Asif Mahmud Onik, Student of University Of Liberal Arts Bangladesh University of Liberal Arts Bangladesh A new vision in higher education What are the levels of employees’ satisfaction of (RMG) sector in Bangladesh? A case study Employees satisfaction level of Ready Made Garments (RMG) sector in Bangladesh.
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Asif Mahmud Onik, Student of University Of Liberal Arts Bangladesh
University of Liberal Arts Bangladesh A new vision in higher education
What are the levels of employees’ satisfaction of (RMG) sector in Bangladesh?
A case study Employees satisfaction level of Ready Made Garments (RMG) sector in Bangladesh.
Asif Mahmud Onik, Student of University Of Liberal Arts Bangladesh
Assignment On Factors affecting Employees satisfaction levels Ready Made Garments sector in Bangladesh
Our Research The levels of employees’ satisfaction of RMG sector
Prepared for
Mehidi Rajeb
School of Business (ULAB)
Prepared by
Asif Mahmud Onik ID: 091011147
Rahatul Islam ID: 091011146
Afia Mahamuda ID: 091011115
Taraina Islam ID: 083011060
Jannatul Farjana ID: 083011045
Jannatul Farhana ID: 083011046
Rasheda Khanam ID: 083011013
Rubin Sultana ID: 081011076
Asif Mahmud Onik, Student of University Of Liberal Arts Bangladesh
Letter of Transmittal
13 August 2011
Mehidi Rajeb Faculty of Business Studies
University of Liberal Arts Bangladesh
Sub: Factors affecting Employees satisfaction Ready Made Garments sector in Bangladesh.
Sir,
We the undersigned students were assigned to prepare a report on “Factors affecting Employees
satisfaction Ready Made Garments sector in Bangladesh” we have prepared this report. In
preparing this report, we have followed your guidelines. As per your direction, we have added a
lot of information from the mentioned topic. From this report we have achieved a lot of basic
knowledge and we think ourselves that it will help us a lot in our future career. We sincerely
hope this report will fulfill the requirements suggested by you under the course Research
Methodology (BUS 308). We truly appreciated this report. We hope it will be accepted by you.
If you have any question after reading this report, let us know.
Sincerely Your.
Asif Mahmud Onik
ID: 091011147
(On behalf of the group members)
Asif Mahmud Onik, Student of University Of Liberal Arts Bangladesh
Acknowledgement
First we would like to great thank to our Allah who makes us and also gives us all capacity to do
something in every time.
We also thank our Honorable course teacher any time co-operation. He helps us by giving all
kinds of information regarding to our Report. We also thank other Teachers of our University
who helped us by some vital direction about our report.
Computer makes our work very easy and save our time. In the Lab we could use easily the
computer and completed our report as a result some time we face some problem about operating
the computer but us taking it easily by help of our friends. So we expressing our great thanks to
almighty and friends who are help and giving some information that was vital for my report.
At last, we express our sincere gratefulness to the class mates who give our important knowledge
regarding to our report.
Asif Mahmud Onik, Student of University Of Liberal Arts Bangladesh
Executive Summary
We work as a group to prepare our report. Our research title factor affecting employees’
satisfaction level Ready Made Garments (RMG) sector in Bangladesh. When started our
research, many people interested to help. But later time, cost and other document face some
problem. Like total employees, area wise factory etc. We analyzed what are the affect
employees’ satisfactions. We see what the opportunities for improve employees’ satisfaction
level features and also follow factory controlling system. We also discuss how to clearly survey
and improve employees’ happiness. At last we included some questions that the garments’
employees are asked this paper also include Research properly finish and submits time.
At last, we express our all member friendly to help and collect lot of information or give us
important knowledge a proper way to finish this part.
Asif Mahmud Onik, Student of University Of Liberal Arts Bangladesh
Topic:
The levels of employees’ satisfaction of Ready Made Garments (RMG) sector in
Bangladesh.
Research question:
What are the levels of employees’ satisfactions Ready Made Garments (RMG)
sectors in Bangladesh?
