a disgraceful, improper or unbecoming manner.6. Refuses to give basic information that is required by any citizen.7. Favors relatives and friends in work-related activities and abuses his authority or

influences another employee, or is influenced to abuse his authority.8. Does not strive to achieve the objectives of his institution cost-effectively and in the

public’s interest.9. Is not punctual in the execution of his duties and does not provide timely service.10. Does not execute his duties in a professional and competent manner.

11. Is dishonest and not accountable in dealing with public funds and uses the public service’s property and other resources ineffectively, inefficiently, and for unauthorized official purposes.

12. Does not promote sound, efficient, effective, transparent and accountable administration.13. In the course of his official duties, fails to report to the appropriate authorities, fraud,

corruption, nepotism, misadministration and any other act which constitutes an offence, or which is prejudicial to the public interest.

14. Does not give honest and impartial advice, based on all available relevant information.15. Does not honor the confidentiality of matters, documents and discussions, classified or

implied as being confidential or secret.16. Does not dress and behave in a manner that enhances the reputation of the public service

during official duties.17. Is negligent or indolent in the carrying out of his duties.18. Falsifies records or any other documentation.19. Is under the influence of an intoxication, illegal or habit forming drug including smoking

whilst at work.20. Asks the citizens for a favor in return for some service or refuses to provide with a service

unless he is paid a bribe.21. Uses or discloses any official information for personal gain or the gain of others.22. Undertakes paid work outside his official duties or uses office equipment for such work.

In its most general sense, discipline refers to systematic instruction given to a disciple. To

discipline thus means to instruct a person to follow a particular code of conduct "order ." Usually,the phrase 'to discipline' carries a negative connotation. This is because enforcement of order - thatis, ensuring instructions are carried out - is often regulated through punishment."Discipline is the instant willingness and obedience to all orders, respect for authority, self reliance and teamwork. The ability to do the right thing even when no one is watching or suffer the consequences of guilt which produces pain in our bodies, through pain comes discipline."--United States Marine Corps


http://asifjmir.wordpress.com/2008/09/10/public-servant-types-of-misconduct/

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To discipline thus means to instruct a person to follow a particular code of conduct or "order." Inthe field of child development, discipline refers to methods of modeling character and of teachingself-control and acceptable behavior" (e.g teaching a child to wash her/his hands before meals).Here, 'washing hands before meals' is a particular pattern of behaviour, and the child is beingdisciplined to adopt that pattern. 'To disciple' also gives rise to the word disciplinarian, which

denotes a person who enforces order.However, usually the phrase 'to discipline' carries a negative connotation. This is because of theneed to maintain order - that is, ensuring instructions are carried out. Order is often regulatedthrough punishment.

To be disciplined is then, subject to context, either a virtue (the ability to follow instructions well)or a euphemism for punishment (which may also be referred to as disciplinary procedure). As aconcrete noun, the discipline refers to an instrument of punishment, for example in mortification of the flesh (see also: flagellation). Such an instrument may also be applied to oneself, for example in penitence for not being sufficiently self-disciplined.

Before Disciplinary Action: Put the problem in perspective. The following nine (9) contingencyfactors have been proposed to help us analyze a discipline problem:1. Seriousness of the problem. 2. Duration of the problem, 3. Frequency and nature of the problem, 4. Employee’s work history, 5. Extenuating factors, 6. Degree of socialization, 7.History of organization’s discipline practices, 8. Implications for other employees, 9. Management backing.Disciplinary action:

All employees are expected to meet performance standards and behave appropriately in theworkplace. Disciplinary or corrective action is a process of communicating with the employee toimprove unacceptable behavior or performance. You may take disciplinary action when other

methods such as coaching and performance appraisal have not been successful. In cases of seriousmisconduct, you may choose to proceed straight to disciplinary action. Reviewing the Seven Testsof Just Cause before taking disciplinary action will help you determine whether discipline is the best approach to problem-solving in a particular situation. It is prudent to consult your Labor &Employee Relations (L/ER) Analyst before initiating disciplinary action

• Disciplinary Alternatives • Guiding Principles • Other Resources • Sample Letter Of Warning • Seven Tests of Just Cause• Training Resources

Disciplinary AlternativesWhen deciding what disciplinary action to take, keep in mind that discipline is supposed to beconstructive. Your goal is to guide the employee to improve performance or correct inappropriate behavior, not to punish the employee. As a general rule, your action should be just enough to getthe employee's attention. However, you may have to take progressively more serious actions if there is no improvement or if repeat occurrences follow. You need not take each of these actions, but you will normally take more than one of them. Your alternatives are:


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Oral Warning:

• Set a time and place to ensure privacy.• Make notes about what you want to say in advance.• Remember that the employee may have a right to representation.• State clearly that you are issuing an oral warning.

• Be specific in describing the unacceptable performance or behavior.• Remind the employee of the acceptable standards or rules. If they are available inwriting, provide them to the employee.

• State the consequences of failure to demonstrate immediate and sustainedimprovement: Further disciplinary action may be the result.

• Note the oral warning on your calendar and key elements of discussion.

Written Warning:

If you gave an oral warning and the problem performance or behavior persists, a written warningmay be effective. You may decide to use this disciplinary action more than once, to get theemployee's attention. Be careful, however, not to get stuck issuing repetitive letters of warningthat fail to influence the employee's behavior or performance. Consult with your L/ER Analyst.

