Hr_Practise_in_Square_Textiles_Ltd

A special debt is due to our respected Faculty and Course instructor Dr. Shibly Noman Khan for providing us valuable guidance and suggesting us about accumulating the preparation of this report. We would like to thank him for assigning us an exclusive topic that has helped us to develop our knowledge in a truly unique way. Moreover we have been benefited from many newspapers and internet in the evolution of this report. Our honorable instructor supplied insightful comments, helpful suggestions, and contributions all of which have progressively enhanced this report. Square Textile Ltd. started its operation in 1997. It was enlisted in Dhaka Stock Exchange & Chittagong Stock Exchange in 2002. The business lines of Square Textile Ltd. are manufacturing and marketing of yarn. Its factory is located in Gazipur , Dhaka. The manufactures 100% Cotton Ring Span Yarn or Hosiery, 100% Cotton OE Rotor For Hosiery and Knit Fabrics for 100% export oriented readymade Garments Industry. The strategic Goals and Objectives of the Company are to strive hard to optimize profit though conduction and transparent business operations and to create more competitive in the internal and external market. In home, customers of Square Textile Limited are export oriented readymade Garments Industry. The Company also exports its products to the market of Europe & USA. The export sells increased by 19% in 2003 over the previous year. Competition level is increasing both in local and abroad market. Competition will be stiffer after 2005 when multitier agreement will be placed out. Among the other foreign competitors Srilanka, China, Pakistan and India are prominent. Square is one of the biggest employees in Bangladesh. It has a personnel and administrative department. The total numbers of employees are 1223. For the employees there are systematic in house training in home and abroad. The managing director, the CEO is the head of the executive management team. Below in there are directors, executive directors and general manager. Under the direct super vision of the general manager a number of departments are controlled. The Company is going through continuous growth in production. The total production increased year on year basis at the rates of 0.43% and 1.467% during 2002 and 2003 respectively. The Company’s operations are out on a aggregate basis and are managed as a single opportunity segment. The Company uses Computer Aided Design (CAD), Computer Aides Spreading (CAS) and Computer Aided Manufacturing (CAM) in its plant to increase the overall efficiency and productivity. INTRODUCTION This report is prepared as a requirement of the course “Seminar in Human Resource Management.” We selected Square Textiles Ltd. Working on this organization we came to know various Kind of HRM practice which are use here. Though it is a textile, it has proved itself in the related industry as a major competitor. In this report we have followed the guidelines provided by the teacher. Here we have tasked not only the HRM practice but also the marketing, management, finance and operational area of the Company. COMPANY OVERVIEW Square Textiles Ltd. started its journey by establishing the first unit in 1997. One year later the second unit was established. Square Textile is a subsidiary company of Square Group .The Company was incorporated as a public limited company in the year of 1994. The operation was started in 1997.It was enlisted in Dhaka Stock Exchange & Chittagong Stock Exchange in 2002. Within a very short time of span the company achieved some significance success. Square Textile receives Oeko-Tex standard 100 and ISO-9002 certificates in the year 2000. Authorized capital of the company is tk. 1000 million. It’s paid- up capital is tk. 251.90 million. 1,223 employees are working in this organization. The business lines of Square Textiles Limited are manufacturing and marketing of yarn. The factory is located in Saradaganj, Kashimpur and Gazipur Bangladesh. Its office is located at Uttara in Dhaka. KEY PRODUCT LINE As stated earlier the business line of the company is manufacturing and marketing of yarn. It manufactures: 100% Cotton Ring Span Yarn For Hosiery 100% Cotton OE Rotor Yarn for Hosiery Knit Fabrics for 100% export oriented readymade Garments Industry. It also performs the following services: Dying and Post Mercerization Fabric Dying The final output is marketwise by Square Fashion Ltd. In Square Textile Limited two types of products are produced in two different units. These are as follows: UNIT 1: Combed and Carded Yarn from a count range of Ne.10 to Ne.80. UNIT 2: Combed Ring Yarn from a count range of Ne.20 to Ne.40. In Square Spinning Ltd. 100% Cotton Carded and Combed Yarn in the count range of Ne.16 to Ne.30 are produces. Finally in Square Fashion’s Ltd. Readymade Knit Apparels like T-shirts, Polo shirts, Tank tops, Pajamas, Sport wear, Under garments, Men’s & Ladies fashion wear , Kids wear etc. MANAGEMENT ORGANOGRAM HUMAN RESOURCE MANAGEMENT HUMAN RESOURCE PLANNING Square has a personal and administrative Department. Square is one of the biggest employers in Bangladesh. The total number of employers in Bangladesh. The total number of employees is 1,223. For the employees there are systematic in house training in home and abroad. To motivate the employees, along