Title:
Factors affecting Employees satisfaction levels Ready Made Garments sector in
Bangladesh.
Asif Mahmud Onik, Student of University Of Liberal Arts Bangladesh
Introduction
The Ready-Made Garments (RMG) industry captures a unique position in the Bangladesh
economy. Ready-made garments are mass-produced finished textile products of the clothing
industry. The industry plays a key role in employment generation and in the provision/
distribution of income to the poor.
Employee satisfaction is a measure of how happy workers are with their job and working
environment. Epping moral high among workers can be of great benefit to any company, as
happy workers will be more likely to produce more ,take fewer days off ,and stay loyal to the
company .There are many factors in improving or maintaining high employee satisfaction ,which
wise employers would do well to implement .
To measure employee satisfaction ,many companies will have mandatory surveys or face-to –
face meetings with employees to gain information .Both of these tactics have pros and cons ,and
should be chosen carefully .surveys are often and anonymous ,allowing workers more freedom to
be honest without fear of impact Interviews with company management can fill intimidating but
if done correctly can let the worker know that there voice has been heard and their concerns
addressed by those in charge .surveys and meetings can truly get to the center of the data
surrounding employee satisfaction ,and can be great tools identify specific problems leading to
lowered morale.
Before liberation in 1970 in Bangladesh there was only one garment factory but now there are
4740 garment factory in Bangladesh. The number of workers in garments sectors is increased
day by day. In 1985-86 the total workers were 0.20 million. In 2007-08 the number of garments
workers in Bangladesh is 2.50 million 2011 around 4.5 million.
Job satisfaction means an attitude that reflects the extent to which an individual is gratified by or
fulfilled in his or her work. It’s indicated that personal factors such as an individual needs and
objective, determine this attitude along with group and organization factors, such as relationships
with coworkers and supervisor and working conditions work politics and compensation.
Asif Mahmud Onik, Student of University Of Liberal Arts Bangladesh
Ready-Made Garments is the largest exporting industry in Bangladesh, which experienced
phenomenal growth during the last 20 years. But Bangladeshi garments industry labour cost is
very poor than other country. The wages paid to RMG workers in Bangladesh are the lowest
even by the South Asian regional standard. Graph illustrates the comparative average hourly
wages in apparel industry of selected developed and developing countries.
0
2
4
6
8
10
12
12
10
8
6
4
2
0
Graph 1: Comparative Average Hourly Wage in Garments Industry (USD per hours)
Source: ILO and CPD Occasional Paper Series
Asif Mahmud Onik, Student of University Of Liberal Arts Bangladesh
The sector has created jobs for about 4.5 million people of which 80 percent are women who
mostly come from rural areas. This industry of Bangladesh has been the key export division and
a main source of foreign exchange for the last 25 years. National labor laws do not apply in the
EPZs, leaving BEPZA in full control over work conditions, wages and benefits. Garment
factories in Bangladesh provide employment to 40 percent of industrial workers. But without the
proper laws the worker are demanding their various wants and as a result conflict is began with
the industry. Low working salary is another vital fact which makes the labor conflict. Worker
made strike, layout to capture their demand. Some time bonus and the overtime salary are the
important cause of crisis. Insufficient government policy about this sector is a great problem in
Garments Company.
Asif Mahmud Onik, Student of University Of Liberal Arts Bangladesh
Literature Review
Mohammad Salim Zahargier, Nimalathasan Balasundaram (2010) mentioned in their paper that
two main sources of economic growth of Bangladesh have been manufacturing and servicing,
both crucially dependent on the RMG sector. Thus any impact on RMG sector, will adversely
affect economic performance of the country and another paper already say Factors affecting
Employees’ Performance in Ready Made Garments (RMG) Sector in Chittagong, Bangladesh.
Several researchers were given emphasized on forecast or estimate export demand function.