• State clearly at the outset of the letter that it is a written warning, and cite theappropriate personnel policy or contract provision.

• Describe the performance problem(s) or work rule violation(s) in very specificdetail and attach documents which support your conclusions.

• Outline previous steps taken to acquaint the employee with the issue (coachingsessions, performance appraisals, and previous disciplinary actions) and attachcopies of the documents.

• Describe the impact of the problem (safety issues, need to reassign work).• Note the employee's explanation (as revealed during your investigation) or that

the employee declined to offer one. If it was unacceptable, explain why.• Reiterate your expectations regarding behavior and/or performance.• Note that if the employee doesn't demonstrate immediate and sustained

improvement, the consequence will be further disciplinary action, up to andincluding dismissal.

• Refer the employee to the appropriate policy or contract provision for appealrights.

• Deliver the warning letter to the employee and place it in the employee'sdepartmental personnel file using appropriate delivery procedures such as "Proof of Service."

Suspension without Pay:

This is normally the next stage in progressive discipline after written warning(s)

Suspension typically prevents work for a number of working days, as specified in the letter, and pay is docked accordingly.Length of a suspension without pay will be influenced by policy or contract requirements.The letter states that it is a suspension without pay, the appropriate policy or contract provision,and the number of days the employee will be suspended. It also (as with a letter of warning)describes the problem, previous corrective measures, impact of the problem, your expectations,consequences of failure to improve, and the employee's appeal rights.




Depending upon the personnel program the employee belongs to, you may be required to issue aletter of intent to suspend, which provides the employee with the right to appeal your intendedaction to the next higher management level before the action is implemented. Consult your L/ER Analyst as well as the policy or contract for more information.

Reduction of Pay/Pay Cut within a Class:

This alternative is normally used when you do not wish to remove the employee from the worksite, but serious discipline is appropriate. It is most appropriately used in lieu of suspensionwithout pay, in cases of chronic absenteeism or tardiness.The reduction of pay is for a specific period of time, related to the seriousness of the performancediscrepancy or work rule violation, and noted in the letter.The disciplinary letter will incorporate the same elements included in a suspension letter.You may have to issue a letter of intent similar to that used in cases of suspension. Consult your L/ER Analyst on the procedure.

Demotion to a Lower Classification:

This action involves movement of an employee to a lower level position, and may be temporary or permanent.Demotion is most often appropriate in cases of inadequate performance of responsibilities at a particular level, rather than violation of work rules. It should be based upon a reasonableexpectation that the employee will perform successfully in the lower classified position. For example, did the employee previously hold a similar position, and did they perform satisfactorily?Your notice letter and process are quite similar to those used for a suspension without pay, or areduction of pay within class. Contact your L/ER Analyst if you are considering this disciplinaryalternative.

Dismissal:

This alternative is normally selected after performance counseling and progressive discipline havefailed to get the employee's attention to the problem.In extreme cases, such as job abandonment, theft, or an act that endangers others, the offense may be so grave that we forgo progressive discipline.The disciplinary actions most commonly employed on the campus are written warnings andsuspensions without pay. The concept of progressive discipline does not require that you use allthe actions described above, but you will usually be expected to use more than one type in your attempt to correct the employee's performance or behavioral problems, because discipline shouldnormally be progressive.As a supervisor, it is perfectly natural for you to feel frustrated when an employee repeatedly failsto perform satisfactorily or follow the rules. Keep in mind, however, that most employees come to

work wanting to do a good job. Some will require more specific and frequent feedback than othersto understand what that means in your work site and in the jobs under your supervision.Frequency of feedback will largely depend on what you observe in the employee's behavior and performance and on the cycles of the work (e.g., tardiness can be corrected immediately, but itmay take days or weeks to complete a particular project or task for your review).

Remember that the purpose of disciplinary action is to turn performance around by continuing toidentify problems, causes, and solutions. If you can accomplish it in a positive and constructive




way, you will send a message that you are out not to punish, but to help the employee become afully productive member of your work unit.

Guiding Principles

In carrying out disciplinary action be sure to:

• Maintain a professional manner by keeping the disciplinary process confidential between you and the employee• Make a careful diagnosis of the problem to determine whether disciplinary action

is appropriate• Provide specific examples of performance discrepancies or work rule violations

so the employee fully understands what needs correction• Allow the employee ample opportunity to explain so that you have all the facts• Make sure discipline is the appropriate tool. Would coaching or performance

appraisal be sufficient to get the employee's attention?• When you take disciplinary action, make sure the punishment fits the crime• Help the employee improve performance by providing specific recommendations

and requirements• Communicate clearly so the employee understands the consequences if performance or conduct does not improve

Disciplinary actions practices in SM Group

If someone shall come or in at or enter at office after beginning time if punch card machine showsthat consecutive three (3) days late or in the same occurrence may shows out/departure time in theelectronic attendance report/staff arrival register in that case as a penalty management may takeaction against him for a one (1) day curtailed/ deductions of his/her salary. Normally if someoneremain unauthorized / informally absent it will be treated as absent in that case wages/salary shall

not count or accounted for, in terms of unauthorized continuous absent for more than nine days 9+or 10 days the concerned employee shall have to face an oral or written warning even though if management deems fit whatsoever the penalty through lose of lien and termination etc.

→ 9.2 Workers Benefit

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.

