The RMG Industry of Bangladesh Has Expanded Dramatically Over the Last Three Decades

7/31/2019 The RMG Industry of Bangladesh Has Expanded Dramatically Over the Last Three Decades

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1.0 INTRODUCTION

1.1 Overview of RMG at Bangladesh

The RMG industry of Bangladesh has expanded dramatically over the last three decades.

Traditionally, the jute industry dominated the industrial sector of the country until the 1970s.Since the early 1980s, the RMG industry has emerged as an important player in the economy

of the country and has gradually replaced the jute industry. The RMG industry is the only

multi-billion-dollar manufacturing and export industry in Bangladesh. Whereas the industry

contributed only 0.001 per cent to the country s total export earnings in 1976, its share

increased to about 85 per cent of those earnings in 2010. Bangladesh exported garments

worth the equivalent of $8.1 billion in 2010, which was about 2.8 per cent of the global total

value ($276 billion) of garment exports. The country s RMG industry grew by more than 15

per cent per annum on average during the last 15 years. The foreign exchange earnings and

employment generation of the RMG sector have been increasing at double-digit rates from

year to year.

1.2 Background of the Study

A report gives practical idea about the subject what they make in the report. As a MBA

student we t hink it s very important for our future practical life. This will help us to

understand the different aspect and which one will be most preferable in future. For the clear

understanding of real HRM practice in wor k life, Human Resource Management helps us a

lot. So, this Term Paper will make a better sense of HRM practice in Corporate World.

1.3 Objectives

The broad objective of this report is to provide an overview of HRM practice of SAASCO

Group. The specific objectives of this report are:

To provide Company overview To provide market overview and analysis To reveal operational, management and HRM planning. Discuss all HRM practice

1.4 Methodology

To prepare this report we have collected data from different published materials. Then we

have conducted a secondary study. After that we took interview one of the executive serving

in this Company. We also collect data from internet .This way we collected primary data.

Thus we have used both primary and secondary report to prepare this report.


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1.5 Limitations of the Study

There are some limitations of this study. Which are given below:

The time frame is short.

The primary data is not available. Most of the information s are not adequate. Missing of some key information.

2.0 COMPANY OVERVIEW

2.1 About the Company

SAASCO is 100% export oriented Garments Industry in the private sector. It s c arrying out

import, manufacturing & export of garments since 1995. Group office is situated at Dhaka the

capital city of Bangladesh. SAASCO GROUP was founded by Sk. Atiar Rahman Dipu.

Today it is an umbrella company under the ownership and management of Sk. Atiar Rahman

Dipu and beneath there are Conglomeration of 10 different companies. The main concerns of

the company are all textiles related, Garments manufacturing and exporting but some of the

other companies play a vital role supporting these. For example, the company has an

Accessories & printing Division, producing much of the packaging needed for export and a

printing press for clothing labels.

2.2 Product Capacity

They manufacture a wide range of products including all types of woven, knit, top & Bottom.

2.2.1 Woven Products

Men s & Boy s products: Shirts, shorts, pants. Bermudas, Cargo pants. Wind breakers & over

alls. Ladies & Girls: Tops, Blouse, Dresses pants, Sorts, Fleece Sets and Overall outwear

Jackets, Rainwear etc.

2.2.2 Knit Products

Men s, Boy s, Ladies & Girl s: Knit Tops, Polos, Golf Shirts, Henly Tops, Sweat Shirt, JogSuites, Sports Wear in Jersey, Interlock, Pique, Yarn dyes, Fleece, Flat back ribs and in many

Structured Knit fabrics.

Production Capacity

ITEMS CAPACITY

Woven Top 300,000/mth

Woven Bottom 450,000/mth

Knit 0.50 million/mth


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3.0 HRM PRACTICE

3.1 Human Resource Planning

SASSCO has a Human Resource Department. SAASCO is one of the biggest employers

in Bangladesh. The total number of employees is 1,223. For the employees, there aresystematic in house training in home. To motivate the employees, along with salary

and benefi ts the company provides various faci l i t ies l ike free snacks , f ree

transportation , 24 hour medical center , on site sports . They also provide full time

supply of safe drinking water, adequate lighting and ventilation facilities from sheet.

3.2 HR Practices of SAASCO

Recruitment

Training Performance Management Employee relation Job analysis

Job design

Selection Development Incentives Benefits

3.2.1 Recruitment Process in SAASCO

Recruitment is the process through which the organization seeks applicants for potential

employment. The strategy a company is pursuing will have a direct impact on

the type of employees that it seeks to recruit.