Some other with mentioning is Ahmad et al (1993) and Razzaque (2004). Recently, Abdus
Salam Murshedy (2010-05-06) in his paper addresses to the task of assessing ready made
garment industry has emerged as the highest employment creating manufacturing sector of the
country,. And they found during GFC the performance of RMG and Remittance sectors are quite
satisfactory. M M Shahnewaz Kabir Shawon research Deeper look into RMG Sector of
Bangladesh (10th April, 2011) this paper include what are benefit our national economy in
garments sector, Recent export data and employees’ performances level. Syeda Sharmin Absar
analysis what are the problem surrounding wages, the RMG sector in Bangladesh and also discus
gender division of labour, wages, working hours or many important part why people like most
women work and suggest proper solution. Tahmina Haque published Journal of Business
Research, (vol. 5, 2003) this article focus A View over Discrimination and Harassment Situation
of Daily Unskilled Workers in Work Place in Bangladesh this paper track to see whether and
how unskilled workers were harassed by their employers and co-workers, most of the case effect
garments worker. Md. Nehal Ahmed and Md. Sakhawat Hossain (September 2006 ) Policy
Analysis Unit (PAU)Research Department, Bangladesh Bank analysis Future Prospects of
Bangladesh’s Ready-Made Garments Industry and the Supportive Policy Regime also include
how to improve Infrastructural Impediments and focus Labour Productivity.
On April 5th 2009 the Trade Related Assistance Center (TRAC) at the American Chamber of
Commerce in Egypt hosted a workshop titled “Improving Labor Productivity in Egypt’s Ready-
Made Garments Sector This report analyzes labor productivity in the ready-made garment sector
Asif Mahmud Onik, Student of University Of Liberal Arts Bangladesh
in Egypt. Section 1 seeks to highlight and understand the constraints to labor productivity by
focusing on productivity challenges, limitations to growth and working conditions in the garment
sector. Syeda Sharmin Absar (Australian National University) publishes on journal, problem
surrounding wages and satisfaction the RMG sector in Bangladesh. This labour and management
in development journal (volume 2, number 7) analysis’ Bangladesh labour satisfaction level and
RMG sector/worker low Centre for Policy Dialogue (September, 2007) Published paper Gender
Dimension of Employment in the RMG Sector, Recent Evidence from the Field Survey (Trade
and Competitiveness Research Team, Institute of Economics, 27 Tran Xuan Soan, Hanoi,
Vietnam) this report focus explore the gender-differentiated effect of trade liberalisation in the
RMG sector in Bangladesh; and To investigate how the adjustments were taking place in
response to the new competitive global environment.
Yoon and Suh (2003) showed that satisfied employees are more likely to work harder and
provide better services via organizational citizenship behaviors. Employees who are satisfied
with their jobs tend to be more involved in their employing organizations, and more dedicated to
delivering services with a high level of quality. Yoon and Suh Previous research has also
suggested that loyal employees are more ready to and more capable of delivering a higher level
of service quality (Loveman 1998, Silvestro and Cross 2000). Researchers have argued that
service quality is influenced by job satisfaction of employees (e.g., Bowen and Schneider 1985,
Hartline and Ferrell 1996).
The argument that employee satisfaction improves worker confidence quality is grounded on the
theory of equity in social exchanges (Gouldner 1960, Homans 1961, Blau 1964, Organ 1977). In
the context of social exchange theory, when an employer offers favorable working conditions
that make its service employees satisfied.