Employee benefits are usually inherent components of the non-compensationsystem 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 byfilling some kind of demand.




→ 9.3 Medicare

Depends on the country’s policy, Medicare facilities are generally government services tocitizens. Organizations add some value to Medicare facilities. In some countries Medicare isfinanced together by employees’ tax, employees and the government. Provided insurancecoverage 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.

Medical Facilities: In terms of above 100 employees shall be Doctor/Physician, Nurse, andActive Ambulance & Dispensary etc.

→ 9.4 Social Security

Social security benefits include the general benefits like unemployment insurance & benefits, oldage insurance, and Medicare facilities etc. SM Group offers retirement benefits at the age of 57years (When age will fulfill 57 years), full benefits/Allowance/Gratuity/ Provident fund amount

and others benefits will be given.

→ 9.5 Health & Safety, Hygiene Working Environment

Free medical checkup, provide health card and also provide necessary medical facilitiesfor each employee. It ensures the all kinds of job safety such as insurance of eachemployee. The working condition of the employee is very hygienic. Else it provides:

o Doctor & Nurse are provided to take care of workers healtho Fire protection system.o Separate toilet for male & female workers.o

Sufficient lights are provided in all the working areas.o Sufficient ventilation is provided by installing ceiling fans, exhaust fans & largewindows.

o Factory premises are always kept neat & clean.o Floors are fitted with tiles so that it remains very clean and worker can walk bare

footed without any difficulties. → 9.6 Working hours & Leave Policies of SM Group

For head office & For Factory (In general) SM Group having its instructions aboutworking hours that employees will have to come at office at 9.00 am each day except

holiday & departs at 6.00pm, mean time they will get 1 hour break for lunch/rest/Prayer.Daily 8 hours & weekly 48 hours. And for the factory workers SM Group offeredadditionally 2 hours O.T (Over time) facility in case of an emergency for shipment &export. O.T wages rates will be calculated according to the following formula:

Basic x 2 x Total Over timeOT = -------------------------------------

208 (26 Days 8 hours)




Mentionable that total working hours shall not exceed/not more than per day 10 hours &each week 60 hours. Shifting duty is running therein with 3 shifts (8 hours each). And inall the cases SM Group follows the rules of the Labour law Act’2006.

Leave Policies: SM Group offered the following leave policies to its employees which

are:Festival leave = Minimum 11 days, Casual Leave(CL) = 10 Days, Medical/SickLeave(ML) = 14 Days, Earned Leave(EL) = 17 Days (For a year) and Maternity Leave =(56 + 56) = 112 Days in terms of all such cases SM Group follows the rules of the Labour law Act’2006. And additionally provided: Funeral Leave, Marriage Leave, Stress Leave,Personal Leave, Sabbatical Leave/For Muslims, Leave after death, Other religious leavessuch as pilgrimage or preaching, leave without pay etc.

→ 9.7 Holidays facilities of SM Group

Every Friday is general holiday in SM Group. About holidays SM Group followsthe Government holidays rules & provisions under Bangladesh Labour Act’2006. → 9.8 Welfare Facilities of SM Group

SM Group provides the following welfare Facilities to its employees:

- 9.8.1 First Aid Appliance/Box: There shall be a First Aid Box if employeeremains below 50 in numbers, where scissors, complex operations items andInjection shall not be available there.

- 9.8.2 Canteens/Waiting Room/Rest Room for employees: If above 100employee there shall be a canteen facilities offered by the respective company.Some company offered subsidy 50% to 75%.

- Rest Room: If below 100 employee there shall be a rest room.

- 9.8.3 Maternity benefit for women employees such as company providesMaternity Leave = (56 + 56) = 112 Days along with other admissible benefits.

Child Care Room: If there remains above 40 women, child age below 0-6 years there shall be achild care room.

Welfare Officer: If above 500 employee there shall be a welfare officer.

Part-6 (Integration of Human Resources)

→ 10.1 Negotiations with TU (Trade Union) & CBA (Collective bargaining Agent)




A trade union (or labor union) is an organization of workers who have banded together to

achieve common goals in key areas, such as working conditions. The trade union, through its

leadership, bargains with the employer on behalf of union members (rank and file members) and

negotiates labor contracts (Collective bargaining) with employers. This may include the

negotiation of wages, work rules, complaint procedures, rules governing hiring, firing and

promotion of workers, benefits, workplace safety and policies. The agreements negotiated by the

union leaders are binding on the rank and file members and the employer and in some cases on

other non-member workers.

Labor unions became popular in the United States during the Industrial Revolution, when the lack

of skill necessary to perform the jobs shifted employment bargaining power almost completely to

the employers' side, causing many workers to be mistreated and underpaid. This gave rise to theconcepts of Marxism and Communism.

These organizations may comprise individual workers, professionals, past workers, or the

unemployed. The most common, but by no means only, purpose of these organizations is

"maintaining or improving the conditions of their employment".

Over the last three hundred years, many trade unions have developed into a number of forms,

influenced by differing political and economic regimes. The immediate objectives and activities of trade unions vary, but may include:

• Provision of benefits to members: Early trade unions, like Friendly Societies, often

provided a range of benefits to insure members against unemployment, ill health, old age

and funeral expenses. In many developed countries, these functions have been assumed by

the state; however, the provision of professional training, legal advice and representation

for members is still an important benefit of trade union membership.