3.2.1.1 Source of Recruitment

There are two kinds of source SAASCO uses for recruitment.

External source Internal source.

3.2.1.1.1 Internal Source

SAASCO thinks that current employees are a major source of recruits for all but entry-

level po sit ions. Whether fo r promo tion s or fo r Lateral job transfers, internal

candidates already know the informal organization and have detailed information about its

formal policies and procedure. Promotions and transfer are typically decided by HR

department.

3.2.1.1.1.1Job-posting programs

HR Departments become involved when internal job openings are publicized to employees

through job positioning programs, which informs employees abo ut openi ng and req uired

qualifications and invite qualify employees to apply. The notices usually are


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posted on company bulletin boards or are placed in the company newspaper.

Qual if icat ion and other facts typically are drawn from the job analysis information.

3.2.1.1.2. External Source

When job opening cannot be filled internally, the HRD of SAASC look outside theorganization for applicants.

3.2.1.1.2.1 Walk-ins and Write-ins

Walk-ins are some seekers who arrived at the HR department of SAASCO in search of a job;

Write-ins are those who send a written enquire .both groups normally are ask to

complete and appl icati on blank to dete rmine their interest and abilities.

3.2.1.1.2.2 Employee referrals

Employees may refer job seekers to the HR department. Employees referrals are

excellent and legal recruitment technique, but SAASCO tend to maintain the

status quo of the work force in term of raise, religions, sex and other

characteristics, possibly leading to charges of discrimination.

3.2.1.1.2.3 Advertising

Want ads describe the job and the benefits, identify the employer, and tell those who are

interested how to apply .They are most familiar form of employment advertising .for

highly specialist requites, ads may be placed in professional journal or out of town newspaper

in areas with high concentration of the desired skills.

3.2.1.1.2.4 Internet

Now today nobody thinks anything without internet. So SAASCO give their advertisement at

internet.

www.bdjobs.com

www.saascogroup.com

3.2.2 Training Program of SAASCO

Training is a process of learning a sequence of programmed behavior. It is an 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.

There are many types of method practices in SASSCO.

3.2.2.1 On the Job Training

On the job training is a training that shows the employee how to perform the job and allows

him or her to do it under the trainer s supervision . On the job training is normally given by a
http://www.bdjobs.com/http://www.bdjobs.com/http://www.bdjobs.com/


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senior employee or a manager like senior merchandiser or a manager. The employee is shown

how to perform th e job and allowed to do it under the trainer s supervision.

3.2.2.2 Job Rotation

In job rotation, individuals learn several different jobs within a work unit or department. Onemain advantages of job rotation is that it makes flexibilities possible in the department. When

one employee likes junior merchandiser absence another merchandiser can easily perform the

job.

3.2.2.3 Apprenticeship training

Apprenticeship training provides beginning worker with comprehensive training in the

practical and theoretical expect of work required in a highly skilled occupation.

Apprenticeship program combined of the job and classroom training to prepare worker for

more than eight hundred occupation such as computer operator, sewing technician.

Length of selected apprenticeship courses of SAASCO

Occupation Length (months)

1. Quality control manager 13

2. Quality control officer 15

3. Cutting Astt. Manager 7

4. Packing Astt. Manager 7

5. Ware house Astt. Manager 5

6. Production officer 3

7. Sewing technician 5

8. Sewing Supervisor 5

3.2.2.4Classroom training

Classroom training is conducted off the job and probably the most familiar training method

.It is an effective means of imparting information quickly to large groups with limited or no

knowledge of subject being presented. It is useful for teaching factual material, concepts

principle other theories, portion of orientation programs, some expects of apprenticeship

training and safety programs are usually presented utilizing some form of classroom

instruction. More frequently however, classroom instruction is used for technical,

professional and managerial employee

3.2.2.4 Steps in the Evaluation of training and development

Evaluation criteria Pretest Trained or developed-workers

Posttest Transfer to the jobFollow-up studies.


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3.2.5 Job Analysis Job analysis is the procedure for determining the duties and skill requirement of a job and the

kind of person who should be hired for it .The supervisor or HR specialist of SAASCO

normally collects one of the following types of information:

3.2.5.1 Work Activities

First he or she collects information about the job actual work activities such as marketing,

sewing, production. This list also include how, why and when the worker performance each

activity.