Md. Rajib Hasan and Mohammad Abdul Alim (University of Gothenburg) published on research
paper, how to solve garments employees problem and motivate. This paper also include garment
Asif Mahmud Onik, Student of University Of Liberal Arts Bangladesh
2001) analysis of qualitative factors affecting competitiveness of textile and garment firms. This
report was prepared by a six-member Technical Group (TG) led by Vu Quoc Huy (Institute of
Development Studies, Hanoi National Economics University) and comprised of Nguyen Thanh
Ha, Cu Chi Loi and Nguyen Van Tien (Institute of Economics), Vo Tri Thanh (Central Institute
of Economic Management), and Nguyen Thang (Institute for Market and Price Research). The
Project was directed by Do Hoai Nam, Director of the Institute of Economics and Vice-
Chairman of National Centre for Social Sciences and Humanities (NSSSH), who also led its
Advisory Group this report focus how to improve and raise production or benefit this sector and
also say employees’ level. Pratima Paul-Majumder, Anwara Begum work Poverty Reduction and
Economic Management Network this time she research The Gender Imbalances in the Export
Oriented Garment Industry in Bangladesh and also focus In Bangladesh, worker employment in
export-oriented industry has Narrowed the gender gap in many spheres including participation in
labor force, social prestige, control over income and decision making. At the same time there is
common occupational segregation and gender discrimination in wage rates.
On April 5th 2009 the Trade Related Assistance Center (TRAC) at the American Chamber of
Commerce in Egypt hosted a workshop titled “Improving Labor Productivity in Egypt’s Ready-
Made Garments Sector This report analyzes labor productivity in the ready-made garment sector
in Egypt. Section 1 seeks to highlight and understand the constraints to labor productivity by
focusing on productivity challenges, limitations to growth and working conditions in the garment
sector. Syeda Sharmin Absar (Australian National University) publishes on journal, problem
surrounding wages and satisfaction the RMG sector in Bangladesh. This labour and management
in development journal (volume 2, number 7) analysis’ Bangladesh labour satisfaction level and
RMG sector/worker low.
Asif Mahmud Onik, Student of University Of Liberal Arts Bangladesh
Scope and Objectives of the report
The objective of the report is to develop our knowledge about Research method as well as to elaborate our thinking. Through this report, we will able to make our self at any situation when we got the any sort of assignment or task or making any report regarding Research area. It also help us for fulfillment our knowledge. The main objective of the report is to gather knowledge and information how an organization performs their task and what are the levels of employees’ satisfaction of (RMG) sector in Bangladesh.
Objective:
1. To Judge the level satisfaction among garment employees.
2. To identify the factors there are affecting the satisfaction level of garments employees.
3. Identify the major factor behind the satisfaction level of garments employees.
4. To identify the relationship between factors and employees’ satisfaction level.
5. To classify whether and how RMG worker were harassed by their factory manager or
other person.
Research Methodology
Methodology is the most important component in any study since it explains the procedure and methods through which a particular study was carried out. This paper includes Data / Information Collection, Study Population, Study Area, data collection, Sample Size, Allocation of sample and calculation etc. Data Data are the raw materials for any study. Relevant data for the study were collected from both secondary and primary sources. Secondary data were collected from BGMEA, National Encyclopedia of Bangladesh (NEB), Wikipedia, Labor and management in development journal volume 2, number 7 ETC.
Asif Mahmud Onik, Student of University Of Liberal Arts Bangladesh
Two types of primary data were collected in the study-quantitative and qualitative. 1. Quantitative data were gathered from survey and observation of worker active RMG
factories. 2. Qualitative data were collected from interview and projective techniques.
Limitations of the study
During the time of preparing this report I have been faced many problem. These are follows:
The period fixed for preparing the report was hard to meet. As a result, sufficient concentration could not be given which was needed for much better study.
To prepare this report I have faced a lot of problems such as Maintain confidentiality,
Unavailability of related books or document. Cost limitation. Limitation time etc. However, we are the student of mid level of B.B.A, so we have shortage of knowledge to make this report. But we try our best to make the report properly.
Data Collection Study Population: As the 2011 there are about 4.5 million worker work RMG sector. Out of them about 80% women and 20% man employees work this sector. But all garments employees are not satisfied around most of the worker are satisfaction level low. The active worker in readymade garments sector employees’ satisfaction level represent the main study population of our study. Study Area: The RMG factories constituting study population are mostly located around Dhaka and Chittagong. In Dhaka Region, the districts of Dhaka, Narayanganj and Gazipur are the concentration of RMG firms. The following graph prepared according to the address provided in the Directory of RMG sector total employees, and what percent man or woman.