with salary and benefits the company provides various facilities like free meals , free transportation , 24 hour medical center , on site sports . Production and accommodation facilities include full time supply of safe drinking water, adequate lighting and ventilation facilities from sheet. HR PRACTISE of SQUARE TEXTILES Recruitment Training Performance Management Labor relation Employee relation Job analysis Job design Selection Development Incentives Benefits RECRUITMENT AND SELECTION PROCESS of SQUARE Recruitment is the process through which the organization seeks applicants for potential employment. Selection refers to the process by which it attempts to identify applicants with the necessary knowledge, skills, abilities and other characteristics that will help the company achieve its goals, companies engaging in different strategies need different types and numbers of employees. The strategy a company is pursuing will have a direct impact on the types of employees that it seeks to recruit and selection. SOURCE OF RECRUITMENT There are two kinds of source SQUARE uses for recruitment .They are:  Internal Source  External Source We try to discuss all relative sources which are used for recruitment in SQUARE. INTERNAL SOURCE SQUARE thinks that current employees are a major source of recruits for all but entry-level positions. Whether for promotions or for ‘Lateral’ job transfers, internal candidates already know the informal organization and have detailed information about its formal policies and procedures. Promotions and transfer are typically decided by operating managers with little involvement by HR department. Job-posting programs HR departments become involved when internal job openings are publicized to employees through job positioning programs, which informs employees about opening and required qualifications and invite qualify employees to apply. The notices usually are posted on company bulletin boards or are placed in the company newspaper. Qualification and other facts typically are drawn from the job analysis information. The purpose of job posting is to encourage employees to seek promotion and transfers the help the HR department fill internal opening and meet employee’s personal objectives. Not all jobs openings are posted .Besides entry level positions, senior management and top stuff positions may be filled by merit or with external recruiting. Job posting is most common for lower level clerical, technical and supervisory positions. Departing Employees An often overlooked source of recruiters consists of departing employees. Many employees leave because they can no longer work the traditional 40 hours work week .School, child care needs and other commitments are the common reason. Some might gladly stay if they could rearrange their hours of work or their responsibilities .Instead, they quit when a transfer to a part-time job may retain their valuable skill and training. Even if part-time work is not a solution, a temporary leave of absence may satisfy the employee and some future recruiting need of the employer. EXTERNA SOURCE When job opening cannot be filled internally, the HR department of SQUARE must look outside the organization for applicants. We discuss all the external source of recruitment at bellow: Walk-ins and Write-ins: Walk-ins are some seekers who arrived at the HR department of SQUARE in search of a job; Write-ins are those who send a written enquire .both groups normally are ask to complete and application blank to determine their interest and abilities. Usable application is kept in an active file until a suitable opening occurs or until an application is too old to be considered valid, usually six months. Employee referrals: Employees may refer job seekers to the HR department .Employee referrals have several advantages .Employees with hard –to –find job skill may no others who do the same work. Employees referrals are excellent and legal recruitment technique, but they tend to maintain the status quo of the work force in term of raise , religions , sex and other characteristics , possibly leading to charges of discrimination. Advertising Want ads describe the job and the benefits, identify the employer, and tell those who are interested how to apply .They are most familiar form of employment advertising .for highly specialist requites, ads may be placed in professional journal or out of town newspaper in areas with high concentration of the desired skills. Internet Now today nobody thinks anything without internet. So SQUARE give their advertise at internet. Example: WWW.bdjobs.com www.square.bd.com TRANING AND DEVELOPMENT PROGRAM of SQUARE TEXTILES Training is a process of learning a sequence of programmed behavior. it is application of knowledge. It gives people an awareness of the rules procedures to guide their behavior. It attempts to improve their performance on the current job or prepare them for an intended job. Development is a related process. It covers not only those activities which improve job performance but also those which bring growth of the personality; help individuals to the progress towards maturity and actualization of their potential capacities so that they become not only good employees but better men and women. There are many types of method practices in SQUARE. Those methods are given