• Collective bargaining: Where trade unions are able to operate openly and are recognized by employers, they may negotiate with employers over wages and working conditions.

• Industrial action: Trade unions may enforce strikes or resistance to lockouts in

furtherance of particular goals.


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• Political activity: Trade unions may promote legislation favorable to the interests of their

members or workers as a whole. To this end they may pursue campaigns, undertake

lobbying, or financially support individual candidates or parties (such as the Labour Party

in Britain) for public office.

Need of Trade Union (T U):

The existence of a strong and recognized trade union is a pre-requisite to industrial peace.

Decisions taken through the process of collective bargaining and negotiations between

employer and unions are more influential. Trade unions play an important role and are helpful

in effective communication between the workers and the management. They provide the

advice and support to ensure that the differences of opinion do not turn into major conflicts.

The central function of a trade union is to represent people at work. But they also have a wider

role in protecting their interests. They also play an important educational role, organizing

courses for their members on a wide range of matters. Seeking a healthy and safe working

environment is also prominent feature of union activity.

Trade unions help in accelerated pace of economic development in many ways as follows:

• by helping in the recruitment and selection of workers.

• by inculcating discipline among the workforce

• by enabling settlement of industrial disputes in a rational manner

• by helping social adjustments. Workers have to adjust themselves to the new working

conditions, the new rules and policies. Workers coming from different backgrounds may

become disorganized, unsatisfied and frustrated. Unions help them in such adjustment.

Trade unions are a part of society and as such, have to take into consideration the national

integration as well. Some important social responsibilities of trade unions include:

• promoting and maintaining national integration by reducing the number of industrial

disputes


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• incorporating a sense of corporate social responsibility in workers achieving industrial

peace

Process of collective bargaining(CB):

Collective bargaining generally includes negotiations between the two parties (employees’

representatives and employer’s representatives). Collective bargaining consists of negotiations

between an employer and a group of employees that determine the conditions of employment.

Often employees are represented in the bargaining by a union or other labor organization. The

result of collective bargaining procedure is called the collective bargaining agreement (CBA).

Collective agreements may be in the form of procedural agreements or substantive agreements.

Procedural agreements deal with the relationship between workers and management and the

procedures to be adopted for resolving individual or group disputes.

This will normally include procedures in respect of individual grievances, disputes and discipline.

Frequently, procedural agreements are put into the company rule book which provides

information on the overall terms and conditions of employment and codes of behavior. A

substantive agreement deals with specific issues, such as basic pay, overtime premiums, bonus

arrangements, holiday entitlements, hours of work, etc. In many companies, agreements have a

fixed time scale and a collective bargaining process will review the procedural agreement when

negotiations take place on pay and conditions of employment.

The collective bargaining process comprises of five core steps:

1. Prepare:

This phase involves composition of a negotiation team. The negotiation team should

consist of representatives of both the parties with adequate knowledge and skills for

negotiation. In this phase both the employer’s representatives and the union examine their

own situation in order to develop the issues that they believe will be most important. The

first thing to be done is to determine whether there is actually any reason to negotiate at

all. A correct understanding of the main issues to be covered and intimate knowledge of




operations, working conditions, production norms and other relevant conditions is

required.

2. Discuss:

Here, the parties decide the ground rules that will guide the negotiations. A process well

begun is half done and this is no less true in case of collective bargaining. An environment

of mutual trust and understanding is also created so that the collective bargaining

agreement would be reached.

3. Propose:

This phase involves the initial opening statements and the possible options that exist to

resolve them. In a word, this phase could be described as ‘brainstorming’. The exchangeof messages takes place and opinion of both the parties is sought.

4. Bargain:

Negotiations are easy if a problem solving attitude is adopted. This stage comprises the

time when ‘what ifs’ and ‘supposals’ are set forth and the drafting of agreements take

place.

5. Settlement: Once the parties are through with the bargaining process, a consensual

agreement is reached upon wherein both the parties agree to a common decision regarding the

problem or the issue. This stage is described as consisting of effective joint implementation of

the agreement through shared visions, strategic planning and negotiated change.




Collective Bargaining:

Collective Bargaining is a technique by which dispute as to conditions of employment, are

resolved amicably, by agreement, rather than by coercion. The dispute is settled peacefully and

voluntarily, although reluctantly, between labour and management.12 In the context of present

day egalitarian society, with its fast changing social norms, a concept like ‘collective bargaining’

is not a capable of a precise definition. The content and Scope collective bargaining also varies

from country to country. Broadly Speaking Collective bargaining is a process of bargaining

between employers and workers, by which they settle their disputes relating to employment or

non-employment, terms of employment or conditions of the labour of the workman, amongthemselves, on the strength of the sanctions available to each side .13 Occasionally, such

bargaining results in an amicable settlement, arrived at voluntarily and peacefully, between the

parties. But quite often, the workers and employers have to apply sanctions by resorting to

weapons of strike and lockouts, to pressurize one another, which makes both the sides aware of

the strength of one another and that finally forces each of them to arrive at a settlement in mutual

interest. It is thus the respective strength of the parties which determine the issue, rather than the

wordy duals which are largely put on for show, as an element of strength in one party is by thesame token, an element of weakness in another.14 The final outcome of bargaining may also

depend upon the art, skill and dexterity of displaying the strength by the representatives of one

party to the other.