3.2.5.2 Education and Qualification

Collect information about educational background and qualification.

3.2.5.3 Experience

Experience must be needed for any job in SAASCO.

3.2.6 Job Design

Job design is the process of structuring work and designating the specific work activates of an

individual or group of individuals to achieve certain organizational objectives. SAASCO

makes their job design into three phases

The specification of individual task. The specification of the method of performing each task

The combination of individual tasks into specific job to be assign to individual

3.2.7 Selection

Selec t ion r e fe r s to the p rocess by which i t a t t empts to iden t i fy app l i can t s

w i t h t h e n e c e s sa r y k n o w l e d g e , sk i l l s , a b i l i t i e s a n d o t h e r c h a r a c t e r i s t i c s

that wil l hel p the compan y ach ieve its goals, companies engaging in different strategies

need different types and numb ers of employee .

3.2.7.1 Selection Process at SAASCO

Employee Selection Process Worker Selection Process Initial Screening

Completed Application

Employment Test

Permanent Job Offer

Comprehensive Interview

Initial Screening

Comprehensive Interview

Conditional Job Offer

Permanent Job Offer


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3.2.10 Benefits

Employees benefits are usually inherent components of the non-compensation system are

made available to employees. These benefits are components that contribute to the welfare of

the employee by filling some kind of demand. Social Security Workers Compensation Family & Medical Leave Old age, Survivor, Disability Insurance requirements for getting compensation Discretionary benefits

3.2.10.1 Pay for time not worked

Holidays Vacations Funeral leave Marriage leave Sick leave Stress leave

Blood donation or welfare work Personal leave Sabbatical leave/ For Muslims,

leave after death

Other religious leaves such as

pilgrimage or preaching

4.0 SOWT ANALYSIS4.1 Strength

An abundant supply of the required semi-skilled labor force. An active and learning HRD Considerable HRM and employee acceptance in its HR practice.

4.2 Weakness

Discrepancy between top management and worker.

HR practice is limited for worker rather than employee.. The labor force lacks the skills to permit large scale improvements in quality and

efficiency.

4.3 Opportunities

Employee and worker are convincible. New training and development policies are available to practice Skilled labor market are increasing


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4.4 Threats

Increased competition for hiring skilled employees and workers. Political Instability

Labor unrest5.0 FINDINGS, RECOMMENDATION & CONCLUSION

5.1 Findings

SAASCO put more emphasis on internal search rather than external in recruitment

process.

It practices On-the-job training rather than Off-the-job training. The application of performance management is little bit lower than the Standard.

Although there is big gap between the top-management and the low level workers,there exists a well relationship among the mid level management, supervisor and low

level workers.

SAASCO creates a nice motivational environment for employees and workers.

5.2 Recommendation

From our above analysis we have found that the HRM condition and SWOT of the company

are favorable to it. So, we can expect that HRM practice will go up. So our recommendation

is to hold up the current practice as well as increase the diverse area of HRM, such as SAASCO must focus on the disadvantage of internal search of recruiting and try to

balance in various recruiting sources so that it improves its work diversifying.

It should minimize the gap among the top management, middle management & lower

workforce.

Must emphasis on improving the performance management system.

5.3 Conclusion

Any flourishing industry requires combined efforts and co-operation from every area,basically HRM of any company. Though SAASCO is a newly Ventured Company in the

respective sector, its growth and expansion is praiseworthy. It is trying to develop every

functions of HRM day by day. If it can up hold its much toward advancement, it will be able

to set a role model of HR practices in our country.


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APPENDIX

Client Country Product

At Last Sportswear Inc. USA Ladies Tops

Bealls Outlet Stores Inc USA Ladies Tops & Bottoms

Copy Cats Industries Inc USA Ladies Tops

JD Williams & Company Ltd UK Men s Shirt

Peacock s Stores Ltd UK Men s & Boys Shirt

G. Gulldenpfenning GmbH

(ALDI)

Germany Men s Shirt

Bernardi (Go Kids) Italy Men s & Boys Top &

Bottom

FEGI Manifatture

( WAMPUM)

Italy Men s Bottom

Frabo SRL Italy Men s Bottom

Basic Lines Mexico Men s Top & Bottom

Alfa Sports Mexico Men s Top

TEXLINE Associates Pte

Ltd.

Singapore Men s & Ladies Tops


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The RMG Industry of Bangladesh Has Expanded Dramatically Over the Last Three Decades

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