below: On the job training On the job training is a training that shows the employee how to perform the job and allows him or her to do it under the trainer’s supervision.On the job training is normally given by a senior employee or a manager like senior merchandiser or a manager. The employee is shown how to perform the job and allowed to do it under the trainer’s supervision. Job rotation Job rotation is a training that requires an individual to learn several different some in a work unit or department and performer each job for a specified time period. In job rotation, individuals learn several different jobs within a work unit or department. One main advantages of job rotation is that it makes flexibilities possible in the department. When one employee like junior merchandiser absence another merchandiser can easily perform the job. Apprenticeship training 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 SQUARE Occupation Length (months) 1. Quality control manager 13 2. Quality control officer 15 3. Cutting Astt. Manager 7 4. Packing Astt. Manager 7 5. Ware house Astt. Manager 5 6. Production officer 3 7. Sewing technician 5 8. Sewing Supervisor 5 Classroom training Classroom training is conducted off the job and probably the most familiar training method .It is an effective means of imparting information quickly to large groups with limited or no knowledge of subject being presented. It is useful for teaching factual material, concepts principle other theories .portion of orientation programs, some expects of apprenticeship training and safety programs are usually presented utilizing some form of classroom instruction. More frequently however, classroom instruction is used for technical, professional and managerial employee. Development of the human resources The long term development of human resources as distinct from training for a specific job is of growing concern to HR departments of SQUARE .Throw the development of current employees the department reduces the company’s dependents on hiring new workers .if employees are developed properly the job openings found throw HR planning are more likely to be filled internally promotions and transfers also show employees that they have a career not just a job. The employee benefits from increased continuity in operations and from employees who fail a greater commitment. HR department is also an effective way to meets several challenges including employee obsolescence, international and domestic diversity, technical challenges. Affirmative action and employee turnover. By meeting these challenges the department can, maintain an effective workforce. Steps in the Evaluation of Training and Development Evaluation criteria > pretest > trained or developed- workers > posttest > transfer to the job > follow-up studies. PERFORMANCE MANAGEMENT Performance appraisal is the process of assessing employee’s past performance, primarily for reward, promotion and staff development purposes. ‘Performance appraisal (is) a process that identifies, evaluates and develops employee performance to meet employee and organizational goals. Performance Appraisal doesn’t necessarily use to blame or to provide a disciplinary action. Previous management theories used to view performance appraisal as a stick that management has introduced to beat people. Performance appraisals are now more clarified and they concentrate on developing organizational strengths and employee performance. PURPOSE of PERFORMANCE APPRAISAL in SQUARE To review past performance To assess training needs To help develop individuals To audit the skills within an organization To set targets for future performance To identify potential for promotion To provide legal & formal justification for employment decision To diagnose the hidden problems of an organization PERFORMANCE APPRAISAL PROCESS Who Appraises Supervisors Subordinates Peers Clients/customers Self appraisal 180/360 degree approach APPROACHES to MEASURINR PERFORMANCE in SQUARE TEXTILE There is various kind of method for measuring performance appraisal. But we get information that SQUARE uses only three type of performance method. These are at below: 1. 360- degree feedback 2. Experience based. We describe those at below: 360-degree feedback One currently popular methods of performance appraisal is called 360-degree feedback. With this method managers peers, suppliers or colleagues are ask to complete questionnaire. The questionnaire is generally lengthy. Experience based SQUARE measure the performance of employee by experience. For example MR. X has been working in SQUARE for three years and MR. Y has been working in SQUARE for two years. So SQUARE favor MR. X for his more experience. Employers and employees each have their own sets of needs and values, and successful relationship between these two sides requires that some sort of balance be struck. This balance often takes the form of a psychological contract, an understood agreement between employer and employees that defines the work relationship. This contract with or without support of a formal collective bargaining, agreement influence the outcome achieve by each side. SQUARE group the various into three channel categories those are 1. Employee safety 2. Employee health 3. Employee working condition 1. Employee safety SQUARE provide the employee safety .It ensure the all kinds of job safety such as insurance of each employee not this it provide insurance to the labor. 