In organized labor , collective bargaining is the method whereby workers organize together

(usually in unions) to meet, converse, and negotiate upon the work conditions with their

employers normally resulting in a written contract setting forth the wages, hours, and other

conditions to be observed for a stipulated period.[1] It is the practice in which union and company

representatives meet to negotiate a new labor contract.[2] In various national labor and employment

law contexts, the term collective bargaining takes on a more specific legal meaning. In a broad

sense, however, it is the coming together of workers to negotiate their employment.

A collective agreement is a labor contract between an employer and one or more unions.

Collective bargaining consists of the process of negotiation between representatives of a union

and employers (represented by management, in some countries by employers' organization) in

respect of the terms and conditions of employment of employees, such as wages, hours of work,working conditions and grievance-procedures, and about the rights and responsibilities of trade

unions. The parties often refer to the result of the negotiation as a collective bargaining agreement

(CBA) or as a collective employment agreement (CEA).

Pre-requisition for Collective Bargaining Agent (CBA):

The pre-requisition for Collective Bargaining Agent (CBA) are as follows:

01. Competent team from both the parties of the bargaining.

02. Freedom of association i.e. workers as well as employees will have the right to

form organizations of their own to protect their interests.

03. Truly representative and enlightened unions. Trade unions should encourageinternal democracy and have periodic consultations with the rank and file members.

04. Mutual recognition.

05. Favorable political climate.

06. Guarantee for faithful observance of the agreement.

07. Willingness to give and take of the parties. It requires an open mind and to listenand appreciate the others’ concern and point of view and to have some flexibility inmaking adjustments to the demands made by the unions as well as management.


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08. Avoidance of unfair labour practices by both the parties.

09. Periodic discussion between the management and the unions to avoid any seriouscontent or conflict or any point of doubt about provisions of the agreement previouslymade.

10. Adequate study or the homework on the demand placed before the management bythe unions.

11. Keep strike and lockout as the last resorts.

→ 10.2 Grievances Handling Procedures

Handling a grievance

When dealing with a grievance:

• ensure you're familiar with the procedure and apply it correctly

• hold any grievance hearing in private without interruptions

• where a grievance relates to the person's line manager, ensure that the employee can raise

the grievance with someone else

• listen carefully to the person's explanation of the problem and consider whether there is a

deeper issue which might be the root cause of the grievance

• listen to any conflicting points of view

• weigh up all evidence to see whether there is an issue you need to address

• decide what action to take, trying to balance fairness to the person without compromising

the business or other workers

• inform all concerned parties of your decision and the appeal process

• ensure you resolve any problems relating to policies, procedures or conduct where the

grievance procedure highlights these

• keep the process as confidential as possible

Deal with grievances sensitively, particularly where they concern other workers. You may

wish to develop specific procedures for very sensitive matters involving unfair treatment e.g.,

discrimination, bullying or harassment. . Consider also having a separate "whistle blowing"




procedure, so that workers are encouraged to raise any complaints about wrongdoing e.g.

fraud, internally rather than disclosing them outside the business.

If a worker raises a separate grievance during a disciplinary hearing, it's good practice to

adjourn the hearing until the grievance is dealt with. By dealing with problems in a fair andreasonable manner, you're much less likely to lose valued and skilled staff through

resignation. It will also help you successfully defend a constructive dismissal claim.

A grievance may be a dispute between employer & employee.

It is basically any disagreement between two parties.

A grievance is also a complaint one party has against another party for some alleged wrongcommitted by the second person. The Declaration of Independence listed 27 grievances or

complaints of mistreatment by the British against the colonists.

Anybody working in an organisation may, at some time, have problems or concerns about

their work, working conditions or relationships with colleagues that they wish to talk about

with management. They want the grievance to be addressed, and if possible, resolved. It is

also clearly in management's interests to resolve problems before they can develop into major

difficulties for all concerned.

Issues that may cause grievances include:

- terms and conditions of employment

- health and safety

- work relations

- bullying and harassment

- new working practices- working environment

- organizational change

- equal opportunities.




Grievances may occur at all levels, and the Code, and associated good practice, applies equally to

management and employees.

Employees should aim to settle most grievances informally with their line manager. This has

advantages for all workplaces, particularly where there might be a close personal relationship between a manager and an employee. It also allows for problems to be settled quickly.

In some cases it may be helpful to use a neutral mediator to help sort out a grievance and maintain

working relationships. Mediation is often most effective if used early on but may not be suitable if

you want to enforce a legal right or want someone to decide the rights and wrongs of an issue for

you. For more information about mediation see the Acas leaflet "Mediation explained" available

on the Acas website or from our publications orderline on 08702 42 90 90.

If there is a grievance applying to more than one person consider whether it should be resolvedwith any recognized trade union(s).

Why has a procedure?

If a grievance cannot be settled informally or a formal approach is preferable, the employeeshould raise it formally with management.Employees must complete step 1 of the statutory procedure if they wish subsequently to use thegrievance as the basis of an application to an employment tribunal.

Step 1

The employee informs the employer of their grievance in writing.

Step 2

The employer invites the employee to a meeting to discuss the grievance where the right to beaccompanied will apply. The employer notifies the employee in writing of the decision andnotifies of the right to appeal.Step 3

The employee informs the employer if they wish to appeal. The employer must invite them to ameeting and following the meeting inform the employee of the final decision. (Employees musttake all reasonable steps to attend meetings.)Employment tribunals may adjust any award of compensation by usually between 10 and 50 per cent for failure by either party to follow relevant steps of the statutory procedure where it applies.