Asif Mahmud Onik, Student of University Of Liberal Arts Bangladesh
(Graph) Total Worker RMG sector Area wise.
Source: Year wise Number of Workers Employed in RMG Sectors (In Million) in Bangladesh, BGMEA/ Employees of Chittagong garment factory returning from lunch Courtesy Siria Lopez.
Sample Size: This study focuses on Dhaka area from high-contact garments industries in Bangladesh. We identified five area in Bangladesh (e.g., Dhaka, Narayanganj, Gazipur, Chittagong, Others/Subtotal Dhaka) and randomly selected some major garments from Dhaka area.
According to the term of References the survey should cover at list 8 garments and like total 0.25% worker active worker RMG sector in Dhaka in operate. There are 1, 20,000 worker work Dhaka RMG sector. Hence the sample size is 120,000 * 0.25% = 300.
As this research will be conducted by survey through interviews; it will not be possible to take a large sample because of limited time, money & man power. So the sample size will be not more than 300 RMG workers.
Area Man worker Women worker Total employees
Dhaka
Narayanganj
Gazipur
Chittagong
Others/Subtotal
Dhaka
1, 20,000
5, 80,000
24, 00,000
4, 50,000
5, 00,000
20% 80%
4.5 million Worker (Posted by Kauser bhuiyan 28 April 2011)
2.04 million Worker
Asif Mahmud Onik, Student of University Of Liberal Arts Bangladesh
Our group focuses 300 employees because:
To contact the whole population would be time consuming: Our group visit garments factory and wish to determine garments employees satisfaction level. A sample researcher using the regular employees and field interviews of professional researcher just focus one or two days finish work clearly and deeply. By using the same staff interviews and working Seven days a week it would taken nearly spend many days to contact all the voting population.
The physical impossible of checking all items in the population: The population of garments employees satisfaction like salary, bonus, security, working hours, Appointment paper, Additional services, health care facility, working environment, technological support or other this situation we make estimated using various technique such as focus all garments employees level, facilities, or other services but this limitation time, garments permeation, employees proper understand and guideline to clearly finish survey paper. And main effect all employees are not interested to faces any interview because some worker not clearly understands what I am saying and why I am use interview.
Allocation of sample and calculations: The samples for the survey were selected using three stages stratified sampling scheme (proportional allocation). In the first stage the sample was selected representation according to the gender decimation RMG in Dhaka. Because Dhaka is Bangladesh hart of the city. This area many garments situation or this area garments worker most of all know this satisfaction level, life style, or other facility. At the time other area employees work garments sector but this people don’t clearly know how to involve mordant area and what are the satisfaction levels, facility or face any effects. Our country some time read any newspaper or TV this time show garments worker violent, company force sexual harassment and properly don’t provide any facility this time only Dhaka area employees are involve many kind of violence, block road and some time create many unpredictable work. But other area likes Chittagong garments area employees are not involve any violence’s.
Survey was conducted over Eight (8) RMG factory and average load was calculated over eight factories and almost eight factory in total average 25% worker meet and told many question.. However the worker satisfaction level, worker list of RMG sector calculated and all calculation were done in accordance with area. Also calculated Worker Salary like bonus, payment, gender decimation. Security like working hours, Appointment paper. Additional services like transportation, house facility, health care services. Working environment like working place, technological support, sufficient light fan ventilators etc. Load of different items as above, were calculated from field survey data, study averaged 300 workers in work garments factory in Dhaka area.
Asif Mahmud Onik, Student of University Of Liberal Arts Bangladesh
Factor Analysis: Factor analysis is best expiations in the context of a sample. Employees’ satisfaction level RMG
sector in Bangladesh. This topic indicates 4 questions include employees’ salary, security,
additional services, working environment. Lets Y1, Y2, Y3 and Y4 represent what is the factor
affecting employees’ satisfaction in RMG sector. Table shown what factor is important and what