2. Employee health Free medical checkup, provide health care and also provide necessary medical facilities for each employee. 3. Employee working condition The working condition of employee is very hygienic.SQUARE is ISO 9001-2000 Certified company 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 SQUARE normally collects one of the following types of information: 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. Education and qualification Collects the information about education background and qualification. Experience Experience must be needed for any job in SQUARE. SAMPLE of JOB ANALYSIS of SQUARE: Quality control manager Qualification Master in any subject Bachelor/diploma in textile and clothing or related discipline will be given preference Must have at least 7 years practical experience in similar position in any garments factory. Cutting Astt. Manager (cum in-charge) Qualification Masters/ bachelor in any subject preferably commerce. Bachelor/diploma in textile and clothing or related discipline will be given preference Must have at least 7 years practical experience in similar position in any garments factory. Ware house Astt. Manger Qualification Masters/ bachelor in any subject preferably commerce. Bachelor/diploma in textile and clothing or related discipline will be given preference Must have at least 5 years practical experience in similar position in any garments factory Production Officer (Sewing) Qualification Graduate /HSC Must have at least 3 years practical experience in similar position in knit garments. Sewing Technician Qualification Graduate /HSC Must have at least 5 years practical experience in similar position in knit garments. Experience and skill for all above jobs: Candidate must have experience to work with world reputed buyers Good writing and communication both in Bengali and English Should be capable of making QA reports on daily basis Computer literacy in MS world , Excel , e-mail etc. 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. The job design can generally be divided into three phases: 1. The specification of individual task. 2. The specification of the method of performing each task 3. The combination of individual tasks into specific job to be assign to individual Organizational considerations for job design Effectiveness In the context of job design, to remain effective, organizations may have to redefine jobs, monitoring, and using technology so that the firm can even compete against giant rivals. Efficiency Maximum outputs through minimum inputs of time, effort and other resources. In the context of job design, efficiency in time, effort, labor costs, and training should be done accordingly. Technological Considerations Task Interdependence The dependence of one task from another is task dependence. In this context, the task interdependence can be high or low depending on the product or service. Technical constraints Scarcities of machines are constraints, which in turn leads to the increase and decrease of production. Ergonomic constraints Greek word where Ergo = Work & Nomos = Laws, i.e Laws of work. Optimal productivity requires a relationship between the worker and the work, thus designing a job needs this consideration. Employee considerations Skill variety Variety refers to the use of different skills and talents to complete an array of work tasks and activities. Autonomy Autonomy refers to the freedom and independence to plan and schedule the work and determine the procedures used to carry it out. Task identity Task identity means doing something from beginning to end rather than just part of it. Task significance It is the degree to which a job has substantial impact on an organization. Feedback Feedback is the degree to which employees can tell how well they are doing based on information from the job. Environmental considerations Social expectations In designing jobs, the surrounding social expectations must be considered to avoid possible worker dissatisfaction. Workforce availability Job requirements should be balanced against the availability of the people who are required to do the work. Work practices Work practices are set methods of performing work. These methods may arise from tradition or the collective wishes of employees. INCENTIVES of SQUARE TEXTILES Compensation fluctuates according to-  A pre-established formula  Individual or group goals because group goals are different from individual goals  Company earnings Incentives add to base pay to motivate employees.It controls costs because the employee is being paid for his/her extra effort and for the benefits brought to the organization. INCENTIVES PAY CATEGORIES Individual Group Company-wide Individual incentive plans Quantity of work output (How many units produced) Quality of work output (What was the quality of the product or service being produced or served) Monthly sales (How much sales was generated) Work safety record (How many hazard or errors are being reduced. Individual Incentive Plans (Piecework plans) Awards based on individual production vs. company standards Awards based on individual performance standards using objective & subjective criteria Quantity and / or quality goals Advantages and disadvantages