A written procedure can help clarify the process and help to ensure that employees are given their rights such as to be accompanied at grievance meetings. Employers should be aware that their employees might raise issues about matters not entirely within the control of the organization,such as client or customer relationships or equal opportunity issues (for instance where anemployee is working on another employer's site). These should be treated in the same way aswithin the organization, with the employer/manager investigating as far as possible and taking




action if required. The organization should make it very clear to any third party that grievances aretaken seriously and action will be taken to protect their employees.

Part-7 (Record, Research & IS, Accounting & Audit of Human Resources)

→ 11.1 Record keeping of employee’s personal file.Receiving job application from prospective professionals, C.V(s) along with 2 or 3 copies passport size color photograph with attested photocopies of National ID card, educationalcertificate’s as well as experience certificate(Optional), Providing confirmation letter initially,receiving joining letter, then providing appointment letter to the candidate(s), subsequently other information to keep up to date the personnel files. Mentionable that a personal file shall be openin the name of the new comer where necessary to write down his name, designation, Departmentname, Joining date, file number etc.

→ 11.2 Research over personnel activities: Generally the term ‘research’ we mean a systematicand goal oriented investigation of facts that seeks to establish a relationship between two or more

phenomena. HR manager should research the employees/personnel’s activities over his/her past or current assigned tasks and ought to check whether they have exists the creativity, sharinginnovative idea, stress tolerance power, work load, work spirit, efficiency, communication skill,enthusiasm to work, self-motivation, knowledge, confidentiality, how smooth & swift s/he performs, ability to learn, punctuality, relationship with co-worker, obedience/dependability,technical advancement, interpersonal skill, initiative, interest in assigned task, discipline, workability & behavior etc or not.

→ 11.3 Human Resource Accounting

Human Resource Accounting means Assigning, budgeting, and reporting the cost of human resources incurred in an organization, including wages and salaries and training expenses.

Human Resource Accounting is a method to measure the effectiveness of personnelmanagement activities and the use of people in an organization. Reporting and emphasizing thevalue of the contributions of skilled and loyal employees to a firm's earning potential; matching anorganization's job requirements with the skills and abilities of its Work Force in terms of measuring employee productivity contributions.Method that recognizes a variety of human resources and shows them on a company's balancesheet. Under human resource accounting, a value is placed on people based on such factors asexperience, education, and psychological traits, and, most importantly, future earning power (benefit) to the company. The idea has been well received by human-resource-oriented firms, suchas those engaged in accounting, law, and consulting. Practical application is limited, however, primarily because of difficulty and the lack of uniform, consistent methods of quantifying thevalues of human resources.

→ 11.4 Human Resource Auditing

HR Audit means the systematic verification of job analysis and design, recruitment and selection,orientation and placement, training and development, performance appraisal and job evaluation,employee and executive remuneration, motivation and morale, participative management,communication, welfare and social security, safety and health, industrial relations, trade unionism,


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and disputes and their resolution. HR audit is very much useful to achieve the organizational goaland also is a vital tool which helps to assess the effectiveness of HR functions of an organization.

Scope of Audit: Generally, no one can measure the attitude of human being and also their problems are not confined to the HR department alone. So it is very much broad in nature. It

covers the following HR areas:

• Audit of all the HR function.• Audit of managerial compliance of personnel policies, procedures and legal provisions.• Audit of corporate strategy regarding HR planning, staffing, IRs, remuneration and other

HR activities.• Audit of the HR climate on employee motivation, morale and job satisfaction.

Benefits of HR Audit:

It provides the various benefits to the organization. These are:

• It helps to find out the proper contribution of the HR department towards the organization.• Development of the professional image of the HR department of the organization.• Reduce the HR cost.• Motivation of the HR personnel.• Find out the problems and solve them smoothly.• Provides timely legal requirement.• Sound Performance Appraisal Systems.• Systematic job analysis.• Smooth adoption of the changing mindset.

The auditors always prepare and submit an audit report to authority of the organization, whichmay be clean or qualified. The clean report indicates the appreciative of the department's function, but the latter one represents the gaps in performance and therefore contains remarks and remedialmeasures. HR Audit is very much helpful to face the challenges and to increase the potentiality of the HR personnel in the organization.

THE HUMAN RESOURCES AUDIT

The Human Resources (HR) Audit is a process of examining policies, procedures, documentation,systems, and practices with respect to an organization’s HR functions. The purpose of the audit isto reveal the strengths and weaknesses in the organization’s human resources system, and any

issues needing resolution. The audit works best when the focus is on analyzing and improving theHR function in the organization.

The audit itself is a diagnostic tool, not a prescriptive instrument. It will helps to identify what youare missing or need to improve, and it may even tell you what you need to do to address theseissues. It is most useful when an organization is ready to act on the findings, and to evolve its HR function to a level where it’s full potential to support the organization’s mission and objectivescan be realized.




How should the HR audit be conducted? The audit process consists of a series of questionscovering the eight primary components of the HR function:

• Roles, head count, and HR information systems (HRIS)• Recruitment

• Documentation• Training, development, and career management• Compensation and benefits• Performance measurement and evaluation• Termination and transition• Legal issues and personnel policies

The team works to collect information to answer the HR audit questions in each of thesecategories. The focus is on how these activities and tasks are actually performed in theorganization. The first step is to collect all the pertinent information. The process of gettinginformation, in and of itself, can be quite informative. For auditing the HRIS, the questioning

begins from the organization of HR department and how information flows inside the department.It must be remembered that HRIS exists in the department, even if it is not automated usingcomputers. Hence the overall information management system must be studied thoroughly.Hence, the audit is divided into three components:

• Part I. Human Resource organization/ administration• Part II. Information management through Documentation• Part III. Computerized HRIS

→ 11.5 Human Resource Information Systems (HRIS)

A system which seeks to merge the activities associated with human resource management (HRM) and information technology (IT) into one common database through the use of enterprise

resource planning (ERP) software. The goal of HRIS is to merge the different parts of human

resources, including payroll, labor productivity, and benefit management into a less capital-

intensive system than the mainframes used to manage activities in the past. Also called Human

Resource Management Systems (HRMS).

The Human Resource Information System (HRIS) is a software or online solution for the dataentry, data tracking, and data information needs of the Human Resources, payroll, management,

and accounting functions within a business.

Typically, the better The Human Resource Information Systems (HRIS) provide overall:

• Management of all employee information.• Reporting and analysis of employee information.• Company-related documents such as employee handbooks, emergency evacuation

procedures, and safety guidelines.


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• Benefits administration including enrollment, status changes, and personal information

updating.• Complete integration with payroll and other company financial software and accounting

systems.• Applicant tracking and resume management.

The HRIS that most effectively serves companies tracks:

• attendance and PTO use,• pay raises and history,• pay grades and positions held,• performance development plans,• training received,• disciplinary action received,• personal employee information, and occasionally,• management and key employee succession plans,•

high potential employee identification, and• applicant tracking, interviewing, and selection.

An effective HRIS provides information on just about anything the company needs to track andanalyze about employees, former employees, and applicants. Your company will need to select aHuman Resources Information System and customize it to meet your needs.

With an appropriate HRIS, Human Resources staff enables employees to do their own benefitsupdates and address changes, thus freeing HR staff for more strategic functions. Additionally, datanecessary for employee management, knowledge development, career growth and development,and equal treatment is facilitated. Finally, managers can access the information they need to

legally, ethically, and effectively support the success of their reporting employees.SM Group having software in its factory where detailed information regarding employee’s day today activities has been preserved.

→ 12.1 Findings & Analysis

a) SM Group beliefs, in present competitive and dynamic environment humanresource department are the most valuable department than others.

b) They consider their skilled people as asserts for their organization.c) SM Knitwear/Garments to draw the most talented and dynamic professionals from

the available candidates.d) SM Group follows both the internal and external sources of recruitment.e) Training and development programs of SM Group include orientations, and

socializations activities to inform employees about HRM policies and procedures.


Chapter- 6 Findings & Analysis, Recommendations, Bibliography

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f) SM Knitwear/Garments try to develop their employee with future advancement

and educate them in jobs skills.g) For job analysis SM Knitwear/Garments consider several common uses such as-

job definition, job re-design, orientation, socialization, carrier counseling,employee safety & work environment, performance appraisal & compensation etc.

h) SM Group, design their job in such way, which is the right person at the right placeat the right job at the right time to achieve their objective and goals.i) SM Group, follows the Ranking and the classification method for evaluating the

job. j) For evaluating the performance appraisal SM Group mostly follows the rating

scale method.k) Taking constructive steps they are trying to develop the skills of the human

resource pool.l) Their human resource department (HRD) trusts in team work and respect each

other.

On the other side, Knitwear industry is obsolete in our country. But the size of the industry is still

growing. SM Knitwear Ltd. is one of the fast movers in this sector. Starting only in 2001, it hasmanaged to be grown up as one of the country’s leading Knitwear Company. Its increase turnover has been significantly increasing since 2007 -2008. It is providing employment to a large number of skilled and unskilled people all over the country. The SM Knitwear Ltd, contributed an amountBdt. 21,71,337/= for Income Tax Expenses and UD, Customs, BGMEA Exp and SM KnittingInd. Ltd. Contributed an amount Bdt. 7,96,114/= respectively. The company contributedsubstantially to the foreign Exchange Reserve of the country through its export marketingoperation. In 2007 – 2008 its net export earning was taka 9,42,06,218.00. It is shown that YearlyTurnover (In US$) 1.44e + 07 in the SM Knitwear Ltd. and Yearly Turnover (In US$) 1.35e + 07in the SM Knitting Industries Ltd. [Source from BKMEA website: http://www.bkmea.com].

And in aggregation data from the Export Promotion Bureau, Bangladesh shows Export performance for 2008 -2009 in terms of Knitwear Mn. US$ 6429.26, for July 2009 Mn. US$651.85, for July 2008 Mn. US$ 640.50 and July – June 2009- 2010 Mn. US$ 6483.29, % changeof export performance July – Aug. 2010 -11 over July –Aug 2009 -2010 is 32%.

Bangladesh is the third largest knitwear exporter to EU

Bangladesh has emerged as the third largest exporter of knitwear garments to European Union inthe fiscal year: 2006 -2007 after China and Turkey, chief of the country’s knitwear manufacturers’association said.