of Individual Incentive Plan Advantages  Helps relate pay to performance  Promotes equitable distribution of compensation  Helps retain best performers  Compatible with individualistic cultures and societies Disadvantages  May promote inflexibility  Unrealistic standards may hamper employee motivation  Setting performance standards is time consuming  Factors beyond employee’s control may affect outcomes  Factors not rewarded may be overlooked Group Incentive Group incentive plans Customer satisfaction Labor cost savings Materials cost savings Reduction in accidents Services cost savings Group Incentive Plans  Rewards employees for their collective performance  Group incentive use has increased in industry 2 types Team - based or small group and Gain sharing Company-Wide Performance Measures Company-wide incentive plans Company profits Cost containment/prevention Market share Sales revenue Company-Wide Incentive Plans  Rewards employees when company meets performance standards  2 Types – Profit sharing plans – Employee stock option plans Legally required Benefits of SQUARE Social Security Social security benefits include the general benefits like unemployment insurance & benefits, old age insurance, and Medicare facilities. Workers’ Compensation Worker’s compensation includes the compensation when an employee becomes injured or disable due to extreme working conditions or while working at the job site. Family & Medical Leave Family leave includes the compensation continuation during the family leave such as maternity or paternity leave and other family leave. Old age, Survivor, Disability Insurance requirements for getting compensation: – Earn 40 quarters of credit, or – Be employed for 10 years – Be age 62 for partial benefits – Be age 65 for full benefits – Now the age has been extended to age 67 because more and more workers are retiring late. – Widow aged 60 + Medicare Depends on the country’s policy, medicare facilities are generally government services to citizens. Organizations add some value to medicare facilities. In some countries medicare is financed together by employees’ tax, employers and the government. Provided insurance coverage for -Hospitalization -Covers inpatient & outpatient hospital care & services. – Major Doctor bills – Charges of visiting a doctor or specialist. – Prescription drug costs. – Provides unlimited in-home care in certain situations. Workers’ Compensation  Workers’ compensation is a legally required benefit is included in the compulsory disability laws of many countries. Mostly, employer is seen liable regardless of the fault.  Objectives of Workers’ compensation: – Provide income & medical benefits – Reduce litigation – Eliminate legal fees & time – Encourage employer safety – Promote accident study & avoidance  Workers’ compensation claims – Injury – Occupational disease – Death  Workers’ compensation benefits – Medical services – Disability income – Death benefits Discretionary Benefits Discretionary benefits are judgment based benefits that the organization provides to its employees. These benefits are not legally required benefits but enhance organizational culture and corporate image. Benefits include: Protection programs Pay for time not worked Other services Pay for time not worked Holidays Vacations Funeral leave Marriage leave Sick leave Stress leave Blood donation or welfare work Personal leave Sabbatical leave/ For Muslims, leave after death Other religious leaves such as pilgrimage or preaching FINDINGS AND RECOMMEDATIONS Findings: Textile industry is a comparatively new in our country. The size of the industry is still growing. Square Textiles Limited is one of the first movers in this sector. Starting only in 1997, it has managed to be grown up as one of the country’s leading Textile Company. Its increase turnover has been significantly increasing, since 1997-2007. It is providing employment to a large number of skilled and unskilled people all over the country. The Company contributed an amount of taka 37.892 million to the national exchequer in different forms like Cooperate Income Tax, Advance Income Tax, Excise, Vat, Import Duties, Taxes, Government Taxes , Stamp Duties, License Fees etc. The Company contributed substantially to the Foreign Exchange Reserve of the country through its export marketing operation. In 2007its net export earning was taka 1021.368 million. Recommendations: From the analysis with the organization structure we have seen that its span of super vision is too large. A number of departments report directly to the general manager. If the number were less the efficiency and productivity of the organization might be increased. Quality control department should remain prompt always. So that it can maintain a certain level of standard as per the market demand to capture the foreign market share it should strive more. CONCLUSION The flourishment of any industry requires combined efforts and co-operation from several parties. Social, political and macroeconomic environment play pivotal role in this regard. Though Square Textile is a newly Ventured Company in the respective sector, its growth and expansion is praiseworthy. It’s contributing the country and serving the nation in different ways. If it can up hold it’s much toward advancement, it will be able to set a role model in our country.