President of Bangladesh knitwear Manufacturers and Exporters Association (BKMEA) FazlulHoque told the FE that the sector was gaining momentum due to skilled workforce and strong backward linkages.

Of Bangladesh’s total knitwear export worth around $5.532 billion in the fiscal year:2006 - 2007to over 90 nations of the world, he said: “The country fetched around $3.50 billion from export of knit items including t-shirts, sweatshirts, trousers and tops to European Union (EU) countries.”




“We are giving relentless effort to consolidate our position which we managed to achieve in thefiscal year: 2006 - 2007 as Indonesia and Hong Kong lost their grounds in export of knitwear toEU,” said the BKMEA president, an association of around 1500 knit manufacturers of thecountry.

Some BKMEA insiders said Bangladesh’s knitwear garments industry now requires to competewith countries like Turkey, India and Pakistan, not China which has shifted its focus onmanufacturing high-end products.

Bangladesh has the potential to take the number one position in the near future if it avails itself of the advantage by employing high tech machinery, sector insiders said.

They added the country’s knitwear industry, which accounted for more than 37.3 percent of Bangladesh’s total exports of US$14.11 billion by exporting 199.54 million dozens of knit itemsin the last fiscal year: 2006-2007, will continue to grow despite the fear of financial woes in thedeveloped economies.

About the effects of world’s financial woes, an exporter said: “knitwear export performed morethan expectation in the first quarter. We are expecting that the growth will continue in the rest of the period unless the financial slowdown in EU region prolongs.”

In the first quarter, spanning from July to September, of the fiscal 2008-09 year, Bangladeshknitwear exporters fetched $1.831 billion, registering 52.05 percent growth over that of thecorresponding period last year.

“We exported knitwear worth $6.43 billion in FY 2008 -09, despite the recession which is up by16 percent in comparison to the prior fiscal year, Hoque said, adding that growth could have

surpassed 30 percent had the global recession not hit”.Source: www.apparel.com.bd/?p=392, December 5, 2008

→ 12.2 Recommendations

From the analysis with the organization structure we have seen that its span of supervision is toolarge. A number of departments report directly to the general manager. If the number were less theefficiency and productivity of the organization might be increased. Quality control departmentshould remain prompt always. So that it can maintain a certain level of standard as per the marketdemand to capture the foreign market share it should strive more. Also in this connection, SMGroup needs to provide the employee more quality work life as well as more attractiveenvironment for working. They should keep the work environment sound and healthy.Employee’s job satisfaction and job/performance evaluation needs to be increased by maintainingthe company policy efficiently to get maximum productivity through employee’s satisfaction.Though its sister concern SM Knitting Ind. Ltd. has loss in different sector, above all it makes




profit in the same year in its mother concerns SM Knitwear Ltd. and others sister concerns but it’sneed to prevention of loss by adopting effective technology and continuous development of human resource management.

→ 12.3 Conclusions

The flourishment of any industry requires combined efforts and cooperation from several parties,social, political, and macro economic environment play pivotal role in this regard. Though SMKnitwear Ltd. is a modern joint venture company in the respective sector, its growth andexpansion is totally praiseworthy. It’s contributing the country and serving the nation in differentways. As a recognition, the Government of Bangladesh itself awarded to Mr. Syed A.K.Anwaruzzaman, Managing Director of SM Knitwears Ltd for the “Best Workers’ FriendlyKnitwear Industry for 2008” selected by the Ministry of Labour and Employment. The HonorableManaging Director of SM Knitwears Ltd has been selected & achieved the award of “Commercially Important Person (CIP) 2008” by the Internal Resources Division, Ministry of

Finance & Planning. If it can up hold its much toward advancement, it will be able to set a rolemodel in our country.

In present competitive and dynamic environment, human resource are now being viewed as themost valuable mean for gaining advantages over other. Competitive advantages can only beachieved by building up highly motivated and skilled workforces. To fulfill the vision, mission,goal and core objectives of a company the management has needed to establish an effective andefficient human resource department and hired to confident and most promising professionals.

Bibliography/References

☺ Personnel/Human Resource Management by David A. DeCenzo, Stephen P. Robbins, 3

rd

Edition (Eastern Economy Edition), Year-2004

☺ Human Resource Management (Text Book & Notes for P.MBA/Diploma Course on H.R.M) by BIHRM, 9 Indira Road, Framgate, Dhaka, Bangladesh

☺ Human Resource Research, Training & Development (Text Book of BIHRM)




☺ BIHRM web site: www.bihrm.org

☺ Web Sites of SM Group: www.smknitwear.com

☺ Bangladesh Knitwear Manufacturers & Exporters Association (BKMEA) web site:

http://www.bkmea.com☺ Web site of Export Promotion Bureau, Bangladesh: www.epb.gov.bd

☺ www.apparel.com.bd/?p=392

☺ Company Profile of SM Knitwears Ltd., SM Knitting Ltd., SM Eurofashion Ltd., GarmentsUnit of SM Group.

☺ HRM related different web sites/pages/articles/journals etc.

☺ Class lecture notes of BIHRM faculty members.☺ Financial data from the department of Accounts and Finance (Data for the fiscal year-2007

and 2008, Accounting & Financial Software: RTechnologes/@ccEasy+/AccountSM Printedon 03/03/2009 at 03:52:38 PM)

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hrm policies and total functions practices for corporate organizations

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